





WAR TRADE BOARD 

VANCE C. Mccormick, chairman 



HISTORY OF PRICES DURINQ THE WAR 

WESLEY C. MITCHELL, Editor in Chief 



GOVERNMENT 
CONTROL OVER PRICES 



PAUL WILLARD GARRETT 

assisted! by 

ISADOR LUBIN and STELLA STEWART 




Published by the War Trade Board in 
Cooperatioa with the T*^ar Industries Board 



WASHINGTON 

GOVERNMENT PRINTING OFFICE 

1920 



-^•^ 



^'^A 









r-I?! 



iV, 









WAR TRADE BOARD 

VANCE C. Mccormick, chairman 



HISTORY OF PRICES DURING THE WAR 

WESLEY C. MITCHELL, Editor in Chief 



GOVERNMENT 
CONTROL OVER PRICES 



By 
PAUL WILLARD GARRETT 

assisted by 

fSADOR LUBIN and STELLA STEWART 




PubHshed by the War Trade Board in * 
Cooperation with the War Industries Board 



WASHINGTON 
GOVERNMENT PRINTING OFFICE 

1920 



n~ 9t D. 

APR !3 1920 






h I 



CONTENTS. 



Introduction. 



21 



Book I. 



if-/ 



GOVERNMENT CONTROL OVER PRICES. 

Part I.— The problems that led the Government Into price control 23 

1. The rise in prices before the Government interfered 23 

(1) The movement of prices from 1890 to the European war 24 

(2) The war-time prices to April 6, 1917 25 

(3) The final upward swing which provoked Government con- 

trol 29 

2. The conditions that threatened further rises 29 

(1) The European demands upon American production 30 

(2) The breakdown in coal distribution 32 

(8) The shortage of ships 33 

8. The desire of the Government to make its own purchases at reason- 
able costs 35 

4. The growing discontent with the rising prices of staples 35 

5. The influence of British and French controls 35 

Part II. — The administration of price controls during the war 37 

1. The agencies delegated and the controls which they exercised 37 

(1) The President made a minister of price controls 38 

2. The Food Administration 40 

(1) The food-control act 42 

The purposes of the act 42 

The license system 43 

The teeth of the statute 45 

The fixing of a minimum price for wheat 45 

(2) The policies of the Food Administrator 46 

No fixed prices established 48 

The " reasonable-margin-of-profit " rule 49 

The cost basis 51 

Fixing maximum wholesale and retail margins 52 

Disregard of replacement value 54 

Agreements with the trade 55 

Campaigns of education for consumers 56 

(3) The administration of food control 57 

The license system as the basis of control 57 

Wheat, flour, and bread 59 

The demands of Europe., . 59 

The necessity for an increased world production. 60 

A minimum price for wheat fixed by statute 61 

The relation of the minimum price to the market 

price ^__ 62 

The enforcement of the wheat price 64 

The licensing of millers and elevators 66 

The 1919 guaranteed price 67 

3 



\^ 



^ CONTEIiTTS. 

Part II.— The administration of price controls during the war— Contd. 
2. The Food Administration — Continued. 

(3) The administration of food control— Continued. 

Wheat flour and bread — Continued. Page. 

Producers generally satisfied 67 

Stability of the wheat price a reality 68 

Close relation of flour and wheat 6S 

Control exercised over flour 69 

Control of flour in 1918 70 

Conservation measures 71 

Results of flour control 72 

Exercising bread control 72 

Results of bread control 73 

Summary 74 

Sugar 7S 

The beet-sugar control 79 

Control over the cane-sugar supply 80 

The distribution of refined sugar 81 

The Sugar Equalization Board 82 

The limitation of sugar consumption____, 84 

Sugar bj'-products .___ go 

The results of sugar control 86 

Live stock and meats §7 

The stimulation of meat production 88 

Hog production ^ 89 

Beef production 93 

The licensing of the meat industry 95, 

Licensees with annual sales exceeding $100,000,000- 96 
Licensees with annual sales of less than $100,- 

000,000 97 

The administration of the license system over 



meat- 



97 



The results of meat control 99 

Poultry and dairy products -^o^ 

Poultry -^Q^ 



Eggs 



SgH 202 



Butter. 
Cheese. 
Milk 



103 
105 
105 



'Oleomargarine ^qq 

Cotton seed and cottonseed products no 

The early-price situation no 

The licensing of the industry no 

Control over the 1918 crop 112 

The post-armistice situation 112 

The effects of control n4 

Canned and dried foods ns 

Vegetables ^5 

Canned fish 217 

Dried fruits 219 

The results of control _ 220 

Rice and rice flour 120 

Control over the industry X21 

The price agreement of the summer of 1918 121 



CONTENTS. 

PART II.— The "administration of price controls during the war— Contd. 
2. The Food Administration— Continued. 

(3) The administration of food control — Continued. Page. 

Coarse grains and feedstuffs 123 

Hum'an foods 123 

The creation of the Grain Division 124 

The hmitation of coarse grain millers' prices 126 

Feeding stufEs 127 

Feeds other than coarse grains and their products- 127 



Coffee 



128 



Governmental interference 128 

The closing of the coffee exchange 130 

Collateral commodities 130 

Ammonia 13*^ 

Ice 131 

Arsenic : 132 

Unlicensed control over commodities at retail 13-4 

Indirect control through licensees 135 

The organization of the retail trade 136 

The consumers' reports 137 

The " fair-price " lists 137 

A comparison of retail prices 140 

Retail prices in the United States and Canada — 144 

Enforcement of the license control 145 

The Enforcement Division 145 

The licensee reports 146 

The inspection work 147 

The Federal food administration in the States_I__ 147 

The emphasis upon publicity 148 

The centralization of Government and allied food 

pvirchases 148 

Division of coordination of purchase — 149 

Food Purchase Board 150 

3. The Fuel Administration 151 

(1) The war-time rise in coal prices 151 

(2) The coal-production' committee 154 

The 1,700,000-ton Navy order 155 

The Peabody-Lane prices 155 

Their repudiation by Secretary Baker 158 

(3) The food and fuel act 160 

The power to fix coal and coke prices 160 

Enforcement provisions 161 

•(4) The kinds of fuel control 161 

Organization 162 

Control over distribution 162 

Control over production 163 

Control over conservation . 165 

(5) The control over coal prices IGo 

Price fixing of bituminous coal at the mine 166 

Prices fixed by the President Aug. 21, 1917 166 

Modifications made by the Fuel Administrutor__ 167 

A comparison of prewar and fixed prices 169 



6 CONTENTS. 

Part II. — The administration of price controls during the war — Contd. 

3. The Fuel Administration — Continued. 

(5) The control over coal prices — ^Continued. Page. 

Price fixing of anthracite coal at the mine 172 

Prices fixed by the President 173 

Modifications made by the Fuel Administrator— 174 

A comparison of prewar and fixed prices 175 

Control over the prices of coal middlemen 177 

Jobbers' margins 177 

Distributors' margins -> 178 

Control over coal at retail 178 

Special prices, premiums, and charges — - 179 

Costs made the basis of price-fixing 179 

Bituminous costs 182 

Anthracite costs 184 

(6) The control over coke . 188 

(7) The control over charcoal 190 

(8) The control over fuel wood 190 

(9) The control over petroleum 191 

The early war situation 191 

,. The regulation of prices 191 

The licensing of the petroleum industry 193 

The gasoline emergency 194 

Control and its effect upon prices 194 

4. The War Industries Board 195 

(1) The development of a control over war industries 195 

The early work of the Council of National Defense— 196 

The General Munitions Board 197 

The Committee on Supplies 200 

The Committee on Raw Materials, Minerals, and 

Metals 201 

The War Industries Board created under the Council 

of National Defense on July 28, 1917 202 

The appointment of Chairman Baruch 203 

The War Industries Board made independent under 

the Overman Act on May 28, 1918 205 

(2) The powers and policies of the War Industries Board 205 

Its basis in law 206 

The policy of Mr. Baruch 209 

The organization of the board 210 

The relation of the board to price-fixing 211 

(3) The kinds of control exercised 212 

Requirements -_ 213 

Clearances 215 

The clearance committee 215 

The clearance oflice 216 

The clearance list 217 

Priorities 218 

Authority for priority control 221 

The priority circulars 222 

The method of rating 222 

Automatic rating 223 



00E"TE2>rTS. ( 

Part II.— The administration of price controls during the war — Contd. 

4. The War Industries Board— Continued. 

(3) The liinds of control exercised— Continued. 

Priorities — Continued. Page. 
Unifying priorities in production with those in 

delivery ^-'^ 

Purposes demanding preferential treatment 225 

The preference lists 226 

War-industry controls center about priorities 228 

Allocations -""- 

Curtailments "^^ 

Conservation ^^" 

Prices " 

5. The price-fixing committee '^'^'^ 

(1) Organization of the committee ■ — 233 

(2) The basis of power to fix prices 235 

The threats of requisitioning and commandeering 235 

The war-time spirit 23 i 

(3) Its sphere of activity 237 

Committee concerned primarily with Government pur- 
chases 237 

The committee fixed prices only upon request 238 

Fixed producer prices 239 

(4) The character of the price-fixing agreements 239 

The method of making the agreements 239 

All prices were maximum prices 240 

Fixed prices applicable alike to low and high cost 

producers 240 

Fixed prices applicable alike to Government, allied, 

and public purchases ^ 241 

(5) The price policies of the committee 242 

(6) Administering committee decisions 244 

(7) The commodities fixed in price by the War Industries 

Board and the price-fixing committee 244 

Iron, steel, and their products 244 

The runaway steel market in 1917 245 

The disposition to control iron and steel prices — 247 

The policy of the President and his war officials — 247 

The Pomerene bill in Congress 249 

The attitude of the iron and steel industry 250 

Problems facing the Government in assuming 

control , 251 

Should control extend to civilian purchases 251 

Should control extend to allied purchases 251 

Flat rate or cost plus profit scale 252 

Should higher contract prices already made be 

abrogated 253 

Should the Government recognize the labor, 

fuel, and transportation problems 253 

Should account be taken of the middlemen 253 

Raw-material prices fixed September 24, 1917 254 

Semi-finished products prices fixed October 11, 

1917 264 



8 CONTENTS. 

Part II. — The administration of price controls during tlie war — Contd. 
5. Tlie price-fixing committee — Continued. 

(7) Tlie commodities fixed in price by the War Industries 
Board and the price-fixing committee — Continued. 

Iron, steel, and their products — Continued. Page. 

Finished product prices fixed November 5, 1917 266 

The determination of differentials upon basic 

prices 267 

Modifications of original basic prices fixed 269 

Price control and the relative rise of prices and 

production 270 

Summary 271 

Copper 272 

Copper production of more concern than high 

prices 272 

The early allied purchases 274 

The allied purchase of 77,000,000 pounds 275 

The early Government purchases 275 

The Government purchase of 45,510,000 pounds in 

March, 1917 276 

The Government purchase of 60,000,000 pounds in 

June, 1917 276 

Electrolytic copper fixed on September 21, 1917 278 

The determination of the Govei-nment to fix 

the price at 22 cents . 278 

The copper interests ask for a price of 25 

cents .— 278 

The price fixed at 23i cents 281 

Interpretation of the fixed-price policies 281 

Appeal of small high-cost producers for an in- 
crease 283 

Electrolytic copper increased to 26 cents on July 

2, 1918 283 

Summary 284 

^ Aluminum 284 

Lead 286 

Zinc . - 288 

iy Nickel 289 

Quicksilver 291 

Tin — 291 

Platinum 293 

Cotton textiles 293 

The early need for regulation 293 

The px'ice-fixing committee and the cotton industry- 297 

The fixing of cotton-textile prices 298 

Ootton-yarn prices 301 

The proposed price revision 301 

Summary 303 

Cotton hnters 304 

Government control of the linter crop 306 

The cotton-linter pool - 306 

The mattress-linter pool 308 



CONTENTS. 



9 



p^BT II.— The administration of price controls during the war— Oontd. 
5 Tlie price-fixing committee — Continued. 

(7) Tlae commodities fixed in price by tlie War Industries 

Board and tlie price-fixing committee— Continued. Page. 

---T. , 309 

Wool 

The approach to regulation ^J-" 

The adoption of a regulative policy 313 

The effects of wool control 316 

Hides, skins, and leather 316 

Cattle hides ^^^ 

Sheepskins 320 

Tanned leather ^-^^ 

Summary ^^ 

Manila fiber and hemp 3-i 

Burlap 3^5 

Lumber "~ 

Southern yellow pine 3-6 

Other soft woods___-, 329 

Hardwoods 330 

Building materials 331 

Portland cement 334 

Common brick 336 

Hollow building tile 33cS 

Gypsum wall board and plaster board . 338 

Sand, gravel and crushed stone 338 

Chemicals 338 

Nitrate of soda 338 

Heavy acids 341 

Sulphuric acid 341 

Nitric acid 343 

y^ Conclusion 344 

^ Sulphur and pyrites 344 

Wood chemicals 345 

Acetic acid 346 

Methjd acetate 347 

Formaldehyde 347 

Toluol 348 

Alkalis 349 

6. The War Trade Board 350 

(1) The creation of the War Trade Board 350 

(2) All exports and imports brought under license control 351 

The control over exports _ 351 

The conservation list 352 

The control over imports 352 

The restricted list 352 

(3) The exercise of price control by uses of the hcensing 

power 35o 

Rubber 357 

The British embargo of 1914 357 

The licensing of rubber imports 358 

The restriction of rubber imports and price fixing_ 358 

The results of the embargo 359 

Silk 360 



10 coNTE:^rTS. 

Part II. — The adiniuistration of price controls during the war — Contd. Page. 

7. The War Department 3G1 

<1) The Army represented on the price-fixing committee 363 

(2) Tlie price-fixing section 364 

(3) Commandeering and requisitioning — ^ 364 

(4) The Board of Appraisers 365 

S. The Navy Department . 367 

(1) Commodities purcliased by the Navy 367 

(2) Representation of tlie Navy upon tlie price- fixing com- 

mittee 371 

(3) Commandeering 371 

(4) The supply of raw materials to contractors by tlie Navy__ 372 

(5) Determination of "fair and just" prices 873 

9. The Federal Trade Commission 374 

10. The Department of Agriculture 376 

(1) The control of farm equipment ' 376 

(2) Fertilizers 379 

11. The basis for determining a fixed price 380 

(1) The objects of the price fixers 380 

(2) The methods of control 381 

(3) The data used in fixing a price 382 

(4) The problem of the low-cost and the high-cost producers- 383 

(5) Prices fixed above the "bulk line" of production 399 

(6) The interpretation of a " reasonable profit " 409 

12. The lifting of Government control OA^er prices 411 

(1) The effect of lifting control upon prices 411 

(2) The purpose of the Industrial Board 413 

Part III. — Statistical devices for measuring the effects of price control 415 

Introduction 415 

Table 1. Gradual extension of price control 416 

Table 2. The Price Section weighted index number separated into 

controlled and uncontrolled prices 418 

(1) Tables of index numbers of prices of controlled and 

uncontrolled commodities 419 

(2) The series of the Price Section index number con- 

sidered uncontrolled 459 

(3) The series of the Price Section index number con- 

sidered controlled 477 

Table 3. Chain indexes of controlled and uncontrolled prices 491 

Table 4. Relative points below which 50 basic commodities were 

pegged 504 

A summary of actual and relative prices below wliich 

basic prices were fixed 514 

Relative prices of 50 basic commodities 516 

Table 5. A comparison of controlled raw^ material prices with the 

prices of their uncontrolled manufactured products 532 

Table 6. A comparison of the prices of controlled manufactured goods 

with the prices of their uncontrolled raw materials 540 

Table 7. A comparison of conti'olled raw m'aterial prices with the 

prices of their controlled manufactured products 542 

Table 8. A comparison of controlled prices at wholesale and corre- 
sponding controlled prices at retail 550 

Table 9. A comparison of war prices in the United States, England, 

France, and Canada 553 



COiSfTEiSrTS. 11 
Book II. 

GOVERNMENT REGULATIONS RELATING TO PRICES. 

Page. 

1. Introduction ^^"^ 

2. Foods 568 

General regulations 576 

Special regulations 578 

Wheat millers and manufacturers of mixed flours 578 

Operators of all places for the storage of, and dealers in, wheat, 

corn, oats, rye, and barley 585 

Rice 588 

Sugar 588 

Canners of peas, tomatoes, corn, dried beans, salmon, sardines, and 

tuna; manufacturers of tomato catsup, tomato soup, and other 

tomato products; condensed, evaporated, or powdered milk 591 

Packers of dried peaches, dried apples, dried prunes, or dried raisins. 595 
Dealers and brokers in, and importers of, certain vegetable oils 

and their raw materials 597 

Manufacturers of oleomargarine and other butter substitutes 599 

Wholesalers, jobbers, importers, and retailers of licensed nonperish- 

able food cominodities 599 

Brokers and auctioneers of licensed nonperishable food commodities. 610 

Dealers in sugars and sirups 611 

Distributors of fresh fruits and vegetables 613 

Distributors of fresh fish and frozen fish 614 

Distributors of poultry 616 

Distributors of eggs 619 

Manufacturers and distributors of butter 625 

Manufacturers and distributors of cheese 629 

Cold storage warehousemen 634 

Distributors of feeding stuffs 635 

3. Fuels 640 

Anthracite coal 642 

Bituminous coal 643 

Coke 657 

Charcoal 661 

Jobbers' margins and distributors' commissions 661 

Retail prices 662 

Petroleum 663 

4. Metals and metal products 665 

Aluminum 665 

Copper 669 

Iron and steel 670 

Lead 673 

Manganese ore 673 

Nickel 675 

Platinum metals 675 

Quicksilver 675 

Silver 676 

Zinc 678 

5. Textiles and fibers 680 

Binder twine 680 

Burlap. 680 

Cotton goods - 681 



12 COXTEXTS. 

5. Textiles and fibers— Continued. Page. 

Cotton linters 703 

Rates for compressing cotton 704 

Kapok 704 

ilanila fiber 705 

Rags 706 

Siliv 70S 

Wool 709 

6. Hides, sldns, and leather 729 

Hides and sldns 732 

Black harness leather 749 

Sole and belting leather 750 

7. Lumber 752 

General regulations 752 

Birch logs 755 

Black -walnut 755 

C^-press and tupelo 756 

Douglas fir 759 

Mahogany lumber • 76S 

Xp-^- England spruce 76S 

Xortli Carolina pine 773 

Pennsj-h'ania hemlock 778 

Southern or yello"w pine 781 

Western sprace 790 

Treenails 791 

8. Building materials 792 

Brick 792 

Gj'psiim Airall board and plaster board 793 

Hollow building tile 793 

MLU-n-ork 795 

Portland cement 800 

Sand, gravel, and crushed stone 801 

9. Chemicals 803 

Acids 804 

Alkalis 805 

Bleaching powder 805 

Carbon tetrachloride 805 

Caustic soda 805 

Chlorine, liquid 805 

Soda ash 805 

Ammonia 805 

Ammonium sulphate 808 

Arsenic 808 

Castor beans and castor oil 808 

Glycerin 810 

Nitrate of soda 810 

Quebracho 810 

Smokeless cannon powder 811 

Sulphur \ 811 

Toluol 811 

Wood chemicals 812 

Wool grease 812 

10. Rubber. ~ 812 

11. Paper, news-print 815 



APPENDIX. 

Page. 

Bibliograpliy . ^-^ 

13 



LIST OF CHAETS. 



Page. 

1. Weighted index numbers of prices of " all commodities," by months, 

January, 1913, to the time that control began. Average price July, 
1913-June, 1914=100 2.5 

2. Weighted index numbers of prices of food group, by months, Janu- 

ary, 1913, to the time that control began 28 

3. Weighted index numbers of prices of fuels group, by months, January, 

1913, to the time that control began 28 

4. Weiglited index numbers of prices of metals group, by months, Janu- 

ary, 1913, to the time that control began 28 

5. Allied and neutral sea-going tonnage lost and built, by months, Jan- 

uary, 1917-September, 1918 34 

6. Relative prices of wheat. No. 2 red winter, cash at Chicago, by 

months, Januai'y, 1913-Deeember, 1918 75 

7. Relative prices of flour, wheat, standard patents, at Minneapolis, by 

months, January, 1913-DeDcember, 1918 75 

8. Relative prices of bread, loaf, bakeiT to retail grocer, by months, 

January, 1913-December, 1918 75 

9. Relative prices of sugar in the United States, England, and France, 

by months, January, 1913-December, 1918 86 

10. Relative prices of cotton seed ; lard substitute ; and cottonseed oil, 

crude, by months, January, 1913-December, 1918 114 

11. Relative prices of canned sardines, oil, keyless (100 i-inch case) ; 

and canned salmon, pink, tall, 1 dozen No. 1 cans, by months, 
January, 1913-December, 1918 118 

12. Relative prices of rice, Japan head ; rice, Honduras head ; and puffed 

rice, Quaker ; by months, January, 1913-December, 1918 120 

13. Weighted index numbers of prices of corn and corn products; and 

"all commodities," by months January, 1913-December, 1918 125 

14. Weighted index numbers of prices of oats, rice, buckwheat, and 

their products ; and " all commodities," by months, January, 1913- 
December, 1918 125 

15. Weighted index numbers of prices of hops, rye, barley, and their 

products ; and " all commodities," by months, January, 191.3- 
December, 1918 125 

16. Relative prices of petroleum, 5 fields ; fuel oil, 5 cities ; and gasoline, 

5 cities, by months, January, 1913-December, 1918 

17. Weighted index numbers of iron, steel, and their products ; and 

" all commodities," by months, January, 1913-December, 1918 247 

18. Relative prices of copper, electrolytic, at New York, by months, 

January, 1913-December, 1918 274 

19. Relative prices of short staple cotton, upland middling; short staple 

cotton yarns, 5 series ; and short staple cotton manufacture, 19 
series; by months, January, 1913-December, 1918 304 

20. Relative prices of cotton linters, grade D, cut 130-175 pounds per 

ton, by months, January, 1913-December, 1918 _ 309 

14 



CONTENTS. 15 

Page. 

21. Relative prices of raw wool, domestic and imported, by months, 

January, 1913-December, 1918 311 

22. Weighted index numbers of prices of bides, skins, leather, and 

leather manufactures; and "all commodities," by months, Janu- 
ary, 1913-December, 1918 ^^. 317 

23. Weighted index numbers of prices of lumber ; and " all commodi- 

ties," by months, January, 1913-December, 1918 32G 

24. Weighted index numbers of prices of fertilizers; and "all com- 

modities," by months, January, 1913-December, 1918 378 

25. Costs at which difCerent portions of the output of beehive coke 

were produced in September, 1918 400 

26. Costs at which different portions of the output of pig iron, basic, 

were produced in September, 1918 401 

27. Costs at which different portions of the output of Douglas fir were 

produced in March, April, and October, 1918 402 

28. Costs at which different portions of the output of beet sugar were 

produced in 1917-18 402 

29. Average adjusted costs, bulk lines, and prices originally fixed for 

all bituminous coal districts charted during August and Septem- 
ber, 1917 403 

30. The average reported costs and adjusted costs of the production of 

anthracite coal in the Pennsylvania anthracite region during the 
period December, 1917-May, 1918 403 

31. The Bureau of Labor Statistics index number of " all commodities," 

separated into controlled and uncontrolled, by months, August, 
1917-May, 1919. Average price for 1913=100 411 

32. Weighted index numbers of prices of "all commodities" (1,366 

series) controlled and uncontrolled dujing the war, by months, 
January, 1913-December, 1918 421 

33. Weighted index numbers of prices of food group (268 series), con- 

trolled and uncontrolled during the war, by months, January, 
1913-December, 1918 421 

34. Weighted index numbers of prices of clothing group (409 series), con- 

trolled and uncontrolled during the war, by months, January, 1913- 
December, 1918 421 

35. Weighted index numbers of prices of rubber, paper, and fiber group 

(119 series), controlled and uncontrolled during the war, by 
months, January, 1913-December, 1918 422 

36. Weighted index numbers of prices of metals group (116 series), con- 

trolled and uncontrolled during the war, by months, January, 
1913-December, 1918 422 

37. Weighted index numbers of prices of fuels group (63 series), con- 

trolled and uncontrolled during the war, by months, January, 
1913-December, 1918 422 

38. Weighted index numbers of prices of building materials group (149 

series), controlled and uncontrolled during the war, by months, 
January, 1913-December, 1918 423 

39. Weighted index numbers of prices of chemicals group (243 series), 

controlled and uncontrolled during the war, by months, January, 
1913-December, 1918 423 

40. Weighted index numbers of prices of cotton and cotton products 

class (81 series), controlled and uncontrolled during the war, by 
months, January, 1913-December, 1918 423 



16 CONTENTS. 

Page. 

41. Weighted index numbers of prices of wool and wool products class 

(66 series), controlled and uncontrolled during the war, by 
months, January, 191S-December, 1918 424 

42. Weighted index numbers of prices of hides, skins, leather, and leather 

manufactures class (156 series), controlled and uncontrolled during 

the war by months, January, 1913-December, 1918 424 

43. Weighted index numbers of prices of rubber and rubber products 

class (34 series), controlled and uncontrolled during the war, by 
months, January, 1913-December, 1918 424 

44. Weighted index numbers of prices of iron, steel, and their products 

class (88 series), controlled and uncontrolled during the war, by 
months, January, 1913-December, 1918 425 

45. Weighted index numbers of prices of petroleum and petroleum prod- 

ucts class (27 series), controlled and uncontrolled during the war, 

by months, January, 1913-December, 1918 425 

46. Weighted index numbers of prices of lumber class (62 series), con- 

trolled and uncontrolled during the war, by months, January, 
1913-December, 1918 425 

47. Weighted chain index for prices of " all commodities " (1,366 series), 

controlled and uncontrolled during the war, by months, April, 
1917-December, 1918 492 

48. Weighted chain index for prices of food group (268 series)', con- 

trolled and uncontrolled during the war, by months, April, 1917- 
December, 1918 495 

49. Weighted chain index for pilces of clothing group (409 series,) con- 

trolled and uncontrolled during the war, by months, April, 1917- 
December, 1918 — — 495 

50. Weighted chain index for prices of metals group (116 series), con- 

trolled and uncontrolled during the war, by months, April, 1917- 
December, 1918 496 

51. Weighted chain index for prices for fuels group (63 series), con- 

trolled and uncontrolled during the war, by months, April, 1917- 
December, 1918 496 

52. Weighted chain index for prices of building materials group (149 

series), controlled and uncontrolled during the war, by months, 

April, 1917-December, 1918 497 

58. Weighted chain index for prices of wheat and wheat products class 
(12 series), controlled and uncontrolled during the war, by 
months, April, 1917-December, 1918 497 

54. Weighted chain index for prices of cotton and cotton products class 

(81 series), controlled and uncontrolled during the war, by 
months, April, 1917-December, 1918 49S 

55. Weighted chain index for prices of wool and woolen products class 

(66 series), controlled and uncontrolled during the war, by 
months, April, 1917-December, 1918 49S 

56. Weighted chain index for prices of iron, steel, and their products 

class (88 series), controlled and uncontrolled during the war, by 
months, April, 1917-December, 1918 499 

57. Weighted chain index for prices of coal ahd coke class (27 series), 

controlled and uncontrolled during the war, by months, April, 
1917-December, 1918 499 

58. Relative prices of sugar, raw, 96° centrifugal, net cash, by months, 

January, 1913-December, 1918 507 



CONTENTS. 17 

Page. 

59. Relative prices of wheat No. 1 Northern spring, cash, by months, 

January, 1913-December, 1918 ^^ 

60. Relative prices of cattle hides, packers' hea?y native steers, by 

months, January, 1913-December, 1918 _ 507 

61. Relative prices of cotton weaving yarns carded, white, northern, 

mule spun, 22/1 cones, by months, January, 1913-December, 1918— 508 

62. Relative prices of print cloth, 27-inch, 64 by 60, 7.60 yards, by 

months, January, 1913-December, 1918 508 

63. Relative prices of wool, Ohio, Pennsylvania, and West Virgmia, un- 

washed, fine delaine, by months, January, 1913-DeGember, 1918_ — 508 

64. Relative prices of rubber, crude plantation, Hevea, first latex crgpe, 

by months, January, 1913-December, 1918 509 

65. Relative prices of copper, electrolytic, at New York, by months, Janu- 

ary, 1913-December, 1918 509 

66. Relative prices of iron ore, Mesabi, nonbessemer, 51J per cent, by 

months, January, 1913-December, 1918 509 

67. Relative prices of pig iron, basic, by months, January, 1913-Decem- 

ber, 1918 510 

68. Relative prices of steel plates, tank, by months, January, 1913- 

December, 1918 510 

69. Relative prices of anthracite coal, chestnut, by months, January, 

1913-December, 1918 ■ 511 

70. Relative prices of bituminous coal, by months, January, 1913-Decem- 

ber, 1918 511 

71. Relative prices of Connellsville coke, by months, January, 1913- 

December, 1918 512 

72. Relative prices of crude petroleum, mid-continent, by months, Janu- 

ary, 1913-December, 1918 512 

73. Relative prices of Douglas fir, by months, January, 1913-Decem- 

ber, 1918 513 

74. Relative prices of yellow pine, Southern, common boards. No. 1, 

S-2-S, 1 by 10 inches, by months, January, 1913-December, 1918__ 513 

75. Relative prices of sulphuric acid, 60°, by months, January, 1913- 

December, 1918 513 

76. Relative prices of copper, electrolytic, and copper wire, by months, 

January, 1913-December, 1918 533 

77. Relative prices of pig iron, chains, and saws, by months, January, 

1913-December, 1918 533 

78. Relative prices of lead and lead pipe, by months, January, 1913- 

December, 1918— 5.33 

79. Relative prices of wool, woolen yarns, and woolen suitings, by months, 

January, 1913-December, 1918 534 

80. Relative prices of crude rubber and rubber tires, by months,. Janu- 

ary, 1913-December, 1918 534 

81. Relative prices of calf-skin leather, and shoes, by months, January, 

1913-December, 1918 534 

82. Relative prices of cotton yarn and raw cotton, by months, January, 

1913-December, 1918 543 

83. Relative prices of wheat, wheat flour, and bread, by months, Janu- 

ary, 1913-December, 1918 543 

84. Relative prices of iron ore, pig iron, and iron pipe, by months, Janu- 

ary, 1913-December, 1918 544 

125547°— 20 2 



18 CONTENTS. 

Page. 

85. Relative prices of coal and coke, by monttis, January, 1913-Decem- 

ber, 1918 544 

86. Relative prices of cattle hides and sole leather, by months, January, 

1913-December, 1918 545 

87. Relative prices of sugar, raw and refined, by months, January, 

1913-December, 1918 545 

88. Medians of relative prices of 150 commodities in the United States 

and England, by months, January, 1913-December, 1918 557 

89. Medians of relative prices of 34 food commodities in the United 

States and England, by months, January, 1913-December, 1918 557 

90. Medians of relative prices of 29 clothing commodities in the United 

States and England, by months, January, 1913-December, 1918 558 

91. Medians of relative prices of 9 iron and steel commodities in the 

United States and England, by months, January, 1913-December, 

1918 558 

92. Medians of relative prices of 55 chemical commodities in the United 

States and England, by months, January, 1913-December, 1918 559 

93. Medians of relative prices of 44 commodities in the United States and 

France, by months, January, 1913-December, 1918 559 

94. Index numbers of wholesale prices in the United States and Canada, 

by months, January, 1913-December, 1918 559 



INTRODUCTION. 



The uppermost aims of this inquiry have been to present an 
anjalysis and a documentary record o'f all price regulation exercised 
by the Government during the World War. The latter task, :which 
had to be performed as a basis for the former, was made peculiarly 
difficult by the prompt departure of commodity chiefs from Wash- 
ington after the armistice, and by the chaos of abandoned war files. 
This monograph covers all price regulations of which record was 
found, but other informal controls were agreed upon by word of 
mouth of which no written record remains. 

All data of descriptive or analytical character appear in Book I, 
and all regulations pure and simple in Book II. Book I is separated 
into three! parts to show the problems that led the Government into 
price control, the administration of price control during the war, 
and various statistical devices for measuring the effects of control. 
A full analysis of the methods, powers, and policies of each price- 
control board is given as general background to the specific com- 
modity controls. The individual controls are then each discussed 
in detail under the? board having jurisdiction over them at the time 
of the armistice. Book II is separated into ten parts, and is a docu- 
mentary record strictly of all known Government regulations relat- 
ing to food ; fuel ; metal and metal product ; textile and fiber ; hide, 
skin, and leather ; lumber ; building material ; chemical ; rubber and 
paper prices. 

This study represents a cooperative effort of the statistical di- 
visions of the War Trade Board and the War Industries Board, 
under Edwin F. Gay. It is Bulletin No. 3 of a series of 57 bulletins 
which make up a " History of prices during the war," edited by 
Wesley C. Mitchell. The others of these bulletins, which are listed 
on the last page, are records of monthly price fluctuations from 
January, 1913, through December, 1918. They afford indispensable 
bases for further inquiries into the price-control problem. Every 
precaution has been taken here to enhance their value to that end, by 
keeping all charts in scale with theirs and by following similar forms. 

Many more persons have given aid, directly or indirectly, in 
gathering materials than can be named. But especial indebtedness 
for data on wheat, flour, and bread is owing to Lloyd W. Maxwell; 

19 



20 INTRODUCTION. 

on building materials to Homer Hoyt; on hides, skins, and leather, 
to E. A. James; and on wool to Katherine Snodgrass. The manu- 
script pertaining to the Food Administration was read in full, and 
approved as to the accuracy of facts, by Kaymond Pearl and W. C. 
Mullendore ; the Fuel Administration, by C. E. Lesher ; the War In- 
dustries Board, by Leo Wolman; and the War Trade Board, by 
Henry F. Waldradt. Particular sections were checked in addition 
by persons having technical knowledge of their contents. All manu- 
script and proof has been read and materially strengthened by Leo 
Wolman and Wesley C. Mitchfell. 

The staff, who assisted immediately in the preparation and colla- 
tion of materials, was Mr. Isadore Lubin, Miss Stella Stewart, Miss 
Susie Anderson, and Miss Elsie Ray. Mr. Lubin is responsible for 
the sections on sugar, live stock and meats, poultry and dairy prod- 
ucts, oleomargarine, cottonseed and cotton-seed products, canned 
and dried foods, rice and rice flour, coarse grains and foodstuffs, 
coffee, ammonia, ice, arsenic, petroleum, aluminium, lead, zinc, nickel, 
quicksilver, tin, platinum, cotton textiles, cotton linters, manila 
fiber and hemp, burlap, chemicals, rubber, silk, and fertilizers. Miss 
Stewart assisted in gathering materials and in the compilation of 
regulation schedules which appear in Book 11. Miss Anderson had 
charge of the computations. Miss Eay attended to the clerical 
work. 

P. W. G. 



BOOK I 

GOVERNMENT CONTROL OVER PRICES 



21 



Part I. 

THE PROBLEMS THAT LED THE GOVERNMENT 
INTO PRICE CONTROL. 



I. THE RISE IN PRICES BEFORE THE GOVERNMENT 

INTERFERED. 

The future student of American prices will turn back to the 14 
months from August, 1917, to the signing of the armistice, and mark 
them as the period of our initial great experience with Government 
price control. The Government laid no resolute hand upon prices 
even during the Civil War, although at that time staple quotations 
more than doubled.^ Nor did the Government seek to arrest the 
phenomenal rises during 1916 and 1917, provoked by European war 
buying, until this country itself entered the war. The circumstances 
attending this first and extraordinary experiment in the regulation 
of prices possess peculiar interest. 

The factors that dictated to the Government the necessity of regu- 
lating prices were the high level to which prices had climbed by the 
late summer of 1917 and the fear of a further rise. The precontrol 

* The Price Section of the War Industries Board in its " Comparison of Prices During 
the Civil War and Present War " has made the following medians of relative prices of 
commodities at wholesale. They show relatively how high Civil War and present war 
prices went above their respective prewar levels, represented by 100. 



Number of commodities 

1860 and 1913: 

January 

April 

July. 

October 

1861 and 1914: 

January 

April 

July 

October 

1862 and 1915: 

January 

April 

July 

October 

1863 and 1916: 

January 

April 

July 

October 

1864 and 1917: 

January 

April 

Jifiy 

October 

1865 and 1918: 

January 

April 

July 

October 



All com- 
modities. 



Civil 
War. 



92 



Pres- 
ent 
war. 



92 



100 


100 


100 


100 


100 


100 


100 


100 


100 


100 


96 


100 


96 


100 


97 


100 


100 


100 


100 


100 


100 


102 


111 


102 


125 


114 


137 


115 


134 


119 


135 


130 


156 


142 


169 


157 


194 


169 


200 


174 


216 


178 


190 


182 


1.58 


187 


175 





Foods. 



Civil 
War. 



Pres- 
ent 
war. 



36 



Building 
materials. 



Civil 
War. 



36 



100 


100 


100 


100 


98 


100 


99 


100 


98 


100 


94 


100 


88 


100 


91 


105 


99 


107 


96 


105 


93 


105 


100 


102 


116 


110 


125 


113 


117 


117 


125 


127 


152 


142 


161 


162 


184 


169 


194 


193 


232 


188 


189 


199 


156 


194 


170 





19 



100 
100 
100 
100 

100 
100 
100 
102 

106 
112 
107 
116 

133 
143 
139 
145 

160 
177 
189 
200 

200 
196 
171 
200 



Pres- 
ent 
war. 



19 



100 
100 
100 
100 

100 
100 
100 
100 

100 
100 
100 
100 

104 
109 
110 
117 

124 
137 
152 
152 

161 
172 
181 



Chemicals. 



Civil 
War. 



15 



100 
100 
100 
100 

100 
100 
100 
100 

117 
107 
109 
125 

130 
142 
142 
133 

153 
161 
189 
200 

222 
182 
153 
170 



Pres- 
ent 
war. 



Cotton. 



Civil 
War. 



15 



100 
100 
100 
100 

100 
100 
100 
100 

100 
100 
115 
126 

138 

187 
187 
156 

152 
175 
177 
196 

192 
197 
193 



Pres- 
ent 
war. 



101 
101 
98 
99 

112 
117 
136 
197 

336 

253 
346 
515 

618 
668 
631 
773 

741 

695 

1,410 

1,101 

1,096 
343 
430 
426 



95 

95 

106 



101 
101 
53 

62 

76 
69 
94 

94 

92 

100 

135 

134 
152 
196 
209 

243 
250 
232 



Copper, 
ingot. 



Civil 

War. 



Pres- 
ent 
war. 



100 
98 
89 



81 
81 

77 
87 

113 

94 

98 

119 

132 
130 
130 
138 

161 
172 
198 
200 

209 
145 
121 
138 



23 



117 

101 

97 

110 



78 

87 
106 
132 
120 

152 
179 
177 
190 

197 
227 
212 
157 

157 
157 
170 



24 



HISTORY OF PRICES DURING THE WAR. 



rises of commodity prices at wholesale may be divided into three 
periods — ^the prewar advance from 1890 to the outbreak of the 
European war, the war-time rises to April 6, 1917, and the final 
upward swing of prices that was under way when the Government 
interfered. 

(i) THE MOVEMENT OF PRICES FROM 1890 TO THE EUROPEAN WAR, 

The fluctuations in prices for the quarter century prior to the out- 
break of war in Europe on July 28, 1914, bore upon price control 
only as they established rather definite courses of price movement 
by departure from which war prices gave alarm. The most reliable 
measure of the price level for that period is the index number made 
by the Bureau of Labor Statistics for all commodities and those for 
important groups.^ 

1 The Bureau of Labor Statistics Index number, separated to show prices within nine 
distinct groups (Farm products ; Food, etc. ; Cloths and clothing ; Fuel and lighting ; 
Metals and metal products ; Lumber and building materials ; Chemicals and drugs ; 
House-furnishing goods; and Miscellaneous), contains quotations for representative com- 
modities, varying in number from 192 in 1890 to 297 in 1914. These actual prices, 
in order that each might have its proper influence upon the final index number, were 
made into weighted aggregates and then turned into relatives by allowing each average 
prewar aggregate for 1913 to equal 100. The index numbers for " all commodities " 
and the nine groups from 1890 to the outbreak of war in Europe, and for later reference 
on through 1918, follow : 

Bureau of Labor Statistics index number of "prewar prices. 
[1913=100.] 



Year. 


All 
com- 
modi- 
ties. 


Farm 
prod- 
ucts. 


Food, 

etc. 


Cloths 
and 

cloth- 
ing. 


Fuel 
and 
light- 
ing. 


Metals 
and 
metal 
prod- 
ucts. 


Lum- 
ber 
and 
build- 
ing 
mate- 
rials. 


Chem- 
icals 
and 

drugs. 


House- 
fur- 
nish- 
ing 

goods. 


Miscel- 
lane- 
ous. 


1890 


81 
81 
76 

77 
69 

70 
66 
67 
69 

74 

80 
79 

85 
85 
86 

86 
88 
94 
91 
97 

99 
95 
101 
100 
99 

100 
123 

175 
196 


68 
73 
66 
67 
59 

60 
54 
58 
61 
62 

■ 69 
73 

81 
75 
80 

77 
78 
85 
85 
97 

103 
93 
101 
100 
103 

105 
122 
188 
218 


89 
89 
80 

87 
77 

74 
67 
71 
76 

75 

79 

80 
85 
82 
87 

87 
84 
89 
94 
99 

100 
99 
108 
100 
103 

104 
126 
177 
189 


92 
89 
89 

88 
78 

78 
75 
75 
79 
82 

88 
82 
84 
88 
89 

91 
97 
104 
94 
98 

99 
96 
98 
100 

98 

100 
127 
181 
236 


69 
68 
65 
65 
61 

68 
68 
61 
61 
71 

81 
78 
93 
106 
91 

87 
90 
93 
90 

88 

83 
81 
89 
100 
92 

87 
115 
169 
175 


114 
102 
93 

85 
72 

77 
80 
71 
71 
108 

106 
98 
97 
96 

88 

98 
113 
120 
94 
92 

93 

• 89 

99 

100 

87 

97 
148 

208 
182 


72 
70 
67 
68 
66 

64 
63 
62 
65 
71 

76 

73 
77 
80 
80 

85 
94 
97 
92 
97 

101 
101 
100 
100 
97 

94 
101 

124 
151 


90 
92 
91 
90 
83 

88 
91 
89 
92 
96 

97 
98 
97 
96 
97 

96 
94 
96 
100 
101 

102 
103 
101 
100 
103 

113 
143 

185 
206 


119 
119 
116 
116 
115 

109 
106 
99 
105 
104 

111 
123 
123 
122 
117 

109 
109 
109 
104 
105 

104 
99 
99 
100 
103 

101 
110 
155 
207 


92 


1891 


92 


1892 


-88 


1893 


91 


1894 


86 


1895 


82 


1896 


80 


1897 


80 


1898 


79 


1899 


82 


1900 


91 


1901 


90 


1902 


92 


1903 


94 


1904 


94 


1905 


95 


1906 


97 


1907 


101 


1908 


97 


1909 


106 


1910 


116 


1911 .'-- 


104 


1912 


101 


1913 


100 


1914 


97 


1915 


98 


1916 


121 


1917 


154 


1918 


195 







GOVERNMEE'T CONTROL OVER PRICES. 



25 



This index of prewar prices, when compared with those of war- 
time prices, shows relatively a sober behavior. The greatest variation 
of the index number for " all commodities " during any year from 
its preceding year, was the drop of 10 per cent in 1894. The greatest 
subsequent yearly variation was the rise of 8 per cent which came in 
1900 and again in 1902. The average of all yearly variations up or 
down between 1890 and 1914 was less than 5 per cent, though most 
of the changes were increases. The fluctuations within the groups — 
farm products, fuel and lighting, 
and metals and metal products — 
were somewhat more violent than 
these summary data show. The 
metal index, indeed, shows that 
metals jumped from 48 in 1898 to 
7d in 1899, representing an increase 
of 52 per cent. There had, of 
course, been extraordinary rises in 
prices during peace times, but they 
were all presently to be surpassed. 



VCiatTED INDEX NUMDOa Or PRICES OF 

-ALLCQMMODIHES 

EETORE CCNTRO, DEOAN 

PVMONtMd 

JANUAEY,lS13T°AuaU3T.1917' 

AEHAGC QUOTED FBICE5 JUi:(13D~JUN[;i314-KXi 



,m4 



|. 1914 I 1913 I lOlB I 



(2) THE WAR-TIME PRICES 
APRIL 6, 1917. 



TO 




The outbreak of the war in 
Europe marked sharply a new pe- 
riod in the history of world prices, 
though the immediacy with which 
different American prices responded 
was curiously varied. The dis- 
turbance in European prices was 
communicated to certain American 
markets by August, 1914. But 

prices, as a whole, in this country weighted index numbers. — " All corn- 
held close to their prewar level for "^«*^;f ^'l before control began.--By 
^ months, January, 1913, to December, 
a full year after the war began. 1918. (Average quoted prices, July, 

The " all commodities " index num- '^^^' *^ •^"^"' i9i4=ioo.) 
ber of the Bureau of Labor Statistics, measuring roughly the varia- 
tions in the general price level, ran 82, 81, 80, 81, for 1912 and 
the three years following. Indeed, not during any three successive 
years since 1890 had prices been so nearly steady as in 1913, 1914, 
and 1915. 

The index number of 1,366 commodities at wholesale made by the 
Price Section of the War Industries Board, which is the best meas- 
ure of American war prices pure and simple, shows that the relative 
stability of the general price level was the net resultant of numerous 



26 



HISTORY OF PRICES DURING THE WAR. 



price changes in opposite directions.^ The prices of chemicals, as 
might be expected, started climbing after Europe had been at war but 
a month and did not turn back until a year and one-half later, when 
they had doubled. Metals, too, began soaring after Europe had been 
fighting only six months, and carried quotations on a runaway market 
toward levels unknown before. On the other hand, fuel prices con- 
tinued falling for a full year after the war had begun, as did rubber, 
paper, and fiber prices generally. But the prices of food, clothing,, 
building materials, and, indeed, the general price level, as shown 
graphically in the " all commodities " index number, remained stub- 
bornly unresponsive to war stimuli until the autumn of 1915. 

The Governments of England, France, and Russia, however, had 
been placing enormous contracts for war materials in the United 
States, and these purchases finally set American prices rising. When 

1 For measuring the price changes during the war period strictly, or indeed from Jan- 
uary, 1913, to December, 1918, there is distinct advantage in shifting from the Bureau 
of Labor Statistics' index number to that made by the Price Section of the War Indus- 
tries Board under the direction of Wesley C. Mitchell. This latter index number, made 
in a somewhat similar manner, contains prices for 1,366 representative commodities by 
months, quarters, and years for the six-year period. It, moreover, is divided into seven 
index numbers for the food, clothing, rubber, paper, fiber, metals, fuels, building 
materials, and chemical groups, which in turn are separated into 50 index numbers for 
important industrial classes. The actual monthly quotations for each commodity were 
multiplied by the 1917 production plus imports, the products were then cast up separately 
for each of the 72 months covered, and finally the aggregates were turned into . relatives 
by taking the average aggregate from July 1, 1913, to June 30, 1914, as equal to 100. 
For further details, see War Industries Board Price Bulletin No. 1. 

The Price Section index number for " all commodities " and those for the seven main 
groups, from January, 1913, to December, 1918, follow : 

Price section index numher of war prices, 1913-1918. 
[Base, average prices July, 1913, to June, 1914=100.) v 



Series of quotations. 


All 

com- 
, modi- 
ties. 


Food 
group. 


Cloth- 

Ulg 

group. 


Rub- 
ber, 
paper, 
and 
fibers 
group. 


Metals 
group. 


Fuels 
group. 


Build- 
ing 

mate- 
rials 

group. 


Chemi- 
cals 
group. 


1913. 
Januarv 


103 
102 
102 
101 
100 
100 
100 
101 
102 
102 
102 
101 


98 

96 

97 

97 

95 

96 

96 

100 

102 

102 

103 

102 


102 
102 
101 
100 
100 
99 
99 
100 
100 
103 
102 
100 


114 
113 
112 
107 
105 
105 
104 
104 
103 
102 
101 
99 


120 
118 
116 
114 
113 
111 
110 
110 
108 
105 
100 
96 


102 
101 
101 
101 
101 
101 
101 
102 
102 
102 
102 
101 


104 
104 

105 
105 
105 
105 
102 
102 
- 103 
100 
100 
100 


103 


February , 


104 


March '. 


104 


April 


103 


May 


103 


Tnrifi 


102 


July 


102 


August . 


101 


September 


101 


October 


100 


November 


100 


December 


101 






Year 


101 


99 


101 


106 


110 


101 


103 


102 






1914. 


100 

100 

99 

98 

97 

97 

97 

101 

101 

99 

98 

98 


101 
■ 101 
100 
98 
98 
97 
■ 98 
105 
107 
104 
103 
104 


99 
99 
100 
99 
99 
100 
100 
99 
94 
91 
88 
89 


98 

98 

98 

99 

98 

. 97 

96 

101 

100 

98 

98 

100- 


96 
98 
97 
96 
92 
93 
91 
94 
93 
91 
89 
89 


101 
100 
100 
98 
96 
95 
94 
94 
92 
91 
91 
91 


99 
99 
99 
99 
98 
98 
98 
98 
98 
.96 
95 
94 


99 


February 


99 


March . . 


100 




99 


May 


98 


June 


99 


July 


98 




99 




100 




105 




106 


December 


105 






Year 


99 


101 


96 


98 


93 


95 


98 


101 







GOVERNMENT CONTROL OVER PRICES. 



27 



the rise did begin on this side of the Atlantic it was extraordinarily- 
rapid and often erratic. The whole price level, in point of fact, 
started upward late in 1915 at a pace not known since Civil War days. 

Price section index number of war prices, 1913-1918. — Continued. 
[Base, average prices July, 1913, to June, 1914=100.] 



Series of quotations. 


All 
com- 
modi- 
ties. 


Food 
group. 


Cloth- 
ing 
group. 


Rub- 
ber, 

paper, 
and 

fibers 

group. 


Metals 
group. 


Fuels 
group. 


Build- 
ing 

mate- 
rials 

group. 


Chemi- 
cals 
group. 


1915. 


100 
100 
100 
100 
100 
100 
102 
102 
102 
104 
107 
111 


105 
106 
105 
103 
103 
100 
103 
101 
99 
99 
102 
103 


90 
92 
92 
93 
95 
95 
96 
96 
98 
103 
106 
107 


100 
90 
90 
90 
90 
90 
91 
90 
89 
90 
92 
95 


91 
93 
95 
98 
101 
106 
110 
110 
114 
116 
124 
136 


90 
89 
88 
85 
85 
85 
85 
86 
90 
92 
95 
100 


93 
93 
93 
93 
94 
94 
96 
95 
95 
101 
101 
102 


123 




126 




126 




133 




132 




137 


July 


146 




148 




155 


October 


162 




172 


December 


178 






Year 


102 


102 


97 


91 


108 


89 


96 


145 






1916. 
January 


115 
118 
121 
123 
123 
122 
123 
125 
127 
132 
141 
144 


105 
106 
106 
109 
109 
109 
111 
115 
118 
125 
130 
129 


110 
113 
115 
116 
118 
120 
122 
125 
129 
135 
136 
154 


103 
104 
109 
112 
112 
111 
112 
114 
117 
120 
123 
129 


147 
154 
168 
174 
171 
169 
167 
170 
172 
176 
202 
218 


106 
107 
109 
112 
113 
113 
113 
110 
109 
111 
120 
122 


109 
111 
112 
113 
113 
113 
112 
112 
112 
116 
118 
119 


189 




200 


March 


200 


April 


198 




■ 188 


June .' 


185 


July 


175 


August 


166 




162 


October 


162 


November 


163 


December 


162 






Year 


126 


118 


125 


114 


174 


112 


114 


179 






1917. 


148 
151 
156 
170 

178 
183 
189 
187 
186 
182 
183 
182 


133 
136 
142 
157 
166 
164 
167 
168 
173 
177 
182 
178 


155 
156 
157 
163 
167 
174 
187 
189 
189 
191 
199 
202 


138 
141 
143 
146 
148 
147 
144 
143 
149 
147 
146 
145 


226 

234 

247 

260- 

276 

315 

333 

313 

283 

228 

209 

208 


129 
133 
131 < 
*-«163^ 
172 
173 
168 
169 
165 
164 
167 
170 


129 
130 
" 132 
^ 146 
148 
151 
155 
155 
156 
157 
159 
159 


159 


February 


• 157 




159 


April , 


163 




172 


June 


174 


July 


180 


\ August 


183 




190 


October 


193 




191 




193 






Year 


175 


162 


177 


145 


262 


158 


148 


176 






1918. 


185 
187 
188 
191 
190 
189 
193 
196 
201 
201 
201 
203 


182 
184 
182 
180 
177 
, 175 
182 
187 
194 
195 
194 
202 


209 
212 
218 
228 
226 
228 
233 
234 
237 
238 
234 
230 


148 
148 
150 
155 
162 
165 
164 
166 
166 
165 
163 
162 


208 
209 
209 
208 
209 
210 
212 
214 
214 
216 
216 
211 


173 
174 
175 
200 
204 
202 
201 
202 
204 
204 
207 
207 


165 
165 

169 
176 
179 
181 
182 
184 
186 
185 
186 
185 


186 


February . . » 


192 




192 


April 


192 




190 


June 


189 


July 


184 


August 


186 




188 


October 


190 


November 


193 


December 


183 






Year 


194 


1S6 


227 


160 


211 


196 


179 


189 







28 



HISTOKY OF PRICES DURING THE WAR. 




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GOVERNMENT CONTEOL OVER PRICES. 29 

(3) THE FINAL UPWARD SWING WHICH PROVOKED GOVERNMENT 

CONTROL. 

The war-time rises in prices before the United States entered war 
did not of themselves provoke Government interference. But the 
rises stimulated immediately by our entrance into war, were serious 
largely because they came after prices had already reached extraor- 
dinary heights. Between October, 1915, and December, 1916, the 
index number of " all commodities " had risen from 101 to 144. The 
gradual breaking of relations with Germany then forced other ad- 
vances, and by March, 1917, the " all commodities " index stood at 
156. When this country declared war in April, the index jumped 
14 points in a single month. 

The prices of metals had a runaway market and were carried by 
July, 1917, to peaks unknown before. The weighted index number 
for the whole metals group made by the Price Section, rose from 247 
in March, the month before war was declared, to 333 by July follow- 
ing.^ Basic pig iron, f. o. b. Mahoning or Shenango Valley furnaces, 
indeed, climbed from $32.25 to $52.50 in the same months, and steel 
plates, tank at Pittsburgh, from $4.33 to $9, nearly 800 per cent above 
their prewar quotation. The very important food group index 
swung upward between Marcli and July from 142 to 167. Wheat, No. 
1, northern spring, shot from $1.98 per bushel in March to $2.58 in 
July. The index number for the fuels group, in which a variation is 
of only less general consequence than in the food group, rose from 

131 in March to 168 in July. The clothing group index number rose 
from 157 to 187 in the same period, the building materials group from 

132 to 155, and the chemicals group from 159 to 180. It is scarcely 
necessary to look further than the final upward swing of prices from 
our entrance into war until July, for the immediate reason why the 
Government began formally to control prices late in the summer of 
1917. 

2. THE CONDITIONS THAT THREATENED FURTHER 

RISES. 

The extraordinary rises in price, that gave occasion for price con- 
trol shortly after our entrance into war, were the outcome of several 
large forces. Quite apart from the excitement thrown into the 
market by war speculation, there had arisen difficult problems of 
production, distribution, and purchasing which forced prices higher 
each day. A knowledge of these problems, which at bottom were the 
cause of rising markets, affords a clearer vision of what lay back of 
Government price control than does a mere review of price rises. 

1 The prewar price was taken as 100. 



30 



HISTOEY OF PRICES DURING THE WAR. 



(i) THE EUROPEAN DEMANDS UPON AMERICAN PRODUCTION. 

The increased demands upon domestic production, which our going 
into war brought the Government squarely to face in 1917, was the first 
problem of great magnitude. The productive capacity of the country 
was largely under contract to allied Governments, when our own 
Government began itself to need materials. But the European de- 
mands, notwithstanding, kept mounting by leaps and bounds. Europe 
had taken $1,471,266,488 in value of our exports, which was somewhat 
in excess of her usual peace-time requirements, during the year end- 
ing June 30, 1914. But as she waged war she turned to the United 
States for more raw materials, manufactures and foods, and during 
the year ending June 30, 1917, took $4,307,310,138.^ This enormous 
and sudden demand for American materials, of course helped prices 
higher. 

The western European Allies (United Kingdom, France, Italy, 
and Belgium), in order to meet their annual consumption of over 
900,000,000 bushels of wheat, have ordinarily to import 100,000,000 
bushels from the United States and 450,000,000 bushels from other 
countries. This country produces about 800,000,000 bushels of wheat 
each year, and, since the domestic consumption normally is near 646,- 
000,000, the European demand can readily be supplied. But the esti- 
mated harvest, at the time America entered war, came to only 635,- 
000,000 bushels, thus leaving no probable surplus for exportation. It 
became clear that if this country maintained a normal consumption, it 
could ill afford Europe her usual 100,000,000 bushels. The Allies 
of Europe in 1917, moreover, were getting hungry and could not 
be satisfied with anything short of an extraordinary importation. 
They must, it seemed, too, avoid the long hauls from India, Aus- 
tralia, or South America and buy from the United States. Siberian 
wheat, indeed, was less accessible than that from Australia, and the 
Eussian port of Odessa had been shut off from western Europe by 
the closing of the Dardanelles. Thus in the spring of 1917 the 
United States was made the Mecca of Allied wheat buyers, and the 
largest sales, both for cash and for future delivery, were made to 
the Governments of Europe. To meet these large European de- 



1 The total domestic exports in dollars from the United States to Etu-ope, for the year ending June 30, 
1913, to that ending June 30, 1918, follow: 


Year. 


Actual. 


Rela- 
tive. 


Year. 


Actual. 


Rela- 
tive. 


1913 


$1,464,005,220 
1,471,266,488 
1,944,327,132 


100 
100 
133 


1916 


$2, 972, 349, 994 
4,307,310,138 
3,707,309,057 


203 


1914 


1917 


294 


1915 


1918 


253 









GOVERNMENT CONTROL OVER PRICES. 



31 



mands, America had the smallest wheat crop since 1911.' The 
frenzy of buying, which seized the wheat markets of the country 
shortly after we entered war and sent prices violently upward, was 
one of the most pressing among the factors that prompted the Gov- 
ernment' to begin price control, with a view both to increasing 
production and stabilizing prices. 

The United States ordinarily consumes 3,950,000 short tons of 
sugar each year, of which she imports from foreign sources or insu- 
lar possessions 77 per cent.- A full half of that total supply comes 
from Cuba and Porto Kico. The United Kingdom ordinarily con- 
sumes 2,060,000 short tons of sugar, of which she imports 100 per 
cent. Since war suddenly cut off her normal importation of 70 per 
€ent of that amount from Germany and Austria, Great Britain like- 
wise turned toward Cuba and Porto Rico for sugar. It soon came 
tibout that the great bulk of sugar consumed by England and all of 
the allied countries, therefore, was imported from the United States 
and Cuba. The sugar exports from this country mounted from 
96,862,462 pounds in the year prior to the European war to 
1,685,195,537 pounds in 1916.^ This drain upon Cuban and American 
stocks forced sugar prices upward, until the Government was driven 
to interfere. 



1 The official data showing wheat produced in the United States during the war period, the exports of 
■domestic wheat, and the value of wheat exports follow: 





Production. 


Exports. 


Exports. 


Year. 


Actual. 


Rela- 
tive. 


Actual. 


Rela- 
tive. 


Actual. 


Rela- 
tive. 


1913. 


Bushels. 
730,267,000 
763,380,000 
891,017,000 
1,025,801,000 
636,318,000 
636,655,000 


100 
105 
122 
140 

87 
87 


Bushels. 
142,879,597 
145, 590, 349 
332,464,976 
243,117,026 
203,573,928 
133,990,150 


100 
102 
233 
170 
142 
94 


?89,036,428 
87,953,456 
333,552,226 
215,532,681 
298,179,705 
80,802,542 


100 


1914 


99 


1915. 


375 


1916 


242 


1917 


335 


1918. . 


91 







2 Calculated upon data for the prewar years from 1909 to 1914. 

3 The revolution in the sugar situation as it affected American prices, is graphically pictured by the 
following comparison of the world's production of sugar during the war, the total supply of sugar in the 
United States found by adding production and imports, and the total sugar exports: 



Year. 


World's production. 


United States supply. 


United States Ex- 
ports. 


Actual. 


Rela- 
tive. 


Actual. 


Rela- 
tive. 


Actual. 


Rela- 
tive. 


1913 


Pounds. 
40,787,743,360 
41,972,098,560 
41,511,919,680 
37,069,106,080 
37,728,530,560 
38,374,804,160 


100 
103 
102 
91 
92 
94 


Pounds. 
8,301,046,168 
8,890,657,390 
9,228,077,077 
9,645,558,299 
9,735,794,417 
8,679,250,840 


100 
107 
111 
116 
117 
105 


Pounds. 

66,569,033 

96,862,462 

601,103,749 

1,685,195,537 

1,268,306,254 

588,521,143 


100 


1914 


145 


1915 


903 


1916 


2 531 


1917 


1 905 


1918 


'884 







32 



HISTORY OF PRICES DURING THE WAR. 



Another pressure upon American production early in 1917, with 
a consequent inducement to higher prices, was the demand in 
Europe for our metals.^ The total exports of iron, steel, and their 
manufactures, which were $251,480,677 in value for the year imme- 
diately prior to the war in Europe, had jumped to $1,133,746,188 
by 1917. The prewar exports of copper, in like manner, were 
$146,222,556 in value and had been forced by European war re- 
quirements to $322,535,344 by 1917. These data explain why metal 
prices in this country got out of hand until their record rise in 
July, 1917, brought the Government to regulate them. 

(2) THE BREAKDOWN IN COAL DISTRIBUTION. 

The increased demand for our coal in Europe, unlike that for 
others of our materials, was not an appreciable factor in the fluctua- 
tions of coal prices, since the export tonnage of neither anthracite nor 
bituminous coal amounted in any year to more than 5 per cent of their 
respective productions. But there was, of course, a tremendously 
increased domestic demand incited by war orders. The produc- 
tion of bituminous coal, which constitutes 85 per cent of the Ameri- 
can output, jumped in 1917 to a record figure for this country, 
551,790,563 tons. 

It is a curious anomaly, explained only by the breakdown in our 
distribution by railroads and boats, that during June, 1917, when 
the problem was especially acute, the production of bituminous coal 
rose to 123 per cent of its prewar level, while the price rose to 297 

1 There follows a comparison of the actual domestic production of pig iron -with the corresponding 
European demands as represented roughly by our exports (domestic) of iron, steel and their manufactures 
during the war; and, in hke manner, a comparison of the copper produced in this country with the exports 
of domestic copper and its manufactures. A convenient tool by which to compare the variations in pro- 
duction and exports has been made , by turning each actual figure into a relative figure, using the respective 
prewar average (1913) as a base equal to 100. 



Year. 


Pig-ironproduction. 


Iron, steel, and their 
manufactures, ex- 
ports. 


Copper production. 


Copper and its man- 
ufactures, exports. 




Actual. 


Rela- 
tive. 


Actual. 


Rela- 
tive. 


Actual. 


Rela- 
tive. 


Actual. 


Rela- 
tive. 


1913 


Long tons. 
29, 726, 937 
30, 966, 152 
23, 332, 244 
29,916,213 
39,434,797 
38,647,397 


100 
104 
79 
101 
133 
130 


$304,605,797 

251,480,677 

225,861,387 

621, 237, 972 

1, 133, 746, 188 

1,124,999,211 


100 

83 
74 
204 
372 
369 


Pounds. 
1,224,484,098 
1, 150, 137, 192 
1,388,009,527 
1,927,850,548 
1,886,120,721 
1,910,000,000 


100 
94 
.113 
157 
154 
156 


S140, 164, 913 
146, 222, 556 
99,558,030 
173, 946, 226 
322,535,344 
268, 982, 821 


100 


1914 


104 


1915 


71 


1916 


124 


1917 


230 


1918 


192 







GOVEEl^rMEI^rT COXTROI^ OVER PRICES. 



33 



per cent.^ The lieayy demands upon the raih^oads for the transpor- 
tation of war materials, despite the extraordinary production of coal 
at the mines awaiting cars, created a local shortage which forced 
prices higher and finally brought Government interference. 

(3) THE SHORTAGE OF SHIPS, 

A shortage of available ships for use in transporting goods, 
though always an appreciable factor in determining the prices of 
commodities at their import and export markets, has seldom affected 
domestic prices as in 1917. The United States Shipping Board, had 
there been no war drain upon vessels, would have given an adequate 
relief. But when this country entered the war its main immediate 
responsibility was to recuperate the allied tonnage and turn ships 
into war uses with scant regard for commercial considerations. The 
result was a revolution in our foreign trading, which disturbed 
vitally many prices of commodities normally imported and others 
awaiting exportation. 

The total acquisitions of ships by the United States from April 6 
to July 31, 1917, the especially acute period, exceeded the total 
losses. This country, in other words, gained 95 vessels, making a 
total of 268,969 gross tons, and lost 68 vessels, making a total of 

1 The following table compares the actual fluctuations in the production of bituminous coal in the United 
States by years from 1913 to 1918, and by months during 1917, with the corresponding fluctuations in prices. 
A ready comparison of the variations in production and prices has been facilitated by the reduction of 
each actual figure to a relative figiu'e, using the respective prewar flgure (average from July 1, 1913, to June 
30, 1914) as a base equal to 100. 



Date. 



Actual. 



Production. Price 



Relative. 



Production. Price 



Year: 

1913 

1914 

1915 

1916 

1917 

1918 

Months, 1917: 
January... 
February. 

March 

April 

May 

June 

July 

August 

September 
October. . . 
November. 
December. 

Year 



125547°— 20- 



Tom. 
478,435,297 
422,703,970 
442,624,426 
502,518,545 
551,790,563 
58.5,883,000 



47,967,354 
41,352,711 
47,868,652 
41,854,320 
47,086,452 
46,824,646 
46,291,572 
47,372,226 
45,107,956 
48,337,726 
47,689,801 
44,037,147 



SI. 29 
1.22 
1.19 

1.78 
3.08 
2.67 



3.73 
3.75 
3.53 
3.00 
3.72 
3.77 
2.98 
3.03 
2.12 
2.15 
2.58 
2.59 



551,790,563 



105 
92 
97 
110 
121 
128 



126 
108 
126 

no 

124 
123 
121 
124 
118 
127 
125 
116 



102 



140 
243 
210 



294 
295 
276 
236 
293 
297 
235 
239 
167 
169 
203 
204 



243 



34 



HISTORY or PRICES DURIl^TG THE WAR. 



109,188 gross tons.^ But the fearful shortage altogether of allied 
and neutral tonnage during 1917, which one time threatened the loss 
of the war, made our few domestic increases seem a pittance. The 
allied and neutral tonnage, through losses from submarines and 

ALLIED AND NEUTRAL SEAGOING TONNAGE 
Lost and Built 

Thousands • of 

'gross tons 

l.OOO 



iSOO 



1917 loia 

Allied and neutral seagoing tonnage, lost and built. — By months, February, i917, to 
September, 1918. 

other causes, began falling off seriouslj^ after our entrance into war, 
and it was not until May of 1918 that the building program could 
be made to overtake the current losses. 

I There follows a summary of the changes in United States seagoing merchant marine, 500 gross tons 
and over, as prepared by the Division of Planning and Statistics of the United States Shipping Board 
from Aug. 1, 1914, to Nov. 11, 1918. 















































/ 


\ 






































/ 


\ 




































/ 


/ 


\ 


/ 


\ 






























1 


/ 








\ 


\ 




























1 














\ 


/ 


\ 


/ 




Lo 


.t 




> 


s* 






/ 
























\ 


/ 


/ 




/ 


\ 


T 












) 


\ 






/ 


Bui 


It 


V 


/ 


/ 










N 


■^ 


/ 












V 


' 






\ 












































_J 















Period. 


Acquisitions. 


Losses. 


Number 


Gross tons 


Number 


Gross tons 


United States seagoing documented vessels, exclusive of 
seized enemy and requisitioned Dutch vessels: 
Aug. 1, 1911, to Apr. 5, 1917 


406 

95 

704 


1,392,887 

268,969 

2, 292, 531 


286 

68 

233 


529, 529 


(978 davs intervening.) 
Apr. 6, 1917, to July 31, 1917 


109 188 


(116 davs intervening.) 
Aug. 1, 1917, to Nov. 11, 1918 


507 519 


(467 days intervening.) 




Total 


1,205 


3,954,387 


587 


1 146 236 






Vessels seized from enemies by United States: 
Apr. 6, 1917, to July 31, 1917 


96 

1 


640, 582 
8,312 






Aug. 1, 1917, to Nov, 11, 1918 


9 


88 081 






Total.. 


97 


648, 894 


9 


88,081 






Vessels requisitioned from Dutch by United States: 

April, 1918, to Nov. 11, 1918 


87 


354, 278 


6 


25,359 





GOVERlSTMElSrT CONTROL OVER PRICES. 35 

3. THE DESIRE OF THE GOVERNMENT TO MAKE ITS 
OWN PURCHASES AT REASONABLE COSTS. 

The desire of the Government to make its own purchases at rea- 
sonable_ costs, after the country went to war, and the enormous quan- 
tity of materials required, might have had a very much more disas- 
trous effect upon prices generally than appears upon the surface. It 
was patent that the taking of an enormous quantity of any material 
by the Government at a low figure would not of itself hold prices to 
the public at the same figure. The presumption was, on the other 
hand, that civilian competition for the residue stock would usually 
quicken and force open-market prices higher. The President early 
in the summer of 1917 saw that a control over Government purchases 
alone might unduly raise prices for the remaining stocks of the same 
commodity, and declared for a single price to the Government, the 
public, and the Allies. 

4. THE GROWING DISCONTENT WITH RISING PRICES OF 

STAPLES. 

The war-time rise in the prices of staples prior to our entrance into 
war was tolerated without complaint by the labor and middle classes, 
in the main, because there came with those increased prices a some- 
what increased prosperity. A general discontent developed, however, 
when prices mounted higher after mobilization began reducing thou- 
sands of family budgets by taking men into camps. The earmarks 
of profiteering appeared at every turn during the spring of 1917, 
and embittered those less able, who were making honest sacrifices to 
help win the war. Many, believed it the duty of the Government 
to protect them from exorbitant charges for the staple commodities, 
and urged this course until finally the Congress set up the machinery 
for a control over food and fuel prices. 

5. THE INFLUENCE OF BRITISH AND FRENCH 
CONTROLS. 

The initial handicap which the Government had to overcome in 
solving the problems that came to the fore in the spring of 1917, 
however obvious it may have appeared that regulation would effec- 
tively overcome them, was the conservative prejudice against Gov- 
ernment control. It can not be denied that the industries of the 
country at the outset generally looked askance or with fear upon in- 
terference with their business. The actual experience with control 
in England and France helped, as nothing else could, to quiet these 
fears. The country generally did not know the detail of European 



36 HISTORY OF PRICES DURING THE WAR. 

regulations. But tlie American business interests came to appre- 
ciate, through their own and British experience with rising prices, 
that war-time stabilization in prices could not be sustained without 
help from the Government. The one-time opposition to Government 
regulation, as price problems became more complex, turned gradually 
into requests for control from the industries themselves. 



Part II. 

THE ADMINISTRATION OF PRICE CONTROLS 
DURING THE WAR. 



I. THE AGENCIES DELEGATED AND THE CONTROLS 
WHICH THEY EXERCISED. 

The Governineiit was loath' to begin any reguhitions of prices until 
forced into it by excessive rises in price or by the fear of erratic mar- 
kets. It then proceeded with caution and extended control over 
the prices of commodities at wholesale in piecemeal fashion. It so 
happened that the prices of wdieat, sugar, metals, and coal which 
proved the most notable instances of regulation throughout the war, 
were taken in hand after the epochal rises of the midsummer and had 
all been put under control by the end of September, 1917. The slight 
machinery then set up formed the nucleus for the mechanism by w-hich 
prices were controlled during the war. 

There are three methods by which to survey each formal Govern- 
ment price control, from the setting of a minimum wheat price by law 
on August 10, 1917, to the withdrawal of the last regulation after the 
signing of the armistice. The regulations may be arranged chrono- 
logically by dates upon v^hicli each commodity came under control ; 
they may be grouped under, natural commodity divisions; or they 
may be classed under the war boards which exercised the controls. 
The latter scheme seems altogether the most useful, since it j)ermits 
a chronological listing under each board at least and happens to afford 
a rough grouping of similar commodity controls. The various ad- 
ministrative boards, among which the responsibility for Government 
controls were distributed at the signing of the armistice, moreover, 
grew up in part because there were distinct kinds of control problems. 

The delegation of regulatory powers over prices by the President 
during the war was prompted by reasons of expediency rather 
than logic. Price-control authority in various degrees was given to 
the Food Administration, the Fuel Administration, the War Indus- 
tries Board, the Price Fixing Committee, the- War Trade Board, 
the War Department, the Navj^ Department, the Federal Trade 
Commission, and the Department of Agriculture. 

The Food Administration, which was created by authority con- 
ferred on the President in the food and fuel control act of August 10, 
1917, was gradually given war-time control over virtually tlie whole 

37 



38 HISTORY OF PRICES DURING THE WAR. 

food gToup including Avlieat, flour, and bread ; sugar ; live stock and 
meats; poultry and dairy products; oleomargarine; cotton seed and 
cottonseed products; canned and dried foods; rice and rice flour; 
coarse grains and feedstuffs; coffee; anmionia; ice; and arsenic. The 
War Industries Board, which was made a division within the Council 
of National Defense on July 28, 1917, and a separate board on May 
28, 1918, exercised control in the main over the prices of the great 
basic raw materials until the price fixing committee was appointed. 
Even after that it exercised control over lead, nickel, quicksilver, 
platinum, manganese, burlap, wood chemicals, and alkalis. The price- 
fixing committee, which was appointed by the President, took over 
from the War Industries Board on March 14, 1918, the task of fixing 
basic raw-material prices and regulated the prices of iron, steel, and 
tlieir products, copper, aluminum, zinc, cotton textiles, cotton linters, 
wool, hides, skins, and leather, hemp, lumber, building materials, and 
acids. The Fuel Administration, which with the Food Administra- 
tion was authorized by the food and fuel control act, exercised full 
control over the prices of anthracite and bituminous coal and coke. 
The War Trade Board, which was created b}' the President under 
authority from the espionage and trading- with-the-enemy acts, was 
given control over imports and exports, and sometimes used its license 
power indirectly to help control prices, especially of rubber, foreign 
wool, silk, quebracho, castor beans, and castor oil. The Army and 
XaA^y, by their power to requisition and commandeer, controlled prices 
in part for their own jDurchases. The Federal Trade Commission 
compiled extensive cost data for the price-control agencies and itself 
controlled certain paper prices. Lesser controls were exercised by the 
Department of Agriculture. 

(i) THE PRESIDENT MADE A MINISTER OF PRICE CONTROLS. 

i, The Congress did not grant to the President, or to any agency, blan- 
ket authority to work out a schematic program of general price 
regulation during the war. The bases in law for different regulations 
were varied and sometimes doubtful. The country early got at the 
business of regulating prices, despite its one-time caution, because 
the President deemed it necessary himself to become in reality a 
minister of price controls. There was no disposition, once tlie food 
and fuel control bill was law, to await specific authorization by the 
Congress when a war purpose made any price control imperative. 
The whole body of regulations relating to prices, whether specifically 
allowed by legislative enactment or set up loosely under war powers, 
took their final administrative authority from the President. 

It is noteworthy that even the food and fuel control act, which 
was the one broad grant of regulatory powers over prices made by 
the Congress, gave power simply to the President and made no men- 



GOVERNMElSrT CONTROL OVER PRICES. 39 

tioii of either a Food Administration or a Fuel iVdministration. It 
permitted the President to control foods and fuels and he, of his own 
accord, appointed to represent him a Food Administrator and a Fuel 
Administrator. These latter, in turn, set up huge organizations as 
their tools of administration. \ There was scarcely a fragment of 
authority for the final organization of the War Industries Board, 
other than the President's well known letter of March 4, 1918. The 
price-fixing committee was appointed by the President to represent 
him in fixing maximum prices and without definite citation of legis- 
lative authority. The War Trade Board, too, was an instrument of 
the President. The resting of final responsibility upon the President 
for the administration of price controls was, in point of fact, more 
literal than might appear, since he himself undertook to approve and 
to sign a majority of the regulations. An account follows of the 
various agencies through which he administered price control, with 
an analysis of the individual controls undertaken. 



2. THE FOOD ADMINISTRATION. 

^ \ A chronicle in detail of the planning and administration of food 
control during the war can scarcely be had from any available 
records. The United States Food Administration can not itself re- 
count all of the controls which it administered, so multifarious were 
they in number, so informal in kind, and so altered from day to day.j 
The regulation of food prices was at once the most nebulous war con- 
trol exercised in America, and the most far-reaching and direct in its 
touch with the civilian and the soldier. It was extended to cover, in 
one form or another, virtually every staple food commodity and 
others of lesser importance. 

■> ^ The nature of food control in this country during war time was 
distinguished sharply from that of raw-material control. The prices 
of raw materials were, in the main, definitely fixed. The prices 
of foods Avere controlled instead by a flexible and, often, loosely 
applied system of margins. The raw-material control was a very 
much more tangible thing than the food control. It is relatively a 
simple task to determine upon a line where price fixing of raw 
materials stops and other kinds of control begin. But a study of 
Government control over the prices of foodstuffs involves an account 
of control over production, allocation of sales, distribution, priorities 
of manufacture and transportation, conservation of uses, amounts 
allowed for export and import and the allotments of shipping space. 
It is not apparent at first sight whether these controls are features 
of price regulation or not. Only a detailed examination of each in- 
stance of control will give a proper basis to judge which of those 
controls affected particular prices, and which, therefore, merit con- 
sideration in a study of Government control over prices. / 

> C The real beginnings of food control were made the day following 
our entrance into war, when the Council of National Defense cabled 
Mr. Herbert Hoover a request that he become its advisor upon food 
and price problems. Mr. Hoover, in reponse to that and a later 
cablegram from the President, arrived at New York from Europe on 
May 3, 1917, and set up an office, with a stenographer, in a hotel at 
Washington on the following morning. 

~7 C^The President was anxious to start a study of the food problem 
at once and, pending legislation, appointed Mr. Hoover Food Ad- 
ministrator of the United States on May 17. There was, meantime, 
no authority for any thoroughgoing regulation, but the newly ap- 
pointed Food Administrator, under special allowances from the 
40 



GOVEENMEISTT CONTEOL OVER PRICES. 41 

President's emergency fund, laid tlie foundations for a food-control 
law. He had, by the time the food bill was passed, alreardy built 
up a staff of 450 persons.^ At his instance during that interim, 
furthermore, over 100 conferences " were held with the trade, im- 
portant informal agreements were reached, and contacts cemented 
that determined the later courses of action. (^Too little emphasis "\^ 
might easily be given to the length of the step, from free competi- 
tion and soaring prices at our declaration of war into price control. 
Mr. Hoover, fresh from Europe and in touch with the food, military, 
submarine, and shipping situations, was in a peculiarly strategic 
position to help hasten that transition. He impressed the country 
with the belief that the Allies were in more immediate need of food 
than of men-] that the shortage of ships made it expedient that this 
food come largely from North America, since shipments from Aus- 
tralia or Argentina would require two and three times as much ton- 
nage, respectively, to haul an equal amount; that the Allies would 
need perhaps 500,000,000 bushels of wheat beyond their own crops 
for the next year, and close to 1,000,000,000 bushels of all cereals; 
that there was prevalent a speculation in wheat, prompted by bidding 
for the residue available for export, which had already boosted the 
price of flour from $9 to $15 per barrel. These facts were told in a. 
straightforward manner the country over, and acted as a leaven 
preparing the way for Government control. The American, not ac- 
customed to war-time control, reacted favorably when told that his 
own wheat could be exported across the Atlantic, and made into 
bread that sold there under Government control, at a price in Bel- 
gium amounting to 60 per cent of the price which he paid at New 
York ; in France, at a price 40 per cent below his own ; and in Eng- 
land at a price 30 per cent below his own. (^ This propaganda, backed ^ " ■-- 
strongly by the President, and the general confidence in Mr. Hoover ;^y. < v 
inspired by his long and intimate contact with food control in Bel- 
gium, France, and Ejigland, (was the force which got the United <- 
States promptly into the business of controlling her foodstuffs by 
the summer of 1917. , 

(The debates in Congress upon the so-called Lever bill began im- <;^ 
mediately after its introduction on June 11, and dragged on, as the 
President believed in a "tedious and vexatious" manner, for the 
whole of two months. ] But, pressing as the wheat and sugar situa- \. ^ 
tions seemed then for more immediate action, the long drawn-out 
hearings and discussions during the summer did teach the Govern- 
ment and the country much about their problem. (^The bill was -^C" 
finally made into the food-control act on August 10, 1917. That act 
set forth the basis of all later food control, granted wide powers to 
the President under which he created the United States Food Ad- 
ministration, and fi^ed a minimum price for wheat. It gave legal 



> 



42 HISTORY OF PRICES DURIIsTG THE WAR. 

status, really, to all that Mr. Hoover had done at Washington of an 
informal character in the three months previous. There were pro- 
posed at the Capitol scores of amendments, some of which were 
written into the bill and gave it different character, but altogether 
the law as signed by the President set up the kind of control for 
^ which he and Mr. Hoover had long asked.) 

p' (i)fTHE FOOD-CONTROL ACT. N 

The food-control act, made from the Lever bill, and sometimes 
called the food and fuel control act, was the most important measure 
for controlling jprices which the United States took during the war 
or had ever taken. It was the basis for the whole of war-time control 
of food and fuel as well. It, more than any other statute, requires 
an analysis in this inquiry. 

The Purposes of the Act. 

' The declared purpose of the act, and the sweeping control which 
it held in contemplation, can be pictured no more impressively than 
through a repetition of the terminology written into the law. The 

act states as its aim — 

to assure an adequate supply and equitable distribution, and to facilitate the 
movement, of foods, feeds, fuel, including fuel oil and natural gas, and fertilizer 
and fertilizer ingredients, tools, utensils, implements, machinery, and equip- 
ment required for the actual production of foods, feeds, and fuel, hereafter in 
this act called necessaries ; to prevent, locally or generally, scarcity, monopoli- 
zation, hoarding, injurious speculation, manipulations, and private controls 
affecting such supply, distribution, and movement ; and to establish and main- 
tain governmental control of such necessaries during the war — 

and authorizes the President to issue any regulations or orders neces- 
sary to carry out its provisions.N It makes the purposes of Congress 
even more definite, by the specific acts which it declares unlawful — 

it is hereby made unlawful for any person willfully to destroy any neces- 
saries for the purpose of enhancing the price or restricting the supply thereof ; 
knowingly to commit waste or willfully to permit preventable deterioration of 
any necessaries in or in connection with their production, manufacture, or 
distribution ; to hoard, as defined in section 6 of this act, any necessaries ; to 
monopolize or attempt to monopolize, either locally or generally, any neces- 
saries ; to engage in any discriminatory and unfair, or any deceptive or waste- 
ful practice or device, or to make any unjust or unreasonable rate or charge, 
in handling or dealing in or with any necessaries; to conspire, combine, agree, 
or arrange with any other person, (a) to limit the facilities for transporting, 
producing, harvesting, manufacturing, supplying, storing, or dealing in any 
necessaries; (&) to restrict the supply of any necessaries; (c) to restrict dis- 
tribution of any necessaries; {d) to prevent, limit, or lessen the manufacture 
or production of any necessaries in order to enhance the price thereof; or (e) 
to exact excessive prices for any necessaries, or to aid or abet the doing of any 
act made unlawful by this section — 

and which comprehend very nearly all private abuses pertinent to the 
war-time food problem. 



GOVERNMENT CONTROL OVER PRICES. 43 

\ The outstanding feature of the whole act k the kind of control by <^ 

which it propose^ to accomplish these ends.^ The Congress, in full 
knowledge of the various experiences of England and France, deter- 
mined finally that the domestic situation lent itself more readily to 
a system of license control over the manufacture and distribution of 
foods than to a system either of fixed or maximum prices. The 
transition to a war-time basis, it was felt, should be made more 
gradual than either of the latter alternatives would permit. It was 
believed, too, that the patriotism of the people could be relied upon 
to carry through the less rigid program of control. Other features 
of especial note in the act were the powers which it delegated to the 
President to requisition " necessaries " ; to purchase or store wheat, 
flour, meal, beans, and potatoes; to take over for use or operation by 
the Government factories or plants manufacturing "necessaries"; 
to regulate or prohibit operations of exchanges and boards of trade ; 
to commandeer distilled spirits; and to fix the prices of coal and 
coke. (^It was this law also which guaranteed a minimum price of ^-^ 
$2 per bushel for wheat, binding until May, 1919, and provided that 
the President might fix a higher price at his discretion.j 

The License System. 



(.The backbone of the administration of war-time control over foods 
lay in the license system and the many rules and regulations which 
were imposed upon all who came under it. The law itself set up 
control over no particular commodities, with the exception of wheat. 
It simply gave the President power, by issuing proclamations from 
time to time, to bring under, license control dealers in those com- 
modities which he and the Food Administrator wanted to regulate. 
The name of every class of food that was controlled, presumably, 
may be found in the different proclamations made by the President 
between August 10, 1917, and the close of war, in which he declared 
that dealers in the foodstuffs specified must secure a license from the 
Food Administration before doing further business. The first of 
these proclamations, aside from the Executive order issued the day 
the law was signed creating the Food Administration and appoint- 
ing Herbert Hoover as Food Administrator, was issued August 14, 
1917, and called for the licensing of wheat and rye elevators and 
millers. By all odds the most important of all the proclamations was 
that of October 8, 1917, which called in substance for the licensing 
of every dealer in any staple food commodity. It provided for the 
licensing of manufacturers and distributors of wheat, rye, barley, 
flours, oats, oatmeal, corn, cornmeal, rice, dried beans or peas, cot- 
ton seed, vegetable oils, lard, milk, butter, cheese, beef, pork, mutton, 
poultry, eggs, fish, fruits, vegetables, canned goods, dried fruits, and 
sugar. Proclamation by proclamation the list of dealers from whom 



< 



44 HISTORY or PRICES DURING THE WAR, 

licenses were required was extended, until at the end virtually the 
whole food group was under license control.^ 

The discretion left by the act to the administrators for the deter- 
mination of dealers who may be licensed was exceeded in scope only 
by that left to them for the determination of foods that may be 
put under license control. The law in no sense tied the hands of 
the food administrators in the latter respect. It gave them power to 
control any and all foods or feeds. There were, moreover, but few 
dealers in those foods or feeds whom they might not bring under 
license control. The substance of the law was that all persons en- 
gaged in the importation, manufacture, storage, mining, or distribu- 
tion of any necessaries might be licensed. But two exceptions espe- 
cially important were made to that general rule. The law specifically 
exempted from license control all farm and garden producers and all 
retailers whose gross annual sales fell below $100,000. ^ 

1 The President signed 8 Executive orders and 19 proclamations under this act from 
Aug. 10, 1917, to Nov. 25, 1918, as follows: 

EXECUTIVE ORDEES. 

Aug. 10, 1917. Providing for organization of United States Food Administration. 

Aug. 14, 1917. Providing for organization of Food Administration Grain Corporation. 

Sept. 2, 1917. Directing Treasm-y Department to enforce sees. 15 and 16 of food-control 
act. 

Sept. 27, 1917. Providing for appointment of secretaries to Federal food administra- 
tors without civil-service examination. 

Oct. 23, 1917. Providing for requisitioning of foods and feeds. 

Nov. 10, 1917. Amending civil-service regulations. 

Nov. 27, 1917, Authorizing United States Food Administrator to find that fair profit 
is normal average prewar profit. 

June 21, 1918. Designating Food Administration Grain Corporation as agency of United 
States to purchase wheat, and directing that capital stock be increased. 

PROCLAMATIONS. 

Aug. 14, 1917. Licensing of wheat and rye elevators and millers. 

Sept. 7, 1917. Licensing of importers, manufacturers, and refiners of sugar, sugar 
sirups, and molasses. 

Oct. 8, 1917. Licensing of manufacturers and distributors of certain food commodities. 

Nov. 7, 1917. Licensing bakers. 

Nov. 15, 1917. Licensing of arsenic industry. 

Dec. 8, 1917. Limiting alcoholic content of malt liquor. 

.Tan. 3, 1918. Licensing of ammonia industry. 

.Tan. 10, 1918. Licensing the importation, manufacture, storage, and distribution of 
feeds and certain other food commodities. 

.Tan. 18, 1918. Conservation of wheat. 

.Tan. 30, 1918. Licensing of bakers not already licensed, and importers and distributors 
of green coffee. 

Feb. 21, 1918. Fixing guaranteed prices for 1918 wheat crop. 

Feb. 25, 1918. Licensing of fertilizer industry. 

May 14, 1918. Licensing of farm-equipment industry. 

May 14, 1918. Licensing packers of canned tuna and others. 

June 18, 1918. Licensing of stockyards. 

Sept. 2, 1918. Fixing guaranteed prices for 1919 wheat crop. 

Sept. 6, 1918. Licensing of dealers in live or dead cattle, sheep, swine, or goats. 

Sept. 16, 1918. Prohibiting manufacture of malt liquors. 

Nov. 2, 1918. Licensing operators of warehouses storing goods and feeds for hire and 
others. 



GOVEElSrMElSrT CONTROL OVER PRICES. 45 

The Teeth of the Statute. 

( There were put into the statute itself, quite apart from any regu- -C^. 
lations which the Food Administration might later set up under it, 
enforcement clauses which were powerful weapons in the admin- 
istration of its provisions. ', It contained the threat of a fine of 
$5,000 or $10,000 against violators of nearly every section in the 
law, or imprisonment for not more than four or five years. The 
laAv, in the famous section 4, specifically declared it to be unlawful 
to destroy any necessaries for the purpose of enhancing the price; 
to waste necessaries ; to hoard necessaries ; to monopolize necessaries ; 
to make any unjust or unreasonable rate or charge in handling neces- 
saries ; to restrict the facilities for transporting, producing, harvest- 
ing, manufacturing, supplying, storing, or dealing in necessaries; 
to restrict the distribution of necessaries ; or'to exact excessive prices 
for any necessaries. This section, though the most sweeping in its 
statement of unlawful practices, left some ambiguity as to penalties 
for its enforcement. There was, moreover, written into the law an 
authorization for the President to requisition foods, and another for 
him to make purchases. Those powers, however little exercised, 
stood always as effective potential instruments. But, quite aside / • 
from these penalties in the law, there was, of course, a much more 
effective instrument in the appeal to a war-time spirit of cooperation. 
By no other price-control agency at Washington were there set up 
so many legal and patriotism-arousing devices for the enforcement 
of their regulations.") 'C- 

/ The Fixing of a Minimum Price for T^^heat. j /', 

V^The fixing of a minimum price for wheat)is another phase of the 
food-control act which (Reserves especial note) both because of its own ^ x 
merit and(4)ecause it represents a distinct break in policy with the >r v y 
rest of the act. Wheat was the only commodity for which the law 
fixed a price. It was the onlj^ food commodity for which the law 
specifically stated that a price might be fixed. But even the license 
section, so many believe, opened a way for fixing food prices to be 
charged by licensees. In any case, there was left no doubt what was 
to be done about wheat. A definite guarantee of $2 per bushel for 
all No. 1 Northern spring wheat, at Chicago, was made for deliveries 
up to May 1, 1919. The prices of equivalent wheats or other stand- 
ard grades at various markets were to be figured, upon that scale, 
by the official grain standards established under the United States 
grain-standards act. The President, while not permitted to set 
aside this guaranteed minimum price fixed in law, was given 



> 



46 HISTORY OF PRICES DURING THE WAR. 

power to increase the guaranteed minimum from time to time to 
encourage production. In point of fact he did increase that mini- 
mum to $2.20 for the 1918 crop, by proclamation on February 21, 
1918, and again to $2.26, for the 1919 crop, by proclamation on Sep- 
tember 2, 1918. The effectiveness of the guarantee was assured by 
an authorization to purchase any wheat, if occasion demanded, for 
which a minimum price had been guaranteed.^ 

The food-control bill was enacted into law only through the 
pressure of war emergencies and, in keeping with the arguments 
which were used for its passage, contains a clause that it shall cease 
to be in effect when the President shall proclaim that the war against 
Germany has terminated. 

(2) THE POLICIES OF THE FOOD ADMINISTRATOR. J 

The considerable leeway in control over food which the act gave 
to the President makes peculiarly important an analysis in full of 
the policies of his Food Administrator. The act, with a single con- 
spicuous exception, left wide powers with the President which he 
might or might not use. The policies of food control in which Mr. 
Herbert Hoover believed, therefore, can not but call for careful 
consideration. 

/ Mr. Hoover returned to this country with his mind fully adjusted 
to and familiar with the several experiences with food control in 
in Europe. The President, after issuing his own general program 
for food control on May 19, 1917, depended upon the advice and 
leadership of Mr. Hoover for establishing a proper administration 
of control. There was scarcely a limit of regulatory experience 
which had not been tried out abroad. The British food controller 
at our entrance into war, indeed, had already been given power 
to set minimum or maximum prices and to fix prices absolutely. 
Those facts were outlined to the Government by Mr. Hoover within 
a week after his return.^ It is noteworthy in the light of these 
and later developments that Mr. Hoover upon his arrival laid 
before the President these five cardinal principles of food control: 
First, that the food problem is one rather of wise administration 
than "dictatorship"; second, that administration can be carried 
out largely through constituted agencies of producers, distributors, 
and consumers ; third, the org;anization of the community for volun- 
teer conservation of foodstuffs; fourth, that all important positions, 
so far as may be, shall be filled with volunteers; and fifth, the 
centering of independent responsibility for food administration 
directly under the President, with cooperation from the Department 

1 Letter from Mr. Hoover to the Secretary of State of date May 10, 1917. 



GOVERlSrMElSrT CONTROL OVER PRICES. 47 

of Agriculture, the Department of Commerce, the Federal Trade 
Commission, and the railway executives.^ 

Mr. Hoover at the outset of his administration settled upon the 
policies of control for which he intended to work and upon the gen- 

^(gresident Wilson, on May 19, 1917,) soon after the return of Mr. Hoover from "^ 
Europe,i'appointed Mr. Hoover as Food Administrator pending legislation and issued the 
following program for food control : 

. " It is very desirable, in order to prevent misunderstandings or alarms and to assure 
cooperation in a vital matter, that the country should understand exactly the scope and 
purpose of the very great powers which I have thought it necessary in the circumstances 
to ask Congress to put in my hands with regard to our food supplies. Those powers are 
very great, indeed, but they are no greater than it has proven necessary to lodge in 
the other Governments which are conducting this momentous war, and their object Is 
stimulation and conservation, not arbitrary restraint or injurious interference with the 
normal processes of production. They are intended to benefit and assist the farmer and 
all those who play a legitimate part in the 'preparation, distribution, and marketing of 
foodstuffs. •<C^_ 

" It is proposed to draw a sharp line of distinction between the normal activities of 
the Government represented in the Department of Agriculture in reference to food pro- 
duction, conservation, and marketing, on the one hand, and the emergency activities 
necessitated by the war in reference to the regulation of food distribution and consump- 
tion, on the other. All measures intended directly to extend the normal activities of 
the Department of Agriculture in reference to the. production, conservation, and the 
marketing of farm crops will be administered, as in normal times, through that depart- 
ment, and the powers asked for over distribution and consumption, over exports, imports, 
prices, purchase, and requisition of commodities, storing, and the like, which may require 
regulation during the war will be placed in the hands of a commissioner of food admin- 
istration, appointed by the President and directly responsible to him. 

^ ( OBJECTS SOUGHT BY LEGISLATIOX. <^ 

^ " The objects sought to be served by the legislation asked for are : JfuII inquiry Into X "< n^ 

the existing available stocks of foodstuffs and into the costs and practices of the various 

food producing and distributing trades ; the prevention of all unwarranted hoarding 

of every kind and of the control of foodstuffs by persons who are not in any legitimate 

sense producers, dealers, or traders ; the requisitioning, when necessary for the public use, 

of food supplies and of the equipment necessary for handling them properly ; the licensing 

of wholesome and legitimate mixtures and ^milling percentages, and the prohibition of 

the unnecessary or wasteful use of foods. 

" Authority is asked^lso to establish prices, hut not in order to limit the profits of the _;^ 
farmers, but only to guarantee to them when necessary a minimum price which will 
insure them a profit where they are asked to attempt new crops and to secure the 
consumer against extortion by breaking up corners and attempts at speculation, when 
they occur, by fixing temporarily a reasonable price at which middlemen must sell. 

" I have asked Mr. Herbert Hoover to undertake this all-important task of food 
administration. He has expressed his willingness to do so on condition that he is to 
receive no payment for his services and that the whole of the force under him, exclusive 
of clerical assistance, shall be employed, so far as possible, upon the same volunteer 
basis. He has expressed his confidence that this difficult matter of food administration 
can be successfully accomplished through the voluntary cooperation and direction of 
legitimate distributers of foodstuffs and with the help of the women of the country. /^ 

"Although it is absolutely necessary that unquestionable powers shall be placed in my 
hands in order to insure the success of this administration of the food supplies of the 
country, I am confident that the exercise of these powers will be necessary only in the 
few cases where some small and selfish minority proves unwilling to put the Nation's 
interests above personal advantage, and that the whole country will heartily support 
Mr. Hoover's efforts by supplying the necessary volunteer agencies throughout the country 
for the intelligent control of food consumption and securing the cooperation of the most 
capable leaders of the very interests most directly affected, that the exercise of the 
powers deputed to him will rest very successfully upon the good will and cooperation of 
the people themselves, and that the ordinary economic machinery of the country will be 
left substantially undisturbed. 

FOOD ADMINISTRATION ONLY WHILE WAE LASTS. 

" The proposed food -administration is intended, of course, only to meet a manifest 
emergency and to continue only while the war lasts. Since it will be composed for the 
most part of volunteers, there need be no fear of the possibility of a permanent 



48 HISTORY OF PRICES DURIXG THE WAR. 

eral skeleton of organization by which he hoped to administer them. 
The general approach to his problem, from an organization stand- 
point, seems to have come to him before the detailed policies of con- 
trol. He gave out again and again during the spring of 1917 state- 
ments that food control to him fell into four great branches: First, 
the control of exports ; second, the setting up of instrumentalities to 
regulate or do away with speculation ; third, the mobilization of 
the women and men of the country engaged in personal distribution 
of foods as actual members of the Food Administration to carry out 
national conservation; and, fourth, the erection in every State of a 
Federal State food administration and the decentralization so far as 
possible of functions into State administrations. Of this organiza- 
tion plan for control no more need here be said. But the policies of 
control which were worked out under that broad plan do require 
especial analysis. In a word, it may be said that the outstanding 
policies of the Food Administrator were those declaring against fix- 
ing absolute prices, the " reasonable margin of profit " rule, the 
disregard of replacement value in fixing margins, the spirit of co- 
operation extended to the trade, and the faith that was placed upon 
campaigns of education. 

No Fixed Prices Established. 

Xo other policy of the Food Administrator bore as much signifi- 
cance perhaps, or showed so distinctly in the act, as the policy not to 
fix prices in the common sense. It matters little for the purpose at 
hand whether that was from the outset a determined policy, based 
upon European experiences, or one forced by the exigencies of a 
political situation. The food control act as passed does not, at any 
rate, specifically empower the fixing either of minimum, absolute or 
maximum prices on foodstuffs.^ It appears, in fact, to be an act 
designed quite as much to control the manufacture, distribution, and 
conservation of commodities within the food industry as to control 
the prices of foods. But the impression must not be harbored that 
the act was loosely drawn or toothless even as to the point at issue in 

bureaucracy arising out of it. All control of consumption will disappear when the 
emergency has passed. It is with that object in view that the administration considers 
it to be of pre-eminent importance that the existing associations of producers and dis- 
tributors of foodstuffs should be mobilized and made use of on a volunteer basis. The 
successful conduct of the projected food administration by such means will be the finest 
possible demonstration of the willingness, the ability, and the eflSciency of democracy 
and of its justified reliance upon the freedom of individual initiative. The last thing 
that any American could contemplate with equanimity would be the introduction of 
anything resembling Prussian autocracy into the food control of this country. 

" It is of vital interest and importance to every man who produces food and to every 
man who takes part in its distribution that these, policies thus liberally administered 
should succeed and succeed altogether. It is only in "that way that we can prove it to he 
absolutely unnecessary to resort to the rigorous and drastic measures which have proved 
to be necessary in some of the European countries." 

^ The one exception to that policy was wheat. 



GOVEKNMElfrT COI^TROL. OVER PRICES. 49 

this monograph. The contraiy was so distinctly true that, had occa- 
sion demanded, foods could have been requisitioned without further 
legislation. Mr. Ploover, though more in touch with the need for food 
abroad than anyone else, did not believe that it was necessary for 
this country to be put upon a ration basis at once, or even a fixed- 
price basis. He believed that a sufficient saving and price control 
could be effected through approximate measures. In a broad way it 
appeared to him simply that war-time demands had given rise to 
speculation and destroyed the ordinary balances and checks upon 
prices. He had in mind at the beginning, therefore, no rigid price 
fixing, but a stimulation of patriotism which would set the coimtry 
at large to saving food, help the administration to check speculation, 
and restore the "balance wheel on prices." ^ The motto for the 
Nation, indeed, which Mr. Hoover gave out just following his accept- 
ance of the food administratorship was " Eat plenty, wisely, without 
waste." It was left to him to set up more stringent regulations later 
on as each situation required.- 

The " Reasonable Margix-of-Profit " liULE. 

The real price control within the Food Administration came from 
its conunon requirement that licensees, covering dealers virtually in 
all food commodities, should not receive more than a "reasonable 
margin of profit." This rule, prohibiting unreasonable profits, was 
incorporated in the general license regulations. It was thereby 
made applicable to all licensees, save only salt-water fishermen, for 
the importation, manufacture, storage, and distribution of food com- 
modities and feeds. A somewhat broader definition of the " reason- 
able-margin-of-profit " rule may be had from the language of the 
general regulations: 

The licensee shall not import, manufacture, store, distribute, sell, or other- 
wise handle any food commodities on any unjust, exorbitant, unreasonable, dis- 
criminatory, or unfair commission, profit, or storage charge. 

This general requirement, that profits of all licensees be reason- 
able, does not indicate what would be considered a reasonable profit. 
The question arises at once. What did the Food Administrator be- 

1 It is difficult; to find a more precise statement of the early policies of Mr. Hoover 
upon price control of foods than tliat which he gave in a statemont on May 19, 1917, as 
follows : " The consequence is that a sudden demand or concerted efiEort of speculation 
can entirely upset price conditions in the United States to a degree hitherto unknown, 
and it is necessai-y for us to devise with the best thought of this country a temporary 
balance by which we can establish stability of prices in the great staples, bearing in 
mind always that we must maintain production by assuring good return to the producer, 
and at the same time will diminish the cost of Uving, lest we face sSfcial readjustments 
and, strike disturbances, with consequent loss of national efficiency." 

^The testimony of Mr. Hoovev before the Senate Committee on Agriculture and For- 
estry on May 8, 1917, throws some light upon his reactions to the experience of Europe 
with maximum and minimum prices for foodstuffs. It is here quoted in part : y 

" Senator Brady. Do you feel that we should make a minimum price on farm products? V 

" Mr. Hoover. On the price question there are in this world three conceptions : The , 

agricultural population in this country or any other country would like to have a mini- j 

125547°— 20- i 



-C 



50 



HISTORY OF PRICES DURIISTG THE WAR. 



r 



lieve, as a general policy to guide liim in issuing special regulations, 
was a reasonable profit? The working out of that general policy 
gave shape to three rather definite phases of the rule: That the 
" reasonable margin of profit " must be figured upon a cost basis, the 
fixing of maximum margins of profit, and the disregard of replace- 
ment value in fixing margins. 

mum price. , The minimum price is a protection solely to the producer, and it is capable 
of execution, because such, a thing would probably be backed by the Government who 
could pay the money. Now, the consumer, on the other hand, clamors for a maximum 
price to protect him. A maximum price has proved a total failure in Europe in every 
case, except where the Government owned enough of the commodity that it could control 
the market, 

" Senator Noeris. Has the minimum price been succeessful there? 

" Mr. Hoover. Yes ; it has been used as an effective agent to stimulation. 

" Senator Norris. The maximum price has proved a failure? 

" Mr. Hoover. The maximum price has proved a failure in all cases, except where the 
Government controlled enough of the commodity. ^ I might make that clear by stating 
that the French Government imported last year about 25 per cent of their breadstuflfs 
requirements and bought those breadstufCs for the Government and u.sed that as a club 
to maintain the maximum price, but in all commodities where there is no club of that 
character the maximum price is a total failure. 

" Senator Wadsworth. From the standpoint of the consumer? 

" Mr. Hoover. Well, as a matter of operation. I might tell you w'ly it fails. The 
establishment of a maximum price is, in itself, the result of a shortage of supply ; other- 
wise, we do not do it. You have less foodstuffs than will go around to the whole of the 
consumers' demand, and therefore you put on a maximum price. 

" Senator Geonna. Which discourages production, does it not — the maximum price? 

" Mr. Hoover. It all depends on the price. 

" Senator Geonna. But in order to satisfy the consumer it would naturally discourage 
production? 

" Senator Smith of Georgia. Unless it was high? 

" Mr. Hoover. Unless it was high. 

" Senator Gronna. That would not satisfy the consumer? 

" Mr. Hoover. No ; but just to elaborate the reasons why it failed, you find Imme- 
diately when a maximum price is established that all of the consumers of the country 
who can open a chain directly with the producer at once do so, and they not only open 
a chain for their daily needs, hut they proceed to hoard at once, and the phenomenon 
accompanying a maximum price — I think Dr. Taylor will confirm this — has been the 
total disappearance of that commodity all the way from a fortnight to three months from 
the normal market, because those minority consumers who can reach the producer directly 
will absorb the whole supply and they will make their own bargains, and often if they 
do make it they set up a cycle ; and it has been an economic failure, except where there 
has been a club to enforce it. 

" The Chairman. A maximum price that was too low would have that effect anyway, 
would it not — the consumption of the total supply? 

" Mr. Hoover. If you have a shortage in supply, there is flo maximum price that holds. 
You can put it as high as you like where there is insufficiency of supply. 

" Senator Smith of Georgia. The maximum price has only been efffectual where the 
Government controlled the commodity and put the price down so as to put the commodity 
in reach of the people, and that very act checks exorbitant price. 

" Mr. Hoover. Yes. They could, in effect, manipulate the price if they wanted to. 

" Senator Brady. From the trend of your interesting statement (regarding wheat and 
other control abroad), Mr. Hoover, it seems to me it leads to the fixing of an arbitrary 
price rather than a minimum or maximum price? 

" Mr. Hoover. That is our view ; that is our experience in Belgium ; we come to fix 
an arbitrary price. I might say that was discussed between myself and the English food 
controller and the French food controller, but they did not have to do it, because they 
have the import implement of control by which they could handle the market."/ 



Q V 



GOVEKHMEITT COISTTEOL, OVER PRICES. 51 



The Cost Basis. 



The first phase of the " reasonable margin of profit " rule was so 
important that it came frequently itself to be known as the "cost 
basis " rule. It was, however, in reality, simply a part of the larger 
rule. It stated that the Cost of the commodity, rather than the 
market value, should be the starting point from which to figure the 
" reasonable margin of profit " allowable. The food-control act gave 
no authority to demand that anybody should sell goods below the 
actual cost, and there was no means, therefore, if there had been 
inclination, to enforce a basic price. The design of the law, ap- 
parently, was simply to prohibit the exaction of unreasonable prices 
in foodstuffs. A basic price, it was believed, even if set, would 
necessarily have had to be near the prevailing market. That general 
practice then would have given enormous profits to dealers who had 
bought their goods through contract a year previous at lower fig- 
ures. It was the inclination of the trade, naturally, to have the 
Food Administration begin to calculate a "reasonable margin of 
profit " from the market value or cost of replacement. The admin- 
istrators of food control stuck in principle, however, to the cost of 
'the goods as the proper basis for determining profits allowable 
throughout the war. 

Once it was determined to accept costs as the base, above which a 
" reasonable " profit would be allowed, an interpretation of " reason- 
able " was imperative. Mr. Hoover gave emphasis to his belief that 
no person was entitled to make moKe profit from any employment 
than he could haVe made under prewar conditions.^ He did not 
interpret this policy to mean, however, that no licensee could charge 
more than a prewar price. A due allowance was made for in- 
creased cost of raw materials, labor, and manufacture. The word 
" reasonable " was construed to mean the average percentage of 
profit made in prewar times (taking the three years prior to the 
European war as a basis) on the same commodity, with an even 
market, and under freely competitive conditions. One of the strong- 
est or weakest features of the " reasonable margin of profit " rule, 
according to the point of view, is that it sets up no uniform or fixed 
price for a particular commodity at various markets or within the 
same market. Each dealer is allowed his "reasonable" margin of 
profit. It becomes patent that the effectiveness of the rule depends 
upon the rigor of its enforcement. That rule was, in any event, 
the bulwark of price control administered over foods. 

iMr. Hoover, in a speech before the Pittsburgh Press Club on April 18, 1918, said in 
part : " I do not believe that any person in the United States has a right to make 1 cent 
more profit out of anj' employment than he would have made under prewar conditions. 
I do not care whether this refers to the farmer, to the laborer, to the manufacturer, to 
the middleman, or to the retailer. To me every cent taken beyond this standard is money 
abstracted from the blood and sacrifice of the American people." 



52 HISTOEY OF PEICES DUEIISTG THE AVAE. 

Fixing Maximum Wholesale and Iletail Maruixs. 

The scheme of holding food profits to a " reasonable " margin of 
profit underwent some evolution before it was finally determined to 
fix definite maximum margins for wholesalers and later for retailers. 
The earlier difficultly were really gropings for a mechanism by 
which to find the average prewar nonspeculative profits. At first the 
dealer was allowed to base his present profits upon his prewar per- 
centage of profits. For example, if he made 10 per cent on canned 
tomatoes before the war, he might make 10 per cent on them during 
the war. But since the prices of canned tomatoes had materially ad- 
vanced during the war, of course. 10 per cent of absolute profit over 
a war-time price meant more to the dealer than that percentage had 
meant over his prewar price. This extra profit, in a general way, 
was assumed necessary to cover increased investment and costs of 
doing business. But neither the trade nor the Food Administration 
was pleased with that interpretation of the rule. It at once put a 
handicap upon the conscientious dealer and left the Food Adminis- 
tration no definite standard for enforcing the law. No one could 
snj, in a clear-cut way, what the law Avas. 

The final step in control by margins was reached when, on April 
6, 1918, the Food Administration announced a- series of definite 
maximum margins of profit allowable on the more important staples 
at wholesale. There had been fear, in working out the plan, that the 
low-cost dealers would increase their profits to the basis of the widely 
applicable, and therefore, higher margins. A definitely fixed mar- 
gin might be reasonable for one dealer but afford excessive profits 
to another. Accordingly, it was determined to fix a high and low 
maximum margin upon each item. The higher margin was to be 
made applicable to the dealers with high costs, and the lower margin 
to those with relatively Ioav costs. In order not to destroy compet- 
itive conditions tending to reduce prices below the maximum, neither 
margin was made a minimum one. They were simply maxima, be- 
yond which profits would not prima facie be considered reasonable 
or lawful. It was a great relief to the trade, and the administrators, 
to have definite margins prescribed as standards and it made, alto- 
gether, for better results. The Distribution Division, indeed, at- 
tributed to it a material reduction in average profits by reason, in 
part, of its easier enforcement. Soon it was possible to dispense 
Avith the jobbers' monthly reports and enforce the rule by aid sim- 
ply of inspections and special reports. 

It ought to be made clear that the maximum margins were not 
final, definite standards. It was conceivable that they might be 
exceeded lawfully or that dealers making less than they stipulated 
might be taking unreasonable profits. They were the maximum mar- 



1 



governme:nt coittrol, over prices. 53 

gins of profit which the Food Administration, without further evi- 
dence, would consider reasonable. An individual who believed them 
too low must take the burden of proof upon himself to show that 
his profits in excess of the announced margins were reasonable. But, 
as a matter of practise, the margins operated as definite standard 
Diaxima which were not to be exceeded in any case. On the other 
hand, the institution of these fixed maximum margins did not (until 
June 6, 1918) abrogate the rule that no man could make more than 
a reasonable profit, even though that profit was less than the maxi- 
mum prescribed. 

The Food Administration, between April 6, 1918, and the sign- 
ing of the armistice, announced maximum margins on sales by 
wholesalers to retailers on a large number of the more important 
staples (sugar, wheat and other flour, lard, lard substitutes, stand- 
ard hams, bacon, condensed and evaporated milk, rice, homing', grits, 
oatmeal, rolled oats, cornmeal, beans, corn oil, sirup, cottonseed oil, 
canned peas, tomatoes, corn, beans, salmon and sardines, dried 
prunes, apples, peaches and raisins, and buckwheat) at margins vary- 
ing from 50 cents to 75 cents per barrel on wheat flour down to 
1 cent to 2 cents per pound on standard hams and bacon.^ Under 
the announcement of April 6 the rule limiting profits to a prewar 
basis was held to apply to all licensed articles, whether the margins 
had been fixed or not, while in that of June 6 the prewar rule was 
only applied to licensed commodities upon Avhich no specific margins 
had been established. 

The task of establishing maximum retail margins, even apart 
from the handicap in the law, was greater far than that establishing 
the above wholesale margins. There were vast differences in the cost 

^/Wholesale margins : The most complete list of maximum margins on sales by whole- 
salers to retailers is that of June 6, 1918, below. The margins set forth on Apr. G 
previous are extended in this later list, and the .Tune 6 list is, therefore (except for an 
increase in the maximum for flour set on Nov. 4, 60 cents to 90 cents per barrel ; 
the setting of a maximum for buckwheat flour on Nov. 8 at 10 to 12J. per cent ; and a 
margin of 2J cents per pound on oleomargarine and butter substitutes announced on 
Dec. 5). the one which remained in force from that time on, 

COMMODITIES, MAXIMUM MARGINS. 

Sugar, 15 cents to 35 cents per 100 pounds. 

Wheat flour, 50 cents to 75 cents per barrel. 

Lard, lard substitutes, bulk (packages of 50 pounds or over), IJ cents to 2 cents per 
pound. 

Standard hams, bacon, 1 cent to 2 cents per pound. 

All flours (except wheat), lard and lard substitutes, in packages (less than 50 pounds), 
condensed, evaporated milk, 8 to 10 per cent. 

Rice, hominy, grits, oatmeal, rolled oats, corn meal, beans, in bulk (packages of 25 
pounds or over), 10 to 121 per cent. 

Rice, corn meal, hominy, grits, oatmeal, self-rising and prepared flour, and rolled oats, 
all in packages ; corn oil, corn sirup, sugarhouse sirup, mixed sugar and corn sirup, and 
cottonseed oil ; standard and extra standard licensed canned peas, tomatoes, corn, and 
canned dried beans, and pink, chum, and red salmon and all domestic sardines ; all dried 
prunes, apples, peaches, raisins, 12 to 15 per cc^it. 



54 



HISTORY OF PEIGES DURIN"G THE WAR. 



of doing business tliroiigliout the country, and the control of retail 
prices was left largely to the local food administrators and to price- 
interpreting boards. The same requirement for more definite stand- 
ards of what was to be considered a "reasonable" profit, however, 
finally forced the making of retail margins. Margins were early 
fixed for sugar and flour at retail and later for butter, butter substi- 
tutes, eggs and cheese. Finally, on November 7, 1918, a definite list 
of maximum margins for sales by retailers to consumers was an- 
nounced.^ Retailers were warned that these margins were maxima 
only, and were not to be construed as absolute margins. A retailer, 
moreover, who ordinarily sold these commodities for less than the 
specified margin was not under the rule permitted to increase his 
profit beyond that normal point. 



DiSEEGARD OF REPLACEMENT VALUE. 

It was also a declared policy worthy of note, that the Food Ad- 
ministrator in setting margins for commodities at retail, as well 

^ Retail margins : The Food Administration, on Nov. 7, 1918, made the following an- 
nouncement of maximum retail margins : 

Maximum margins on sales by retailers to consumers : The Food Administration has de- 
termined that any sales of food commodities at a gross margin above delivered cost in 
excess of those indicated below are unreasonable, and will be regarded as prima facie 
evidence of a violation of the statute and of the above regulation. Percentage may be 
calculated on the selling price. Delivered cost shall mean the cost at the railroad, steam- 
boat, or other terminal in the retailer's town. Where the retailer is not located in a 
railroad or steamboat town he may include any hauling charge in the delivered cost. 

The lesser margin indicated is not a minimum margin, but is a maximum mai'gin for 
those whose cost of doing business is less, such as stores which do not perform the serv- 
ices of credit and delivery. Any change from the prewar practice in cash discount terms 
or other changes which tend to or result in increasing the margin of profit allowed will 
be dealt with as an unfair practice. 

The retailer may have the benefit of fractional costs on each transaction ; that is, he 
may calculate the total charge to a customer on any transaction as if fractional costs 
were not allowed, and if the result is a fraction, he may add thereto such fraction of a 
cent as may be necessary to make a price in even cents. The following table gives an 
example in the case of eggs, using the cash and carry margin of 7 cents per dozen : 



Amount of sale. 


Cost. 


Margin . 


Total. 


Fraction 
added. 


Maximum 
selling 
price. 


1 dozen 


SO. 46i 
.02i 
1. 38| 


Cents. 
7 
U 

21 


$0. 53i 
1.064 

1. 59|- 


a 

i 


$0. .54 


2 dozen 


1.07 


3 dozen 


1.60 







MAXIMUM MARGINS. 

Victory flour, original mill packages, one-half-barrel quantities and more, $1 to $1.20 
per barrel. 

Victory flour, original mill packages, one-fourth-barrel quantities and less, $1.35 to 
$1.60 per barrel. 

Victory flour, broken mill packages, IJ cents per pound. 

Wheat flour, original mill packages, one-half-barrel quantities and more, $1 to $1.20 
per barrel. 

Wheat flour, original mill packages, one-fourth-barrel quantities and less, $1.35 to 
$1.60 per barrel. 



GOVERNMENT CONTROL. OVER PRICES. 55 

as wholesale, gave no regard to the replacement value in determining 
upon the maximum. He was not concerned, in other words, so much 
with market value as with equitable distribution. The cost of pur- 
chase, not the cost of replacement, was adopted as the sounder basis 
for determining what was a reasonable profit to allow. 

Ageeements With the Trade. 

The experience of the Food Administrator in Europe, together 
with his conferences here throughout the spring of 1917 and his 
own instinctive point of view, gave him a determined faith in the 
integrity and general honesty of the trade. He maintained, as a 
cardinal policy from the beginning, a very close and intimate con- 
tact with the trade. The men, whom he chose to head his various 
commodity sections and responsible positions, were in a large 
measure tradesmen. They were, too, generally volunteers. The de- 
termination of policies of control within each branch of the food 
industry was made in conference with the tradesmen of that branch, 

Wheat flour, broken mill packages, li cents per pound. 

Barley flour, original mill packages, 18 to 22 per cent. 

Barney flour, broken mill packages, IJ cents per pound. 

Rye flour, original mill packages, 18 to 22 per cent. 

Rye flour, broken mill packages, li cents per pound. 

Corn flour, original mill packages, 18 to 22 per cent. 

Corn flour, broken mill packages, li cents per pound. 

Rice flour, 18 to 22 per cent. 

Corn meal, bulk, li cents per pound. 

Corn meal, original mill packages, 18 to 22 per cent. 

Hominy, 18 to 22 per cent. 

Sugar, all kinds, in bulk, 1* cents per pound. 

Sugar, all kinds, in refiners' original packages, 1 cent per pound. 

Evaporated milk, unsweetened, 18 to 22 per cent. 

Oat meal and rolled oats, bulk, li cents per pound. 

Oat meal and rolled oats, original mill packages, 20 to 25 per cent. 

Rice, 20 to 25 per cent. 

Beans, white or colored, 20 to 25 per cent. 

Starch, edible, 20 to 25 per cent. 

Corn sirup, tins, 20 to 25 per cent. 

Canned corn, peas, and tomatoes, standard grades, 25 to 30 per cent. 

Canned salmon — chums, pink, and red, 25 to 30 per cent. 

Canned sardines, domestic, 25 to 30 per cent. 

Dried fruit, raisins, prunes, and peaches, 25 to 30 per cent. 

Lard, pure leaf, bulk, 5 to 6 cents per pound. 

Lard, pure leaf, tins, 18 to 22 per cent. 

Lard substitutes, bulk, 5 to 6 cents per pound. 

Lard substitutes, tins, 18 to 22 per cent. 

Breakfast bacon, whole pieces, 6 to 7 cents per pound. 

Heavy bacon, whole pieces, 5 to 6 cents per pound. 

Hams, smoked, whole, 6 to 7 cents per pound. In quoting sliced ham and bacon add 
usual differential to cover actual shrinkage. 

By other special regulations the retailers' maximum margins have also been fixed in 
accordance with the following list : 

Potatoes, white or Irish, 25 to 30 per cent. 

Onions, 25 to 30 per cent. 

Eggs (whether sold in carton or not), 7 to 8 cents per dozen. 

Butter, 6 to 7 cents per pound. 

Butter substitutes, oleomargarine, nutmargarine, etc., 5 to 6 cents per pound. 

Cheese — American, Cheddars, twins, flats, daisies, long horns, and Y. A.'s, 7 to 8 cents 
per pound. 



56 HISTORY OF PRICES DURING THE WAR. 

meeting at intervals in Washington. It might be said, in one sense, 
that the frame^vork of food control, as of raw material control, was 
bnilt upon agreements with the trade. The enforcement of the 
agreements once made, moreover, was intrusted in part to the co- 
operation of constituted trade organizations. The industry itself 
Avas made to feel responsible for the enforcement of all rules and 
regulations. Those agreements were frequently of an informal char- 
acter and many of them were never written upon paper. 
Campaigns of Edvcation for Consumees. 

The basis of all efforts toward control exercised by the Food 
Administration was the educational work which preceded and ac- 
companied its measures of conservation and regulation. Mr. Hoover 
was committed thoroughly to the idea that the most effective method 
to control foods was to set every man, woman, and child in the country 
at the business of saving food. The fact, as: he estimated, that 90 
per cent of the ultimate food consmiiption of the country was in 
the hands of the women prompted him to lay before them rather 
full plans showing how to eliminate waste, reduce consumption, and 
introduce substitutes. The country was literally strewn with millions 
of pamphlets and leaflets designed to educate the people to the food 
situation. Xo war board at Washington was advertised as widely 
as the United States Food Administration. There were Food Ad- 
ministration insignia for the coat lapel, store window, the restaurant, 
the train, and the home. A real stigma was placed upon the person 
Avho was not loyal to Food Administration edicts through pressure 
by schools, churches, women's clubs, public libraries, merchants' as- 
sociations, fraternal organizations, and other social groups. Each 
State had an educational director and a vast organization under him 
to propagate food policies. The historian of the Food Administra- 
tion makes a unique attempt to estimate at the commercial value of the 
advertising which was given, generally gratis, to the propaganda 
of the Food Administration : 

So siX)ntaneous did the contribulious of advertising become after the first 
few months that it has been impossible to keep any accurate account of the 
money value of the advertising which has been given to the Food Adminis- 
tration. From such records as have been kept^ however, a conservative esti- 
mate approximates the sum of $18,000,000. This record includes outdoor adver- 
tising by bulletin boards and the electrical displays, indoor advertising, as 
in railroad and street cars, space in periodicals, newspapers, and other such 
mediums, but is exclusive of moving-picture contributions, " Four minute " and 
other volunteer speakers, and other volimteers who would have ordinarily been 
paid for their services, among whom were American artists of national repu- 
tation. 

The general policies set up by the Food Administrator, under the 
liberal powers given to the food-control act, were designed toward 
feeding the country and the Allies as nearly upon a prewar basis as 



GOVEEIsTMENT CONTROL OVER PRICES. 57 

each situation would permit. The variations in general policy can 
be given a comprehensive analysis only under the particular commo- 
dity heads. The Avhole structure of food control rested m prmciple 
upon voluntary cooperation and agreement. 

(3) THE ADMINISTRATION OF FOOD CONTROL. 

The real skeleton upon which must hang any inquiry into the 
administration of food control is the license system which was given 
authority in law by the food-control act and around which was set 
up every regulation of the Food Administration. A documentary 
record, arranged in order of authority, of every rule of food con- 
trol could be made by an examination of the food-control act, the 
presidential proclamations and Executive orders, the general license 
regulations and the special license regulations. The food-control 
act was the authority granted by Congress to the President to con- 
trol foods, the presidential proclamations and Executive orders 
issued under that act created the Food Administration and pro- 
claimed what persons and commodities were to be licensed, the gen- 
eral license regulations declared the rules and regulations set up by 
the Food Administration and made applicable to all licensees and 
licensed commodities, and the special license regulations declared 
the rules and regulations set up by the Food Administration and 
made applicable to particular licensees and particular licensed com- 
modities. The tangible evidence, therefore, of all commodities that 
came under formal food control is to be found by following these 
links of the license system. 

The License System as the Basis of Control. 
The Food Administration controlled foods during the war 
through its power to prescribe the conditions under which food 
dealers might operate. A review has already been made telling how 
the Food Administration, proclamation by proclamation, came into 
license control over very nearly the whole lot of food staples at 
wholesale.^ Its license power lay in its right to grant or withdraw 

^A complete list of the Executive orders and proclamations, which extended Food Ad- 
ministration license control over the food group, was given in an earlier section of this 
chapter. These presidential proclamations drew increasing numbers of persons under 
license control until, on December 31, 1918, there were 263,737 firms, individuals, and 
corporations under license by the Food Administartion. There follows an enumeration of 
those licenses by kind : 
General licenses issued under the President's proclamation of Oct. 8, 1917, and 

supplemental proclamations 1^-' ^^^ 

Sugar licenses issued under the proclamation of Sept. 7, 1917 4(3 

Bakers' licenses ^^' ^^^ 

Salt-water fishermen's licenses ^^' inQ 

Steamship bakers' licenses ^' ^^ 

Near-beer manufacturers' licenses ^*' 

Arsenic licenses ^zz 

Coffee licenses ^' ^^'^ 

Total __— : - 263, 737 



58 HISTORY OF PRICES DURING THE WAR. 

licenses at discretion. It required, in the exercise of that power, 
that each licensee accede both to general and special regulations 
as a condition permitting him to do business. 

The general license regulations, made applicable to all licensees, 
were gradually worked over and later condensed into a form compact 
enough to permit of ready analysis.^ Reports were required from 
each licensee showing complete information regarding any commod- 
ities dealt in by him and filled out upon forms prepared by the Food 
Administration; all property and records were to be held open for 
inspection ; speculation and the making of unreasonable profits were 
prohibited; licensees were forbidden to make sales to speculators or 
deal with persons violating the food-control act; secret rebates and 
resales within the same trade were prohibited, and so too were com- 
bination sales. The above general rules pertained to all licensees, 
with a provision that if there arose an inconsistency between a gen- 
eral rule and a special rule, the special rule should prevail. 

The special license regulations, made applicable to particular 
classes of licensees, exceeded, of course, many times over in com- 
plexity and volume the more general requirements. The special re- 
quirements Avere in almost a whirl of modification all the while and 
seemed in policy constantly to be contradicting each other. Such a 
condition was by necessity the case, since the declared policy of the 
Food Administration was to meet each day the situation as it ap- 
peared that day. The special license regulations were made known 
in all manner of form — ^by press releases, by mimeographed sheets, by 
pamphlets, by printed loose-leaf inserts, and by notification to the 
Federal State food administrators. Some of them, for one reason or 
another, Avere never printed. The inevitable confusion which grew 
up within the trade and the Government as these regulations began to 
mass, gave necessity for the loose-leaf record of Food Administration 
rulings. That record, which was started well along in 1918, per- 
mitted of inserts daily as new rules supplanted or superseded old 
ones, and contains, presumably, all regulations made by the Food 
Administration. It is possible to assemble these rules into families 
of special-rule pamphlets, and that was generally done. The whole 
lot of special rules, including those that were printed in pamphlets 
and those that were not, comprises 28 separate groups.^ 

1 The remarks that follow in the text are based upon the loose^Ieaf rules issued by the 
Food Administration pertaining to all licenses except salf-water fishermen. 

2 The pamphlets of special rules were numbered serially from II to XXVIII, as listed 
below. A pamphlet of general rules was issued as No. I in the serial. 

II. Wheat and Rye Elevators, Dealers, and Millers. 

III. Corn, Oats, Barley — Elevators, Dealers, and Millers. 

IV. Maltsters, Malt Dealers, and Near Beer Manufacturers. 
V. Rough Rice and Rice Millers. 

Yl. Sugars, Sirups, and Molasses — Manufacturers and Refiners. 
A'll. Canners and Packers — Vegetables, Salmon, Sardines, Tuna, Milk. 
A^III. Dried Fruits, Packers. 



GOVERNMEISTT CONTROL. OVER PRICES. 59 

The features and economic effects of food control can not be 
gleaned from a study of the special license regulations by chronolog- 
ical order of issuance. It is proposed, therefore, to rearrange those 
rules and discuss them as they pertained to distinct groups of foods. 
An analysis of license control within the whole food group is here 
made under the main divisions, wheat, flour, and bread; sugar; 
livestock and meats; poultry and dairy products; oleomargarine; 
cotton seed and cottonseed products; canned and dried foods; rice 
and rice flour ; coarse grains and feed stuffs ; coffee ; and the collateral 
commodities, ammonia, ice, and arsenic. Some repetition will be 
found in the discussion of these various groups, but repetition is less 
objectionable than vagueness. 

Wheat, Flouk, and Bread. 

The* wheat problem in the United States, which reached its climax 
in May, 1917, was not a local affair. It had its beginning in the 
Eastern Continent in 1914, and by the time it enveloped America it 
was a world problem of huge proportions. 

The demands of Europe.— Mt&r nearly three years of war, western 
Europe was on short rations. Even in normal times the European 
countries do not produce enough wheat for food. They import large 
quantities from India, Australia, Argentina, Siberia, Eussia, the 
Balkans, Canada, and the United States. The average annual impor- 
tation for the three years preceding the war was approximately 
550,000,000 bushels, of which about 100,000,000 bushels, including 
flour, were furnished by the United States. 

Ordinarily the United States produces in the neighborhood of 
800,000,000 bushels of wheat a year, and the domestic consumption is 

IX. Cotton Seed, Peanuts, Soya Beans, Copra, Palm Kernels, and Theii- Products. 
X. Manufacturers of Lard Substitutes and Oleomargarine. 
XI. Wholesalers, Jobbers, ImporteJ-s, and Retailers of Nonperisliable Food Com- 
modities. 
XII. Brokers and Auctioneers of Nonperishable Food Commodities. 
XIII. Bakers. 
XIV. Manufacturers of Miscellaneous Food Commodities. 

(fl) Products containing wheat or wheat flour, other than bakery products. 
(6) Manufacturers and mixers of mixed flour, 
(o) Sirup mixers. 
XV. Fresh Fruits and Vegetables. 
XVI. Fresh and Frozen Fish Distributors. 
XVII. Salt Water Fishermen. 
XVIII. Poultry. 
XIX. Eggs. 
XX. Butter. 
XXI. Cheese. 
XXII. Raw Milk. 
XXIII. Meat Packers and Manufacturers of Lard — Distributors of Fresh Meats. 
XXIV. Cold Storage Warehousemen. 
XXV. Feedingstuffs. 
XXVL Tin and Other Containers. 
XXVII. All Public Eating Places. 
XXVIII. General Storage Warehousemen. 



60 HISTOKY OF PEICES DURING THE WAR. 

iibout 646,000,000 bushels. The 1917 harvest, at the thne America 
entered the war, was estimated at 635,000.000 bushels, thus leaving a 
deficit of 11,000,000 bushels. 

The Allies of Europe could not be satisfied, however, with anything 
but an extraordinary importation in 1917. For three years they had 
been engaged in the most destructive war in the world's history. Not 
only had their food requirements been increased but their production 
facilities had been diminished. At the same time, moreover, unre- 
stricted submarine warfare had so reduced the Allied merchant fleets 
tind so endangered world commerce that it was impracticable for any 
European nation to try to haul wheat over the long route from India 
or Australia or South America, especially when it was possible to buy 
in the United States. Siberian wheat was even less accessible than 
that of Australia, since the Eussian port of Odessa had been shut off 
from western Europe by the closing of the Dardanelles. Thus in the 
spring of 1917 the United States was made the Mecca of Allied wheat 
buyers. The president of the Chicago Board of Trade stated that 
the largest buyers, both for cash and for future delivery, were the 
Governments of Europe. On the one hand, the vigor of buying by 
foreign agents had struck American markets like a tidal wave; on 
the other hand, the United States wheat crop, soon to be harvested, 
was shorter than it had been since 1911, and the supply would have 
been inadequate even during a normal year. . . 

Another feature of the situation, and one which no doubt had more 
influence than any other, was that America had entered the World 
War. The psychological effect of war upon consumers who are 
capable of anticipating the performance of markets is well under- 
stood. A wild rush of buying seized America as well as the Allied 
Governments. From March to May, 1917, the price increased $1 a 
bushel for No. 2 red winter wheat at Chicago, reaching an average 
for May of $2.97. No. 1 Northern spring wheat averaged $2.98 ^ at 
]Minneapolis for the month of May. This Avas the highest price in the 
history of America, being 50 per cent higher than the maximum 
during the Civil War. _ 

The necessity for an increased world production.-{^Th.e scarcity of 
available wheat had precipitated a panic. While fear was an element 
in the situation, the problem of scant supply was real. Increased 
•world production was the effective remedy, and under existing condi- 
tions America was the country'' which must do most in increasing the 
world supply. Wildly fluctuating prices are not attractive to the 
American farmer, howeA'^er, especially if they reach unusual heights 
at a season of the year when his crop is not ready for the market. 
A high price in May does not insure a high price at harvest time, 

1 Monthly averase from weekly quotations in tbe Price Current Grain Rpporter. 



GOVERNMENT CONTROL OVER PRICES. 61 

Inter on. Moreover, the problem of world supply of wheat, which 
became acute in the spring and summer of 1917, could not be alle- 
^ iated except by sowing more wheat to be harvested one year later, or 
in the summer of 1918. Making wheat culture attractive to the 
farmer, therefore, became the task of the Government officials. 

A minimum price for wheat fixed ly statute .-(-CongvQ?,^ completed 
the food control act (Lever Act) 4 months after the United States had 
declared war against Germany, and it was approved by the President 
on August 10, 1917. This law not only made possible the organiza- 
tion and program of the Food Administration, but section 14 named 
a minimum price of $2 per bushel for the 1918 wheat harvest under \ 
the act. j Differentials were to be set up for the several standard 
grades of wheat, based upon No. 1 Northern spring wheat at Chicago, 
or its equivalent at the principal interior primary markets. (The ^ 
President was authorized, whenever he should find an emergency to \ 
exist requiring stimulation of the production of wheat, and whenever 
it seemed essential that the producers should have the benefit of the • 
guaranty, to determine and fix what, under specified conditions, he 
considered a reasonable guaranteed price for wheat, in order to assure j 
producers a reasonable profit.^) 

(■It is quite evident that the authors of section 14 were concerned 
entirely with the producer. Production of wheat was the world's 
prime need, and the purpose of this guaranty was to serve notice 
upon the farmer one year in advance of his harvest that he might 
expect at least $2 a bushel for his wheat crop, and as much more as / 
the market should justify and the President provicQ 

It is of interest again to note that Congress did not name a price 
for any commodity other than wheat. It gave the President au- 
thority (sec. 25) to fix the price of coal, and (sec. 11) to pur- 
chase, to store, to provide storage facilities for, and to sell for 
cash at reasonable prices, wheat, flour, meal, beans, and potatoes, but, 
with the exception of wheat, no legislative price was fixed. Analysis 
of the food-control act leads to the conclusion that section 14 is not 
'• part and parcel " of the original plan. Other sections, phrased in 
general terms, appear to anticipate problems or to confer blanket 
powers upon the President. In section 14, however, a specific prob- 
lem is singled out and dealt with in a manner to insure interest in 
the production of wheat. 

Two other sections of the act confer powers which were widely 
used in connection with the wheat price : Section 2, authorizing the 
President to enter into voluntary agreements for carrying out the 
purposes of the act, and section 5, providing, in effect : 

That whenever the President shall find it essential to license the importa- 
tion, manufacture, storage, or distribution of necessaries in order to prevent 
unjust storage charge, commissions, profits, or practices he shall have such 



62 HISTORY or PEICES DURIISTG THE WAR. 

authority. Furthermore he shall be empowered to determine what are fair 
profits, commissions, storage charges, etc., and may require licensees to gov- 
ern their businesses according to his findings, A fine of $5,000, or impris- 
onment for two years, or both, shall await the person who deals without a 
license or the licensee who violates the rules. Licenses may be revoked. 
Farmers, gardeners, associations of farmers and gardeners, and retailers whose 
gross sales do not equal $100,000 per year, shall not be required to take out. 
licenses. 

Acting under the authority conferred by the food control act, 
the President and the Food Administration fixed maximum prices 
for a large number of foods, but wheat stands alone, among all the 
records of Government price control, as a minimum price fixed by 
legislative enactment. 

The relation of ths miniTmmi 'price to the market ^^'^^e.-Z-When 
the food control act became a law wheat was selling in Chicago for 
$2.26 a bushel (average for month). The 1917 crop was moving to 
the markets. Congress had established a minimum price of $2, but this 
would not be effective until 11 months had passed. This price, more- 
over, being below the prevailing market price, would not appeal es- 
pecially to the wheat grower unless he should be informed what mar- 
gin he might expect over and above the guaranteed minimum. Such 
information was to be forthcoming presently through the action of 
the President in establishing a definite price at a point above the 
minimum, but the immediate need was a stabilization of prices and 
conservation of suppl}^ during the 11 months to intervene before 
the legislative price should begin to operate^ 

{ "What limit should be set upon wheat purchases for export ? \ Con- 
sidering the demoralized transportation facilities both on land and on 
sea, what was to prevent huge supplies of wheat from accumulating 
in the seaboard and interior terminals, later glutting the market 
and forcing the producers' price down? If satisfaction was not 
rendered to the wheat grower in 1917, when the problem was pres- 
ent, and real, and unprecedented, what was the use to promise him 
a fair price one year hence, when perhaps there might be no panicky 
situation ? 

Such considerations as these led the administration to fix a 
fair price for the 1917 wheat crop. /Progress in this direction had 
been made even before the food cbntrol act became a law. On 
May 11, 1917, the Chicago Board of Trade had prohibited trading 
in May wheat futures, and had compelled the settlement of all out- 
standing contracts at $3.18 a bushel. This first step in fixing an 
arbitrary price had stopped the wheat rise. About the same time 
representatives of the council of grain exchanges conferred with 
the Secretary of Agriculture concerning Government control of the 
wheat trade, and the committee of grain exchanges in aid of national 
defense, organized at that time, together with a committee from the 



GOVERlSrMElSrT GOISTTROL OVER PRICES. 63 

western exchanges, met with Mr. Hoover on May 16 and "at his / 
request submitted a tentative outline of a plan of control.'^ Under ■ "^ 
this plan the Government would control transportation of foodstuffs, 
fix a price for wheat and maintain it for the entire crop year without 
change, control the distribution of the available wheat supply, and 
control the storage facilities of elevators. 

('On August 14, only four days after Mr. Hoover was named Food ^^-, 
Administrator, the President announced the appointment of a com- 
mittee to determine a fair price at which wheat should be purchased 
by the Government. \ 

"^ The committee reported to the President on August 30, recommend- 
ing that the price of No. 1 Northern spring wheat, or its equivalent 
at Chicago, be $2.20 a bushel. Differentials were established for 
other grades and terminals. One paragraph of the report follows : . 

In reaching its conclusions, the committee has been guided by the principles 
you have announced, that a fair price should be based upon the cost of pro- 
duction for the entire country, plus a reasonable profit. We have relied upon 
the cost estimates for the crop of 1917 furnished by the United States Depart- 
ment of Agriculture, checked by the results of our independent investigations 
and the evidence submitted to the committee by producers and other repre- 
sentatives. / 

Upon receiving the report of the " fair price " committee, Presi- j 
dent Wilson announced this price immediately to the country. He 
said it would be rigidly adhered to by the Food Administration, and 
continued : 

It is the hope and expectation of the Food Administration, and my own also, 
that this step will at once stabilize and keep within moderate bounds the price 
of wheat for all transactions throughout the present crop year, and in con- 
sequence the prices of flour and bread also. The food act has given large powers 
for the control of storage and exchange operations, and these powers will be 
fully exercised. An inevitable consequence will be that financial dealings can 
not follow their usual course. Whatever the advantages and disadvantages 
of the ordinary machinery of trade, it can not function well under such dis- 
turbed and abnormal conditions as now exist. In its place the Food Adminis- 
tration now fixed for its purchases a fair price, as recommended unanimously 
by a committee representative of all interests and all sections and believes 
that thereby it will eliminate speculation, make possible the conduct of every 
operation in the full light of day, maintain the publicly stated price for all, 
and through economies made possible by stabilization and control, better the 
position of consumers also. 

Mr. Hoover, at his express wish, has taken no part in the deliberations of \ 
the committee on whose recommendation I determine the Government's fair 
price, nor has he in any way intimated an opinion regarding that price, j 

The Food Administration had made public its aims before the 
appointment of the fair-price committee: (1) To regulate trade so as 
to eliminate vicious speculation and to stabilize prices; (2) to guard 
exports; (3) to induce saving. A second statement soon followed to 
the effect that the* Food Administration proposed to open agencies 



y 



64 HISTORY OF PRICES DURING THE WAR. 

for the purchase of wheat at all the principal terminals, carrying on 
its transactions through the regular dealers, and that it was prepared 
to take the whole harvest, if necessarj", in order to maintain a fair 
price. ( Upon the announcement of the price of $2.20, the Food 
Administration affirmed its intention " to use every authority given 
it under the food-control act and the control of exports to effect the 
universality of this fair basis throughout the whole of the 1917 har- 
vest year without change or fluctuation." 

The announced policy of the Food Administration makes evident 
the difference in point of view of the legislative and executive 
branches of the Government. Congress provided a minimum price 
for the 1918 wheat crop ; the Food Administration adopted a definite 
" fair price " for the 1917 crop. The one was not to be effective for 
nearly a year, or until July 1, 1918 ; the other was effective from its 
announcement.J) The former was framed as an inducement to the 
producer ; the latter was proposed to protect both the consumer and 
the producer.^ 

~^ { On February 21, 1918, the President, by a proclamation, made the 
1917 wheat prices applicable to the 1918 harvest, thus using his pre- 
rogative to raise the minimum price to any desired point above the $2 
minimum set by the Congress. By executive order of June 21, 1918, 
the price of wheat was raised to $2.26 a bushel, the increase of 6 cents 
being granted to offset an increase in freight rates. 

In passing, mention should be made of the Government operation 
of railroads. Freight charges are invariably included as cost items 
in calculating a Government '' fair price " basis, and this would 
have been a more complicated question if railroads had been compet- 

ji> ing with each other,, 

:.> The enforcement of the wheat price.— ^n the beginning, an indirect 

means had to be found to enforce the wheat price. Section 14 of the 
food-control act did not grant authority to fix a guaranteed price 
above the $2 minimum, except for the purpose of increasing pro- 
duction, consequently this did not apply to the 1917 crop. Under sec- 
tion 2, however, the President could enter into A^oluntary agreements; 
under section 5 he could license and prescribe regulations for persons 
engaged in the importation, manufacture, storage, mining, or distri- 

1 The chairman of the milling division of the Food Administration says that the " fair " 
wheat price was neither a fixed price nor a maximum price ; that Congress did not give 
authority for definite fixing of a wheat price, and that certain millers paid more for 
wheat than the price named by the fair-price committee. The principal millers of the 
country, however, entered into agreements with the Food Administration to the effect 
that they would not overbid the Government " fair price." The millers kept their agree- 
ments, the Food Administration Grain Corporation itself bought wheat at the " fair 
price," and the nonagreement millers who made payments in excess of the " fair price " 
were not strong enough to be serious menaces to the plan of Government price control. 
The " fair price " became in effect a maximum price as well as a stable price. This 
etatement Is borne out by the table of wheat prices on another page of this bulletin, as 
well as by the price tables in the separate bulletin on " Wheat and wheat products." 



GOVEKl^MEIsrT CONTEOL OVER PRICES. 65 

bution of any necessaries; under section 10 he could requisition 
supplies needed for any public use; and under section 11 he could 
buy and sell wheat, flour, meal, beans, and potatoes.J) 
/Voluntary agreements had been made with the wheat and flour 
trades duriiig the days of informal control, before the passage of the 
food-control act, and the continuation of this method, by virtue of 
section 2, seemed practical. Although the Food Administrator pos- 
sessed an alternative in his announced intention to purchase the entire 
crop if necessarv to maintain the " fair price," this course would have 
required an enormous amount of capital, and the administration 
preferred to interfere as little as necessary with the ordinary market 
activities. Unlimited exercise of the license power was a second 
alternative, and as time progressed this method was resorted to, but 
in the beginning the Food Administration did not realize how much 
authority it really possessed^) 

Little difficulty was encduntered in effecting the voluntary agree- 
ments The grain dealers, like thousands of other business men of 
the country, were willing to make any sacrifice necessary to win 
the war. The cooperative spirit of this group is shown by the fol- 
lowing resolution adopted at a conference of over 100 representatives 
of the grain and elevator trades of the country held at the offices 
of the Food Administration August 15, 1917 : 

Realizing that the operation of Government control in wheats and rye is 
essential under present war influences in order to adequately protect our home 
supply and furnish our Allies with the aid we owe, and realizing that the estab- 
lishment of an efficient Government plan of operation means to all of us curtail- 
ment of our business and to some of us actual retirement from active business 
during such period, we do express our pride in the character of service 
tendered by the grain trade in the sacrifice by these men of ability who are 
placing their experience and energy at the service of their Government, and 
that we approve the general plan of operation as explained to us to-day as 
being sound, workable, and necessary, and in its general lines it appears to us 
as being the most effective and just plan of operation which we can conceive. 

The flour milling interests of the country also pledged themselves 
to take any steps, in regard to their industry, which might be found 
necessary for the winning of the war. 

The Food Administration announced, therefore, that it expected 
to accomplish its objectives by voluntary cooperation. It had or- 
ganized a Grain Corporation, headed by practical grain men, and 
through this corporation the buying was to be directed. Voluntary 
agreements were entered into between the flour mills on the one 
hand and the Food Administration and Grain Corporation on the 
other, to the effect that the mills should not pay more for wheat 
than the so-called "fair price." The Grain Corporation agreed to 
endeavor to supply millers with wheat on the basis of their average 
capacity, so far as the limitations of the 1917 harvest would permit. 

125547°— 20^— 5 



C-y^ 



^1 



66 HISTORY OF PRICES DURING THE WAR. 

Over 3,000 millers cooperated in the voluntary agreements. Up to 
November 27, 1917, the signed agreements received at the Food 
Administration offices represented five-sixths of the milling capacity 
of the country. 

There were several inducementsi to the millers to enter into the 
agreements: (1) patriotic motives prompted them to assist the Gov- 
ernment; (2) the milling division of the Food Administration was 
administered by millers, all of whom were serving without salaries; 
(3) the Grain Corporation, through the license powers explained 
below, controlled the wheat supplies of the country; (4) the Grain 
Corporation guaranteed the miller against loss by decline in value 
of the unsold wheat and flour; (5) the relative position of mills 
in the industry would be maintained; (6) the permissible profit of 
25 cents a barrel for the manufacture of flour was attractive if it 
meant 25 cents net. 

While it is true that some mills did not accede to the agreement, 
they were decidedly in the minority. Their operations, unless they 
were very small mills, were reasonably well oonitroUed, moreover, 
by the license requirements which the Government promulgated even 
before it asked the millers formally to enter voluntary agreement.^ 

Licensing millers and elevators. — President Wilson issued a proc- 
lamation on August 14, 1917, requiring storers and distributors of 
wheat and rye as well as persons manufacturing products of wheat 
or rye to procure licenses before September 1. Mills with a daily 
capacity of less than 100 barrels were exempted from this order. 
Effective November 1, another proclamation extended the license 
j)rovision to all mills having a daily capacity of 75 barrels or over, 
and before February 15, 1918, every mill in the country was re- 
quired to be licensed. Practically every rule which had been applied 
to the voluntary agreement mills was applied to the license mills 
with the exception that the latter were not forbidden to pay more 
than the "fair price" for wheat. This matter was taken care of in 
another way, nevertheless, for in regard to the limitation of the 
miller's profit to 25 cents per barrel on flour and 50 cents per ton 
on feed, it was specified that in calculating his cost items no miller 
should include more for the cost of wheat than the customary mar- 
ket price. 

/Under the license clause reasonable profits could be defined and 
unreasonable profits prohibited, and the license of any person could 
be revc^ked as a penalty for engaging in an unfair practice. This 
placed almost absolute power over certain industries in the hands of 
the Government, and after Julj^, 1918, the Food Administration 
y came to rely wholly upon this section of the law for its authority. \ 

^ A form letter explaining the voluntary agreement plan and asking for cooperation 
was sent out on Aug. 29, 1917, to such millers as had not already been reached through 
the millers' committee. 



GOVERNMENT CONTROL, OVER PRICES. 67 

C With the passing of the voluntary agreements, there was no defi- ^ 
nite price specified at which the elevators and mills should purchase 
wheat. In the absence of any prohibition to the contrary, it would 
seem that purchasers might have paid any price they desired.^ But 
the Food Administration had indirect means, as well as definite in- 
tentions, of maintaining the "fair price." It only stated that it 
would undertake to guard this price by buying wheat in the princi- 
pal primary markets. Of course, the Government held a dominant 
position as the chief buyer in the market, and in case of necessity 
it could have taken the entire crop. Its indirect method, however, 
was simpler.) This is explained fully under Flour Control, bufc^the .^ 
plan, in brie^, was to fix a maximum price for flour at each mill, 
based upon the Government "fair price" for wheat. Thus if a miller 
paid more than the '^fair price" for wheat, he would sacrifice his 
profit on flour, and if he tried to buy for less the Government would^__ 
bid against him. ) / 

The 1919 guaranteed pnc^- .-(President Wilson, by proclamation on^- -" 
. September 22, 1918, extended the guaranteed price of $2.26 for No. 1 
* Northern spring wheat at Chicago to the 1919 crop, if offered for 
sale before June 1, 1920.^ The termination of the war, even if offi- 
cially announced by the President, was not to terminate any obliga- ^ 
tion accruing or accrued under this proclamation. This position 
was taken by the Food Administration, and was ratified by Congress 
and the President in providing and approving an appropriation of 
$1,000,000,000 to make good the guaranty. This means that if the 
price of wheat goes down before June 1, 1920, the Government must 
pay to the wheat grower, out of the billion-dollar fund the differ- 
ence between the market price and the guaranteed price. 

Producers generally satis-fled.— k.^ harvest approached and the 
farmer observed a declining market on the strength of anticipated 
price regulation by the Government, he became fearful lest his in- 
terest would be overlooked. Why could wheat not sell as well for 
$3 in September as in May? "Many farmers were discontented! 
because they could not sell their entire crop at the high prices made I 
by the uncontrolled influences which had dominated when the pre- I 
vious year's crop had been exhausted and the market was without 
any balance wheel. The crop was slow to move." ^ Farmers of Min- 
nesota and the Dakotas at a conference August 26, 1917, advocated a 
Government fixed minimum price of $3 a bushel. Agitation did not 
continue long, however, after the " fair price " was announced. The 
decline of flour prices to a level commensurate with wheat prices 
helped to put the farmer in a pacific mood. He also argued that 
since the wheat price was to remain stable for a year he could rush 

iThe Wheat and Fl9ur Trade under Food Administration Control, by Wilfred Eldred. 
Quarterly Journal of Economics, November, 1918. 




68 HISTORY OF PRICES DURING THE WAR. 

his oats to market and take care of his corn crop before selling his 
wheat. Then he found that even at $2.20 he could realize more profit 
on wheat than had ever been the case before. His final estimate of 
the Government price, therefore, was conciliatory. Final determina- 
tion of the farmer's attitude ma}^ be drawn from his acts in sowing 
more Avheat. The acreage sown in the fall of 1916 was 40,534,000; 
in 1917 it was 42,301,000; and the preliminary estimate for 1918 was 
49.201,000.1 

Stability of the wheat price a reality. — Reference to the wheat 
quotations in any terminal market will show an almost amazing 
stability of prices from August 30, 1917, when the " fair price " was 
announced, until after the armistice was signed in November, 1918. 
No. 2 Eed Winter Avheat in Chicago, for instance, varies only three- 
fourths of a cent from September, 1917, to the end of June, 1918.^ 
It Avas June 21, 1918, that the President advanced the price 6 cents a 
bushel, and the July to November market price is seen to be from 6^ 
• cents to I^Q cents above the June price. The Food Administration, 
therefore, did for wheat what it started out to do, and accomplished, 
that result without resorting to the alternative of buying the entire 
crop. 

Such effective control over wheat made possible a large measure 
of control over flour, even though no express authority was given by 
i^tatute to fix flour prices. How this was accomplished will now be 
explained. 

Close relation of flour and 'wheat. — The demand for wheat is 
almost entirely for flour manufacture. It is a custom with the flour 
market to fluctuate from day to day in conformity with wheat fluc- 
tuations. Even though a miller may have purchased his entire 
year's supply of wheat in September, the fluctuations of wheat 
during the following months will affect the price of this miller's 
flour. Flour prices are ordinarily based on the replacement value 
of wheat. This makes clear the flour problem in connection with 
the wheat problem in the spring of 1917. European demand for 
Avheat was likewise a demand for flour. The short wheat crop was 
disastrous in that it meant a scarcity of flour, and the wild fluctua- 
tions in wheat prices were practically duplicated in flour quotations. 
When wheat was at its highest point in May of that year, having 
advanced $1 a bushel in two months, flour was at the maximum of 
$14.88 a barrel (monthly average), having risen from $9.63 a barrel 
in March. 

The flour shortage in the spring and summer of 1917 was partly 
due to fear on the part of the millers. They did not dare to stock up 
with wheat at the high prices then prevailing because if the Gov- 

^ Bureau of Crop Estimates, Department of Agriculture. 

2 See Wheat and Wheat Products, by Paul E. Peltason (W. I. B. Price Bulletin No. 9). 



GOVERNMENT CONTEOL OVEE PRICES. 69 

ernment should fix the price at a lowei* level they would lose heavily 
on their sales. It was aggravated, also, by the heavy buying of 
consumers early in the spring when prices were high and showing 
prospects of going higher. 

Control exercised over flour. — The flour and wheat problems were 
attacked simultaneously by the Food Administration, but by differ- 
ent methods. Congress had not named a price for flour, nor had it 
given specific power to the President to do so. From the beginning 
the Food Administration took the ground that it had no authority 
to fix basic flour prices. With the price of wheat under control, 
however, and with authority to enter into voluntary agreements ; to 
compel millers, distributors, and dealers to procure licenses, the 
conditions of which were drafted by the issuing party to the con- 
tract; to control business profits even to the extent of specifying 
what were reasonable profits; and to buy and sell flour for cash at 
reasonable prices, there could have been little question as to the con- 
trol of the flour industry by the Food Administration. 

At first the Food Administration adopted the voluntary agree- 
ment plan, but in connection with this it used its license power and 
its authority to determine fair profits. The right to buy and sell 
flour at reasonable prices was not used except in the cases of exports 
and of use by the Government or governmental agencies. 

Voluntary agreements made with the millers in regard to the 
wheat trade applied also to the milling industry. This was true 
also of the license practices which have been explained in the wheat 
discussion above. One additional provision which applied only to 
flour was that profits must be limited to 25 cents a barrel. 

Considerable difficulty was experienced in determining costs. To 
have accomplished this task completely would have required an army 
of auditors at work constantly on the monthly reports .which millers 
were compelled to submit. But since the cost-plus method was to be 
followed in determining the selling price some uniform method of 
figuring costs must be adopted, and before November, 1917, the fol- 
lowing rule had been presented to the mills : 

In calculating profits the cost of flour, bulk, at the mill shall be determined 
as the cost of clean wheat used multiplied by the actual amount of wheat used 
(which in no event shall be in excess of 285 pounds of cleaned, 60 pounds per 
bushel, wheat to the barrel) less the amount secured from the sale of feed (ex- 
cluding the profit derived from the sale of feed not to exceed 50 cents per ton 
as above) plus the actual proven cost of production (which shall not include 
interest to investment and marketing.) 

In the fall of 1917, after the price of wheat under Government con- 
trol became stabilized at a point much lower than had prevailed in 
the spring and summer markets the rush of milling was so great that 
many mills did not or could not reduce the price of flour fast enough 



70 HISTORY OF PRICES DURIIsTG THE WAR. 

to keep profits within the margin of 25 cents a barrel. At the end of 
the crop year (June 30, 1918), and in some cases earlier than that 
date, those mills which had made profits above the maximum of 
25 cents a barrel were compelled to return the surplus to the 
Government.^ 

Other difficulties met in the operation of the cost-plus system were 
the padding of cost reports and the setting up of jobbing depart- 
ments in some mills in order to get both a miller's profit and a job- 
ber's profit on their product. Although this latter practice was per- 
mitted under the license rules, it proved to be most unsatisfactory. 

By virtue of a presidential proclamation of October 8, 1917, all 
wholesalers and retailers doing a business of over $100,000 a year 
were required to take out licenses prior to November 1. The purposes 
of the ruling were (1) to limit the prices charged by every licensee 
to a reasonable margin over expenses and forbid the acquisition of 
speculative profits from a rising market; (2) to keep all food com- 
modities moving in as direct a line and with as little delay as prac- 
ticable to the consumtr; and (3) to limit, as far as practicable, con- 
tracts for future delivery. Hoarding and speculation were not per- 
mitted under these rules. Licensees were limited to a 30 days' supply 
and notice was served that a violation of the rules constituted cause 
for revoking the license as well as subjecting the offender to criminal 
penalties. 

Control of flour in 1918. — ^The plan of controlling flour millers' 
margins was changed at the beginning of the 1918 crop year. Volun- 
tary agreements with all flour mills were canceled as of June 29, 
1918, and the Milling Division of the Food Administration went out 
of existence on June 30'. Flour was to be controlled through a maxi- 
mum "fair price" for the bulk product named f. o. b. mill at every 
producing pcM.nt in the United States. This required the sending out 
of 8,500 individual price schedules, one to every licensed mill 
(which meant every mill) in the country. It was a physical impossi- 
bility to figure out this large number of schedules in time to get them 
to the mills on July 1, consequently there was an interim from July 
1 until July 24 for which a subsitute plan of price control had to bo 
announced and enforced. For this period of slightly more than three 
weeks a bulk flour basic price was named at 56 milling points of 
the United States, and each mill, regardless of location, was per- 
mitted to put a sale price on bulk flour equal to the price at the 
nearest one of these 56 basic points, less freight to that city. 

With the sending out of the maximum "fair price" schedules, 
effective July 24, 1918, a new era came in flour control. No longer 



lAt the present time (May 15, 1919) the Food Administration still has auditors in the 
field to check up expense items of mills. Although a' few mills have retained their excess 
profits for two years, they will now be compelled to part with them. 



GOVER]CirME]SrT CONTROL. OVER PRICES. 71 

was there an opportunity for padded cost reports. Not only had each 
mill been given a schedule showing the price of bulk flour at its door, 
but every State food administrator and zone agent had a copy of 
the schedule to assist him in enforcing this fair price. Maximum 
prices were in effect, with the Government naming each mill's maxi- 
mum charge. 

The bulk flour price for each mill was arrived at by taking the 
"fair i^rice" of wheat at the nearest terminal, plus freight to the 
mill, plus $1.10, called a conversion charge (to cover cost of milling 
and profit) , minus the feed return. 

For the guidance of the miller, there was issued a table of "Maxi- 
mum permissible margins over bases on various classes of sale." 
Wlien selling flour to one of the classes of customers on this table 
(and all classes were included) he might add to the schedule price the 
margin permitted for that class, plus items to cover freight and cost 
of sacks. In other words, he would make out a table like the follow- 
ing, showing: 

Method of calculating viaximum, delivered, fair price flour per 'barrel. 

(a) Maximum fair price bulk mill as per schedule No. 000 •_ $10.50 

(&) Maximum differential, if any, on sale of class C .25 

(c) Freight charge (including freight fax) .40 

(d) Cost of sacks (98 pounds cotton for flour) . 60 

Total 11.75 

Also he must place on the contract a copy of the reasonable price 
schedule furnished his mill by the Food Administration. On the in- 
voice form which must be executed in every sale of over 15 barrels 
of flour there must likewise be a copy of the reasonable price schedule 
and the flour charge items appearing under "Method of calculating 
invoice price." 

These precautions and requirements made the flour-control plan 
a simple, self-policing system. If a dealer anywhere felt that a 
miller had charged too much for flour he could submit the records 
of his purchase to the nearest Federal food administrator or zone 
agent and learn immediately whether the " fair-price " rules had 
been violated. 

After March 1, 1918, mills were permitted to make but one grade 
of flour (called 100 per cent straight). Two months previous to 
this date the quantity of wheat which they were allowed to use 
for a barrel of flour was reduced from 285 pounds to 264 pounds. 
All regulations, whether for millers, bakefs, or dealers, were based 
upon the license power, which sanctioned the revocation of license 
in any case of disobedience. 

Conservation measures. — Conservation measures, of course, went 
hand in hand with price control, for it was by inducing saving that 



72 HISTORY OF PEICES DUEIISTG THE WAR. 

the Food Administration helped in some measure to offset the short 
supply of wheat and flour. At the outset reliance was placed upon 
voluntary conservation, stimulated by a wide-spread propaganda 
carried on by means of newspapers and billboards. The results 
were not satisfactory, however, and in January, 1918, President 
"Wilson appealed to the people to reduce still further their consump- 
tion of food. About the same time the Food Administration issued 
rules, effective February 24, 1918, requiring bakers to mix substi- 
tutes with wheat flour in the ratio of 1 to 4, and after January 28 
buyers at retail were required to purchase 1 pound of a substitute 
flour with every pound of wheat flour. Then by requisition 30 per 
cent, and later 45 per cent, of the output of the larger mills was 
taken between January and June, 1918, in order to get flour for 
export to the Allies.^ It was only after the wheat flour substitute 
rule was applied that national saving was effective, the total con- 
sumption of wheat flour in the United States during the eight 
months from July 1, 1917, to February 28, 1918, being considerably 
in excess of the corresponding figures during the three years imme- 
diately preceding the war.^ 

Results of flour control. — Although the Food Administration dis- 
claimed authority before July, 1918, to fix flour prices, market quota- 
tions show that the flour price was kept relatively lower than the 
wheat price. Only once during the period of Government control 
did the flour curve run up close to the wheat curve, and that was 
during July, 1918, after the Food Administration had abandoned 
the 1917 plan of control and before it had launched the 1918 plan. 
Considering that the wheat price was practically stationary through- 
out the price-control period, and that before June, 1917, the price 
of flour had frequently been above that of wheat, this accomplish- 
ment in price control bears testimony to the effectiveness of the Food 
Administration effort. 

Further evidence of the success of flour control is gained from 
an examination of the flour market after the food regulations were 
discontinued. On December 19, 1918, the Food Administration an- 
nounced that the public was no longer required to purchase wheat 
flour substitutes, and soon thereafter all flour regulations were 
abandoned. The effect is seen in market quotations. The January 
price. rose 6| cents a barrel, the February price 34 cents a barrel, 
and in March the price was $1 a barrel higher than it had been at 
the signing of the armistice or for four months preceding that event. 

Exercising hread control. — Bread is not as sensitive to ordinary 
market influences as are wheat and flour. Wlien wheat and flour 

1 Tte Wheat and Flonr Trade under Food Administration Control, by Wilfred Eldred. 

2 Estimates of United States Food Administration, Statistical. Division, Information 
Service, Bulletin No. 1045. 



GOVERNMENT CONTROL, OVER PRICES. 73 

were at the top of a runaway market in May, 1917, bread, which 
is the premier among all wheat and flour products, was climbing 
only one-third as fast as wheat and flour. It was not alarmingly 
scarce from day to day, and its advance was because of high cost of 
production rather than fear of a famine. 

In order to prevent profiteering in bread, it was announced by 
presidential proclamation on November 7, 1917, that all bakers using 
as much as 10 barrels of flour a month must take out licenses before 
December 10. This regulation included hotels, restaurants, other 
public eating places, and clubs serving bread or other bakery products 
of their own baking. Before February 4, 1918, all unlicensed bakers 
using as much as three barrels of flour a month were required to 
procure licenses. 

One of the first tasks attempted by the Baking Division of the 
Food Administration was to standardize the baker's bread of th© 
country. By fixing the weight of the loaf at 1 pound minimum, with 
14, 2, and 4 pound loaves, and with a stabilized price for flour, 
it was anticipated that the variables in bread would be largely elimi- 
nated and competition would be centralized upon price. Loaves of 
other sizes were authorized later. 

The Food Administration announced that it had no power to fix 
bread prices, but it could limit profits, determine fair profits, and 
issue regulations for its licensees. It curtailed the use of ingredients 
other than flour, yeast, and salt, reaffirmed an earlier request by the 
commercial economy committee of the Council of National Defense 
that the bakers refuse to receive returned bread and urged bakeries 
and stores to use as far as possible the " cash-and-carry " system. 

No change was made in the policy not to fix bread prices, regula- 
tion being effected through the stabilization of flour prices and the 
control of bakers' profits. Rebates or discounts to favored customers 
were classed as unfair practices. 

The Food Administration, acting under the license clause, could 
hUve in effect fixed maximum prices for bread, but this was not done. 
The power to revoke bakers' licenses was found sufficient to enforce 
the control desired. Occasionally other weapons were used, but the 
suspension of the license for a few days generally proved ample. 

Results of hread control, — Licensing the bakers caused the bread 
price to decline 15 per cent in December, 1917. The price remained 
at this level (6.4 cents a pound loaf) for four months, after which 
it came up to 7.78 cents a loaf, or to a point 3 per cent above the price 
for the six months immediately preceding Government regulation 
of the baking industry. From March, 1918, until the close of hos- 
tilities in Europe the price remained at practically the same level. 
In other words, with the exception of one prominent decline when the 
Government first began to apply supervision, the price of bread 



74 HISTORY OF PRICES DURING THE WAR. 

averaged somewhat higher after the bakers were licensed than it had 
been when wheat and flour were at their highest points in May, 1917. 

With the relaxation of Food Administration restrictions, about 
January 1, 1919, the bread price advanced to 8.5 cents, remaining at 
this figure during the first four months of 1919. Thus, as soon as the 
Food Administration influence was withdrawn, the price went up 11 
per cent. 

Summary. — Government control of prices as a war emergency 
measure took various forms in its relation to wheat, flour, and bread. 

The wheat price originally was fixed by statute as a minimum price. 
A committee of the executive department then determined what 
would be a " fair price " (20 cents above the minimum) , and this was 
announced and enforced as both a minimum and maximum price. It 
was practically an invariable price. In the beginning the price was 
maintained by means of voluntary agreements between the Food Ad- 
ministration on the one hand and the elevators and mills on the 
other. Ultimately the wheat price of $2.26 a bushel at Chicago was 
treated merely as a " fair price," neither minimum nor maximum. 
The " fair price " was made practically absolute by fixing in July, 
1918, a maximum fair price for flour at each mill, and basing the 
prices named in this maximum fair price schedule on the governmental 
" fair price " for wheat at the various interior primary markets, with 
allowances for freight to the milling point. During the first year 
of Food Administration history the price of flour was not fixed, but 
mills agreed to buy wheat only at the " fair price," and on the 1917 
crop manufacturers' profits were limited to 25 cents a barrel on flour. 
Beginning July 24, 1918, a maximum fair price was enforced for 
flour. It was by virtue of the Government's power to issue and regu- 
late trade licenses that this control was exercised. Prices were never 
fixed for bread. Control was exercised under the license power by 
limiting profits, preventing unfair practices, and standardizing the 
weight of the loaf. 

The three charts presented here represent wholesale wheat, flour, 
and bread prices in Chicago, Minneapolis, and New York, respec- 
tively, from January 1, 1913, to December 31, 1918. These curves are 
made from relative prices on a comparable scale. It will be observed 
that the flour curve drops below the wheat curve soon after the pas- 
sage of the food control act, and that it remains below throughout 
the period of Government control. It is not so regular as the wheat 
line, having a downward swing in the early months of 1918 and an 
abrupt ascent in July while a new plan of control was being held in 
abeyance. The two curves are similar, however, and far below the 
high points at the beginning of the war. 

It is interesting to note that after the middle of 1916, flour, which 
is not a finished product, went up much faster and further than 



GOVEENMENT COISTTROL OVER PRICES. 



75 



is 



m 



1 1 g 


8 


s § a i 


8 3 1 


5 


CTV 






L 




l 








-""as 


I 


OD 






[ 















I 


5 "° 












"^ 


"1 








c 


5 "" 














^ 










• -g-^ 




j'" 














^ 








^E 


^ 
















_ 






Mw: 


? 


g 




S 




s 


T 


a i 


S 8 



£» « ^ 



Jil 


^' 


IS 


C3 


a 






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03 


c3 




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-5 ^ . 
5 a ^ '^ 



2 M 



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76 



HISTORY OF PRICES DURING THE WAR. 



bread. Furthermore, the advent of the Government as a price fixer 
for flour brought the curve down very decidedly, whereas bread, 
which was not subjected to price fixing, continued at a higher level 
than any point it had reached before, with the exception of four 
months immediately following the licensing of the bakers. 

The accompanying tables show price increases immediately fol- 
lowing the abandonment of food control. The wheat price, even 
though wheat was still under a minimum price guarantee, acted in 
like manner. It was stated above that it was by means of the maxi- 
mum flour price and the method of calculating millers' costs that 
the price of wheat was kept from exceeding the fair-price level. 
Following the removal of flour regulations, wheat displayed some 
of the ordinary market traits during a season of short supply. 

WHEAT, No. 2 RED WINTER, CASH, AT CHICAGO. 
[$0.9321 per bushel = 100.] 

ACTUAL PRICE. 



Date. 



Year 

Quarters: 

First 

Second 

Third 

Foiu:th 

Months: 

Jr.nuary... 

February.. 

March 

April 

May 

June 

July 

August 

September. 

October . . . 

November. 

December . 



19i:i 



0774 
0448 
8919 
9413 

1144 
0793 
0385 
0586 
0557 
02O0 
8836 
8705 
9216 
9216 
9447 
9575 



1914 



$1.0024 

.9596 

. 9356 

.9614 

1. 1532 

.9690 

.9602 

. 9495 

.9386 

.9763 

.8918 

.8210 

.9563 

1.1069 

1. 1086 

1.1486 

i. 2023 



191.3 



II. 3110 

1. 5104 
1.4627 
1.1111 
1. 1632 

1. 3910 
1.6091 
1.5311 
1.5916 
1.5700 
1.2265 
1.1611 
1.0963 
1.0760 
1.1325 
1. 1250 
1.2322 



1916 



$1.3731 

1.2270 
1. 1373 
1. 3882 
1.7400 

1.2896 
1. 2585 
1. 1328 
1.2153 
1.1554 
1.0413 
1. 1597 
1.4706 
1.5344 
1.6809 
1.8116 
1.7275 



1917 



82. 2779 

1. 9107 
2. 7136 
2. 2608 
2. 1700 

1.9024 
1. 7969 
1.9781 
2.4672 
2.9705 
2.6388 
2.3310 
2.2503 
2. 1775 
2. 1700 
2. 1700 
2. 1700 



$2. 2094 

2. 1700 
2. 1700 
2. 2392 
2. 2582 

2. 1700 
2.1700 
2.1700 
2. 1700 
2. 1700 
2. 1700 
2.2470 
2. 2325 
2. 2363 
2. 2345 
2. 2375 
2. 3088 



$2. 3788 
2. 3450 
2. 3575 



RELATIVE PRICE. 



Year 

Quarters: 

First 

Second 

Third 

Fourth 

Months: 

January . . . 

February.. 

March 

April 

May 

June 

.luly 

August — 

September 

October.. . 

November, 

December. 



106 


108 


141 


116 


103 


162 


112 


100 


157 


96 


103 


119 


101 


124 


125 


120 


104 


149 


116 


103 


173 


111 


102 


164 


114 


101 


171 


113 


105 


168 


iOO 


96 


132 


95 


88 


125 


93 


103 


118 


99 


119 


115 


99 


119 


121 


101 


123 


121 


103 


129 


132 



132 
122 
149 

187 

138 
135 
122 
130 
124 
112 
124 
158 
165 
180 
194 
185 



244 


237 


205 


233 


291 


233 


243 


240 


233 


242 


204 


233 


193 


233 


212 


233 


265 


233 


319 


233 


283 


233 


250 


241 


242 


240 


234 


240 


233 


240 


233 


240 


233 


248 



255 
252 
253 



GOVERNMENT CONTROL OVER PRICES. 

FLOUR, AVHE.4T, STANDARD PATENTS, AT MINNEAPOLIS. 
[$4.5699 per barrel of 196 pounds=100.] 

ACTUAL PRIC". 



77 



Date. 



Year 

Quarters: 

First 

Second 

Third 

Fourth 

Months: 

January . . . 

February. . 

March 

April ...... 

May 

June 

July 

August — 

September 

October.. . 

November. 

December. 



1913 



$4. 5837 

4.4584 
4. 7096 
4. 6833 
4. 4746 

4. 4813 
4. 5188 
4.3750 
4. 6100 
4.65e3 
4.8625 
4. 7700 
4.7000 
4.5800 
4.4563 
4. 4875 
4. 4800 



1914 



$5. 0962 

4. 5708 
4. 5508 
5. 3488 
5.8625 

4. 5000 
4.5875 
4. 6250 
4.5500 
4.6125 
4.4900 
4. 5938 
5. 5125 
5.9400 
5. 7563 
5. 8813 
5. 9500 



1915 



$6. 6630 

7. 3492 
7. 3942 
6. 2242 
5. 7479 

6.8563 
7. 7063 
7.4850 
7.7063 
7.8813 
6. 5950 
7.0313 
6.3100 
5. 3313 
5.5188 
5.5000 
6. 2250 



191G 



$7. 2639 

6. 3217 
6. 0571 
7. 3767 
9.2621 

6. 6438 
6.4400 
5. 8813 
6. 2188 
6. 1900 
5.7625 
6. 1000 
7.6050 
8. 4250 
9.2800 
9. 8250 
8.6813 



1917 



$11. 3909 

9. 2981 
13. 5731 
12. 3904 
10. 3404 

9. 2150 
9.0688 
9. 6313 
11.6188 
14. 8800 
13. 8938 
12. 7500 
13. 0688 
11. 2625 
10. 6000 
10. 2250 
10. 1313 



$10. 1407 

10. 1538 
9. 7942 
10. 3992 
10. 2100 

10. 0850 

10. 3000 

10. 0938 

9. 9850 

9. 5250 

9. 8250 

10.7120 

10. 2100 

10. 2100 

10. 2100 

10. 2100 

10. 2100 



$10. 2750 
10. 5500 
11.2125 



RELATIVE PRICE. 



Year 

Quarters: 

First 

Second 

Third 

Fourth 

Months: 

January . . . 

February. . 

March 

April 

May 

June 

July 

August — 

September 

October . . . 

November. 

December. 



103 
102 



98 
99 
96 
101 
102 
106 
104 
103 
100 



98 



112 


146 


100 


161 


TOO 


162 


117 


136 


128 


126 


98 


150 


100 


169 


101 


164 


100 


169 


101 


172 


98 


144 


101 


154 


121 


138 


130 


117 


126 


121 


129 


120 


130 


136 



159 

138 
133 
161 
203 

145 
141 
129 
136 
135 
126 
133 
166 
184 
203 
215 
190 



203 
297 
271 
226 

202 
198 
211 
254 
326 
304 
279 
286 
246 
232 
224 
222 



BREAD, LOAF, AT NEW YORK. 
[$0.0412 per 16 ounces of unbaked dough=l00.] 

ACTUAL PRICE. 



222 

222 
214 
228 
223 

221 
225 
221 
219 
208 
215 
234 
223 
223 
223 
223 
223 



225 
231 
245 



Date. 


1913 


1914 


1915 


1916 


1917 


1918 


1919 




$0. 0424 

.0424 
.0424 
.0424 
.0424 

.0424 
.0424 
.0424 
.0424 
.0424 
.0424 
.0424 
.0424 
.0424 
.0424 
.0424 
.0424 


$0. 0442 

.0429 
.0434 
.0455 
.0449 

.0434 
.0427 
.0427 
.0427 
.0427 
.0449 
.0441 
.0483 
.0441 
.0449 
.0449 
.0449 


SO. 0475 

.0492 
.0474 
.0478 
.0457 

.0474 
. .0420 
. 0582 
0465 
.0474 
.0483 
.0492 
.0492 
.0449 
.0449 
.0449 
.0474 


$0. 0477 

.0449 
.0452 
.0454 
.0553 

.0449 
.0440 
.0449 
.0449 
.0449 
.0457 
.0457 
.0449 
.0457 
. 0533 
.0545 
.0582 


SO. 0693 

.0593 
.0710 
.0753 
.0715 

.0571 
.0582 
.0627 
.0640 
.0738 
.0753 
.0753 
.0753 
.0753 
.0753 
.0753 
.0640 


SO. 0738 

.0640 
.0778 
.0773 
.0762 

.0640 
.0640 
.0640 
.0778 
.0778 
.0778 
.0778 
.0778 
.0762 
.0762 
.0762 
.0762 




Quarters: 
First 




Second 




Third 




Fourth 




Months: 

January . . . , 


$3.0850 




.0850 


March 


.0850 


April 


.0850 










July 





























78 



HISTORY OF PRICES DURING THE WAR. 



BREAD, LOAF, AT NEW YORK— Continued. 

RELATIVE PRICE. 



Date. 



1913 


1914 


1915 


1916 


1917 


1918 


103 


106 


115 


115 


168 


179 


103 


104 


119 


109 


144 


155 


103 


105 


115 


109 


172 


189 


103 


107 


115 


110 


183 


187 


103 


109 


111 


134 


173 


185 


103 


105 


115 


109 


139 


155 


103 


104 


102 


109 


141 


155 


103 


104 


141 


109 


152 


155 


103 


104 


113 


109 


155 


189 


103 


104 


115 


109 


179 


189 


103 


109 


117 


111 


183 


189 


103 


107 


119 


111 


183 


189 


103 


117 


119 


109 


183 


189 


103 


107 


109 


111 


183 


185 


103 


109 


109 


129 


183 


185 


103 


109 


109 


132 


183 


185 


103 


109 


115 


141 


155 


185 



Year 

Quarters: 

First 

Second 

Third 

Fourth.... 
Months: . 

January . . . 

February.. 

March 

April 

May 

June 

July 

August 

September, 

October. -. 

November. 

December. 



206 
206 
206 
206 



SUGAE. 

It might be supposed at first thought that the estimated world sugar 
supply of 18,659,792. tons for 1917, as against an average prewar 
production of 18,712,997 tons, was adequate enough not seriously to 
trouble the Food Administration. And, by comparison with the 
complexities of the wheat and meat control, perhaps, sugar control 
was less of a problem. But with these exceptions it was the most 
important of the food controls and affords an interesting and dis- 
tinctive experience with price regulation. It was the cutting off of 
sugar from Germany, and the shortage of ships to distribute the 
available supply, which, more than a falling off in actual world 
production, made sugar control a problem. 

The shutting off of German supplies from Great Britain and 
France, together with submarine ravages, had made these two coun- 
tries dependent upon the Western Hemisphere for their sugar. By 
1916 the largest part of the sugar consumed by the allied countries 
came from the United States and Cuba. The United Kingdom in 
that year, for example, took some 500,000 tons of sugar^ from us 
and an equal amount from Cuba, whereas her normal receipts from 
both these sources combined had in the past averaged approximately 
300,000 tons only. Moreover, the north European neutrals, and other 
countries in Asia, Africa, and South America, which had also been 
shut off from German and Austrian supplies, had entered western 
markets. Thus by 1916 our sugar exports had amounted to 1,630,- 
000,000 pounds, which was approximately 3,000 per cent more than 
was shipped from the United States in the year preceding the out- 
break of the world war. And yet, at the same time, due to lack of 
shipping space, large stocks were accumulating in Java. 

This drain upon Cuban and American stocks was, of course, re- 
flected in the market price of sugar, and by August, 1917, raw sugar 



' Exports of sugar to the United Kingdom for the fiscal year ending June, 1916, amounted to 932,458,- 
299 pounds, according to the figures of the United States Department of Commerce. 



GOVERIirMElSrT COE"TROL OVER PRICES. 



79 



prices had readied a point 100 per cent higher than the average for 
the year preceding the outbreak of the world war.^ 

It was thus evident,^ immediately upon the inauguration of the 
Food Administration, that measures must be taken to check the rise 
of sugar prices. Accordingly one of the first official acts of , Mr. 
Hoover was the appointment on August 15 of Mr. George M. Rolph 
to head a Sugar Division. Three weeks later a presidential procla- 
mation required all importers, manufacturers, and refiners of sugar, 
sugar sirups, and molasses to secure licenses from the Food Admin- 
istration, and on October 1 virtually the entire sugar industry was 
brought under license control. Before the inauguration of the license 
system, however, steps had been taken toward fixing maximum pro- 
ducer's prices for sugar through voluntary agreement. The first of 
such agreements was arranged with the beet-sugar interests. 

TTie heet-sugar control. — Mr. Hoover announced, as early as Au- 
gust 25, 1917, that the producers of beet sugar had agreed to sell 
their new crop at $7.25 per hundredweight, cane basis, at refining 
points (Boston, New York, Philadelphia, Savannah, New Orleans, 

1 The effect of the shipping shortage, and the concentration of sugar demands upon the American and 
Cuban markets, upon sugar prices is presented in the appended table. The temporary rise in the sumnie 
of 1914 is to be explained by the large purchases of Great Britain following the declaration of hostiUties, and 
by a panic among American consumers who rushed into the market and bought up large supplies because 
ofa fear ofshortage and higher prices. These prices were taken from Willett & Gray's Weekly Statistical 
Sugar Trade Journal. 

United States /price of raw and refined sugar, 1918-1918 

RAW CANE SUGAR. 

[96° centrifugal; duties paid at New York.] 



Month. 



January $0. 0353 

February 

March 

April 

May 

June 

July 

August 

September 

October 

November 

December 



1913 


1914 


1915 


1916 


1917 


$0. 0353 


$0. 0332 


SO. 0305 


10. 0465 


SO. 0524 


t . 0349 


.0344 


.0468 


.0491 


.0517 


.0355 


.0298 


.0482 


.0564 


.0548 


. 0339 


.0298 


.0480 


.0616 


.0621 


.0334 


.0326 


.0484 


.0643 


.0608 


.0334 


. 0334 


.0491 


.0632 


.0604 


.0355 


.0328 


.0485 


.0630 


.0662 


.0374 


.0570 


.0475 


.0558 


.0727 


. 0372 


.0580 


.0427 


.0555 


. 0696 


. 0350 


.0446 


.0411 


.0626 


.0690 


.0362 


.0391 


.0475 


.0621 


.0690 


.0335 


.0396 


.0492 


.0531 


.0634 



SO. 0601 
.0601 
. 0601 
.0601 
.0601 
.0602 
.0606 
.0606 
.0697 
.0728 
.0728 
.0728 



REFINED CANE SUGAR. 

[Fine granulated in bags or barrels at New York.] 



January. . . 
February . 

March 

April 

May 

June 

July 

August 

September 
October... 
November 
December. 




1.0744 
.0730 
. 0730 
.0730 
. 0730 
.0731 
.0735 
.0735 
. 0845 
.0882 
.0882 
.0882 



80 HISTORY OF PRICES DURING THE WAR. 

and San Francisco).^ This price was later raised to $7.35 and $7.45 
on December 12 and January 8, respectively, in order that it might 
conform more nearly to the price of cane sugar, which was estab- 
lished by agreement w^ith the Cuban producers, whose product is the 
basis for the price of the entire domestic sugar crop, including that 
from Hawaii and Porto Rico. 

Shortly after the fixing of the beet-sugar prices by agreement it 
became evident that with the elimination of normal competitive 
methods of bidding for sugar supplies some arbitrary method of 
distribution would be necessary. Accordingly there was appointed 
a sugar distributing committee to allot the available sugar to dealers 
in various localities. Representatives of this committee were scat- 
tered throughout the country and prices at different distributing 
points were established by adding freight from the nearest seaboard 
refinery to the base price at that seaboard point.- It was hoped thus 
to effect an equitable distribution of sugar and a saving in freight 
costs. Cross shipments were eliminated wherever possible and, con- 
trary to the usual custom of shipping sugar as much as half way 
across the continent, individual localties were supplied by the nearest 
refineries. 

Control over the cane-sugar supply. — The regulation of the beet- 
sugar supply, however, could not of itself solve the sugar situation, 
for beet sugar represents a small part only of our total consumption. 
Cuba ordinarily furnishes the greater part of our sugar supplies, and 
it soon became necessary, therefore, to devise methods of controlling 
the price of Cuban sugar as well. That necessity was especially 
acute, for the Cuban supplies of raw sugar seemed too small even to 
]neet our own demands. Moreover, the foreign Governments were 
bidding against each other and against the American refiners for 
these scanty supplies. Under such competition it was apparent sugar 
fsrices could not be kept stable. The entire sugar-refining industry 
agreed to keep out of the Cuban and other raw-sugar markets and to 
obtain their supplies through a purchasing body created by the Food 
Administration. This body, appointed on September 21, was the 
International Sugar Committee, formed by agreement with England, 
France, and Italy to arrange for the purchase and distribution of the 
iivailable sugar for the allied Governments and for all allotments to 
neutrals. There was also appointed to cooperate with this interna- 
tional committee a committee of American refiners, whose business 
it was to allocate among our refiners all sugar set aside for the 
United States. This committee later became very active and had 
as its almost daily task the alloting to refiners of all sugar receipts 

> It should be noted that this one is the first price-fixing agreement entered into 
directly by the United States Food Administration. The price of wheat had heen fixed 
on Aug. 10 hy congressional legislation. 

2 To the price of heet sugar at the seahoard refining points, i. e., $7.25, the transporta- 
tion cost to interior points was added. 

I 



GOVERIiI'MENT CONTROL OVER PRICES. 81 

from Cuba, Porto Eico, and other sources. In such a manner was 
competition in the world's sugar market eliminated and conditions 
made favorable for negotiating with the various producers for raw- 
sugar supplies. 

The Food Administration, now in a position through the sugar 
committee to bargain with, the cane producers for favorable prices, 
entered into an agreement with the Louisiana planters which resulted 
in the fixing of a price on October 23, 1917, for Louisiana raw sugar 
of $6.35 per hundredweight at New Orleans. There having been 
fixed a price for beet sugar and the entire domestic production of 
cane sugar, it remained still to grapple with a more definite price 
control over Cuban cane sugar. The first move in this direction was the 
purchase by the International Sugar Committee of the small remain- 
der of the old 1916-17 crop of Cuban sugar at $6.75 delivered at Xew 
York duty paid and an attempt to secure the new crop, which was due 
the first of 1918. Accordingly, conferences were held with the Cuban 
producers in the hope of fixing a price for the Cuban crop. After a 
considerable delay, and the entrance of the Cuban Government and 
our State Department into the negotiations, an agreement was finally 
made on December 24 whereby three-fourths of, or (upon option) the 
entire new Cuban crop was to be sold to the International Sugar Com- 
mittee at $4.60 f. o. b. Cuban ports. That price, after adding freights, 
duty, and other costs, was equivalent to about $6 ^ f. o. b. New York.- 

The Food Administration was thus instrumental in bringing all 
of the immediately available supplies of raAv sugar under the control 
of the Allies. Further precautions were taken by placing embargoes, 
through the War Trade Board, upon the export of sugar from the 
United States, and by asking the Cuban Government to prohibit all 
shipments of sugar to any country other than the United States or 
her Allies. 

The distribution of re-fined sugar. — Shortly after a price for the 
raw sugar supply had been decided upon, it was thought advisable to 
limit the costs of fabrication and distribution, in order that the ulti- 
mate cost to the consumer might be kept at a nominal level. For this 
purpose, the refiners were asked in September, 1917, to fix a margin 
between the cost of raw sugar and the selling price of refined sugar 
for which they were willing to operate. This refining margin, based 
on a prewar average, was placed at $1.30 per 100 pounds. It was 
later, after investigation of refining costs by Mr. Oscar Straus, 

1 On June 24, 1918, the increased insurance rates caused by the presence of German 
submarines off the American coast caused a rise in the New York price to $6.05. 

" It is of interest to note that before making this final agreement with the Cuban 
producers, the United States Food Administration rendered aid both to the Cuban Gov- 
ernment and the Cuban sugar industry, in order that the sugar crop might be more easily 
marketed. At the suggestion of the Food Administration, for example, the Cuban Gov- 
ernment loaned to the Cuban Railway $5,000,000 in order that the road might be put 
into better condition for handling the crop. The Food Administration also played an 
important part in getting some 50 American business firms, who had orders for supplies 
which were needed in harvesting the Cuban crops, to rush such supplies through and to 
fill orders for articles which the Cuban authorities were having difficulty to secure. 
125547'°— 20 ^6 



82 HISTORY OF PRICES DURING THE WAR. 

increased to $1.45 per 100, effective August 1, 1918. This differential 
included, incidentally, a brokerage charge ranging from 3 to 5 cents 
per 100 pounds, which might be paid to agents for selling sugar to 
wholesalers and jobbers.^ At the same time, the refiners agreed to 
confine their sales to certain limited territories. 

With the price of sugar so minutely regulated in both its raw and 
refined state, it appears that the interests of the American consumer 
had been fairly well provided for. The licensing system limited 
the profits of the wholesaler and jobber to the prewar normal, which 
averaged about 25 cents per 100 pounds,^ and the only remaining 
avenue of profiteering was the retail distributor. Methods of deal- 
ing with the latter have been discussed in previous pages.^ 

The Sugar Equalization Board. — No sooner had all arrangements 
been completed for the purchase and disposal of the 1917-18 sugar 
crops by the above committee and the Food Administration than it 
became necessary to provide for the crop of the year to follow. 
This was especially imperative, since the requirements of the Allies 
demanded the greatest possible stimulation both of cane and beet 
sugar production. If the estimate made in the late spring of 1918 
that the United States would produce 1,600,000 tons of sugar was 
accurate, it meant that the balance of our 4,000,000-ton requirement 
must be imported. Cuba, of course, was the logical source to draw 
upon for this balance. 

An investigation into the costs of producing sugar showed that the 
wholesale price of sugar could not be brought below 9 cents if the 
Louisiana cane producers and the western beet raisers were allowed 
a fair return.* Accordingly, an agreement was entered into with the 
Louisiana cane producers, and the beet manufacturers, by which the 
wholesale price of sugar was stabilized at not to exceed 9 cents.^ 

It was known, however, that the Cuban raw sugar could be sold 
about 1^ cents per pound cheaper than our domestic supply and at the 
same time leave a good margin of profit. The price allowed to the 
American producer, then, if extended to the Cuban crop would have 
meant tremendous profits to the Cuban growers. On the other 
hand, if the American refiners were allowed to buy Cuban raw sugar 
at the price the Cubans were willing to accept, and forced to charge 

1 On Sept, 9, the refiner's margin was still further increased to $1.54 per 100 pounds. 

2 'This margin was increased in the midsummer of 1918 to 35 cents. 

3 On Nov. 7, 1918, the retailer's margin on sugar was fixed at $1.12 (bulk) and $1 in 
packages, 

* This price was decided upon after various meetings with the producers held during 
the early summer of 1918. It should be repeated once more that the guiding motive in 
fixing prices by the Food Administration was the stimulation of production. The policy 
was to put the price at the point at which at least 90 per cent of the producers could 
secure a fair profit. The interests of the consumer were always considered, of course, 
and made the limiting factor in determining the price to be fixed. If every producer of 
sugar had been fully recompensed without consideration for the consuming public, the 
price of sugar would perhaps have been three times what it actually was during the war 
period. 

B The actual price fixed was $0.0882. This price made raw sugar $0.0728 per pound, 
to which the refiner's margin of $0.0154 was added. It went into effect Sept. 9, 1918, 



GOVERISTMEN'T COlSrTKOL OVER PRICES. 83 

9 cents per pound for refined sugar (the agreed selling price for the 
sugar refined from domestic cane and beets), their profits would be 
far in excess of those ordinarily expected by refiners for their services. 
And, again, if Cuban sugar came into the United States at the price 
which the Cuban growers were willing to accept, and the American 
refiner's margin as determined earlier in the year was added thereto, 
and Cuban refined sugar was sold at a price considerably below 9 
cents, the domestic cane and beet raising industry would be ruined 
and a shortage of sugar follow. A still further problem was that of 
equalizing the j)rices of the old-crop domestic sugars which were sell- 
ing at $7.30 per hundred pounds with those of the new 1918-19 crop 
which were soon to appear at the higher price of $8.82. 

The solution of these problems seemed to lie in some governmental 
form of equalization, whereby the existing differences in the costs 
of the domestic and imported sugars, as well as the differences be- 
tween the old and new crop prices, would be eliminated. To attain 
this end, the United States Sugar Equalization Board was incorpo- 
rated in July, 1918, with a capital stock of $5,000,000, owned by the 
United States. The board, shortly after its incorporation, purchased 
all sugars produced from the 1917-18 crop, still in the country or in 
transit, at the old price of $0,073 per pound, and immediately resold 
them to the same holders at the new price of $0.0882. Thus the extra 
profit, which would otherwise have gone to the refiners who had pur- 
chased at the old price and would have sold at the new price, was 
absorbed by the Sugar Equalization Board.^ In like manner the 
board bought up the entire Cuban 1918-19 crop at the price of $0.0588 
per pound (including costs and freight to Philadelphia and New 
York), and delivered it to American refiners on the Atlantic and 
Gulf coasts at $0.0728 per pound. Adding to the latter price the re- 
finer's margin of $0.0154, this sugar could be sold in refined form at 
the same price as the domestic production, i. e., $0.0882. 

In the price of $0.0728 to the refiner there was, after deducting duty 
and other costs, a margin of some 25 to 38 cents per 100 pounds. This 
amount instead of going to the Cuban producers or the American 
refiners went to the treasury of the Sugar Equalization Board. Thus 
the price of sugar was stabilized and the domestic industry preserved, 
while at the same time there went to the United States Treasury a 
considerable sum which would otherwise, in all probability, have 
gone to the American refiners or the Cuban producers. 

'■ The question naturally arises, What provisions were made for the disposal of stocks 
held by wholesalers and retailers on Sept. 7, when the higher price went into effect, and 
which had been bought at the lower price prevailing prior to this rise? The Food Ad- 
ministration specifically stated that such dealers should continue to sell all lower-priced 
stocks on the lower basis until entirely disposed of. Even the averaging of the new and 
old price was prohibited. When considered from the standpoint of the individual dealer, 
the gains accruing from the rise in price were necessarily small, for their supplies of 
sugar were limited, the license regulations having prohibited them from holding more 
than a 60-day supply at any one time. 



84 HISTORY OF PRICES DURING THE WAR. 

The limitation of sugar consumpflon. — The Food Administration, 
as well as the consuming public, learned shortly after the inaugura- 
tion of the Sugar Division that control both of the sources of raw 
sugar and the prices of the finished product would not solve all the 
difficulties presented by the shipping shortage. There was, first, 
the railroad blockade which made next to impossible an equitable 
distribution, especially in the eastern section of the country. Sec- 
ondly, the harvesting and marketing of the Cuban sugar crop begins 
about the first of the year and continues into the early summer. 
The Javan crop usually follows and fills in the void in receipts from 
June to October, Avhen the beet-sugar crop begins to come in. The 
Louisiana crop first appears on the market in November and sup- 
plies our demand through the winter. The Javan crop was unat- 
tainable during the summer and autumn of 1917, however, and this, 
of course, added to the stringency. Moreover, the Atlantic coast 
refiners received considerably less Louisiana sugar than usual in 
late 1917, for the Louisiana planters Avere selling washed and clari- 
fied sugar which they made on their own plantations to manufac- 
turers of confections. They had found that the selling of sugar in this 
semirefined state yielded them a larger profit than would have been 
secured for their products had they sold it in the raw state to the 
refiners.^ Third, an early frost had perceptibly cut down the 
Louisiana supply; and, finally, the demands of our allies kept in- 
creasing more and more beyond expectations. 

Limitation of consumption was, of course, the logical solution of 
this phase of the sugar problem, and in October, 1917, confectioners 
and manufacturers of nonessential foodstuffs were limited to 50 per 
cent of their normal requirements. Early in January, by reason of 
the new sup]3lies from Cuba and Louisiana, this amount was in^ 
creased to 80 per cent of normal requirements. It was later ruled 
" that such manufacturers starting operations after November 1, 
1917, but before April 1, 1918, would be limited to 50 per cent, and 
that those starting after April 1, 1918, should be allotted no sugar 
whatever. Again, on July 1, 1918, all of the less essential industries 
were limited to 50 per cent. Beginning March 15, 1918, practically 
all manufacturers using sugar were required to obtain certificates 
from the Federal food administrators in their respective States, 

1 The shortage of sugar in the fall of 1917 resulted in the limiting of manufacturers 
of nonessential foods to 50 per cent of their normal sugar requirements. These manu- 
facturers, however, could buy sirups, which they used as substitutes. Hence, rather than 
go without sufficient sugar, they were willing to pay to the Louisiana producers for 
washed and clarified sugar — which normally sold for about one-half cent per pound less 
than refined — the wholesale price of $0.0765 per pound, or the agreed price for refined 
sugar ($0.0635 — Louisiana raw sugar price — plus $0,013, refiner's margin). The Louis- 
iana producei'S, on the other hand, were glad to sell this clarified and washed sugar at 
$0.0765, for it netted them a larger profit than would have been secured had they sold 
it in the raw form to the refiners. This irregularity was later eliminated by fixing 
$0.0725 less 2 per cent as the maximum price at which washed, clarified, and open sugar 
could be sold. 



GOVERNMENT CONTROL, OVER PRICES. 85 

shoAA'ing timouiil; that the}" were entitled to purchase," ^ and these 
certificates were turned over to licensed wholesalers and other dealers 
when sugar purchases were made. 

Consumption by the public in general was also closely regulated, 
and purchases were limited at first to 5 pounds at a time for urban 
and 10 pounds for rural customers. In June these rations were 
changed to 2 and 5 pounds, respectively, and retailers were for- 
bidden to sell sugar to their customers in quantities greater than 3 
pounds per person per month. Later they were further reduced to 
2 pounds per person per month. On October 30, with the new crops 
in view and with improved railroad service, regulations were once 
more modified and the per capita allowance was restored to 3 pounds^ 
On November 13 an allowance of 4 pounds was made and manu- 
facturers were granted their full requirements. Finally, on Novem- 
ber 27, 1918, all restrictions were repealed with but two very im- 
portant exceptions, namely, first, price control was retained, through 
the operations of the equalization board, over its purchase of the 
Cuban 1918-19 sugar crop, until supplies were disposed of; and, 
secondly, a restriction of distribution by refiners to certain territories 
was retained in order to maintain an equitable supply for all parts 
of the country.^ 

Sugar hy- products. — The distribution of sugar by-products, such 
as sirups and molasses, and the regulation of their prices were also 
administered by the Food Administration. Molasses and sirups were 
specifically mentioned in the license regulations of October and 
November, 1917, but only in a general way. Indeed, the early 
regulations affecting these by-products maj^ be summed up in the 
requirement that they " be sold according to the customs of the trade 
in the various producing centers of the United States." 

In March, 1918, control of the price of molasses was* first inaugu- 
rated, and a maximum of 18 cents per gallon in tank cars at sea- 
board points was fixed for blackstrap molasses, either imported as 
such or produced in the United States from imported sugar cane.^ 
Shortly afterwards, in order that the largest possible sugar extrac- 
tion might be gotten from the raw product, refiners were forbidden 

^ See " Sugar Prices and Distribntion,"' ty Roy G. Blakey, Quarterly Journal of Econom- 
ics, August, 1918. Figures taken from the Sugar Market Review show that at least one- 
fourth of the sugar consumed in the United States goes to the manufacturer of confec- 
tionery and other sweet stuffs. 

- There was also a considerable number of regulations, too numerous to mention in the 
limited space available, which indirectly affected si-gar prices. An equitable distribution 
among customers v\-as prescribed ; only standard-sized packages could be used for packing 
sugar ; stocks to be held by any one concern were limited ; advance contracts were lim- 
ited to a specified number of days, etc. See Series VI, Special License Regulations, Man- 
ufacturers and Refiners of Sugar ; also Series I, Governing All Licenses for the Importa- 
tion, Manufacture, Storage, and Distribution of Food Commodities and Feeds. 

= Beet molasses was also made subject to this fixed price in June. A maximum of 5 
cents per gallon over the bulk price of 18 cents was permitted for barrel lots. The re- 
selling price of wholesalers was also regulated by the Food Administration. A maximum 
margin of 8 to 10 per cefit was fixed by the Food Administration on sales of molasses in 
barrels by wholesalers to retailers. 



86 



HISTOKY OF PRICES DURING THE WAR. 



WJ 



1017 I loia I 



uu: 



ixp^ 



r™" 



tJCLAnvE PRICES or 

SUGAR 

UNITED STATti 

— ."ENGLAND 
TRANCE. 



5YRDl<Tli5 

JANUAFr/.1915-DecCM&CR.19ia 

A/CRAOtQUOTED PRICC5 

JULY.rara "JUN^JSM-lOO 



r 



J 



deliberately to produce sirups or molasses from which sugar could 
be commercially extracted. In June the price of sirups manufac- 
tured from imported raw cane 
sugar was fixed at 50, 35, and 25 
cents per gallon for high, me- 
dium, and low grades, respec- 
tively. Such prices were for lots 
purchased in bulk at primary 
markets. An added differential 
of 5 cents per gallon was allowed 
for sales of barrel lots. 

A system of priorities was 
formulated for the distribution 
of sirups, and distributors could 
secure their needs only after fur- 
nishing a certificate of priority 
from the Food Administration 
showing the purpose for which 
the sirup was to be used. Mo- 
lasses and sirups had to conform 
to certain specified standards and 
rules were laid down w^hich regu- 
lated the method of shipping 
these products. These latter reg- 
ulations were repealed on Decem- 
ber 12, 1918, and on January 10, 
1919, the regulation of the prices 
of molasses and sirups was with- 
drawn. 

The results of sugar control. — 
One of the chief objections to 
price control made in the Senate 
sugar investigation of January, 
1918, was that it kept down pro- 
duction. It would seem, if that 
be true, that the Food Admin- 
istration was defeating its own 
end, which was the stimulation of 
production, by imposing fixed 

Relative prices.— Sugar : United States, Eng- prices ^ upOn raw SUgar and itS 
land, France. — By months, January, 1913, n i A + Tl T -P 

to December, 1918. (Average quoted prices renneO. prOClUCt. llie pOllCy OI 

July, 1913, to June, 1914=100.) providing for the greater part 

of the producers when determining upon a price to be fixed, ap- 
pears, after a review of the situation existing in late 1918, to have 
obviated largely this particular objection. For example, the total 

» These prices, of course, were the results of voluntary agreements between the sugar 
producers and the Pood Administration, as stated above. 




GOVERNMENT CONTROL OVER PRICES. 



87 



domestic cane-sugar crop for 1918-19 (the first crop to be influenced 
by regulation) was estimated to be 21,000 tons larger than that of 
the preceding year. Moreover, the estimated output of the present 
Cuban crop was approximately 175,000 tons larger than that of 
1917-18. To be sure, the domestic beet area of 1918 was some 15 
per cent smaller than that of the year before, but this was due not 
so much to the regulated sugar price as to the higher prices of alter- 
native crops and the ill feeling among the beet raisers against the 
sugar refiners. 

Judging from the course of events in England and France, it 
might be supposed that the policy of the Food Administration had 
a considerable effect upon refined sugar prices'. American wholesale 
sugar prices rose but 17 per cent from August, 1917, the month in 
which the Food Administration was inaugurated, to the signing of 
the armistice. French prices, on the other hand, rose 157 per cent 
in the like period, while in England an increase of 94 per cent was 
experienced. The course of sugar prices from January, 1913, to De- 
cember, 1918, in the United States, England, and France is here pre- 
sented graphically. The prices for each month have been reduced 
to a prewar basis, by allowing the average of the monthly prices 
for the year July, 1913, to June, 1911, to equal 100. 

Live Stock and Meats. 

The devastation of a large part of the live-stock area of Europe, 
the shortage of fodder^ and the resulting increase in the annual 
slaughter combined, in spite of a slight increase in the meat pro- 
duction in the United States,- to create a serious world shortage of 
meats and fats.^ 



^Mr. Herbert Hoover, in the faU of 1917 (Food Adm. Bull. No. 10), said in part: 
" The general policy of European nations is to reduce these herds by slaughter of their 
animals to an extent far beyond their annual production. It is obvious that the number 
of their animals which it is necessary to support by imported fodder requires shipping 
for their support far in excess of the tonnage that would be required to import equal 
amounts of animal products. Furthermore, the production of fodder grains in Europe 
displaces, to a considerable extent, their possible production of bread grains." 

2 The decrease in the world's supply of meat-producing animals suffered during the 
first 3 years of the war as shown in Bulletin No. 10, U. S. F. A., was as follows: 



Live stock. 



Cattle. 
Sheep . 
Hogs.. 



Total. 



Decrease under prewar 
normal in — 



Western 
allies. 



8, 420, 000 

17, 500, 000 

7, 100, 000 



33, 020, 000 



Other 
countries, 
including 
enemies. 



26, 750, 000 
34, 000, 000 
31,600,000 



92, 350, 000 



Total ac- 
tual net 
decrease 
under pre- 
war nor- 
mal. 



28, 080, 000 
54, 500, 000 
32,425,000 



115, 005, 000 



3 The French official live-stock figures, published by the Food Administration on 
Aug. 3, 1917, showed that their supply of cattle had decreased by 16.6 per cent as 



88 HISTORY OF PRICES DURING THE WAR. 

For more than a year the Allies had been taking increasing quan- 
tities of meat and fats from the United States and already oin* 
exports of fresh and pickled beef had mounted to over 270,000,000 
pounds for the year ending June 30, 1917, or an increase of almost 
3,000 per cent over the prewar average. Similary, our exports of 
bacon and ham had increased some 640,000,000 pounds over the cor- 
responding prewar yearly average of 303,-189,000 pounds. It was 
apparent that these large demands would gradually absorb our 
domestic supplies, and, indeed, the report of a commission appointed 
by Mr. Hoover showed that such was fast becoming the case with 
our herds of swine.^ But in spite of this situation it was necessary 
that future shipments to the Allies must equal, if not exceed, those 
of 1916-17. Accordingly, two methods were adopted for the solu- 
tion of the meat problem — conservation through decreased consump- 
tion and stimulated production. These two courses of action guided 
the entire price policy of the Food Administration with respect to 
meat, and to them must be attributed its success or failure. The 
task of stimulating production was attempted through patriotic 
appeal and through an assured return to the producer. It is with 
the latter, since the medium of its realization was a form of price 
control, that the present investigation deals. 

The stimulation of meat production. — The Food Administration 
through Mr. Hoover, and the Department of Agriculture through 
Secretary Houston, in a statement on August 21, 1917, urged the 
farmers of the United States to increase the production of sheep, 
cows, and hogs, assuring them at the same time " a fair share of a 
fair price paid by the consumer." From the very beginning, how- 
ever, Mr. Hoover insisted that he had no intention of fixing the 
price either of pork or beef, but that he hoped to increase the meat 
supply by stabilizing the industry and supporting remunerative 
prices to the farmer through purchases of beef and pork for export. 
The consumer, on the other hand, was to be protected by the elimi- 
nation of speculative profits and the punishment of profiteering 
through a proposed license system. 

There were in reality two quite different problems to be solved, 
the one pertaining to beef and the other hog production. The beef 

compared with 1913, sheep by 33 per cent, and hogs by 38 per cent. These decreases, 
by the autumn of 1917, had increased by several per cent in the case both of sheep 
and hogs. The amount of meat passing through Smithfleld Marltet, England's greatest 
meat distributing center, makes cTident the extent of the meat shortage in England 
during the summer of 1017. The total receipts for July, 1917, equaled 20,802 tons as 
compared with 23,9ol tons in the same month of 1916; 29,597 tons in 191.5; and 
36,720 tons in 1914. These data show a decrease of 43.3 per cent in the meat there 
handled in July, 1917, under that handled in July, 1914. , 

^ The reports of a commission to investigate the cost of producing hogs. Meat Divi- 
sion, United States Food Administration, 1017, sta'tes that : The normal number of 
hogs in the United States is approximately 65,000,000 as contrasted with the present 
supply of not more than 60,000,000, 



GOVERNMENT CONTROL OVER PRICES. 89 

problem was the less serious, for it seemed likely that the Allies 
could support themselves by further encroachment upon their herds. 
Future contingencies had to be provided for, however, since it was 
necessary to maintain the milk herds of the European countries. 
Of much more vital consequence, however, was the question of hog 
supply. Pork at the time played a tremendously important part in 
the food supply of the fighting armies, so great, in fact, that it was 
often said that should the United States discontinue pork exports, 
" the German line would be moved to the Atlantic seaboard." 

Hog production. — The world demand for fats and the increasing 
consumption, both domestic and export, made the pork problem one 
of grave concern to the Food Administration. Yet, the ease of in- 
creasing production afforded hope of a rapid solution. The out- 
standing obstacle during the summer of 1917, curiously, was the lack 
of confidence among producers in the stability of market prices. It 
was evident that the farmers of the country would have to be assured 
that their efforts toward increased hog production would not entail 
loss. Accordingly, a commission was appointed to find out the 
actual costs of producing pork. The commission, composed of lead- 
ing swine producers, investigated various phases of hog production 
and reported their results to Mr. Hoover on October 27. It was the 
opinion of the commission that the uncertainty on the part of pro- 
ducers, caused by the fluctuating market prices of live hogs, was 
leading to the marketing of large numbers of potential breeding 
stock. The continuance of that practice would obviously bring dis- 
astrous results. The commission declared it imperative to stabilize 
the market immediately, and suggested that a minimum emergency 
price be established. But it was also vital to stimulate swine pro- 
duction for 1917-18, and for this purpose it was recommended 
that a price, to go into effect on February 1, 1918, be announced for 
the 1918 litter. This price, it was believed should be based upon the 
price of corn. Observations had shown the average ration of corn to 
hog supply to be about 12 bushels of corn to 100 pounds of pork, and 
that as the ratio varied the stock of hogs in the country increased or 
fell off. It was mandatory, therefore, to maintain at least this ratio 
if a hog supply equal to that then existing was to be maintained. 
Indeed, the commission believed that in order to bring hog produc- 
tion back to normal a ratio of 13.3 to 1 would be necessary. 

Two days after the receipt of these findings, the Meat Division of 
the Food Administration was created in Chicago under the general 
direction of Mr. John P. Cotton. Acting on the basis of the above 
report, he checked the fall in prices at the central markets by declar- 
ing that the price of hogs until further notice would not " go below 
$15.50 per hundredweight for the average of the packer's droves on 



90 



HISTOEY OF PRICES DURING THE WAR. 



the Chicago market."^ This price was to be maintained through 
the control which the Food Administration had over the buying of 
the Allies, the Army, the Navy, the Red Cross, the Belgian relief, 
and the neutrals,^ which together constituted a considerable factor 
on the market. He further stated that, in order to stimulate the 
1918 hog crop and bring it back to normal, the Food Administration 
would try to stabilize that price so that the farmer could " count on 
getting for each 100 j^ounds of hog ready for the market 13 times the 
average cost per bushel of the corn fed into the hogs." 

It should be borne in mind that this was not a guaranty on the 
part of the Food Administration. In fact, the Food Administra- 
tion had no financial or statutory means of giving such a guarantee. 
It was merely a statement of intention and policy. 

Close surveillance was kept by the Food Administration over the 
market after November 3 and methods were adopted to maintain 
prices in accordance with their outlined policy. In January, 1918, 
conditions became unfavorable. Prices had fallen to $15.97.^ It 
appeared doubtful whether the Food Administration would be able 
to keep the market up to the $15.50 basis. Accordingly, the Food 
Administration exerted all efforts toward securing orders and tided 
over the emergency. Prices for February, 1918, averaged $16.55. 
There follows a table showing the average actual prices of corn, 
mixed, cash No. 3, at Chicago from January, 1913, to December, 1918, 
and those for live hogs, bulk of sales : 

ACTUAL AVERAGE MONTHLY PRICES OF CORN AND HOGS AT CHICAGO, 1913-1918.< 



CORN, MIXED, CASH NO. 

[Per bushel.] 


3. 








Month. 


1913 


1914 


1915 


1916 


1917 


1918 




SO. 4788 
.4891 
.4945 
.5481 
.5688 
.6072 
.6150 
.7385 
.7472 
.6950 
.7183 
.6647 


SO. 6175 
.6169 
.6403 
.6678 
.6930 
.7244 
.7060 
.8130 
.7891 
.7338 
.6863 
.6425 


$0.7135 
.7325 
.7160 
.7510 
.7585 
.7431 
.7878 
.8013 
.7431 
.6246 
.6291 
.6575 


$0.7500 
.7375 
.7158 
.7417 
.7500 
.7157 
.7757 
.8625 
.8569 
.9572 
.9728 
.9092 


$0.9850 
.9950 
1. 1243 
1.4722 
1.6466 
1. 6921 
2.0478 
1.7917 
2.0881 
L9944 
2. 2500 
1. 5935 


$1. 5975 




1. 6750 




1.6375 


April 


1.5333 




1.4500 


June -• 


1.4300 


July . 


1. 5250 




1.6250 




1.5358 




1.2533 




1. 2725 




1.4050 







1 Nov. 3, 1917. 

- See statement on " The centralization of Government and Allied food purchasers " in 
the latter part of this chapter. 

3 A survey of hog and corn prices from January, 1913, to December, 1918, throws con- 
siderable light upon the conditions in the pork industry. The advance in the price of 
hogs over the prewar average appears at first glance to have been considerable. It 
should be remembered, however, that corn is the chief fodder consumed in the raising 
of hogs and that the greater part of the cost of the matured animal represents corn 
costs. Corn prices during the period dealt with rose from a prewar (July 1, 1913, to 
June 30, 1914) average of $0,679 per bushel to $1,597 per bushel in January, 1918, an 
increase of 133 per cent, as against hog prices which rose from $8,309 per hundred- 
weight in the prewar year to $15,975 per hundredweight in January, 1918, an increase 
of 91 per cent. 

* Quotations for corn, mixed, cash No. 3, are from the Daily Trade Bulletin, and those for 
live hogs (bulk of sales) from the Bureau of Crop Estimates, Department of Agriculture. 



GOVEENMElil'T CONTROL OVER PRICES. 

ACTUAL AVERAGE MONTHLY PRICES OF CORN AND HOGS AT CHICAGO, 
1913-1918— Continued. 

LIVE HOGS. 

[Bulk of sales.] 
[Per 100 pounds.] 



91 



Month. 


1913 


1914 


1915 


1916 


1917 


1918 




G7.4500 
8. 1750 
9. 1250 
8.8250 
8.5000 
8. 6000 
9.0750 
8. 3750 
8.3750 
8.2000 
7. 8000 
7.7500 


$8. 1750 
8.5500 
8. 6000 
8.4750 
8. 2375 
8.1000 
9. 0000 
8. 9000 
8. 5750 
7.7750 
7.6250 
7.2000 


$6.8000 
6. 6750 
, 6.7250 
7. 2000 
7.4000 
7.4000 
7. 1000 
6. 9250 
7.3500 
7. 7250 
6. 6250 
6. 3500 


$7.2500 
8. 2500 
9.4500 
9. 6250 
9.9500 
9. 5750 
9. 7250 
10.2250 
10. 6000 
10. 0500 
9. 5750 
9. 4250 


$10. 8000 
12.4500 
14.3250 
15.6750 

15. 9750 
15. 1500 
15. 2500 
17.2500 
18. 2000 
17. 1250 

16. 9500 
17. 0500 


$15.9750 




16. 5500 




16.8750 




16.8500 


May 


16. 7750 




16.4250 


July 


17.6250 


August 


18. 7500 


September . . 


19.3750 


October .. . . . 


16. 7500 


November '. 


IG. 6250 


December ... 


17.0000 







The salutary effects of controlled purchases were apparent through 
the spring and summer of 1918. In August, however, receipts at the 
packing centers began to decrease, since the 1918 hog supply was late 
in maturing. The immediate consequence, of course, was a rising mar- 
ket, and hog prices went to $18.T5 in August and $19,375 in September. 
But the interests of the consuming public demanded a limit to this 
upward rise, and lest it go beyond bounds the Food Administration 
once more assumed control of the market. On this occasion a reversal 
of the method used in the early months of the year was applied, and 
European orders, which were an important part of the then existing 
demand, were withheld. 

Meanwhile, a subcommittee, the national agricultural advisory 
board, a body appointed in the early spring by Mr. Hoover and Secre- 
tary Houston to supervise live-stock production, had been considering 
methods to be further employed by the Food Administration in ad- 
ministering its policy of controlling hog prices. On September 25 
this committee recommended that in placing orders for pork products 
the Food Administration require the packers with whom such orders 
were placed to agree to a definite price basis, determined in advance 
from month to month, for the purchase of their hogs, and that orders 
be based upon such an agreed price basis. It was also suggested that 
the Food Administration announce its intention of maintaining a 
minimum hog price of at least $15.50 throughout the period of the war. 
Both recommendations were formulated into a definite policy at a 
meeting of the Food Administration with some 50 packers.^ The 
latter agreed to maintain through the varying seasons, as far as pos- 
sible, a $15.56 minimum for average droves, as well as to maintain 
the October price on a basis of about 13 to 1, or an average of approxi- 

iQct. 4, 1918. 



92 HISTORY OF PRICES DURING THE WAR. 

iiiately $18.50. Attempts would also be made, they agreed, to prevent 
fluctuations of more than 50 cents per 100 pounds in any one week. 

The pork situation seemed to be settled and producer and consumer 
had been provided for when peace talk became current. The fear of 
cheap Argentine and South African corn resulted in a considerable 
decline in corn prices,^ which, it was feared, would break the hog 
market. Swine producers, anticipating a fall in price, rushed their 
stock to the market in large numbers, which action in itself was bound 
further to lower hog prices. Thus, while the supply of hogs had in- 
creased only 8 j)er cent over the supply of 1917, the arrival of hogs at 
the seven great markets during the first three weeks of October was 
27 per cent larger than in the corresponding month of the previous 
year. The result, of course, was a failure to maintain the price basis 
agreed upon for October.- 

The continued demands of the Allies and the prospective post-war 
requirements necessitated immediate remedying of the situation and 
a new basis of price determination was decided upon. The 13 to 1 
standard was laid aside, and packers participating in Government 
orders agreed not to purchase hogs, during November, at less than 
a daily minimum price of $17.50 per 100 pounds for the average of 
packers' droves; and further pledged themselves to buy no hogs 
other than "throw-outs " ^ at less than $16.50. But, if the plan was 
to succeed, it was necessary to take measures against a repetition of 
the experience of October. Supervision of markets, clearly, and 
measures looking to a regulation of the flow of hogs in accordance 
with the capacity of the packing houses at the various centers were 
equally essential. The execution of this task was assigned to a price- 
stabilization committee, composed of representatives of the Food Ad- 
ministration, Department of Agriculture, hog producers, and the 
packers. This committee kept closely in touch with the hog receipts 
at the various important markets and, through a system of embargoes 
and car allotments, controlled shipments. Eeceipts in excess of the 
capacity of slaughtering plants and the overstocking of primary 
markets were prevented, and thus the likelihood of a recurrence of 
certain earlier difficulties reduced. 

Hog prices continued stable at about $17.50 throughout November, 
and through agreement this price was continued through December,* 
January, and February. 

^ See preceding table for corn prices. 

- The influenza epidemic which curtailed pork consumption, and temporarily decreased 
the labor staff of the packers about 25 per cent, -was another contributory factor in this 
connection. 

3 " Throw-outs " were defined as pigs under 130 pounds, stags, boars, thin sows, and 
skips. 

■* See preceding price table. 



GOVERlSrMElSrT CONTROL OVER PRICES. 93 

Beef 'production. — The regulations pertaining to the' beef supply, 
by comparison with those for hog control, were few and simple. 
TJpon the advice of the producers, no action was taken to stabilize 
beef in the fall of 1917, when the first investigations were made in 
anticipation of stabilizing hog prices. The control over beef prices 
was exercised almost entirely by regulating demand and supply, 
and there were never many or elaborate agreements dealing with 
the price of beef. 

The military and allied demands for beef were considerably 
smaller than those for pork, and they were not sufficient in volume 
to exert more than a temporary influence on price. It was there- 
fore impossible to apply to the beef market the same method of con- 
trol that characterized pork control. Meatless days and meatless 
meals were instituted as a conservation measure at various times ^ 
and seemed to effect enormous savings. In fact, over 140,000,000 
pounds of beef had been conserved in the four months ending Febru- 
ary 28, 1918.^ However, the rising price of feed stuffs and the fall- 
ing tendency in the price of steers (the latter caused in part by 
the large seasonal flow of cattle to market) brought to the fore the 
question of cattle prices, and it was thought that measures similar 
to those taken in the case of hog producers would have to be applied 
to cattle raisers and feeders. On March 16 the Food Administra- 
tion announced that it would attempt to relieve the cattle situation 
by increasing the proportion of its purchases of higher grades of 
beef. In early March the daily meatless meal request was with- 
drawn, and the only restriction asked of consumers was the beefless 
and porkless Tuesday. On March 30, the meatless day was entirely 
removed ^ for a period of 30 days. The usual seasonal decline in 
the volume of animals coming to market began in early May and 
immediately became reflected in the market prices. 

1 The meatless day was inaugurated on Nov. 1, 1918. Every public eating place, as 
well as all families, were asked to pledge themselves to eat no meat on one day each 
week. On Jan. 28, 1918, President Wilson in a proclamation asked for further conserva- 
tion of beef, pork, and mutton, and requested that " Tuesday be observed as meatless day 
in each week," and that " one meatless meal be observed in each day." 

2 The Food Administration on Feb. 22, 1918, in outlining the results of conservation in 
a press notice, said in part : 

" Prom the 1st of November, when the meatless day was instituted, to the end of 
February the estimated slaughter of cattle in the United States will amount to a mini- 
mum of 3,800,000,000 pounds of beef. The export of beef to the Allies during this period 
will reach approximately 165,000,000 pounds. * * * The stocks of beef in the cold- 
storage warehouses will be approximatelj' the same at the end of February that they 
were at the end of October. * * * The average prewar exports of beef for 4 months 
was about 25,000,000 pounds, and, therefore, the amount of conservation realized has 
been, roughly, 140,000,000 pounds." 

3 Since the ostensible purpose of the " meatless day " was to conserve the supply and 
thereby provide sufficient meat for the Allies, the effect of such meatless days upon the 



94 



HISTORY OF PRICES DURING THE WAR. 



Further requests for conservation and economies in tlie use of 
meat were issued by the Food Administration.^ But, in spite of 
economies, the war demands for beef remained far in excess of our 
surplus. The Food Administration was having difficulty in securing 
for overseas shipments the grades of beef most economical to ship. 
It was found necessary to reduce somewhat the desired weights and 
to postpone certain orders. On June 13, further economies were 
asked for, and several requests were made of households and public 
eating places to limit the weekly consumption of beef to certain 
specified amounts. Droughts in the Southwest, in Montana and ad- 
jacent States two months later, however, and the accompanying 
large runs of cattle to markets, made the continuance of beef con- 
servation impracticable, and on August 15, 1918, requests for the 
conservation of beef were rescinded. The public was then asked 
to purchase cuts from light weight cattle, since these were being 

price of live steers is of interest. The prices of steers at Chicago from 1913 to 1918 
follow. Their trend from October, 1917, on is especially significant. 

Prices of steers at Chicago, 1913-1918. 





1913 


1914 


1915 


1916 


1917 


1918 


Choice to prime: 


S9.0125 
8.9125 
8.9400 
8. 8938 
8. 6563 
8. 7800 
8. 9875 
8. 8875 
9.0750 
9. 1250 
8. 9563 
8.9200 

8.3563 
8. 4063 
8. 5600 
8.5000 
8. 2563 
8. 4850 
8. 7188 
8. 5063 
8. 6650 
8. 6500 
8. 5063 
8. 4450 

7.9250 
8. 0625 
8.2709 
8.2250 
8. 0200 
8.2333 
8.2125 
8.2400 
8. 4125 
8.4000 
8.2600 
8. 2125 


$9.2250 
9.2250 
9.2650 
9.2750 
9. 1250 
9. 1600 
9. 6750 
10.0300 
10. 5250 
10. 4500 
10. 2188 
9. 7750 

8. 7563 
8. 6375 
8.6550 
8.7125 
8. 7250 
8. 7950 
9. 2168 
9. 6200 
9. 7313 
9. 4313 
9. 4063 
8.9125 

8. 4700 
8.3125 
8. 4375 
8. 5000 
8. 4300 
8. 5625 
8. 9250 
9. 0100 
9.3500 
9. 0800 
8.8333 
8. 4375 


$9. 1585 
8. 8938 
8.6667 
8.3313 
8. 6450 
9.2688 
9.9063 
9.8100 
9. 7313 
9.6875 
9.9400 
9.6875 

8.6.333 
8. 1750 
8.2333 
8.0313 
8.5900 
8. 9563 
9.2125 
9.2300 
8.9500 
8.8750 
8. 8450 
8. 4875 

8.2400 
7.5125 
7. 7375 
7. 6250 
8. 2000 
8.7625 
9.2500 
9.0625 
8.9625 
8.8900 
8. 7250 
8. 4900 


$9. 4800 
9. 2913 
9.6813 
9. 7375 
10. 0000 
11.0063 
10. 7000 
10.5750 
10. 8750 
10. 9650 
11.5125 
11.5250 

8.6650 
8. 4688 
8.9688 
9. 1188 
9. 4600 
10.2625 
9.9850 
9.8500 
9. 8000 
9.9050. 
10.3500 
10.2917 

8. 4060 
8.2125 
8.7250 
9.0500 
9.3625 
9.8000 
9.3760 
9. 4125 
9.5600 
9.6125 
10. 0075 
10. 1100 


S11.4100 
11. 8628 
12. 4500 
12. 9900 
13. 2438 
13. 3625 
13.5300 
14.3188 
16.3375 
16.5150 
15. 6063 
14.2250 

10.5300 
11.1313 
11. 8680 
12.3100 
12. 4750 
12. 5500 
12. 5600 
13. 1750 
14. 9873 
14. 6750 
14.3875 
13.2350 

10. 1500 
10. 4375 
11.0900 
11. 7125 
11.6833 
12. 1000 
12.4000 
12. 5125 
13.0700 
11.7000 
11.1375 
11. 1167 


$13. 7688 


February 


13. 7188 




13. 8875 




16. 0800 




17. 4750 




17. 8063 


July 


18. 1438 




18.6000 




19. 2050 




19. 1750 


* November 


19. 4875 


December . . 


19. 8350 


Good to choice: 


13. 1125 




13. 0750 




13. 2313 


A pril 


. 15. 1750 


May 


16. 4167 




17. 1750 


July 


17.6250 




17. 8250 




18. 4100 




17. 8563 




18. 1563 


December 


18.3600 


Native beef: 


12. 0250 


Februarv 


11.9625 


March . 


12. 5400 


April 


14. 7000 


May 


15. 4375 


June 


15. 7500 


July 


16.0375 




15. 7600 




15. 0500 


October 


14.3750 


November 

December 


15.0200 
15. 0500 



1 On May 3 a statement was issued to the effect that the Food Administration was de- 
sirous of securing economy in the consumption of all kinds of meats without the reinstal- 
lation of the meatless day. The public was asljed rigorously to eliminate all waste and to 
reduce the consumption of all liinds of meats and poultry, more particularly beef. The 
substitution of mills products and fish was urged. 



GOVERNMEISTT CONTROL, OVER PRICES. 95 

rushed upon the market from the drought-stricken areas.^ From 
the midsummer of 1918, on to the signing of the armistice, no regu- 
lations directly affecting the price of live cattle were put into effect. 
On August 16, to be sure, the Food Administration announced a 
series of prices which it would pay for beef, September delivery, 
such prices to vary in accordance with the weights of dressed steers. 
But it appears that this plan proved impracticable, for four weeks 
later the method of purchasing beef was changed, and a new plan 
of purchasing beef on a basis of quality irrespective of weight was 
adopted. 

The licensing of tJie meat industry. — Although the main instru- 
ment of price control over beef and pork was the regulation of the 
markets through purchases by the Food Administration, the regu- 
lation of profits and the general supervision over the activities of 
the packing industry was attained through the licensing system. Be- 
fore availing itself of the license privilege the Food Administration 
called upon the packers for opinions and suggestions relative to the 
ways and means of control. The idea of placing the packing in- 
dustry under license appears to have been generally approved, and 
on November 1, 1917, in accordance with President Wilson's procla- 
mation of October 8 previous, the packing industry (i. e., " importers, 
producers, and packers of fresh, canned, or cured beef, pork, or mut- 
ton") became subject to license by the Food Administration. 

Specific exception, however, was made of packers whose gross sales 
were less than $100,000 per year. The latter were provided for, in 
part, under the license requirements for producers of lard and cook- 
ing fats ^ and by subsequent proclamations which included operators 
of stockyards,^ dealers in "live or dead cattle, sheep, swine, or 
goats," * and distributors and producers of animal fats and oils, and 
casings for sausages."^ 

The purpose of the licensing system was to reduce the cost of dis- 
tribution from producer to consumer and to eliminate profiteering, 
and the general method of attaining this end was the prescribing 
of certain fixed margins of profit over cost. The packing industry, 
however, because of its complicated ramifications and the variety of 
by-products, was not readily amenable to this form of regulation, 
and other means soon were necessary for its control. 

In determining the methods of regulation applicable, the pack- 
ing industry divides itself naturally into three parts — ^the five great 

1 Compare the price tendency of " native beef steers, carload lots," in which the bulk 
of light weight cattle is included, with the price tendency of " heavy " and " corn fed " 
steers for July, August, and September. 

2 See presidential proclamation of Oct. 8, 1917. 

3 See presidential proclamation of June 18, 1918. 
* See presidential proclamation of Sept. 6, 1918. 

^ See presidential proclamation of Nov. 2, 1918. 



96 HISTORY OF PRICES DURI^^O THE WAR. 

packers whose individual annual sales exceed $100,000,000; a con- 
siderable number of smaller packers whose sales each year are more 
than $100,000; and, finally, packers whose annual business amounted 
to less than $100,000. 

Immediately after the establishment of the Meat Division of the 
Food Administration, regulations for the control of the meat indus- 
try were formulated. The outstanding feature of these regulations 
v^'as the limitation upon profits which was partly made by fixing 
the return allowable on the capital invested in the case of the larger 
packers, and partly by prescribing a maximum return on gross sales 
in the case of the smaller. 

Licensees with annual sales exceeding $100,000,000. — So many and 
diverse are the activities of the modern, large packing plants that 
the industrjT^ may be said to consist of independent units which have 
little connection with each other. Many of the by-products, indeed, 
bear little relation to slaughtered live stock. Then there are con- 
nected with the packing industry such activities as the making of 
cartons and advertising materials which commonly comprise indi- 
vidual business units in themselves ; as well as banks, stockyards, and 
the like, all of which to-day play an important part in plant opera- 
tion. It was therefore necessary for the Food Administration arbi- 
trarily to separate the industry into individual units for licensing 
purposes. Three divisions were made and different regulations pro- 
mulgated for each. 

Those activities directly connected with and incidental to the 
slaughtering of live stock and the products of slaughtered animals, 
as well as the preservation and shipping of meat products, were placed 
in class I, and profits from these activities limited to 9 per cent of 
the investment (including borrowed capital) per year, representing 
substantially the prewar returns.^ 

A second class was made up of those branches of the packing in- 
dustry which had to do with products (food or otherwise) which con- 
tained either in value or bulk few or no materials derived from 
slaughtered live stock. Highly fabricated by-products were also in- 
cluded in this class, and the annual profits were fixed at a maximum 
of 15 per cent of the investment. The raising, fattening, and feeding 

1 Immediately following thp issuance of these regulations, a protest was made by the 
5 large packers, their contention being that a maximum profit of 9 per cent might limit 
their borrowing capacity. They also stated that such a profit would not yield them 
sufficient to pay for the necessary expansion of plant and equipment and that no new 
capital would be found for this purpose during the war. Mr. Hoover appears to have 
allayed these fears by his statement that there could be no lack of confidence on the part 
of the banking community in the packer's earning capacity, especially since the export 
demand for their product was larger than the country's supply. He also said that if the 
packers " exhausted their abilities to find capital and exhausted their abilities for corw- 
struction out of their earnings, and that if the Government required specific extensions of 
plant to meet war needs, these would be considered upon their merits from time to time." 



. GOVERNMENT CONTROL, OVER PRICES. 97 

of live stock; slaughtering and packing in foreign countries; the 
operation of banks and loan institutions dealing in futures ; and in- 
A^estments in concerns not formerly treated as a department of a pack- 
ing enterprise, however, were specifically exempted from the profit 
limitations. 

Certain principles were applied to the determination of profits and 
investment. The latter was defined to include only those investments 
owned by the licensee and actually and necessarily used in his business, 
and was to consist of the actual investment in land, buildings, and 
equipment, the value of stocks held, and other especially designated 
factors. The same methods used in determining investment values in 
the year ending N^ovember 1, 1917, were to be applied to future valua- 
tions. The latter principle was also to be applied to the determina- 
tion of profits during 1917-18, and provisions were made for deprecia- 
tion of plants, repairs, and other items. It is significant that a 
special rule was incorporated prohibiting unreasonably large salaries 
or other compensations. 

Licensees were required to close their books at least once in 10 
weeks and report to the Food Administration any information re- 
quested by the Meat Division relative to investments, sales, and 
profits. In this way the Food Administration was enabled to watch 
closely the returns of the individual packers, and in order that 
reports might be verified, the individual licensees were compelled 
to give to representatives of the Meat Division access to all records 
and accounts. The Food Administration, however, was not con- 
tent to rest even with this check. In order that every part of an 
individual packer's business might be supervised, it further required 
that it be given access to the books and records of every corporation, 
quite irrespective of the nature of its business, in which a licensee held 
half or more of the capital stock. 

Licensees with annual sales of less than $100pOOpOO. — The greater 
part of the licensed packersi came within this category. Since there 
were not so many diversifications in these smaller plants, it was not 
deemed necessary to make the distinctions between various branches 
as was the case with the larger plants. Accordingly, the aggregate 
business of the licensee was taken as a unit and a maximum profit 
equal to 2| per cent of the gross value of sales was prescribed. 
Those activities, however, which were exempted from profit limita- 
tions as applied to the larger packers, as well as the operation of in- 
dependent retail stores or markets, were to be excluded in comput- 
ing sales. Accounting methods were regulated in a manner similar 
to those of the larger packers. 

The administration of the licen^^e system over meat. — The inaugu- 
ration of the license system did not remedy the many difficulties con- 

125547°— 20 '-1 



98 HISTORY OF PRICES DURING THE WAR. 

fronting the Food Administration. The demands of the fighting 
forces were continnally growing and, although the interests of the 
live-stock producers Avere under constant survey of the Meat Division, 
it was evident that many of the measures of the administration were 
" developing discontent and criticism in sections of the producing 
community." ^ Conditions had come to such a pass, in fact, that it 
was thought necessary to " study the entire situation in regard to the 
meat industry and the steps that should be taken in regard thereto." ^ 
On April 1, at the request of Mr. Hoover, a committee was appointed 
to determine a war policy respecting the meat industry. 

An investigation of the situation resulted in no radical changes in 
administration. The continuation of regulations was recommended, 
as well as the bi-monthly auditing of the packers' profit returns, and 
the installation of uniform accounting methods by the Federal Trade 
Commission which had already been started. It was suggested that 
such maximum profit regulations as were then in effect should be 
continued until July 1, and that the Federal Trade Commission 
report upon the reasonableness of these maxima in the meantime. 
The packers, they recommended, should report to the Department of 
Agriculture, for publication in the market reports, the wholesale 
prices received for meat products and the transfer value of the prin- 
cipal by-products of their meat departments. 

Among other plans suggested by the committee was the extension 
of the activities of the food purchase board, looking to a coordination 
of all official purchases of packing-house products. Such purchases 
ought, it was said, be made at prices sufficient to insure production 
and should be applied likewise to purchases of the public. The com- 
mittee recommended, too, an investigation of the retail end of meat 
distribution and the control of refrigerator cars by the Eailroad 
Administration. 

The most important actual departure resulting from this investi- 
gation of the packing industry was the licensing of the stockyards. 
A presidential proclamation of June 18, 1918, required all operators 
of stockyards, 8.11 buyers, traders, and others who operated in comiec- 
tion with stockyards " to secure licenses on or before July 25, 1918." 
The supervision and regulation of these licensees were placed in the 
hands of the Department of Agriculture. A system of animal grad- 
ing was inmiediately put into effect, and licensees were required to 
make daily reports of the distribution and destination of live stock, 
meats, and other products from the principal packing points. 

The licensing in September of dealers in live or dead meat animals 
brought the meat industi-y under still further control. Four days 

1 See Mr. Hoover's letter to President Wilson, Mar. 26, 1918. 



GOVERNMENT CONTROL OVER PRICES. 99 

after the signing of the armistice manufacturers and distributors of 
sausage casings were licensed, and that regulatory measure was the 
final one imposed upon the packing industry, though it was also the 
first to be witlidrawn.^ 

The resuMs of meat control. — American exports of beef prior to 
1915 had reached their high point in 1906 and were of little conse- 
quence generally. Indeed, from 1906 on beef shipments to Europe 
declined, and by the fiscal year 1911: they had virtually terminated.^ 
With the opening of the World Yv^ar and the tremendous loss of other 
shipping American exports to Europe experienced a phenomenal rise, 
and the 12 months ending June, 1915, witnessed an increase of 2,700 
per cent over the exports of the previous fiscal year. With the en- 
trance of the United States into the ranks of the belligerents there 
was a still further increase in exports, which in the fiscal year 1918 
reached 467,873,000 pounds.^ 

Pork exports, likewise in large demand by our European Allies, also 
increased considerably during the period of the war, and shipments 
in 1918 were about 360 per cent larger than those of 1911:.^ This 
increase, indeed, is evidence of the Food Administration's success in 
its attempts to enlarge shipments of pork to the Allies. It is signifi- 
cant to note, despite the enormous increase in exports, that the hogs 
reported in the United States on January 1, 1919, numbered 
75,587,000 as against 70,978,000 on the same date in 1918, and 

1 These licenses expii-ed on Jan. 10, 1919. 

2 Exports to Europe of canned, fresh, pickled, and cured beef in the fiscal year ending 
June, 1906, equaled 413,865,267 pounds. By 1912 they had dwindled to .34,949,787 
pounds, and in 1914 they were only 9,511,914 pounds. 

s The trend of beef exports is presented in the following- table of shipments to Europe 
for the fiscal years 1915-1918. Data from the Bureau of Foreign and Domestic Com- 
merce, United States Department of Commerce : 

Vnited States export.'^ of canned, fresh, piclded, and cured heef to Europe, 1915-191S. 

Fiscal year : ^''"°*^!;.. 

1914-15- 257, 121,000 

1915-16::::: — 284. 797, 000 

1916-17 271. 194, 000 

1917-18 ^67, 873, 000 

i Below are presented the Department of Commerce figures showing exports of bacon, hams, and shoul- 
ders for the 5 years ending June, 1918. Although the relative increase for 1918 shipments as compared to 
1914 is considerably smaller than in the case of beef, the actual increase in pounds is much greater, som.e 
725,000,000 more pounds having been shipped in 1918 than in 1914. 

United States exports of hog products to Europe. 19U-101S. 



Product. 

Bacon 

Hams and shoulders 

Total 



1913-14 



1914-15 



Pounds. I Pounds. 

166.917.000 i 321.820,000 

150.717.0001 191,110,000 



317,634,000 512,930,000 



Pounds. 
524,379,000 
262,878,000 



Pounds. 
531,265,000 
245.328,000 



787, 257, 000 776, 593 , 000 



1917-18 



Pounds. 

750,879,000 

392,000,000 



1,142,879,000 



100 



HISTORY OF PRICES DURIITG THE WAR. 



67,503,000 in January, 1917, while the hogs marketed in the year 
1918 numbered 69,854,700 as compared with 57,483,800 in 1917.^'^ 

The beef situation, in like manner, appears to have been radically'' 
changed during the past three years. The number of cattle slaugh- 
tered in 1918 totaled approximately 2,000,000 more than in 1917, 
representing a net increase of about 1,000,000,000 pounds of beef, 
v/hile, at the same time, there were in the United States on January 
1, 1919, more cattle than at any other time in the history of Ameri- 
can agriculture.^ 

With the rescinding of the export regulations of the War Trade 
Board, pertaining to shipments of meat, in March, 1919, and the 
consequent opening of foreign markets to individual packers, the 
price agreements relative to hogs automatically went out of existence. 
The control of the market through purchases by the Food Adminis- 
tration was considerably diminished, with a resultant inability to 
keep up hog prices. Later e^'ents, however, showed price agree- 
ments to be no longer necessary, for within seven weeks after the 
removal of the embargo on private shipments the price of hogs 
reached $21.15 per 100 pounds, the highest price ever known. 

On April 1, 1919, importers, manufacturers, storers, and distribu- 
tors of beef, pork, mutton, or lard were released from, license re- 
quirements hj Presidential proclamation, and the packing industry 
was freed from war-time control by the Food Administration. 

1 A detailed statistical review of the hog supply in the United States as of Jan. 1, from 1910 to 1919, is 
presented in the following table, prepared by the Bureau of Crop Estimates, U. S. Department of Agri- 
culture. 

Hogs in the United States, 1910-1019. 



Year. 


Total num- 
ber. 


Per cent 
of preced- 
ing year. 


Year. 


Total num- 
ber. 


Per cent 
of preced- 
ing year. 


Jan. 1,1910 . 


*58,186,O0O 
65,620,000 
65,410,000 
61,178,000 
58,933,000 




Jan. 1,1915 


64,618,000 
67, 766, 000 
67, 503, 000 
70,978,000 
75,587,000 


109.6 


Jan. 1,1911 


ii2.8 
99.7 
93.5 
96.3 


Jan.1,1916 


104.9 


Jan.1,1912 


Jan. 1,1917 


99.6 


Jan. 1, 1913 . 


Jan.l, 191S 


105 1 


Jan. 1,1914 


Jan. 1,1919 


106.5 









*Census Report of Numbers, Apr. 15, 1910. 

' The number of cattle, excluding milch cows, in the United States at the first of the year, from 1910 to 
1919, are presented below. (Data from Bureau of Crop Estimates.) 

Cattle other than milch cows in tke United States, 1910-1919. 



Year. 


Total num- 
ber. 


Per cent 
of preced- 
ing year. 


Year. 


Total num- 
ber. 


Per cent 
of preced- 
ing year. 


Jan. 1,1910 


*41,178,000 
39,679,000 
37,260.000 
36,030,000 
35,855,000 




Jan 1 1915 . 


37,067,000 
39,812,000 
41,689.000 
44.112 000 
44,399,000 


103.4 


Jan.l, 1911 


96.4 
93.9 
96.7 
99.5 


Jan. 1 , 1916 . 


107.4 


Jan. 1,1912 


Jan. 1 , 1917 . 


104. 7 


Jan. 1,1913 


Jan. 1 1918 


105.8 


Jan. 1,1914 


Jan. 1,-1919 . 


100.7 









♦Census Report of Numbers, Apr. 15, 1910. 



GOVERjSTMElSrT COK'TKOL, OVER PRICES. 101 

Poultry akd Dairy Pkoducts. 

The problem AYliicli faced the Food Administration in regard to 
poultry and dairy products was one of profit control strictly, and 
no definite price-fixing was adopted throughout the period of the 
Food Administration operation. 

Poultry. — The perishable nature of fresh poultry made it virtu- 
allj' impossible to enforce any concrete price regulation. The greater 
part of the efforts of Food Administration was directed toward 
the prevention of hoarding and intertracling and to the elimination 
of all possible waste. Thus the early rules related to methods of 
shipping and feeding poultry', and specific regulations were issued 
as to methods of marketing. Licensees were instructed, for example, 
to keep their poultry moving to the consumer in as direct a man- 
ner as possible, and no resales were allowed within a given branch 
of the industr}^ unless made at a price Avhich was less than or equal to 
the initial cost to the seller.'^ Four classes of dealers in fresh poultry 
were recognized and onty those sales were permitted which resulted 
in poultry following the normal movement from producer to con- 
sumer.^ 

The attractive market prices for poultry early in 1918, as well as 
the high cost of feed stuff, were persuading many poultry raisers to 
sell fowl, which, if kept, v/ould have added to the spring and summer 
^g^ production. The idea of the Food Administration, however, was 
to keep on the farms those birds which would be ^g% layers in the 
months to follow, thereby increasing the production of eggs. In this 
way the available market supply could be enlarged and at the same 
time more eggs would go into storage during the season of high pro- 
duction at a price which would not necessitate unreasonable figures 
during the fall and winter. Accordingly, on February 11, 1918, an 
order of the Food Administration forbade licensees to ship, sell, or 
negotiate the sale of any live or freshly killed hens or pullets until 
April 30, 1918. The weather conditions of March and April brought 
about an early laying and hatching period, and hj the middle of 
April the Food Administration lifted its restriction. It is estimated 
that at least 3,000,000 hens were saved in the New York, Chicago, and 
Boston markets alone. 

The nature of the frozen-poultry industry allowed a much fuller 
control than was possible with fresh poultry, and there was accord- 

1 For a limited period sales between wholesalers in different cities were permitted at 
an advance of 5 per cent when such sales were necessary to supply the reasonable require- 
ments. of the buyer's business. In some cases 1 sale between dealers in the same branch 
of the trade was allowed, but moi-e than 1 sale could not be made without the consent of 
the local food administrator. 

=^ The classes so recognized were; Original pacliers and shippers, commission merchants 
and wholesalers, jobbers and suppliers of hotels and institutions, and retailers. 



102 HISTORY OF PraCES DURING THE WAR. 

ingly inaugurated a fairly complete set of rules limiting the profits of 
the individual classes of distributors. The marketing of th.Q fresh 
poultry which goes into the cold-storage warehouse is a highly sea- 
sonal affair, and the fowl producer was beyond the reach of the Food 
Administrator. It was, therefore, im.possible to fix the price that 
the packer should pay for his poultry, and consequently the price 
which he should charge could not be fixed. 

A maximum of 6 per cent was fixed as the advance over cost to be 
allowed to packers on sales of frozen poultry. This margin, how- 
ever, applied only to regular sales within the trade — that is, sales 
to commission merchants, wholesalers, or jobbers. Many packers sell 
directly to retailers and to hotels, and in that way save the charges 
of middlemen. In recognition of the economic advantage of elimi- 
nating middlemen wherever possible, an additional advance of 10 
per cent over the 6 per cent maximum mentioned above was allowed 
to packers who sold directly to retailers. To those who sold directly 
to hotels and institutions an additional advance of 15 per cent was 
permitted.^ 

The return to commission merchants was limited to 5 per cent, as 
was also the case with wholesalers. However, in those cases where 
wholesalers also sold as jobbers, they were allowed a profit of 10 per 
cent over cost. Jobbers were permitted to sell their poultry at an 
advance of 10 per cent; and for suppliers of hotels and institutions 
there was set a maximum of 15 per cent.^ 

Eggs, — The regulations relating to cold-storage eggs, as with fresh 
eggs and fresh poultry, were similar to those for frozen poultry. The 
industry was divided into four parts and restrictions were enforced 
relative to intertrading,^ and a maximum return was prescribed on 
the sales of each branch.^ 

^ The regulations as first issued said notliing as to extra margins allowed packers who 
sold directly to jobbers or to suppliers of hotels and institutions. An amendment of July 
i'6, 1918, fixed the extra advance at 5 per cent, thus making the total return to packers 
who eliminated commission merchants or wholesalers in their transactions equal to 11 
per cent. 

- The organization of the trade, it is elsewhere shown, is such that poultry usually 
passes through four hands — (1) packers who sell to (2) commission merchants or whole- 
salers, who in turn dispose of their products to (3) jobbers or suppliers of hotels and 
institutions, and (4) retailers and hotels and institutions. Upon adding up the various 
returns allowed the individual branches of the trade, the total advance over the 6 per 
cent allowed the original packer amounted by the time frozen poultry reached the hands 
of the retailer, to 15 per cent ; that is, 5 per cent to wholesalers or commission fiierchants 
and 10 per cent to jobbers. Packers selling directly to retailers, however, were only 
allowed an extra advance of 10 per cent, thereby saving 5 per cent in distributive costs. 
Similarly, when poultry went directly into the hands of suppliers of hotels and institu- 
tions a saving of 5 per cent was realized, the cost of distributing through the various 
hands being 20 per cent, as against 15 per cent when sold by the packer direct to hotels, 
etc. 

^An advance of 4 per cent was allowed on sales within the same branch of the trade, 
but such sales were limited to one in number for any lot of eggs. Local Federal food 
administrators had to be informed of such sales, as was also true of poultry. 

* Original packers storing in cold-storage warehouses were allowed a profit of 6 per 
cent over cost. When packers sold to retailers, an. additional advance of 5 per cent over 



GOVERNMENT CONTROL OVER PRICES. 103 

Unlike the poultry regulations, however, provision was made for 
limiting the profits of licensed retailers, to whom were allowed 
maximum returns on candled and selected eggs of 15 per cent. This 
maximum was later changed by the Retail Section of the Distribution 
of Perishables to the definite sum of 7 cents for cash-and-carry stores 
and 8 cents for credit-and-delivery stores, and any advance over cost 
in excess of this amount was considered as a violation of the 
reasonable-advance-over-cost rule. 

Butter.— 1\\Q demand for fats in the war program led to the 
inclusion in the food-license proclamation of October 8, 1917, of 
manufacturers, dealers, brokers, and commission merchants in but- 
ter. The price of butter had previously shown no extraordinary 
fluctuation ; ^ indeed, the price level of butter had risen more slowly 
than that of commodities in general. The primary aim of the Food 
Administration in this control, appears to have been the elimination 
of profiteering, since the regulations related in some way or other 
to the limiting of distributors' margins only. The costs of butter 
are so variable as to make impracticable any definite system of price 
regulation. In one instance, however, the price of butter was defi- 
nitely fixed for a short while. Butter prices have a tendency to rise 
during the early winter months, and it was the desire of the food 
authorities to check, if possible, the usual rise during the emergency 
period. 

On January 22, 1918, a scale of wholesale prices was established 
with the voluntary cooperation of the butter trade, and butter was 
fixed at 47 cents a pound at New York. At Chicago a price of 45| 
cents was established for the last quarter of January, with the 
provision that beginning on February 1 the price be advanced one- 
fourth cent per pound on the 1st and 15th of each month until all the 
creamery butter then in storage should be released. These prices 
were but temporary and were enforced only for a period of several 
months, the time required for the release of the butter then in storage.^ 

For the purpose of enforcing the various regulations, butter was 
classified as fresh and cold storage, the latter term being applied to 

cost could be charged if eggs were sold in original packages. If however, such eggs were 
candled before being sold, an additional adA'ance of 10 per cent of cost was permitted. In 
selling candled eggs the actual net candling loss could be included in the cost, but the 
expense of labor and materials in candling and all repacking charges had to be omitted. 
Likewise an additional 12 per cent could be charged on sales to suppliers of hotels, etc. 
Commission merchants and wholesalers could sell cold-storage eggs at a maximum of 4 
per cent over cost ; jobbers at 5 per cent for cold-storage eggs and 10 per cent for candled 
eggs, while suppliers of hotels and institutions were permitted to take a profit of 12 
per cent on either type. 

^ By January, 1918, the wholesale price of butter had risen but 60 per cent above the 
prewar average, while the general price level had advanced approximately 85 per cent. 

' It will be noted that prices were flxed only at New York and Chicago. It was thought 
unnecessary to fix prices at other points, since the principal butter exchanges were located 
In those two important centers. These exchanges had agreed to sell their butter at the 
established prices, and -this was regarded as sufficient assurance that corresponding prices 
would rule throughout the country. 



104 HISTORY OF PRICES DURING THE WAR. 

butter kept in cold storage for more tlian 30 days. No specific mar- 
gins were designated for butter manufacturers as such, "although all 
other dealers were limited as to the amount they could add to cost 
in making sales.^ 

To dealers other than manufacturers or retailers there was per- 
mitted a margin over cost varying from 1 to 2f cents per pound, de- 
pending upon the size of the sales made.^ Commissions for sales by 
commission merchants were also limited, but charges so incurred 
could not be figured in determining costs. 

It is of interest that during the first year of governmental regula- 
tion no specific statement was made in regard to prices to be charged 
by butter manufacturers selling their product to wholesalers or job- 
bers. To be sure, the Food Administration had a right to ask at 
any time for a report showing costs, margins charged, or any other 
information along such lines, and in this way prices were kept under 
control. In those cases where manufacturers sold as wholesalers or 
jobbers, eliminating the middleman, they were entitled to the mar- 
gins allowed to w^holesalers or jobbers. The significant point in this 
connection, however, was the method of determining costs, since the 
methods used for cold-storage butter was distinctly different from 
those used for the fresh variety. In the latter case only the cost of 
raw materials and the expense of manufacture were recognized; in 
the former the quotation " on the kind and grade of butter placed in 
cold storage, as quoted in a well-recognized commercial price current 
in the city, where and on the day when the goods [were] placed in 
storage " was to serve as the cost basis.=^ Near the end of 1918, how- 
ever, a definite margin was fixed for manufacturers of butter who 
sold their products to others than retailers.* 

Eetail dealers likewise were regulated as to their returns only at 
a late date, and to them was allowed an advance over cost of 6 cents 

^ As in all other cases, the reasonable-advanee-over-cost rule was applied to the indus- 
try. Unlike the average foodstuff, however, the elements which could he included in the 
determination of costs were specifically stated in the regulations pertaining to butter. 
They were, first, purchase price; second, transportation charges; third, storage charges; 
fourth, insurance charges; fifth, interest on money invested at current rate while butter 
was in storage ; and, sixth, actual cost of printing. 

-The maximum margin was changed by the regulations of Sept. 19, 1918, to 3| cents, 
which applied to sales of less than 100 pounds. Dealers carrying butter in cold storage 
more than 2 full calendar months could add to the permitted margin an extra cent per 
pound. For every calendar month in excess of 2, an additional quarter of a cent per 
pound was permitted, until a maximum of 2 cents was reached. 

^ When there was no well-recogniaed daily price current in the city where the goods 
happened to be stored, permission was granted to use quotations given in a price current 
in the large market nearest the place of storage. 

* That is, manufacturers who sold their butter to wholesalers or jobbers, who in turn 
disposed of their goods to retailers, restaurants, hotels, etc. The margin for these manu- 
facturers was set at 5 cents above the cost of the butter fat required to produce a pound 
of butter. In other words, " if the cost of butter fat was 50 cents per pound, and 8 
pounds of butter fat were necessary to produce 10 pounds of butter, the cost of butter 
fat necessary to produce butter would be 40 cents per pound of butter (manufactured) 
and the maximum selling price for the manufacturer would be 45 cents." 



GOVEK:^rMEN'T COXTEOL OVER PRICES. 105 

per pound to cash-and-carry stores, and 7 cents per pound for stores 
extending credit and delivery. The addition of an extra margin for 
butter kept in storage which was guaranteed to other dealers was also 
allowed to retailers. 

Cheese --The prices of cheese follow closely the general tendencies 
of butter, and since the two industries show considerable likeness, 
the Food Administration adopted regulations for the cheese industry 
which were very similar to those for the butter industry. No definite 
return was established for the manufacturer of cheese, and his profits 
were kept in check under the reasonable advance regulation.^ 

Dealers were limited in the advances permitted over the cost of 
their product, and like the margins allowed in the butter industry, 
these margins varied with the size of the sales.^ Retail margins, 
too, were fixed and a maximum profit of 7 cents per pound over 
cost was allowed to cash-and-carry stores, while an advance of 8 
cents per pound over cost was permitted to stores which extended 
credit and delivery. 

Milk.— With feed stuffs in July, 1917, selling at a level 118 per 
cent higher than during the prewar year,'' and cows for slaughter 
averaging about 50 per cent^ more than the average peace-time 
price, it was to be expected that milk, too, would rise in proportion. 
But, curiously, the price of milk remained relatively stable,^ and 
July, 1917, found the wholesale price of fresh milk in New York 
but'$0.0498 per quart, or approximately 7 per cent above the prewar 
average. 

It was but natural, then, that a demand for increased milk prices 
should arise among milk producers, and at the time of the organi- 
zation of the Food Administration a general movement in that direc- 
tion had already begun. The milk distributor, as well as the pro- 

1 Exact margins were not fixed at a later date for producers of cheese as they were 
for butter. BSowever, a provision was adopted which outlined two ways of determining 
the cost of a supply of cheese for the manufacturer, who also sold as a wholesaler or 
jobber and who wished to secure the benefits of such margins as were allowed to the 
middlemen. Costs under such circumstances could he figured, first, by computing the cost 
of the raw material and the expense of manufacture ; or, secondly, by considering as cost 
the price for the cheese to be sold in the primary market during the 10 days following 
the day of manufacture. (This latter method applied only to the determination of the 
cost of American or cheddar cheese.) 

2 Certain advances over cost were established for the individual types of cheese. Mar- 
gins for American or cheddar cheese, for example, ranged from three-fourths to SI cents 
per pound; those for round or tub Swiss cheese from li to 8 cents per pound. Dealers 
in block Swiss cheese were allowed from 1 to 41 cents per pound ; while brick, Limburger, 
and Munster cheese could be sold at a maximum advance, which ranged from 1| to 31 
cents. 

= See " Trices of Feed and Forage," by Lloyd W. Maxwell (W. I. B. Price Bulletin 
No. 8). 

*See "Prices of Live Stock, Meats, and Fats," by Wm. A. Barber (W. I. B. Price 
Bulletin No. 20). 

5 The price of milk, of course, is subject to extreme seasonal fiuctuation, but as prices 
fro it may be said that the milk situation was quite unaffected by the general upheaval 
which characterized prices in general. Milk in New York, to be sure, in 1916, had sold 



106 



HISTORY OF PRICES DURIl^G THE WAR. 



diicer, played an important part in price revisions, and he, too, was 
asking for increased prices because of increased labor costs, over- 
head charges, and other necessities. "ViHiile both the aforementioned, 
however, demanded an increased price, each appears to have doubted 
the necessity of an increase for the other. Distributors on the one 
hand objected to the raising of prices by producers, and producers 
Oil the other hand protested against the demand of distributors.^ 

as hig-h as $0.0523 per quart (Novpmber and December), or about 50 per cent above the 
level of tbe prewar year; but this price, it should be borne in mind, was temporary and 
should be compared with the average price of .fO.OSSS for the year. 

A more detailed picture of milk prices can be obtained from tbe following table : 

MWk {per quart), grade B, Neiv York. 



Month. 



January 

February . . 

March 

April 

May 

June 

July 

August 

September . 

October 

November . 
December. . 



Year . 



$0. 0375 
.0375 
.0350 
.0333 
.0300 
.0275 
.0300 
.0350 
.0375 
. 0400 
.0404 
.0404 



.0353 



. 0400 
.0375 
.0350 
.0325 
.0206 
.0275 
.0300 
.0325 
. 0350 
.0400 
.0425 
.0425 



.0351 



.0413 
.0393 
.0375 
.0325 
. 0275 
.0275 
.0300 
. 0325 
.0350 
.0375 
. 0425 
.0425 



.0355 



. 0413 
.0400 
.0375 
.0325 
.0300 
.0275 
.0313 
.0350 
.0365 
.0500 
.0523 
. 0523 



.0388 



SO. 0513 
.0500 
.0490 
.0488 
. 0478 
.0455 
.0498 
.0595 
.0595 
.0718 
.0770 
.0718 



.0508 



.0808 
.0770 

. 0745 
.0590 
. 0583 
.0443 
.0538 
.0633 
. 0675 
.0»t8 
. 0870 
. 0923 



. 0C99 



1 Mr. W. C. Mullendore in the summary report of the Food Administration, analyaing 
the milk situation as it existed in the summer and autumn of 1017, says : 

" In some of the larger centers the controversies became very bitter and often un- 
reasoning. An increase in the price of milk when made was followed by a marked 
decrease in consumption, which not only resulted in suffering children, but also dammed 
the supply back onto the farm with a loss to the producer, which encouraged the killing 
off of herds. It was feared the result would be the depletion of dairy herds, a result 
which the consumer could of all concerned the least afford to cause. 

Moreover, there was the actual problem of future supplies which was becoming more 
and more acute. The Food Administration realized the severity of the situation and 
took immediate steps to inform the public of the state of affairs, as is evidenced by the 
following statement issued on Aug. 26, 1917 : 

Milk and butter supplies are decreasing in the United States, while our population 
is increasing. The dairy herds of Europe are diminishing rapidly because of tbe condi- 
tions created by war, and there is no probability of improvement in these conditions. 
The dairy problem in this country, therefore, is not only a war emergency problem, but 
one that will continue after the war. 

The world's dairy supplies are decreasing rapidly for two important reasons : First, 
the dairy cattle of Europe are diminishing, for Europe is being driven to eat its cattle 
for meat; second, the diversion of labor to war has decreased the fodder supplies, and 
the shortage of shipping has limited the amount of imported fodder, and therefore the 
cattle which can be supported and the productivity of the individual cow have been re- 
duced. Even our own dairy supplies are not keeping pace with our growth of population, 
for our per capita milk supply has fallen from 90 to 75 gallons annually in the past 1.5 
years. Yet to-day we must ship increasing amounts of dairy products to our Allies. 

The dairy situation resolves itself into several phases. First, it is to be hoped that 
the forthcoming abundant harvest will result in lower prices of food and diminish the 
impetus to sell the cattle for meat. Second, the industry needs encouragement, so as to 
increase the dairy herd, and thus our dairy supplies, for the sale, first, of our own people 
and, second, of the Allies. The people must realize the vital dependence of the well-being 
of their children, and thus of the Nation, upon the encouragement and upbuilding of the 
industry." 



GOVERNMENT CONTROL OVER PRICES. 107 

There was, too, always a third party with whom to reckon, the 
ultimate consumer, who would bear the burden of increasing prices. 
He of course objected to an increase on the part either of the pro- 
ducer or distributor, and often accused both of profiteering. 

The Food Administration soon was called upon to help solve the 
difficulties, and after consideration it became apparent to that body 
i that here was a problem peculiarly difficult. For not only was there 
! the question of determining a fair price,^ but there was also the 
problem of enforcing such a price after it had been determined, and 
for such action the Food Administration had no power.^ The prob- 
lem had to be solved, however, and the first step taken was the 
appointment by the Food Administration of a committee to investi- 
gate the costs of milk production and distribution. The FooH 
Administration after conferring with representatives of the milk 
producers, also suggested that milk contracts " aifecting the prices 
producers receive * * * be on a monthly basis instead of a period 
of six months, as customary." In this w^ay prices could be changed 
from month to month as conditions warranted, and 'many of the 
evil results of the long-time contract could be eliminated. This 
change in business method seemed not, however, to alleviate condi- 
tions to any appreciable degree, since producers, distributors, and 
consumers all continued to ask the Food Administration for relief. 
: Finally, in November, 1917, milk tribunals representing the Federal ' 
Government were asked to solve the milk problems of the metropoli- 
tan areas. These commissions were made up of representatives of 
producers, distributors, consumers, milk experts, and the public at 
large, and it was their duty " after assem_bling data bearing on prices 
to make reports that would advise the public of the true status of the 
milk industry" in the various districts investigated." Producers and 
distributors agreed to abide by the decisions of the commission in 
their respective territories so long as they remained parties to the 
agreement for its appointment, but they were given the right to 
withdraw from the arrangement upon 30 days' notice.* Moreover, it 

1 Mr. Hoover in an address at the National Milk and Dairy Farm Exposition in New 
York on May 23, 1918, laid considerable emphasis upon the difficulties met in finding a 
basic price for dairy products, especially milk. Among other things, he said : 

" These complexities arise from the fact that in a considerable part of the industry 
the raw material in feeds, the labor, land, and equipment employed, are by-products of 
other major agricultural operations, and the commodities produced (from milk) are all 
in different circumstances, by-products of each other." 

2 Mr. Hoover in a letter of Sept. 22, 1917, to Mr. I, Blkin Nathans, secretary of the 
New York Milk Conference Board, said in this connection : 

" I have given earnest consideration to your request for the intervention of the Pood 
Administration in the pending settlement of milk prices with producer's representatives. 
As you are aware, the administration has no authority to intervene or fix prices." 

3 Commissions were appointed for the New England district around Boston, the New 
York City district, the Chicago district, the San Francisco district, and later (Feb. 21, 
1918) for the important consuming centers of Ohio. 

* Report of Food Administration by W. C. Muilendore. 



108 



HISTORY OF PRICES DURING THE WAR. 



was A'oluntarily agreed that no increases in the price of milk were to 
be allowed while the various commissions were making their inquiries. 

The commissions appear to have had different degrees of success, 
and the period of their functioning varied from several months to 
one year. The New England commission was the only one which 
remained in existence from the time of its appointment to December, 
1918, when the oversight of the Food Administration was withdrawn. 

In New York where the greatest difficulty was experienced, prices 
were first fixed for January, 1918, and the milk commission continued 
price recommendations from month to month on the basis of data 
submitted. In Ma}-, however, virtually all milk distributors who 
were parties to the price agreement specified their intention of with- 
drawing during the following month, and on July 1 the agreement 
terminated. After considerable wrangling over prices between the 
producers and distributors, the Food Administration was once more 
called in, this time to act as mediator in arriving at a fair price. 
There appeared, however, to be no common basis for agreement. 
Indeed, it was not until the Food Administration sug-gested a price 
of $2.70 per 100 pounds of milk for the month of August, and $2.90 
for September^ that the situation quieted down. During the re- 
mainder of the 3^ear the Food Administration continued to act as 
mediator in the determination of milk prices for the New York 
district, and their efforts seem to have been more or less successful.^ 
Conditions in the other municipal centers were akin to those in 
New York, and the price problem was generally solved through the 
application of cost data. 

Although the milk problem was immediately one of price, the 
degree of organization within the industry, and the consequent power 
of the producer and distributor to withhold milk from the market, 
resulted in the question resolving itself ultim.ately into one of public 
health and public welfare. There was needed not only a fair price 
for milk, but also a sufficient supply, and the latter meant an increase 
in cattle herds. The regulation of milk prices apparently did not 



» This price was arrived at by use of a formula which averaged the cost of feed and 
labor required to produce 100 pounds of milk. Representatives of the distributors during 
the early stages of the negotiations appear to have objected to this use of a cost-of- 
production formula. Later, however, they gave their assent to its adoption. 

2 The wholesale prices, per 100 pounds, adopted for the year 1918 for New York City, 
for grade B milk, totaling 3 per cent butter fats within a freight zone of 150 miles were 
as follows : 



January * $3. 52 

February 

March 

April 

May 

June 



3. 34 
3.22 
2. 50 
2.46 
1.80 



July $2. 25 

August t 2. 70 

September t 2. 90 

October t 3. 57 

November f 3. 81 

Decepiber t 4. 06 



♦Fixed by milk commission. 

tFixed by producers and consumers with Food Administration as mediator. 



GOVERNMENT COjSTTEOL, OVER PRICES. 



109 



have a serious effect upon the supplj^ of cattle, for the number of 
milch cows increased slightly during the year 1918. This increase, 
however, was the smallest for any single year since 1913,^ 

It is impossible to determine the effect of price regulation upon 
the consumption of milk, since there are no reliable statistical data. 
The milk production for 1918 has been estimated at 46,384,000,000 
quarts as against 445640,000,000 in 1917, an increase of 
approximately 3 per cent. But after allowing for the increase of 
123,000,000 pounds in the exports of 1918 over 1917, and taking into 
consideration the normal annual increase in population, it is ques- 
tionable whether the consumption of milk in the United States 
actually increased. 

Oleomaegarine. 

The regulations relating to oleomargarine were few, since this fat 
was provided for under the regulations applicable to the packing in- 
dustry, in whose hands the larger part of the oleomargarine produc- 
tion is concentrated. 

Not until late in 1918 were definite steps taken to establish a maxi- 
mum price for oleomargarine, and this action no doubt was prompted 
by the upward tendency of its price started during the midsummer 
months. Standard uncolored oleomargarine advanced 7.5 cents dur- 
ing the single month of August. A careful analysis of the costs of 
producing oleomargarine was made during the latter part of 191S, 
and 6.3 cents was determined upon as a reasonable figure to allov/ 
during the two months beginning December 1, 1918. '^ Each manu- 
facturer, therefore, in figuring the total cost of his product was per- 
mitted to add to the cost of raw materials an amount not to exceed 
6.3 cents per pound.^ 

1 The following table from the monthly Crop Reporter of the Department of Agriculture, Febraary, 

1919, shows the condition of the milch cow herds in the United States on Jan. 1, 1919, as compared with 

the same day in previous years: 

Milch cows in the United Stales. 





Number. 


Per cent 
of pre- 
ceding 
year. 




Number. 


Per cent 
of pre- 
ceding 
year. 


Jan. 1, 1919 


24,467,000 
23,310,000 
22,894,000 
22, 108, 000 
21, 262, 000 


100.7 
101.8 
103.6 
104.0 
102.5 


Jan. 1,1914 


20,737,000 
20, 497, 000 
20, 699, 000 
20,823,000 
*20, 625, 000 


101.2 


Jan. 1, 1918 


Jan. 1, 1913 


99.0 


Jan. 1, 1917 


Jan. 1, 1912 


99.4 


Jan. 1, 1916 


Jan. 1,1911 


100.9 


Jan. 1, 1915 


Jan. 1, 1910 











* Census report of Apr. 15, 1910. 

= Manufacturing costs includea : (1) Labor, (2) selling expensesfl (3) advertising, (4) 
administrative expenses, (5) depreciation, (6) taxes — not including excess-profit tax and 
income tax — and (7) miscellaneous manufacturing expenses — ^not including interest 
charges. 

= The cost of raw materials was defined as the cost of the following delivered at the 
plant: (1) Oils, (2) milk, (3) salt, (4) package, (5) color, (6) stamps, (7) cartons and 
paper, and (8) supplies. 



110 



HISTORY OF PRICES DURING THE WAR. 



As regards manufacturers' profits, these were limited to 10 per cent 
over cost, while to retailers there was granted the right to add 5 cents 
per pound over cost for cash-and-carry stores, and 6 cents per pound 
for stores rendering extra services. 

Cotton Seed and Cottonseed Products. 

The early pHce situation. — The speculative nature of the cotton- 
seed industry, the scarcity of substitutes for cottonseed products, and 
the falling off in the supply of cottonseed oil because of the small 
cotton crops in the years 1915 to 1917,^ all played an important part 
in the price movement of cotton seed and its products during the 
war period. 

The effect of these various factors upon the price of cottonseed 
products was clearly reflected even in 1915 when the price of cotton- 
seed oil jumped from 4.4 cents in August to 7.31 cents in December. 
After this initial start, the price continued a general upward climb 
until further rise was checked by governmental action.^ By August, 
1917, the month of the creation of the Food Administration, cotton- 
seed prices had risen to $56.61 per ton, a point approximately 150 
per cent above the prewar level. The main product, oil, had similarly 
risen from an average of $0.0619 per pound in the prewar year to 
$0.1392, an increase of about 125 per cent. 

The licensing of the industry. — The importance of oils of all sorts 
in our war program, and the acute demand for cottonseed cake,^ 
made necessary some immediate action toward stabilizing prices. 
Accordingly, by presidential proclamation, all ginners, crushers, re- 
finers, and dealers in cotton seed, cottonseed oil, meal and cake were 

1 The 3 years ending 1918 were relatively lean years in cotton seed production. The amount of cotton 
Seed crushed was considerably smaller than in any of the preceding 3 years, and had its effect upon the 
production of cottonseed oil. The fluctuations which characterized the course of the cotton seed industry 
are shown in the appended table :* 



1 



Year. 


Cottonseed 
production. 


Cottonseed 
crushed. 


Cottonseed 
oil (crude) 
production. 


1912-13 


Short ions. 
6, 104, 000 
6,305,000 
7, 186, 000 
4,992,000 
5,113,000 
5,040,000 


Short ions. 
4, 580, 000 
4, 848, 000 
.5,780,000 
4,202,000 
4, 479, 000 
4,252,000 


Pounds. 
1,435,000,000 
1,500,000,000 
1 790 000 000 


1913-14 


1914-15 


1915-16 


1,300,000,000 
1 492 000 000 


1916-17 - 


1917-18 ., 


1,344,000^000 





* Data from War Industries Board Price Bulletin No. 15, "Prices of Edible Vegetable Oils." 

- See chart on p. 114. 

' The autuma of 1917 witnessed a severe drought in the southwestern section of the 
United States, and there was great suffering among cattle because of the shortage of 
feed stuffs, the most important of which was cottonseed cake. The unusual demand 
caused by this situation still further accentuated the already high price of cottonseed 
cake, and the Food Administration realized that immediate action toward stabilizing the 
situation was necessary. 



GOVEENMENT CONTROL, OVER PRICES. Ill 

placed under license on November 1, 1917. Regulations designed to 
prevent speculation were soon put into effect, and hoarding, reselling, 
and the making of long-time contracts were prohibited. Moreover, 
speculation in cottonseed oil on the New York Produce Exchange 
was checked. About one month later the first attempt at regulating 
the price of cotton seed and its products was made, and on December 
7, 1917, the margin allowed to any dealer in cotton seed in car lots was 
fixed at $2 per ton. Crushers' margins were also fixed at the same 
time, and a maximum margin of $13 a ton over the cost of a ton of 
cotton seed was allowed for products obtained from crushing.^ But 
even with fixed margins there was no guarantee that the varying 
costs of cotton seed would not cause fairly important fluctuations in 
the price of any given product in the same localities, if not in the 
same mill. For, although a margin had been fixed for the sale of 
cotton seed, there still remained the possibility of appreciable differ- 
ences in the initial cost to which the allowable margin was to be 
added. This difficulty was soon foreseen, however, and a further 
restriction was included in the regulations applying to the cotton- 
seed industry, limiting to a degree the price that could be paid by 
a crusher for the seed he used. He was not allowed to pay higher 
prices for cotton seed in one market than he paid for cotton seed of 
the same quality in any other market. 

Thus, the price of cotton seed was virtually fixed and the return 
to the crusher confined to more or less narrow limits. There yet 
remained the problem of the refiner's price. This appears to have 
been left relatively untouched, since the control over the profits of 
refiners and distributors through the license system ^ afforded a suffi- 
ciently powerful weapon to keep the price down. It soon became 
apparent, however, that the market would be further stabilized if 
the cost of the crude cottonseed oil were made uniform to the various 
refiners. The maximum price of crude cottonseed oil, therefore, 
was fixed by agreement with the producers at 17. 5 cents per pound at 

iThis margin of $13 was to paj' not only for manufacturing costs, but also for 
bags and other incidentals used in packing the products. This margin, however, was 
to apply only to a certain minimum yield from a ton of seed. Thus, for example, a 
standard yield of products was worked out for a ton of cotton seed and a margin of 
-flS was allowed on this yield. If, however, the product of a crusher happened to be 
more than the standard yield, he was allowed to sell the excess without reference to 
the fixed margin, "provided the price charged for said excess products shall not exceed 
the average price for the other products in said yield." 

The standard yields for a ton of seed fixed by the Food Administration were as follows : 
Southern States east of the Mississippi River — 43 gallons of oil, 960 pounds of meal, 
140 pounds of lint, and 480 pounds of hulls ; States west of the Mississippi River — 38 
gallons of oil, 1,000 pounds of meal, 150 pounds of lint, and 470 pounds of hulls. 

2 One of the fundamental rules applied in the regulation of the distribution of food- 
stuffs, as mentioned in previous pages, was that "licensees shall sell the commodities 
specified in his license at not more than a reasonable advance over the actual cost »'^ * * 
without regard to the market or replacement value at the time of sale." The whole- 
sale price of cottonseed oil was controlled by a maximum margin of 12 to 15 per cent, 
fixed on sales to retailers on June 15, 1918. 



112 HISTOKiSf OF PRICES DURING THE WAR. 

the crushing mill, effective January 1, 1918. This price, it should 
be noted, Avas about 2^ cents above the average for the year 1917. 
The agreed price may appear very high, but fats and oils were in 
abnormal demand for war purposes, and it was believed that a high 
price was necessary to encourage high-cost producers. 

Control over the 1918 crop. — With the advent of the new cotton 
crop of 1918 it became apparent that a more thorough method of 
price stabilization would be necessary. This opinion was held not 
only by the cottonseed product manufacturers but also by members 
of the live-stock industry who were feeling the effects of an un- 
steady market for cottonseed meal. The cotton seed producers were 
especially insistent that a more complete system of control be 
adopted, and in September representatives of the industry recom- 
mended that the Food Administration stabilize the price of cotton 
seed at $70 per ton in carloads lots. This basic price was to apply to 
cotton seed jdeldmg 41 gallons of oil per ton, and variations were 
to be allowed between a minium of $64 and a maximum of $74 in 
proportion to the oil yielded. A differential, as in the previous year, 
was fixed for the return to crushers. The allowance over cost, how- 
ever, was increased over that for the 1917 crop and a maximum ad- 
vance of $18.50 over the price paid for a ton of cotton seed was 
allowed for the products made therefrom. Prices were also an- 
nounced for cottonseed meal and cake, as well as for crude cotton- 
seed oil.^ The War Industries Board had already fixed the price of 
linters;^ and thus there was inaugurated a complete system of price 
fixing extending from the farmer who raised cotton seed to the re- 
tailer who disposed of the products. 

The 2?ost-aTmistice situation. — With the signing of the armistice 
arose the problem of disposing of cottonseed products at the agreed 
prices. Not only had large amounts of seed and oil accumulated in 
certain localities,^ but there was also a large amount of cheaper for- 
eign oils competing in the American market with domestic cotton- 
seed oil, and underselling it.* 

^ It appears that the refiners were somewhat hesitant as to agreeing to take the 
output of the crushers at the suggested price of 171 cents per pound f. o. b. mills, 
since they had no assurance against loss should the market for their product decline. 
The Food Administration, however, promised to assist the refiners to maintain their 
price throughout the year. 

^ See page 703 of the present volume. 

3 In certain sections of the country when the cotton crop did well, accumulations 
of seed and oil were so great as to cause many crushers to cease operations. This, of 
course, reacted upon the ginner from whom the crusher received his seed, and so on 
down the line to the farmer who raised the cotton. (Cf. chapter on " Cotton seed and 
cottonseed products," by W. C. MuUendore, in the summary report of the United States 
Food Administration.) 

* Because of the scarcity of fats and oils during the war period, the importation of 
foreign vegetable oils was encouraged. Thus, our vegetable-oil imports in 1918, in spite 
of the acute shipping situation, were 48 per cent larger than in 1917 and 114 per cent 



GOVEENMENT CONTKOL OVER PRICES. 113 

Moreover, there was the linter difficulty with the War Industries 
Board which threatened seriously the linter market.^ The industry 
was in a precarious condition, and it seemed as if there would be 
little relief afforded from any quarter, when on February 11, 1919, 
the Food Administration called together representatives of all 
branches of the industry with a view to finding a solution. It was 
the opinion of these representatives that the industry would be 
greatly aided by the stimulation of exports, and they further recom- 
mended that — 

Such orders as were received for lard substitutes tlirough the Food Adminis- 
tration or by the manufacturers should be manufactured from domestic cotton- 
seed oil ; that crushers sliould use their best efforts to purchase seed from lo- 
calities where the heaviest congestion of seed existed ; and that refiners should 
purchase crude oil from crude mills where the heaviest congestion existed. 
They further unanimously agreed that the stabilization plan of the Food Ad- 
ministration should be carried out to its completion, notwithstanding the fact 
that the armistice had changed the situation, and there was a fear of greater 
disaster to the industry if the Food Administration should cease its efforts to 
maintain the price while this congested condition existed. 

The American Relief Administration, however, appeared on the 
market with orders for large amounts of oil for European distribu- 
tion, and the heavy exports ^ soon relieved the situation. The sudden 
flow of oil to foreign countries, together with the rise in the price of 
lard and the consequent increased demand for lard substitutes, ap- 
pears to have brought the cottonseed industry back to normal. By 
the end of May virtually all of the cotton seed of the 1918-19 crop 
had been disposed of at the stabilized price. The major part of the 
manufactured products had also been marketed on the basis of the 

larger than in 1916. Compared to our imports for the 12 months immediately pre- 
ceding the war they had increased 181 per cent. 

United States imports of vegetable oils.* 



Pounds. 

1918 902, 000, 000 

1917 616, 000, 000 



Pounds. 

1916 420, 000, 000 

1913-14t 321, 000, 000 



* Approximate figures based on data from Monthly Summaries of Foreign Commerce of 
the United States Department of Commerce. 
t Fiscal year ending June 30, 1914. 

1 The War Industries Board had fixed the price of linters, as mentioned above, and 
had arranged for the Ordnance Department to take over the entire linter crop. After 
the signing of the armistice, however, the latter body wished to be relieved of their 
obligation. A long controversy took place, which was followed by an agreement whereby 
the War Department was to take all the linters produced up to an agreed date. (A more 
detailed review of the linter situation will be found on page 304 of this volume.) 

- The increase in cottonseed oil exports in the early months of 1919 is well brought out 
by the following table : 

Exports of cottonseed oil from the United States. 



Pounds. 

December, 1918 11, 875, 368 

January, 1919 26, 573, 309 

125547°— 20 8 



Pounds. 

February, 1919 32, 042, 282 

March, 1919 19, 669, 660 



114 



HISTORY OF PRICES DURING THE WAR. 



agreed prices, and stocks were about equal to the avernge for May of 
previous years. It was evident, therefore, that control of the cotton- 
seed industry was no longer necessary, and on May 31, 1919, " all 
price regulations and agreements regarding cotton seed and products 
manufactured therefrom, including lard substitutes '' were with- 
drawn. 

The effects of cantiol. — In December, 1917, when the first definite 
price regulation was applied io the cottonseed industry, cottonseed 

oil was selling for a price 180 
per cent higher than its prewar 
average, and approximately 100 
per cent above that of commodi- 
ties in general. Similarly, lard 
substitutes were about 150 per 
cent higher than in the prew^ar 
year, and about TO per cent 
above the general price level. 
Whether the price stabilization 
inaugurated by the Food Ad- 
ministration prevented a further 
increase, it is not within the 
province of this study to deter- 
mine. One fact should be re- 
membered, however, that the 
prices of cotton seed and its 
products were not lowered 
through governmental regula- 
tion. They were only stabilized. 
Indeed, it may be said that the 
Food Administration indicated 
its approval of the existing 
prices of these commodities in 
late 1917 and fixed them at the 
then prevailing level. 

The elimination of speculation 
no doubt resulted in a very sub- 
stantial benefit to the farmer, and reports to the Food Administra- 
tion from seed dealers showed that the " farmer * * * received 
approximately $10 per ton more for his 1917-18 crop than he cus- 
tomarily received."^ Whether the fixed high price stimulated the 
production of cotton seed or its products is doubtful, especially in the 
light of the latest available data. The cottonseed production for the 
year 1918-19 was approximately 5,360,000 tons,- a crop slightly larger 











1910 1917 1 1916 




5 


lf5:iia^.^S5S 


"n 


•"-•COTTON 5CCD 
— -LARDSUBSTITUTC 
-OL.CRUDCCOTrON,Trr 

BV nONTI-IS 
JANUARY. lD)i"DECEM&m 1DI6 




^ 




500 
280 
260 
240 
220 
200 
180 
160 
140 
120 




1 

'r' 


\ .\ 






i 






jULr.nib ■^;uNC.!a4 loo 


f\ 


J'' 1 


-^- 




19li 1 1914 1 1313 


1 f g 1 M R 1 J 1 S 


220 

!00 

leo 

160 
140 

leo 










^H\ 










} 


[\ 










1] 


r 










If 

■A3k 


;' 
/ 










^'l: 












l/t 






If 


rf\^ 


li 








80 

60 


T^ 


\ , J 


f\\ "Wj 








eo 




hi 










1 § S 6 ? 1 3 S 


r? 6 1 5 9 6 


I'ti'fi" 


"{••HT 




lE>!i 1 1914 1 1913 1 1016 


1917 


1916 i 



Relative prices. — Cotton seed ; lard substi- 
tute ; and Crude cottonseed oil. — By 
months, January, 1913, to December, 1918. 
(Average quoted prices, July, 1913, to 
June, 1914=100.) 



1 W. C. Mullendore. 

* Bureau of Crop Estimates, U. S. Department of Agriculture, 



GOVERNMENT CONTROL, OVER PRICES. 115 

than that of 1918, but small when compared with the output of earlier 
years,^ And, further, the amount of seed crushed for the crop year 
up to April 30, 1919, was but 4,083,900 tons, as compared with 
3,966,329 tons for the same period in the preceding crop year, and 
as against 4,167,527 ^ tons for the corresponding time in the crop 
year 1916-17. 

Canned and Deied Foods. 

Vegetables. — It was not extraordinary that regulation of the can- 
ning industry should have been provoked when profits of concerns 
in various parts of the country showed an average increase from 9 
to 32 per cent in a single year,^ and when there was a pressing war- 
time need for the essential foodstuffs which they produced. 

Canned food prices by 1917 had risen far beyond the level of com- 
modities in general. The large demands of the Army and N"avy had 
resulted, even before the creation of the Food Administration, in 
the appointment of a war-service council of canners to take care of 
the requirements of the various governmental bodies, and the can- 
ners of peas, dried beans, tomatoes, corn, salmon, and sardines were 
included in the presidential license proclamation of October 8, 1917. 
Accordingly, on the 1st of November, the greater part of the canning 
industry went under license.* 

Steps were taken immediately to curb speculation, and the first 
method considered was that almost universally applied, namely, the 
prohibition of long-time contracts. But the customs and seasonal 
character of the trade appear to have made the application of this 
rule to the canning trade impracticable, and instead of limiting con- 
tracts to the customary 60 days, as in other industries, licensed can- 
ners were prevented from quoting prices on future sales before Feb- 
ruary 1 of the year in which such products were to be canned.^ 

^ See table on p. 110. 

2 Data from U. S. Bureau of Census, Department of Commerce. 

5 The Federal Trade Commission's "Report on Canned Poods" (1918) in its chapter 
on profits says, among other things : 

" In 1916, 42 packers, representing invested capital amounting to $12,752,241.03, 
showed net incomes aggregating $1,224,009.69. Thus, the return on investment of these 
packers averaged 10 per cent. In 1917, 37 packers, representing invested capital amount- 
ing to $12,224,210.68, showed net incomes aggregating $3,876,263.08. The average re- 
turn for this year was 32 per cent. The average return on companies for which there 
were both 1916 and 1917 statistics was 9 per cent in 1916 and 32 per cent in 1917." 

* The proclamation of Oct. 8, 1917, included only those packers whose output exceeded 
5,000 cases per year. On Jan. 10, 1918, this amount was lowered to 500 cases per year, 
thus virtually licensing the entire industry. On Feb. 28 manufacturers of tomato catsup 
and other tomato products were added to the licensed list, while on June«15 canned tuna 
came under the control of the Food Administration. 

^ Mr. W. C. Mullendore, in the summary report of the Food Administration, ibid., in dis- 
cussing the future contract situation as applied to the canning industry, says, in part : 

" This industry is composed of thousands of small units and it does- not require a large 
concentration of capital. The produce to be canned must be obtained in its fresh state 
direct from the grower, so that the radius of operation of the average canner is neces- 



116 HISTORY OF PRICES DURIISTG THE WAR. 

No method of price regulation other than the " reasonable-advance- 
over-cost" clause was applied to the canners at first. It was soon 
found, however, that the enforcement of this rule presented endless 
difficulties, for not only did the costs vary widely in different parts 
of the country, but also in different plants in the same neighbor- 
hood. Moreover, the character of the industry was such that the 
raw materials used were but a minor factor in the total cost, and 
hence it was impossible to determine a margin which could be added 
over cost.^ The first measure toward solving this problem was one 
of averaging the cost of the season's pack. On January 28, 1918, 
regulations were amended so as to limit the selling price of canned 
" goods manufactured and on hand to not more than a reasonable 
advance over the average cost of the season's pack." This was but 
a temporary palliative, however, for it was soon decided that an 
efficient system of price control would require the fixing of a definite 
" maximum margin in cents per dozen cans " over the cost of produc- 
tion. This meant, of course, an analysis of the cost figures of each 
individual plant, since the food law had been so drawn as to make 
it impossible for the Food Administration to reach the grower, 
HoweA-er, the Federal Trade Commission had, in early 1918, com- 
pleted a study of canning costs and from their conclusions it was pos- 
sible to determine a reasonable profit, which could be used in deter- 
mining the differential to be allowed the trade. 

Thus the canners throughout the country were called upon to 
submit cost estimates for their respective plants, and to these costs, 
as checked up and approved by the Food Administration, were 
added " maximum margins in cents per dozen cans " which were to 
represent the differences between costs ^ and selling price. These 

sarily small. In order to secure a supply for his plant the canner contracts with the 
neighboring growers for the crop of a certain number of acres to be planted for the produc- 
tion of a named commodity. Before the adoption of the Food Administration rule pro- 
hibiting the making of these contracts before February 1 of the year in which the products 
were to be canned, they were customarily made in the early winter. Having made his 
contracts the canner buys his stock of cans, packing cases, machinery, labels, and such 
supplies for his season's pack. Since many of the canners are men of small means, they 
find it necessary to borrow most of the money for these purposes from the local banks. 
Before loaning the money the banks often require the canner to assure himself of a 
market by making contracts with responsible distributors for the sale of his commodity. 
Practically, therefore, the canner's pack may be sold before the crops for the raw product 
to be canned have been planted. The Food Administration recognized that this prac- 
tice was the outgrowth of unalterable conditions in the industry and that it served as a 
safeguard both for the farmers and for the canners. The usual Food Administration 
rules prohibiting future contracts more than 60 days in advance were, therefore, not 
applied to canners." 

' The tremendous divergencies in the costs of canning vegetables, for example, are 
emphasized in a table showing the range for plants in the various parts of the country, 
included in the Federal Trade Commission Report, ibid. The cost of packing corn ranged 
from $0.65 to $1.40 per dozen cans ; tomatoes, from $0.60 to $1.15 ; and peas, from $0.60 
to $1.45. 

2 In contrast with the methods of price-fixing used for commodities other than food, 
the following clause in the Food Administration regulations for canners is of interest : 

" Cost shall not include income and excess-profits taxes ; interest on investments, inter- 
est on long-term notes, or crop hazards." 



. GOVERNMENT CONTROL OVER PRICES. 117 

margins varied from 15 cents to $1 per dozen cans, according to the 
type and grade of the vegetables canned/ and were believed to pro- 
vide a profit to canners large enough to encourage production.^ 

Canned fish.— ThQ declining imports of sardines and the govern- 
mental requirements for canned salmon^ brought the 1917 price of 
these types of fish above their prewar levels. These high prices were 
of great significance to the Food Administration, especially in view 
of the meat shortage, and immediate action was taken toward the 
stablizing of prices. 

Sardines: One of the earliest price agreements of the Food Ad- 
ministration was made with the Maine canners of sardines in October, 
1917, before the canning industry came under license. This agree- 
ment called for a maximum price of $5.60 per case for one-quarter 
oil canned sardines, and the pack of 1917 was disposed of at this 
price. The increased costs of the following year, however, required 
a revision of prices. Since the Food Administration in this case, 
unlike that of vegetables, had the power to fix a price for the " raw 
material" which made up the cost of the pack, it was decided to 
determine a price for sardine herrings. The fishermen of Maine 
were called together in April, 1918, therefore, and a price of $25 



Tomatoes (per dozen cans) : Cents. 

No. 2 standard 18 

No. 21 standard 22 

No. 3 standard 2T 

No. 3 fancy— 31 

No. 10 standard 90 

No. 10 fancy 100 



1 Differentials allowed were : 
Corn (per dozen cans) : Cents. 

No. 2 standard 19 

No. 2 extra standard 22 

No. 2 fancy 30 

Peas (per dozen cans): 

No. 2 substandard, average all 
sizes 15 

No. 2 standard, average all sizes_ 22 

No. 2 fancy, average all sizes 31 

It will be noted that canned beans are not included in the above list. This was due to 
the prohibition placed on canning beans in containers made of tin plate without a special 
permit. It was not until Nov. 1, 1918, that the canning of beans was permitted, and 
then only an amount equal to the average pack for the three months, November, Decem- 
ber, and January. 

2 One other matter should be mentioned in this connection, namely, the question of fu- 
ture contracts. It was possible, for example, that on making delivery of certain products 
several months after figuring out preliminary costs, the actual cost might prove smaller 
than at first expected. This, of course, would mean a higher profit than allowed by the 
Food Administration. The solution of this problem was left in the hands of the packers 
themselves, as described by Mr. W. C. Mullendore, ibid. 

" The canning industry felt that it would be desirable to submit to the Food Adminis- 
tration these future contract sales' prices, asking the Food Administration to sanction 
them and permit them to proceed in the confident belief that these prices would be 
acceptable to the Food Administration. The Food Administration was unable, however, 
to state what would be reasonable prices, for no matter how accurate an estimate of cost 
may be, the crop is not determined until actually put up, and therefore the Food Adminis- 
tration could not undertake to justify canners' future contract prices. In lieu of this 
method each canner was required, before invoicing his goods, to review the estimate he 
had made of his costs, and if it were determined that the original estimate was higher 
than the goods were proving to cost, then to revise downward to a point that would not 
provide a profit in excess of the Food Administration maximum." 

3 10 per cent of the 1917 salmon pack was reserved for Army and Navy needs ; while 
of the 1918 pack 80 per cent of the red, 75 per cent of the pink, and 65 per cent of the 
chum Alaska salmon was taken over by the Government, 



118 



HISTORY OF PRICES DURING THE WAR. 



per hogshead was established as the maximum price to be paid for 
raw j&sh by the packers. 

With the price of sardines fixed, it was relatively a simple task to 
agree upon a price for the canned product. After an investigation 
of costs, it was decided that a price of $6.50 per case for one-quarter 

oil, keyless, and $6.25 per case 
for one-quarter mustard, key- 
less, sardines, would provide a 
reasonable profit to the canners, 
and these prices were fixed as 
maxima for the remainder of 
the season.^ 

It was not until October, how- 
ever, that the price of Califor- 
nia sardines was determined. 
A series of three prices was 
agreed upon, varying with the 
size of the raw fish to be sold;- 
and on the basis of these raw- 
fish prices, maxima for the 
canned products were set.^ 

Salmon: Salmon, of course, 
played the most important part 
in the canned-fish situation of 
1918-19, but in spite of this 
fact, it was not until many 
months after the price of sar- 
dines had been " pegged " that 
salmon canners were thoroughly 
controlled. Speculation h a d 
been reduced and the reason- 
able-profit rule had been applied 
to the salmon industry back in 
November, 1917, but lack of in- 
formation made it impossible to 
fix a definite price until well along in 1918. The price of the fish to 
the fisherman was first fixed, the output for Alaska, Oregon, and the 
coast streams of Washington serving as the basis.* Packing costs 

^ These prices also were appUed to the catches of the Canadian fishermen, who agreed 
to accept the maximum of $25 per hogshead for their raw fish. 

- The prices for raw sardines accepted by the Food Administration, eflfective for the 
1918-19 season, were: Under 7| inches, $30 per ton; over 7i inches, $15 per ton; fish 
for fertilizer purposes, $10 per ton. 

^ The maximum canned sardine prices per case agreed upon were : Tomato — Quarter 
round, $3.25 ; one-half round, $4 ; ones roxmd, $5.75 ; ones oval, $7.25 ; one-half oral, 
$5.50. Oil — quarter round, $3.25 ; one-half round, $4.15 ; ones round, $6. 

* Prices were fixed for the various sections of Alaska and Washington, while the 
catch of the Columbia and Rogue Rivers of Oregon was differentiated into sevei'al types 
known as chums, chinooks, silver sides, and steelheads. 




Relative prices — Canned fish : Sardines, 
oil, keyless (lOO-J inch case) ; and Sal- 
mon, pink, tall, one dozen No. 1 cans. — 
By months, January, 1913, to Dectmber, 
1918. (Average quoted prices, .luly, 1913, 
to June, 1914=100.) 



GOVERNMENT CONTROL OVER PRICES. 119 

were then investigated in the various important sahnon-canning sec- 
tions, and on the basis of these costs, plus the prescribed raw-fish 
jprices, maximum prices were established for the canned stock.^ 

Canned Tuna : Tuna fish prices were dealt with in a manner similar 
to sardines and salmon, the price of the raw fish being first estab- 
lished. A conference of the Food Administration with the fishermen 
resulted in the fixed price for all raw tuna, of $100 per ton. Excep- 
tion was made in the case of two types known as Albacore and Blue 
Fin tuna, however, and for these an extra $10 per ton was allowed. 
On the basis of these figures, prices were determined for the canned 
product, and the latter part of 1918 found the price situation in the 
tuna fish industry in a more stabilized condition. 

D7%ed fruits. — Preparers and packers of dried peaches, apples, 
prunes, and raisins were included in the license decree of October 8, 
1917.^ Significant control was exercised over the prices of these 
fruits, although the primary aim of the Food Administration was 
apparently the checking of any possible speculation in the industry. 
In its uncertain character this industry corresponds closely to that of 
the canning trade. As with canned goods, it was necessary to limit 
as much as possible the control over fruits which were not yet on the 
market, and thus the first regulations affecting the industry prohib- 
ited " either the purchase or sale of new-crop fruits for spot delivery 
before May 1 of the year in which the}^ were to be pVcked." ■' 

The selling price of the various fruits was at first kept under sur- 
veillance by a regulation requiring licensees who shipped in carload 
lots to submit to the Food Administrator all price lists or circulars 
relating to the price of their products ; and by use of these the Dried 
Fruits Division kept informed as to the tendency of prices within the 
trade. This system, however, did not result in as effective a control 
as was desired, and in its place a method of price control similar to 
that used in the canning industry was adopted. The fruit growers 
agreed to sell their peaches to the packers at 11 cents per pound. 
Similarly the raisin price was fixed at 5-| cents. The packers were 
then called into conference and a schedule of maximum prices at 
which their products would be sold to the trade was adopted.^ A 
profit limitation, however, was also placed upon the packers by limit- 
ing their returns to 4 per cent. 

1 The complete series of canned salmon prices as established by the Food Administration 
in the three leading salmon sections are to be found on pp. 593—4. 

- The Dried Fruits Division of the Food Administration originally had in its charge 
the supervision of the dried-fruit industry. It was later consolidated with the Canned 
Goods Section under the new name of the Canned Goods and Dried Fruits Division. 

^ On May 7, 1918, the date at which purchases of new-crop fruits not ready for spot 
delivery could be made, was changed to June 1, and on May 24 the date was extended 
to July 1. 

* See p. 596 for schedule of agreed fruit prices. 



120 



HISTORY OF PRICES DURING THE WAR. 



RlCC 

JAPAN HEAD 

— HONDURAS MEAD 

purrEDRicc 

■■' ■ ■ .QDAKER.- 

BV M0MTM5 
lSl3'°DECEMBED.tSI6 
QUCrTCXlPCUCE:5JUCy^913*'UUNe,U3t4-10a 



I 1017 I 1016 



i 



1914 I IOI5 I 1916 



i 5 



But this method of price regulation was applicable only to the 
peach, raisin, and prune packing industries, since the centralization 
of both sources of supply and packing plants made possible a system 
of effective supervision. The situation was different in the case of 
dried apples, for, while the packers were under license, the enormous 
number of apple raisers over the country made it impossible to come 
to a price agreement with any considerable number of growers. The 
only resort, then, was the regulation of packers' profits, and as in the 

case of the peach and raisin 
packer on the Pacific coast, their 
return was limited to 4 per cent. 
The results of control. — Early 
in 1919 restrictions upon the 
canning industry were removed, 
and the trade once more re- 
sumed its usual business prac- 
tices. It appears that little 
change was made in the level of 
the prices of the various canned 
commodities, but at least a more 
stable market followed the inau- 
guration of fixed maximum mar- 
gins. The Food Administration 
claims that its price regulations 
resulted in a radical revision of 
contracts, and an estimated sav- 
ing to the American consumers 
on the 1918 pack of peas, toma- 
toes, and corn alone of over 
$7,000,000.1 




Relative prices. — Rice, Japan head, and Hon- 
duras head ; and Puffed Rice, Quaker. — By 
months, January, 1913, to December, 1918. 
(Average quoted prices, July, 1913, to 
June, 1914=100.) 



Rice and Rice Floue. 



The large demand for cereals 
of all kinds and the growing im- 
portance of rice as an article of diet w^as reflected in the price tendency 
of rice after our entrance into the war. The price of Japanese rice 
rose 82 per cent in the two months March to May, 1917, while the 
Honduras variety increased 42 per cent in the same period. This 
upward trend continued until the new crop appeared in October, 



1 See W. C. MuUendore, ibid. 



GOVERNMENT CONTROL OVER PRICES. 121 

Then prices remained relatively stable until February, 1917, the 
period of harvesting. But the rise was resumed then, and not until 
the Food Administration undertook to "peg" the price of rice in 
July, 1918, did the first evidence of stability appear. 

Control over the industry.— Rice became a substitute for wheat 
during the period of cereal grain shortage, and this fact had weight 
in determining that all "importers, manufacturers, and distributors of 
rice and rice flour" should be licensed under the presidential procla- 
mation of October 8, 1917. At the very beginning, regulations were 
inaugurated which limited the returns to rice dealers, and licensees 
were forbidden to sell rough rice "at an advance over the actual price 
in excess of 1 per cent over purchase price, plus storage, insurance, 
and interest on the investment at the rate of 6 per cent per annum."^ 

Eesales were prohibited so as to prevent speculation, and millers 
were restricted in the amount of rice they could keep on hand. Also, 
contracts for future delivery were limited to 30 days. 

But the limitation upon profits of rough-rice dealers and the elimi- 
nation of speculation, was of little significance as a factor affecting 
rice and rice products prices, in view of the tremendous rice demands 
of 1917 and 1918. Even in the summer of 1917 our supplies of rice 
were beginning to feel the effects of the wheat shortage and the de- 
mand for wheat substitutes, both foreign and domestic; and on 
August 1, 1917, the end of the crop year, our carry-over of rice was 
but approximately one-half of that of the preceding year. The 
stimulated consumption of rice during the spring of 1918 at the en- 
couragement of the Food Administration still further accentuated 
the situation, and August 1, 1918, found the United States bare of 
rice supplies. 

The 'price agreement of the summer of 1918,— TI\q prices of rice 
continued to advance through 1917 and early 1918, and by July of 
1918, it was realized that the stabilization of rice prices was neces- 
sary, and the rice producers and rice millers of the country were 
called into conference.^ The final solution proved to be a system 
of price fixing by agreements whereby the rice millers agreed to pay 
definite prices to the growers of rough rice, and also promised not 

1 Commission charges of agents were also limited to 1 per cent. The " reasonable- 
advanee-over-cost " rule was applied to clean rice as in the case of all other commodities. 

2 There is another factor quite generally overlooked which has an important bearing 
upon the problem of tixing rice prices. Imports play an appreciable part in the rice 
supply of the United States, and in 1918 they were equal almost to one-third of our 
production. On July 26 the War Trade Board announced that all imports of rice shipped 
from foreign ports after July 31 would be prohibited, and this meant that our supply, 
already too small, would be further cut down. 



122 HISTORY OF PRICES DURIIi^G THE WAR. 

to sell clean rice at more than prices named in tlie agreement,"- 
ranging from 7f cents per pound for choice Japan, to 9^ cents for 
fancy Honduras. 

On this basis, with the broker's margin definitely fixed f with the 
millers' maximum price of rice flour fixed by the Food Administra- 
tion at 75 cents per 100 pounds above the purchase price of brewers' 
rice or screenings;" resales prohibited; and a maximum margin de- 
termined for the sale of rice from wholesalers to retailers, it was 
quite evident that much had been done toward the stabilization of 
rice prices. Indeed, the Food Administration went so far as to 
state publicly that in their opinion consumers should "be able to 
purchase rice at a price of approximately 10 to 12 cents per pound, 
depending on remoteness from the milling centers." 

The method of price regulation adopted, however, required super- 
vision, for rough rice prices were based on grades, and the decision 
as to how a certain lot of rice was to be graded could not be left in 
the hands of the grower ; nor, on the other hand, could the grading 
be intrusted to the miller. Accordingly, a general committee was 
appointed to accomplish a fair valuation of the grower's product, and 
to these men was left the task of supervising and carrying out the con- 
tracts and the grading and valuing of rice samples submitted by the 
growers.* Moreover, in order equitably to allocate the rice crop 
among the various millers of the country, each mill was allotted a 
maximum amount which it might purchase of the 1918 crop, based 

' The prices fixed for rough rice to be paid to growers by the millers were as follows ; 
i|!7.50 per barrel of 162 pounds for No. 1 and No. 2 Honduras (river type) in sacks; 
$7.-5 per barrel of 162 pounds for No. 3 Honduras (river type) in sacks ; $7 per barrel 
of 162 pounds for No. 4 Honduras (river type) in sacks ; $7.25 per barrel of 162 pounds 
for No. 1 and No. 2 Blue Rose in sacks ; $7 per barrel of 162 pounds for No. 3 and No. 4 
Blue Rose in sacks; $7 per barrel of 162 pounds for No. 1 and No. 2 Japan in sacks; 
$6.75 per barrel of 162 pounds for No. 3 and No. 4 Japan in sacks. The selling prices 
of the products secured from the milling of rough rice were agreed upon as : Fancy 
Honduras, 9| cents per pound, packed in 100-pouud pockets ; choice Honduras, 83 cents 
per pound, packed in 100-pound pockets ; fancy Blue Rose, 7g cents per pound, packed 
in 100-pound pocket's ; choice Blue Rose, 1% cents per pound, packed in 100-pound pockets ; 
fancy Japan, 71 cents per pound, packed in 100-pound pockets ; choice Japan, 7§ centa 
per pound, packed in 100-pound pockets ; fancy second heads, 61 cents per pound, 
packed in 100-pound pockets; screenings (river), 61 cents per pound, packed in 100- 
pound pockets ; screenings, 51 cents per pound, packed in 100-pound pockets ; brewers', 
5J cents per pound, packed in 100-pound pockets. 

- Broker's commissions for the negotiation of the sale of rice or rice products were 
limited under regulations of July 29 to: (1) 7 cents per 100 pounds on car-lot orders, 
except brewers' rice, sold in New York, San Francisco, Charleston, Savannah, Jackson- 
ville, St. Louis, Kansas City, Galveston, and Houston; (2) 6 cents per 100 pounds on 
any quantity of rice, except brewers' rice, sold at New Orleans; (3) 8 cents per 100 
pounds for car-lot orders, except brewers' rice, sold at any other point except those 
designated in (1) and (2) ; (4) 6 cents per 100 pounds for brewers' rice sold at any 
point, in any quantity ; (5) 25 cents per ton on rice bran or rice polish at any point, 
in any quantity ; (6) 6 cents per 100 pounds on rice flour sold anywhere, in any 
quantity. 

3 The quality of rice flour to be manufactured was specified in license regulations. 

* The detailed work of grading and evaluating was placed in the hands of subcommit- 
tees, with oflScers in the various cities of the southern rice States and of California. 



govzexmejstt coistrol over prices. 123 

on its individual capacitj^ and its average receipts for the three sea- 
sons 1915 to 1918.^ Provision was also made for the sale of clean rice 
imported as such, and which would not, therefore, come under con- 
trol as the product of American mills. For such rice a maximum 
advance of 10 per cent over the price paid by the importer, plus 
freight and insurance, was allowed. 

It would seem, that these arrangements resulted in marked savings 
to the American public, from a study of the price tendency of the 
Japan variety of rice after July, 1918.2 Honduras head rice also 
shows the stabilizing effect of the price agreement of 1918. This 
agreement, incidentally, is still in force (June 15, 1919) and, with the 
exception of the wheat and sugar arrangements, is the only agreement 
of its kind which was extended into the summer of 1919. 

CoAESE Grains and Feed STtTirs. 

Human foods. — The coarse grains were among the many commodi- 
ties which felt the effects of the stringent wheat shortage of 1917. 
There were, moreover, such factors as the small carry over from the 
1916 crop, the large demand by distilleries, and the small crop in 
Argentina, which played an important part in sending the price of 
individual coarse grains such as corn to levels beyond those of other 
commodities." 

Corn, oats, rye, and barley were not important as human foods in 
prewar years, but took their chief commercial value from their use as 
feeding stuffs for live stock. The Food Administration, therefore, 
handled them in connection with the general problem of mill feeds. 
Storers, distributors, and millers of rye and its products were 
included in the first presidential proclamation relating to licenses 
issued August 14, 1917, and barley and barley flour, oats and oatmeal, 
corn, corn grits, and other corn products such as glucose, hominy, 
etc., were added on October 8.* 



1 The various expenses of administration, such as grading, evaluating, weighing, super- 
vising contracts, etc., were to be borne by the milling interests who were to pay to the 
office of Food Administration Grain Corporation at New Orleans a fixed fee of 6i cents for 
each barrel of rice purchased. 

2 See rice chart, p. 120. 

■•'A complete record of the prices of the various grains can be found in the bulletins 
" Prices of Barley, Hops, Rye, and their Products," " Prices of Corn and Corn Products." 
and " Oats, Rice, Buckwheat, and their Products," in the W. I. B. Price Bulletin Series. 

The coarse grains, by the summer of 1917, had in several cases reached unprecedented 
heights. No. 3 yellow corn, in June, 1917, was selling for $1.73 per bushel, and in 
July reached a level of .'52.06, as compared with the prewar average of $0,685. Similarly, 
barley, which in the prewar mouths averaged $0.6243, was selling in the summer of 1917 
around $1.40 ; while rye, in June, 1917, was selling at $2.36, a price over four times it.g 
peace time average of $0.5653. 

* Later, on January 10, 1918, all importers, manufacturers, and distributors of feeding 
stuffs were made subject to license by presidential proclamation, thereby bringing all the 
products of coarse grains under license regulation. 



124 HISTORY OF PRICES DURING THE WAR. 

It was evident from the beginning that speculation in these coarse 
grains must be eliminated, else the instability of the preceding 
months would recur. At the request of the Food Administration, 
speculation on the grain exchanges had been virtually stopped in 
August. But the elimination of speculation meant much more than 
the closing of exchanges. Indeed, it meant that not only must the 
amount of grain which any individual should be allowed to hold be 
fixed, but that a limit must be set upon the length of time during 
which a licensee might keep his grain. The first regulations which 
were applied to licensees, therefore, forbade the holding or storing 
of grains for more than 30 days.^ 

But the prohibition of speculation did little to keep in check 
the soaring tendencies of the various grains and their products, 
for, with the coming of the severe winter of 1917-18 and the tie-up 
of railroad transportation, the consequent shortage of supplies sent 
the price of these foodstuffs far above their prelicense level. The 
conservation rules of the Food Administration, moreover, required 
the buying of wheat substitutes with each purchase of wheat. This 
step, naturally, created an extraordinary demand for coarse grains 
and pushed their prices upward. 

The creation of the Grain Division. — Conditions were becoming 
acute, and on April 1, 1918, the Food Administration created its 
Grain Division and gave it oversight of the coarse grain problem. 
The first act of this division was the opening of the grain exchanges 
to legitimate hedging operations. It also permitted speculative 
accounts limited to 200,000 bushels, so as to keep the market open 
and thus stabilize prices.^ 

A plan w^as needed, however, for the definite pegging of prices, 
and with this in view a system of weekly reports was inaugurated 
by which every coarse grain miller and every feed dealer advised 
the Food Administration of the exact cost of his raw materials and 
the exact selling price of his manufactured products. The Grain 
Division in this way informed itself of margins of profit. These 

^ This regulation made it illegal to hold or store rye at any point for more than 30 
days. As regards the other coarse grains, this prohibition applied only to seaboard points, 
but at such points not only was storage limited to 30 days, but such grains which had 
been received on or before Sept. 1, 1917, could not be held for a period longer than 5 
days after regulations became effective (Nov. 1). 

" With the grain exchanges virtually closed and no means of hedging, it was impos- 
sible for millers and dealers to protect themselves against future price falls. In other 
words, they could not sell on " futures," to be delivered at a later date, and had no as- 
surance of a profit at the time of delivery. What they did then was to charge a high mar- 
gin for those sales of actual grain on hand which they did make, and in that way try to 
eliminate any possible loss which might result in the future, due to a fall in prices. (See 
final report of Food Administration, ibid.) 

It is of interest to note that later regulations provided for losses or gains from hedging 
" on any recognized grain exchaiige " in arriving at'the cost of corn, oats, rye, and barley, 
in interpreting the " reasonable-advance-over-cost " rule. 



GOVERNMBlsrT COIsTTROL OVER PRICES. 



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126 



HISTORY OF PRICES DURING THE WAR. 



reports were regularly and minutely checked, and as an example of 
the results obtained from this system it is interesting to note that 
in the single month of June the question of price reduction was 
taken up with 204 mills, 95 of whom as a result lowered the price 
of their products. The savings effected because of the orders of 
the diAdsion to reduce prices in June alone \mve been estimated to 
equal $175,000/ 

The Iwiitation of coarse gram millers'' prices. — After digesting 
these reports for several months, the grain division prescribed on July 
20, 1918, with the aid of the industry, a series of maximum margins 
to be added to costs in determining the prices to be charged for the 
various grain products.- Moreover, a definite limitation of 6 per 
cent was placed on profits of millers frOm gross sales of the edible 
products of the various coarse grains for any six-month period. 

The profits of the manufacturers of coarse grain products were 
thus limited to reasonable bases, and it remained to fix specific mar- 
gins on returns of grain dealers and elevator operators from whom 
these manufacturers secured their supplies.-^ 

The formulation of definite profit limitations soon appeared de- 
sirable, and regnilations were issued on September 10 fixing the maxi- 
mum net profits for " any grain dealer, including country elevators 
dealing in grain, to 3 per cent of the first $300,000 of the gross sales 
per annum, (and) 2 per cent on all gross sales in excess of $300,000 
per annum," thereby providing a system of regulation for virtually 
the entire coarse grain industry ; excepting the farmer, whose returns 
were beyond the powers of the Food Administration. 



^ Similarly, price reductions in July netted $116,000. An idea of the range of price 
reductions will be gained from the folloTsing table taken from the Monthly Report of the 
Activities of the Grain Division of the United States Food Administration for June, 191S : 

Reductions per 100 pounds. 





Low. 


High. 




Low. 


High. 


Meal 


$0. 11 
.05 


$0. 80 
.83 




W.50 
.30 


$0.50 


Flour 


Grits 


30 









Price reductions in July varied from 82 per ton for gluten feed to $17.25 per ton for linseed meal. 

2 The following differentials (in cents per hundred pounds bulk product) were promul- 
gated : Old-fashioned or water-ground meal, 50 ; standard and bolted meal, 50 ; pearl meal, 
60 ; pearl or table hominy, 80 ; gi-lts, 80 ; cream meal, 80 ; Ceraline flakes, 120 ; corn flour, 
100 ; other cornmeal, 60 ; barley flour, 95 ; rye flour, 90 ; rolled oats, oatmeal, oat flour, 
90. It should be noted that these prices were bulk prices for grains packed in barrels, 
or 100-pound jute or cotton bags, and did not apply to products sold in packages. For 
corn meal, corn grits, hominy, corn flour, barley flour, and rye flour sold in packages, a 
series of differentials over and under the bulk price were drawn up. The maximum price 
per pound for hominy feed, hominy meal, hominy chop, barley feed, rye feed, or oat feed 
produced as a by-product of manufactured edible corn, barley, rye, or oat products, could 
not be more than the " purchase price per pound of the grain from which it was manufac- 
tured." 

3 rpj^jg reasonable-advance-over-cost rule, of course, applies to dealers and mill operators. 



GOVERNMENT CONTROL OVER PRICES. 127 

Feeding stuffs. — The profits of feed-stuff producers were fixed in 
December, 1917, when a series of differentials was announced on 
various wheat feeds.^ In July, 1918, further differentials were an- 
nounced for wheat feeds in less-than-carload lots and individual 
maximum margins were designated for sales by millers to wholesale 
and retail feed dealers. Indeed, a fair-price schedule based on the 
Government wheat price was drawn up and submitted to each mill 
and on the basis of the schedule millers were to sell their wheat 
feed. 

The maximum return of 6 per cent on total gross sales was made 
applicable also to the manufacturer of mixed feeds. A considerable 
margin, however, was allowed him on individual sales equaling a 
return of 12| per cent on the cost of materials, manufacturing, and 
overhead. This maximum margin, it appears, was made wide "be- 
cause of the speculative character of the products which went into 
the manufacture of mixed feeds, and the rapidly fluctuating prices 
which might prevail." 

Dealers, on the other hand, were allowed a still larger margin on 
individual sales, and for them a maximum 15 per cent over the 
purchase price was considered a fair return. Moreover, their- annual 
earnings were also limited and a yearly net profit " by any whole- 
sale dealer in feeding staffs of more than 4 per cent on total gross 
sales, if his gross sales of feeding stuffs amounted to $100,000 * * * 
per annum was considered prima facie evidence of a violation of the 
rule which prohibited the taking of unreasonable profits." - 

Feeds otlier thmi coarse grains and thew products. — There are 
other important feed stuffs which can not be properly classified 
under coarse grains, but which play an important part in the 
American live-stock industry. These grains were all controlled to 
some extent, and definite Drice regulations were applied to their 
sales. 

Rice feed was provided for under the agreement with the rice 
industry mentioned in preceding pages, whereby all rice millers 
agreed to sell rice polish at a price not to exceed $50 per ton, car lots, 
f, o. b. mill, and rice bran at a maximum of $36. 

Beet pulp, an important by-product of the beet-sugar industry, 
was definitely controlled as to price, and the following were con- 
sidered as maxima which would return a fair margin of profit to the 
beet-sugar manufacturer : 

1 See schedule of margins on wheat feeds on p. 582. 

2 The above rules did not apply to wheat-mill feeds, or the feeds which are discussed im- 
mediately below. In these cases, however, where wheat-mill feeds, cottonseed products, 
rice polish and bran, or dried beet pulp were sold, as well as other feeds, the 4 per cent 
was calculated on all sales. 



128 HISTORY or PRICES DURING THE WAR. 

Wet beet pulp, bulk, mill (car lots) per ton__ $0.80 

Wet beet pulp out of silo, bulk, mill (car lots) do 1. 25 

Dried beet pulp, sacked, f. o. b. factory (car lots) do 40,00 

The price regulation for cottonseed meal has been dealt with in the 
chapter on "Cottonseed and its products." Definite prices were 
fixed for meal and cake in various sections of the country, while hulls 
were to be sold at $20 per ton, bulk, f . o. b. points of manufacture. 

Coffee. 

The outbreak of war in July, 1914, followed by the allied block- 
ade and the cutting off of supplies from central Europe, had its 
effect upon the price of coffee, which in former years ha,d found a 
large market among the peoples of the Central Powers. With the 
elimination of these markets and with the constantly tightening em- 
bargoes of the allied countries to conserve shipping space, the United 
States soon became virtually the only large coffee-consuming country. 
But it became evident that we could not absorb the total production 
of the coffee-raising countries. The nature of the coffee industry, on 
the other hand, made impossible the cutting down of production to 
a degree commensurate with the decline in demand. The result was 
that throughout 1915, 1916, and the greater part of 1917, coffee sold 
on American markets at a figure appreciably lower than the average 
for the prewar years. 

The coffee growers of Brazil, however, set about to get a price 
somewhat in relation to other commodities. The natural operations 
of the market provided no relief, and since it was apparent that arti- 
ficial methods would be necessary, a plan which had been found 
practicable before was once more put into effect. This plan was the 
valorization scheme, whereb}^ the Government bought up as much 
coffee as was necessary to stabilize the market. This undertaking by 
the State of Sao Paulo in Brazil evidently brought little immediate 
results; yet later developments showed that it had exerted some 
effect upon the coffee dealers of the United States. Moreover, the 
fact was emphasized by interested parties that coffee was relatively 
cheap and that any sudden termination of hostilities would have an 
important, effect upon coffee values b:/ opening the European 
markets. 

Govermnental interference. — The coffee propaganda was making 
itself felt by the fall of 1917 upon the speculators and dealers in 
coffee futures and coffee prices started upward in this country. By 
January, 1918, the prewar price was reached, and the Food Adminis- 
tration soon realized that Government interference was necessary. 
On January 30, 1918, all dealers in green coffee were instructed to 
secure licenses from the Food Administration, 



GOVERNMENT CONTEOL OVER PRICES. 129 

Price control was the immediate occasion for this action and the 
first regulations promulgated had a direct bearing on sales and re- 
turns. On February 6, 1918, two days after the license regulations 
went into effect, all purchases and sales of green coffee on the New 
York Coffee and Sugar Exchange for delivery during the month of 
February were limited to a maximum price of 8| cents per pound 
for the standard grade, type No. 7. On purchases which were to 
be delivered after the month of February, there were allowed an 
additional carrying charge of $0.0015 for each month on each pound 
of coffee. Thus the maximum spot price of coffee on the exchange 
was fixed at 8^ cents. This action made it relatively simple to pro- 
vide for the control of the individual dealers, in whose hands lay 
the distribution of coffee. 

Provision was made immediately for the control of the coffee re- 
turns by the general rule of fixed percentages over cost. Importers 
were given the right to charge 2^ per cent per pound over costs* 
while jobbers were allowed a maximum of 5 per cent over cost.^ 

Licensees were instructed to keep their supplies moving in as 
direct a line to the consumer as practicable, and without unreasonable 
delay. Eesales were restricted, especially when tending to result in a 
higher price to the retailer or consumer. However, when there was 
a reasonable justification for resales they were iDermitted at certain 
fixed rates.^ The stocks of any member of tlie trade, moreover, were 
limited to 90 daj'^s requirements. 

In spite of regulations limiting returns and the restricting of sales 
on the Coffee Exchange to certain prices, many difficulties occurred 
which gave trouble. They lay primarily with the rules limiting the 
transactions on the exchange. The maximum spot price had been 
fixed, and this maximum price which was the same for each month 
was always reached. This rule effectively stopped speculation, but 
seemed not to take account of certain customs of the trade. Many 
dealers had hedged their stocks on the exchange, hoping to buy back 
their hedging sales later when deliveries were due. But when such 
time came apparently they could not buy back these sales since 
holders of coffee refused to sell at the fixed maximum prices. The 
actual stocks, therefore, were not released to the trade. By October 

' In arriving at cost, the licensee could take into consideration the gain or loss 
resulting from a single actual hedging transaction on the Coffee Exchange. 

=• On July 24, 1918, an amendment to the regulations increased the maximum profit 
allowance to 5 per cent for importers and 7J per cent for jobbers. 

s Returns on sales from one importer to another were limited to 1,^ per cent over 
cost, and on sales from one jobber to another profits were fixed at a maximum of 21 per 
cent over cost. These v/ere increased on July 24, 1918, to 2i and 31 per cent, respectively. 

125547°— 20 9 



130 HISTORY Or rr.ICES DURING THE WAR. 

the situation became acute and many outstanding orders remained 
unfilled.^ 

The closing of the Coffee Exchange. — Finally, on October 28, the 
board of managers of the Coffee Exchange suspended trading in 
futures. This action, it was explained, was prompted by advances 
of coffee in the Brazilian market above the price fixed in this coun- 
try. In the meantime negotiations had begun between the Food Ad- 
ministrator and the War Trade Board relative to a solution of the 
problem, and on October 14 the a.nnouncement was made that " no 
licenses for the importation" of coffee would be issued except to the 
United States Sugar Equalization Board." This action was taken 
to adjust coffee imports with shipping conditions, to effect an equi- 
table distribution to the trade, and to insure the supplies necessary 
for home consumption. This action seemed a. solution both for the 
tie-uj) in stocks which were being held under long-term contracts and 
for the high price in the Brazilian market. But the Food Admin- 
istrator wanted to release all stocks in this country, and on November 
1 ordered that all coffee futures be liquidated at the maximum price 
before iSTovember 9. He further prohibited new operations and 
transactions on the exchange after November 2. The Coffee Ex- 
change resumed operations in order that contracts in force might be 
closed out, and by November 9 all deliveries of coffee on future con- 
tracts were completed and the trade secured the necessary supplies 
of coffee. All regulations of the Food Administrator were removed 
on December 31, 1918. 

Collateral Comjiodtttes. 

The Food Administration undertook control not only of food- 
stuffs but also of commodities intimately related with the production 
of foods. Ammonia and arsenic were intimately related to the con- 
servation of foods, while ice and twine affected the ultimate price 
of foodstuff's to the consumer.^ 

Ainm€ma. — The part which refrigeration plays in the preserva- 
tion of foodstuffs made ammonia a logical commodity for Govern- 
mental oversight. Moreover, there were the demands for ammonia 
for fertilizers and for the manufacture of explosives. The 1918 

1 The following statement issued by the Food Administration on the occasion of closing 
the Coffee TCxchangc shows well the condition of affairs at the time : " It had been found 
that several houses operating- for foreign account bought coffee futures upon the New 
York Coffee and Sugar Exchange to the amount of several hundred thousand bags. The 
sellers have sold against coffee in stock and en route. The effect is to tie up this 
coffee from distribution for many months, and to necessitate extra tonnage being em- 
ployed if our supplies are to be maintained." 

2 The Division of Miscellaneous Commodities, created immediately after the establish- 
ment of the Food Administration, at first handled some of these extra-food com- 
modities. Later this body merged with the Division of Chemicals which also had 
supm-vision over nonfood materials, and both together were known as the Division of 
Collateral Commodities. 



GOVERNMENT CONTROL OVER PRICES. 



131 



requirements of the Ordnance Department for ammunition alone 
were greater than the entire domestic production of ammonia for 
the preceding year.^ Further an important part of the American 
supply of anmionia had formerly been imported. The shortage of 
shipping had already cut down imports, and there was in prospect 
a still further cut during 1918.2 

The needs of the situation were foreseen early by the Food Admin- 
istration, and even before the ammonia industry was put under 
license a system of effective agreements was devised. The ammonia 
manufacturers were called into conference and an agreement was 
made whereby the allocation of the American output of ammonia 
was put into the hands of the Food Administrator. He in turn 
appointed the interdepartmental ammonia committee, upon whom 
devolved the task of distributing the ammonia supply and deter- 
mining the supervision of allotments.^ 

A further agreement on the part of manufacturers obliged them 
not to sell anhydrous ammonia for more than 30 cents per pound, car- 
load lots, and aqua ammonia for more than 8J cents, carload lots. 

These informal controls came before the anmionia industry was 
brought under license. The agreement discussed above was made on 
November 19, 1917.'" The advantages to be gained from the complete 
control of the ammonia industry, however, led to the licensing of the 
importers, manufacturers, and distributors of ammonia, ammoniacal 
liquors, and ammonium sulphate by a proclamation of January 3, 
1918. 

Ice. — Many conservation measures were put into effect, the most 
important of which was a campaign for the shutting down of artificial 
ice plants during the winter months and the utilization of natural 
ice. Artificial ice manufacturers were asked to use th& least possible 
amounts of ammonia and manufacturers were instructed to supply 
ammonia to concerns only in such quantities as would permit them to 

1 See final report of Food Administration 1918, ibid. 

= As shown in the appended table, based on data from the United States Department 
of Commerce, American imports of ammonia (muriate) suffered a large decrease during 
the early years of the war. Receipts for 1917 were less than half the size of those of 
1913, while the acute situation of 1918 virtually eliminated them: 



Calendar year. 


Pounds. 


Calendar year. 


Pounds. 


Calendar year. 


Pounds. 


1913 


9,019,418 
7, 841, 546 


1915 


2,542,592 
1,653,354 


1917 


2, 146, 549 


1914 


1916 


1918 


234, 904 











3 This committee was made up of representatives of the War Department, Navy 
Department, Department of Agriculture, Department of the Interior, the War Industries 
Board, and the Food Administration. 

* Although the licensing of the ammonia industry was put into the hands of the 
Food Administration, the enforcement of the regulations promulgated was theoretically 
intrusted to the Department of Agriculture. However, the interdepartmental ammonia 
committee really enforced the rules wliich were put into effect. 



132 HISTORY OF PRICES DURIXG THE WAR. 

operate their plants vrith a maximum degree of efficiency. Moreover, 
monthly consumption reports were required from each ice and refrig- 
eration plant by means of which a careful check was kept upon con- 
sumption. Where there appeared undue use by a concern, the manu- 
facturer who supplied the ammonia was notified to refuse to make 
further deliveries unless evidence was furnished that wasteful meth- 
ods would be discontinued. 

The efficacy of the price control over ammonia seems striking 
after comparing the price of ammonia in the year 1918 with prices in 
general. The extraordinary feature of the control is that a stable 
price was maintained during a season " at the outset of which we were 
faced with an apparent shortage of 60,000.000 pounds." This control 
is notable in the degree of informal control which obtained before 
ammonia was put under license. The jDrice of ammonia, liquid, an- 
hydrous, in cylinders, at New York, held at 25 cents per pound during 
the war until August, 1917, when it rose to 30 cents and stayed there 
through 1918. 

The conservation measures inaugurated in the refrigerating and 
ice-producing industries in the winter of 1917-18 resulted in harvest- 
ing more natural ice, and the spring of 1918 found one of the largest 
ice crops ever stored in the United States. There was no reason to 
fear any acute shortage then, but because of the importance of ice to 
the food program it was deemed advisable to see that ice prices did 
not exceed a nominal level in the various parts of the country. The 
industry was never put under license, but supervision was maintained 
throughout the summer of 1918. It was obviously impossible for the 
central office of the Food Administration to achninister control over 
the almost limitless array of ice distributors, especially when no one 
of them was subject to any direct regulations, and when no one of 
them made any reports as to his methods of doing business or as to 
the j)rices charged for his commodity. The supervision over ice 
prices was placed in the hands of the Federal food administrators 
for the various States, with instructions that they keep under con- 
trol the ice prices in their industrial districts. Price increases were 
investigated by these officials, and with them was left the task of 
determining the reasonableness of price advances in the territory 
that came under their jurisdiction. The theory applied in making 
such decisions was that " as far as possible the burden of any neces- 
sary increase should fall upon the large users rather than upon the 
small household consumer." ^ 

Arsenic. — The extraordinary demands for insecticides in the pro- 
duction of which the greater part of the domestic output of arsenic 
is consumed, together with the needs of glass producers, resulted in 

' Final report cf the Food AdmiDistraticn, 1918. 



GOVEENMEISTT CONTROL OVER PRICES. 133 

a spectacular rise in tlie price of arsenic even before the United States 
entered the war. Under the stimulus of this large demand the Amer- 
ican production of arsenic increased rapidly during the war, and in 
1917 the output amounted to 6,151 tons, as against 2,513 tons in 1913, 
an increase of approximately 150 per cent. But this increased output 
was by no means commensurate with tlie growing demands of the 
country, and by late 1916 a shortage was threatening. In December, 
1916, arsenic was selling at a price 134 per cent higher than the aver- 
age prewar level. The American entrance into the war accentuated 
the difficulties of the situation, and arsenic prices began soaring to 
unprecedented levels. By September, 1917, arsenic had reached a 
point 481 per cent above its average for 1913-14. 

Apart from the rise in price, moreover, the insecticide producers 
were complaining of their inability to secure arsenic. This condition 
had a direct bearing upon the food situation, and on November 15 a 
proclamation was issued which required all those engaged in im- 
porting', manufacturing, storing, and distributing white arsenic or 
engaged in the manufacture of insecticides containing arsenic to take 
out licenses within five days. . Eegulations were issued similar to 
those which were promulgated in the case of foodstuffs, and provi- 
sions were made for the securing of reports from licensees which 
showed the state of affairs in the industry. Measures were also en- 
forced which aimed at the elimination of hoarding, the prohibition 
of unreasonable profits, the prevention of waste, and the diversion of 
arsenic from less to more essential uses; and sales to others than 
manufacturers of insecticides, medicines, and such products as were 
required by the United States Government were forbidden, unless 
specially authorized by the Food Administration.^ Moreover, the 
price situation was immediately investigated, and on February 23 the 
producer's price of white arsenic was virtually fixed at a maximum of 
9 cents per pound delivered at any point in the United States in car- 
load lots.2 This price was a cut of almost 50 per cent from the market 
price of 16.5,cents for the preceding month. It appears, however, that 
this new low price was not reflected universally in the consumer's 
price, since they were known to be paying as high as 30 cents per 
pound for small lots.^ 

The trade was therefore notified, on April 4, that the price of arse- 
nic to the consumers would have to be considerably lowered, and a 
margin of one- fourth cent per pound was declared to be a fair return 

^ This latter regulation, it will be noted, made it illegal to sell arsenic without permis- 
sion of the Food Administration to glass producers, who were normally large consumers. 

^ An extra half cent per pound was allowed for less than carload lots. 

^ Review of Control of Arsenic and Arsenical Insecticides. Files of U. S. Food Adminis- 
tration. 



134 HISTORY OF PRICES DURING THE WAR. 

to dealers who sold in carload lots. In this waj the selling price of 
arsenic to consumers was fixed.^ 

The Army was daily increasing its demands for arsenic, both for 
airplane " dope " and poison gas, and by the middle of the summer of 
1918 their needs were estimated at 6,400 tons for the coming 12 
months. Added to this were the British requirements of 2,000 tons, 
making the military needs of the country 8,400 tons. As stated 
above, however, our total output of 1917 was equal only to 6,151 
tons, and this amount, it was estimated, would be increased through 
new production facilities by some 2,000 tons. Therefore, our entire 
domestic production would barely meet our military demands. 
Investigation into other possible sources showed that if we included 
all our stocks and such supplies as were available in Canada we might 
possibly count on a maximum of 14,400 tons for the year ending 
July, 1919. There would then be available for agricultural and other 
uses about 6,000 tons. Of this, 1,000 tons had already been delivered 
to producers of sheep dips and glass. Our requirements of 1917-18 
had been approximately 11,300 tons, of which 8,000 had gone into 
agricultural uses, 2,000 into the manufacture of glass, and 1,300 into 
the drug industry and other miscellaneous uses. It appeared, there- 
fore, that there would not be sufficient arsenic to supply even our 
agricultural needs. 

Curtailment of uses as far as possible was then the only logical 
remedy and immediately all deliveries of arsenic for the manufacture 
of glass were stopped. Economies were also enforced in the manu- 
facture of sheep dips and Paris green, and substitutes were used 
wherever possible.^ The situation finally was relieved, and not only 
were the war needs met but also those of the insecticide manu- 
facturers. 

Unlicensed Control ovek Commodities at Retail. 

Oiie of the two distinct handicaps to complete control over foods 
which the Food Administration had to face at the outset was that 
clause in the act which exempted dealers in foods at retail from li- 
cense control when their gross sales fell below $100,000 annually.' 
But so firmly did the Food Administrator Ibelieve that Congress was 
in error upon that point that the Food Administration set about im- 
mediately to control the retail trade by other methods. It seemed 

1 Otlier margins were fixed for sales by dealers who sold in small quantities. An addi- 
tional three-fourths cent per pound was allowed for sales which were above 20,000 pounds 
but less than a carload ; 1 cent for sales ranging from 5,000 to 20,000 pounds ; 2 cents 
for quantities varying from 1 keg to 5,000 pounds ; and 3 cents for sales of less than 1 keg. 

" Special regulations issued hy the Food Administration on Oct. 24, 1918, fortede the 
sale or delivery of white arsenic of certain strength to any person for the manufacture of 
sheep or cattle dips, and on Oct. 31 licensees were forbidden to use white arsenic in 
the manufacture of sheep or cattle dips without the. special permission of the Food Ad- 
ministration. 

s The other handicap was the exemption of producers and proaucers' associ;itions. 



GOVEEIfMENT CONTEOL OVER PRICES. 135 

patent to high officials in the administration of food control that if 
both ends of the channels of distribution were left uncontrolled 
(that is, the producuig and the retailing ends) the consumer would 
after all have no protection against exorbitant charges by retailers. 
The law, they reasoned, by its specific exemption might even seem to 
encourage high prices. The class of retailers exempted by the act, 
moreover, embraced more than 95 per cent of the total number of re- 
tailers in the United States. Since the penalties for violations of 
the broad grants of power under section 4 seemed of doubtful char- 
acter, the Food Administration abandoned hope of enforcing its rules 
upon retailers directly, and worked out schemes to enforce them ni- 
directly and despite the act. It soon came into a considerable control 
over the retail prices of foods through pressure by the wholesale li- 
censees, the organization of the retail trade, a check upon retail prices 
by consimiers' reports, and the publication of " fair price " lists. 

Indirect control tlirough licensees.— ThQ most, ingenious scheme by 
which the Food Administration brought the great body of unlicensed 
retailers under control was by a control of their supplies which came 
from the licensed wholesalers.^ The Food Administration could 
grant or withdraw licenses at discretion and was in a position, there- 
fore, to prohibit licensees from selling food commodities to dealers 
who violated the food control act. It, with that in mind, set up the 
so-called rule 17 of the General License Kegulations which became 
t\\Q. basis of control over the ret<ail trade. The rule provided that— 
The licensee sliall not knowingly sell any food commodities to any persons 
engaged in tlie business of selling snch commodities who shall after this regu- 
lation goes into effect violate the provisions of the act of Congress approved Au- 
gust 10, 1917, by making any tmreasonable rate or charge in selling or otherwise 
handling or dealing in such commodities, or by holding, contracting for, or ar- 
ranging for a quantity thereof in excess of the reasonable requirements of his 
business for use or sale by him for a reasonable tima 

The enforcement of rules for retailers, set up upon the basis of 
this authority, entailed such difficulties as giving notice to all 
licensees not to sell any supplies to a particular retail violator. Re- 
tail dealers who were caught hoarding or exacting excessive profits, 
however, preferred generally to submit to penalties rather than 
allow the Food Administrator to notify licensees, cut off supplies, 
and put a ban upon their business. The directions which were issued 
for the guidance of retailers required that merchants sell certain 
commodities, including virtually the staple articles, at not more 
than a reasonable advance over the actual purchase price without 

1 Dr. Albert N. Merritt, in liis final report of the Distribution Division, ventures the 
opinion that this indirect method brought the unlicensed retailer under food control almost 
to the same extent as the licensee. 



136 HISTORY OF PRICES DURING THE WAE. 

I'ogard to the market or replacement value ;^ not more than 30 days' 
yupply of sugar or flour should be kept on hand, or more than 60 
days' supply of certain other foods; not more than one-eighth barrel 
of flour should be sold to a person residing in a city, or more than 
one-quarter barrel to a person residing in a farming community; 
not more than 2 to 5 pound quantities of sugar should be sold to 
persons in a city, or more than 5 to 10 pounds to those in a farming 
community; not more than 60 days' supply of other foods should 
be sold to any customer; wheat flour should not be sold unless the 
customer bought an equal amount of wheat substitutes; and that 
combination sales must not be made except that sugar may be sold 
in combination with corn meal, and wheat flour must not be sold 
excei:)t with wheat flour substitutes.^ The retail dealer was sub- 
jected to the same cost basis rule as the jobber, and finally there 
were established for him maxinmm margins covering many of the 
liiore important licensed commodities.^ 

2^ he organization of the retail trade. — It is not odd, since the Food 
Administration felt so much need for cooperation from the whole- 
sale trade, that it also desired that of the retail trade. About the 
middle of October, 1917, therefore, a conference was held at Wash- 
ington with representative retailers throughout the country. After 
that conference the representatives voluntarily drew up resolutions 
pledging the retail trade, whether licensed or unlicensed, to the rules 
of the Food Administration and forwarded 3,000,000 copies to the 
retailers through their jobbers.* Virtually every retailer, then, re- 

^ That list included wheat flour, rye Hour, barley flour, oatmeal, rolled oats, corn grits, 
corn meal, hominy, corn flour, cornstarch, corn oil, corn sirup, cleaned rice, rice flour, 
oleomargarine, lard, lard substitutes, oleo oil, cooking fats, condensed milk, evaporated 
milk, powdered milk, fresh, canned, or cured beef, pork or mutton, canned peas, canned 
dried beans, canned tomatoes, canned corn, canned salmon, canned sardines, dried prunes, 
dried apples, dried peaches, dried raising, sugar, sirups, molasses, clarified sugar, planta- 
tion washed sugar, open-kettle sugar, dried beans, dried peas, cotton seed, cottonseed oil, 
cottonseed cake, cottonseed meal, peanut oil, soya-bean oil, palm oil, copra oil, peanut 
meal, soya bean meal, and feeds of all kinds. 

2 These rules may be found more in detail in " Directions for Guidance of Persons En- 
gaged in Distributing Food Commodities at Retail," issued Mar. 25, 1918. 

^ A full discussion of retail maximum margins appeared earlier in the chapter under 
" Policies of the Food Administrator." 

^ A brief digest of the 15 resolutions drawn up on Oct. 17, 1917, by representatives of 
the retail trade and recommending retailors to pledge themselves to the Food Administra- 
tion rules follows : 1. Cooperation with Food Administration by retail trade whether 
licensed or not. 2. Discontinuance of order solicitations during the war. 3. Limitation 
of deliveries to 1 a day to any family or route. 4. Cooperative system of delivery. 5. 
Selling of substitutes for flour and meat. 6. Urge sale of cheaper foods of good quality 
recommended by the Conservation Division, 7. Practice economy and give " consumers 
the lowest possible prices." 8. All retailers and retailers' associations should, write their 
promise of support to the Food Administration. 9. Solicitation of trade papers. 10. 
Urge sale of potatoes. 11. Sale of foods by weight and for cash. 12. Sale of such foods 
as prunes, corn meal, oat meal, rice, and hominy In bulk. 13. Push the sale of soup stock, 
peas, rice, barley, fresh vegetables, and oysters. 14. Pledge to a reasonable living margin 
of profit, " irrespective of the market conditions at the time of resale," and such profits 
not to be greater than under prewar conditions. 15. The enlistment of all individual retail 
grocers and associations of retail grocers. 



GOYEEISrMEjSrT COIsTTEOL OVER PRICES. 137- 

ceived this notice from the wholesaler who furnished him with sup- 
plies. The patriotism of the retailer was appealed to through the 
press, traveling salesmen of wholesale grocers, boards of trade, re- 
tail trade associations, and through conferences between local repre- 
sentatives of the Food Administration; and a national pledge cam- 
paign resulted in the distribution of some 430,000 copies of the re- 
tailers' pledge poster. 

Th& consumers' reports.— Oi\Q of the most effective checks upon 
so-called retail profiteering, and one which was begun soon after the 
creation of the Food Administration and was continued to the end 
of the war, was the confidential weekly reports of retail prices by 
consumers. The Food Administration, by aid of the Comptroller of 
the Currency, who sent out circular letters to the banks of the. 
country, made up a list of reliable reporters throughout the country 
who reported regularly prices which had been quoted in their com- 
munity on one or the other of 28 staple commodities (wheat flour; 
wheat bread; cornmeal, bulk; oatmeal, bulk; rice; steak, round; 
bacon, sliced ; ham, sliced ; pork chops ; lard ; milk ; butter ; oleomar- 
garine; cheese; eggs; sugar; potatoes; beans, navy; onions; prunes; 
tomatoes; peas; com; salmon; fish; hens, tea; coffee) without the 
knowledge of the retailer that the quotations would be sent to the 
Food Administration.! The first weekly reports, in the week of. 
October 6, 1917, were received from 839 reporters representing 798 
towns and cities. On September 28, 1918, which marked the close 
of a year of 52 weeks, the work had so increased that reports were 
received from 1,871 reporters representing 1,305 towns and cities. 

These reports, showing actual retail prices being paid by con- 
sumers, were followed closely by the Food Administration and served 
as signals to special investigations when the weekly chain index 
showed an extraordinary rise over the week preceding, when there 
appeared peculiar discrepancies in price between various cities or 
States, when there was a wide variance with the prices on the " fair 
price " list, when peculiarities appeared by comparisons with a list 
of corresponding weekly retail prices in Canada which were sent by 
the Canadian Food Administration, or when the weekly relative 
prices (figured upon the base October, 1917, as equal to 100) showed 
unusual rises away from the earlier level. 

The " fair 'price'' lists. — It early occurred to the Food Administra- 
tion that an especially effective control over retail prices could be 
had through checking weekly retail prices " actually paid " by the 
consumer against those which he " should pay." The setting up of 
the system of consumers' reports to watch retai l prices "actually 

1 The-e reporters were selected women of the town nsually, snch as the wives of minis- 
ters, bankers, and professional men, and who took interest in helping the Food Adminis- 
tration in its plan of checking retail prices. 



138 HISTORY OF PRICES DURING THE WAR. 

paid," as has been said, was put well under way by the fall of 1917, 
but the full machinery for determining retail prices that consumers 
" should pay " and the publication of those fair-price lists did not 
become effective until nearly a year later. The whole undertaking 
was a tremendous one because it proposed to announce each week 
what prices were and what prices should have been for any one of 
thirty-odd food staples at retail in the various markets throughout 
the country. 

The embryo of what developed into the final plan was started in 
mid-fall of 1917 when all Federal food administrators were asked to 
announce fair prices in a manner similar to that conceived originally 
by the Illinois food administrator.^ It meant simply an understand- 
ing with the retail distributors by which they voluntarily agreed 
upon a reasonable and fair margin for the sale of certain licensed 
goods. The costs to the retailer and the prices to the consumer were 
to be published. The published prices generally represented two 
maxima, one for the retailer with high cost and the other for the re- 
tailer with less service and lower cost. 

But during 1918 there came a change in this informal method, 
which started the organization of so-called interpreting boards in 
every county of the country to determine fair prices. The county 
food administrator was made chairman of his interpreting board 
composed of representative wholesale grocers, retailers, and con- 
sumers. These boards met in their respective localities and, by aid 
of maximum margins furnished them by the Food Administration, 
determined fair and reasonable retail prices. It was left to each 
board simply to find the cost to the retailer, add the margins sent it 
by the Food Administration, and publish the results as " fair prices." 
Again there were two maximum prices published — one for cash-and- 
carry stores and one for credit-and-delivery stores. The Food Ad- 
ministration grew more and more courageous in its dealing with the 
retail problem and on November 7, 1918, published its list of maxi- 
mum retail margins as mandatory rules and regulations to be used in 
retail price interpretation. Gradually a particular man was made 
responsible for this work in each State and 1,200 local committees 
v/ere appointed to meet at least once each week. These committees 
determined prices applicable for their respective localities, upon the 
basis of the new maximum margins allowable, and pushed vigorously 
the publication of their " fair prices " thus found. The " fair price " 
lists when received by the Food Administration at Washington were 

1 The Federal food administrator of Illinois, as early as October, 1917, set forth a plan 
in his State for retail control through the publication of fair prices. It provided that pub- 
licity be given to the prices which the retailers were paying the wholesalers for a few 
staple foods and corresponding fair retail selling prices:. The fair selling prices were de- 
termined upon the basis of cost to the retailer and in agreement with a committee of the 
retail trade. 



G0VEENMEI5-T CONTROL OVER PRICES. 139 

carefully compared with the prices shown on the consumers' reports 
for those same localities. 

The weekly reports of retail prices " actually paid, appearing 
upon the consumers' reports, show variations so nearly like those 
that the interpreting boards said the consumers "should pay, ^ ap- 
pearing upon the "fair price" lists, that, the Distribution Division 
states, in its final report, "prices * * * had been stabilized to 
such a degTee that the difference in freight constituted practically the 
only difference between average prices paid by the consumers m dif- 
ferent parts of the country." That conclusion does not, of course, bear 
upon the question whether the maximum margins set by the Food 
Administration, and upon which "fair price" lists were built 
throughout the country, were too low or too high. 

It is well worth showing into what statistical form these thou- 
sands of consumers' reports and "fair price" lists were put that 
they might be made ready and useful checks, the one upon the other. 
An analvsis of a single one of these weekly confidential " fair price 
bulletins, perhaps, would give an adequate picture of the plan aiid 
a measure of its real significance. The regular weekly builetm for 
the week ending just prior to the signing of the armistice, prepared 
for limited distribution within the Food Administration, compares 
30 odd retail prices which consumers "should pay" (represent- 
ing "fair prices" sent in on 366 reports from 41 States) with cor- 
responding retail prices " actually paid " (taken from 1,686 con- 
sumers' reports). It states in summary: 

This summary shows that, during the week's period from November 2 to 
November 9, the aggregate cost of the 29 food staples decreased 0.9 cent, or 
one-tenth of 1 per cent, according to " fair prices," and increased 3.3 centra, 
or 4 per cent, as shown by onr corps of volunteer reporters. The cost o^ 
this group of foodstuffs on November 2, was $8,891 and on November 9, $8,882, 
as published by the fair price committees; while according to prices actually 
paid, the cost was $8,935 on November 2 and $8,968 on November 9. This 
comparison shows that, on November 2, these combir.eti staples cost the con- 
sumer 4.4 cents more than the aggregate cost as reported by " fair prices, 
and on November 9, 8.6 cents more. 

It would seem doubtful whether that generalization is as useful, 
if as accurate, as some that may well be made from the comparative 
tables of individual retail prices which consumers "should pay" 
and which they "actually paid." The "fair prices" allowable in- 
creased during the week on U items, decreased on 15 items, and 
remained stationary on 6 items. The consumer-reporter prices in- 
creased on 14 items, decreased on 14 items, and remained stationary 
on T items. Curiously, while the "fair price" allowable for corn meal 
(packages) was increased over the country 5,6 per cent during the 
week, the consumer-reporter prices showed that the price actually 
charged fell off 1.37 per cent. On the other hand, while the price 



140 



HISTORY OF PRICES DURI:N"G THE WAR. 



allowable for potatoes fell off 0.8 per cent, the price being charged 
increased generally 2.2 per cent. These analyses, when supported 
by their detailed comparisons by States, made graphic the week-to- 
week discrepancies. A summary comparison follows of commodities 
at retail, weighted according to population, showing averages of 
prices that consumers " should pay " (known as " fair prices " and 
calculated from margins by interpreting boards), with prices that 
consumers " actually paid " (known as comsumer-reporter prices) 
Avithin 41 States, for the week ended November 2, with those for 
the week ended November 9, 1918. 

A COMP4RISON OF AVERAGE FAIR PRICES WITH CONSUMER-REPORTER PRICES 
IN THE UNITED STATES FOR THE WEEK. PRIOR TO THE SIGNING OF THE 
ARMISTICE. 





Unit. • 


Fair prices. 


Consumer-reporter prices. 


Commodities. 


Week ended — 


Per cent 
of in- 

crease(4-) 

or de- 
erease(— ). 


Week ended — 


Per cent 
of in- 




Nov. 2. 


Nov. 9. 


Nov. 2. 


Nov. 9. 


crease(+) 

cr de- 
crease(— ). 


Wheat flour 


T^j barrel 

Pound 


SO.- 820 
.070 
.146 
.099 
.070 
.109 
.062 
.071 
.079 
.103 
.139 
.086 
.495 
.181 
.193 
.195 
.236 
.317 
.076 
.156 
.139 
.645 
.414 
.386 
.581 
.385 
.566 
..409 
.493 
.345 
.294 
.043 
. IGl. 
.171 
.156 


SO. S16 
.070 
.146 
.099 
.071 
.108 

. .061 
.075 
.080 
.103 
.139 
.085 
.491 
.179 
.196 
.199 
.235 
.320 
.079 
.158 
.137 
.650 
.417 
.389 
.597 
.348 
.563 
.408- 
.499 
.341 
.291 
.043 
.159 
.170 
.160 


-0.5 


$0. 831 
.072 
.149 
.099 
.077 
.107 
.066 
.076 
.081 
.103 
.139 
.089 
.495 
.175 
.191 
.189 
.238 
.313 
.075 
.148 
.142 
.640 
.395 
.381 
.605 
.374 
.571 
.415 
.519 
.341 
.291 
.048 
.166 
.177 
.157 


SO. 828 
.073 
.148 
.098 
.076 
.108 
.066 
.075 
.080 
.102 
.139 
.088 
.506 
.175 
.191 
.189 
.237 
.313 
.075 
.150 
.143 
.645 
.399 
.382 
.622 
.373 
.574 
.413 
.520 
.339 
.292 
.047 
.166 
.178 
.159 


-0.4 


Do 


+1.4 








-0.7 


Do 






-1.0 




Pound 


+ 1.4 
-0.9 
-1.6 
+5.6 
+ 1.3 



-1.3 




do 


+0.9 




do 


-1.5 




do 


-1.3 




do 


-1.2 




..do 


-1.0 




do 








do 


-1.2 
-0.8 
-1.1 
+ 1.5 
+2.1 
-0.4 
+0.9 
+3.9 
+ 1.3 
-1.4 
+0.8 
+0.7 
+0.8 
+2.7 
-9.6 
-0.5 
-0.2 
+ 1.2 
-1.1 
-1.0 


-1.1 




Peck 


+2.2 










.. do 






do 






No. 1 can 


-0.4 




do 






6-ouncecan 

16-ounce can 

Quart 




Do 


+1.3 


Milk 


+0.7 


Butter 


Pound 


+0.8 




do 


+1.0 




. do 


+0.3 




Dozen 


+2.8 




Pound 


-0.3 




do 


+0.5 




do 


-0.5 




do 


+0.2 




do 


-0.6 




do 


+0.3 




. do 


-2.1 


Beans, wMte - 


do 

do 


-1.2 
-0.6 
+2.6 




+0.6 


Kaisins, seeded 


do 


+ 1.3 






8.891 


8. 882 


-0.1 


8.935 


8.968 


+0.4 









A comparison of retail prices. — It is particularly interesting, by 
reason especially of the various roundabout methods used, to know 
how far the Food Administration got in its control over retail prices. 
There are, of course, no data available to give a precise statistical 
measure of the effect of the above controls upon retail prices. Of all 
its regulations, those over the retailer were by necessity the most 



GOVERNMENT CONTROL, OVER PRICES. 



141 



nebnlons. But from a study of the prices of commodities at retail 
it is possible to see how they moved with respect to each other, and to 
judge whether or not the more highly controlled foods showed greater 
stabilization. That comparison makes obvious some generalizations 
which are^ quite legitimate and striking. 



A COMPARISON OF .THE PRICES OF 28 COMMODITIES AT RETAIL FROM 
OCTOBER, 1917, TO DECEMBER, 1918. 



Months: 

1917— October.... 

November. 

Decemtier. . 
191S— January 

February. . . 

March 

April 

May 

June 

July 

August 

September. 

October 

November . 

December. . 
Quarters: 

1917— Fourth..'... 
191&— First 

Second 

Third 

Fourth 



Wheat flour. 



Actual. 



f 0.848 
.834 
.823 
.821 
.818 
.825 
.823 
.824 
.827 
.831 
.837 
.837 
.833 
.826 
.819 

.836 
.821 
.824 
.835 
.826 



Rela' 

tive. 



100 
98 
97 
97 
96 
97 
97 
97 



Wheat bread. 



Actual. 



.108 
.107 
.103 
.103 
.102 
.102 
.100 
.100 
.100 
.099 
.099 
.099 
.099 
.098 



.106 
.102 
.100 
.099 
.098 



Rela- 
tive. 



100 
99 
95 
95 
94 
94 
93 
93 
93 
92 
92 
92 
92 
91 
91 

98 
94 
93 
92 
91 



Corn meal, 
bulk. 



Actual. 



.008 
.068 
.008 
.068 
.068 
.069 
.069 
.069 
.066 
.006 
.066 
.066 
.066 
.065 
.063 

.008 
.068 
.068 
.066 
.065 



Rela- 
tive. 



100 
"lOO 
100 
100 
100 
101 
101 
101 
97 
97 
97 
97 
97 
96 
93 

100 
100 
100 
97 
96 



Oatmeal. 



Actual. 



Rela- 
tive. 



100 
99 
98 
99 
98 
99 
102 
103 
97 
96 
96 
96 
96 
91 
90 

99 
99 
101 
96 
92 



Rice. 



Actual. 



0.110 
.111 
.112 
.114 
.116 
.118 
.119 
.119 
.124 
.128 
.133 
.135 
.138 
.139 
.138 

.111 
.116 
.120 
.131 

.138 



Rela- 
tive. 



100 
101 
102 
104 
105 
107 
108 
108 
113 
116 
121 
123 
125 
126 
125 

101 
105 
109 
119 
125 



Steak, round. 



Actual. 



Months: 

1917— October | SO. 293 

November 

December 

1918— January 

February 

March 

April 

May 

Jime 

July 

August 

September 

October 

November 

December 

Quarters: 

1917— Fourth 

1918— First 

Second. , 

Third 

Fourth 



.289 
.294 
.299 
.304 
.323 
.350 
.375 
.376 
.376 
.381 
.379 
.373 
.372 



Rela- 
tive. 



100 
99 
99 
100 
102 
104 
110 
119 
128 
128 
128 
1.30 
129 
127 
127 



102 
119 
129 
128 



Bacon, sliced, 



Actual. 



.472 
.480 
.485 
.490 
.491 
.483 
.491 
.497 
.509 
.514 
.527 
.544 
.565 
.574 
.581 

.478. 
.4.88 
.499 
.527 
.573 



Rela- 
tive. 



100 
102 
103 
104 
104 
102 
104 
105 
108 
109 
112 
115 
120 
122 
123 

101 
103 
106 
112 
121 



Ham, sliced. 



Actual. 



.404 
.406 
.410 
.415 
.419 
.419 
.428 
.437 
.460 
.469 
.483 
.502 
.515 
.518 
.527 

.406 
.417 
.441 
.483 
.520 



Rela- 
tive. 



100 
100 
101 
103 
104 
104 
106 
108 
114 
116 
120 
124 
127 
128 
130 

100 
103 
109 
120 
129 



Pork chops. 



Actual. 



SO. 369 
.351 
.-346 
.347 
.343 
.341 
.349 
.358 
.368 
.373 
.394 
.421 
.429 
.413 
.404 

.356 
.344 
.358 
.394 
.415 



Rela- 
tive. 



100 

95 

94 

94 

93 

92 

95 

97 

100 

101 

107 

114 

116 

112 

109 

96 
93 

97 
107 
112 



Lard. 



Actual. 



0.312 
.325 
.332 
.332 
.333 
.332 
.333 
.332 
.329 
.328 
.331 
.335 
.340 
.340 
.340 

.322 
.332 
.331 
.331 
.340 



Rela- 
tive. 



100 
104 
106 
106 
107 
106 
107 
106 
105 
105 
106 
107 
109 
109 
109 

103 
106 
106 
106 
109 



The Food Administration really did not get started upon its con- 
trol over retail prices until after October, 1917. There have been put 
into statistical form, therefore, the retail prices " actually paid " by 
over 1,000 consumers at various markets throughout the country, 



142 



HTSTOEY OF PRICES DURING THE WAB. 



from October, 191T, to December, 1918. The accompanying tables 
show the movement of actual prices from October 28 of the most im- 
portant food staples at retail. The comparison is expedited by the 
presentation, alongside the actual prices, of relative i^rices figured 
with the October, 1917, actual price taken as a base equal to 100. 





Milk. 


Butter. 


Oleomar- 
garine. 


Cheese. 


Eggs. 




Ac- 
tual. 


Kel- 
ative. 


Ac- 
tual. 


Rel- 
ative. 


Ac- 
tual. 


Rel- 
ative. 


Ac- 
tual. 


Rel- 
ative. 


Ac- 
tual. 


Rel- 
ative. 


Months: 

1917— October 


SO. 118 
.123 
.126 
.127 
.127 
.128 
.127 
.127 
.126 
.127 
.129 
.132 
.139 
.144 
.146 

.122 
.127 
.127 
.129 
.143 


100 
104 

107 
108 
108 
108 
108 
108 
107 
108 
109 
112 

lis 

122 
124 

103 
108 
108 
109 
121 


SO. 510 
.511 

.527 
.547 
.557 
.533 
.503 
.500 
.502 
.515 
.531 
.579 
.630 
.650 
.696 

.516 
.546 
.501 
.540 
.661 


100 
100 
103 
107 
109 
105 
99 
98 
98 
101 
104 
114 
125 
127 
136 

101 
107 
98 
106 
130 


SO. 343 
.349 
.353 
.356 
.358 
.351 
.352 
.351 
.350 
.352 
.354 
.361 
.374 
.382 
.386 

.348 
.355 
.351 
.355 
.381 


100 
102- 
103 
104 
104 
102 
103 
102 
102 
103 
103 
105 
109 
111 
113 

101 

103 
102 
103 

ill 


SO. 350 
.347 
.352 
.352 
.356 
.353 
.349 
.346 
.341 
.342 
.349 
.300 
.382 
.401 
.420 

.350 
.354 
.345 
.350 
.401 


100 
99 
101 
101 
102 
101 
109 
99 
97 
98 
100 
103 
109 
115 
120 

100 
101 
99 
100 
115 


SO. 493 
.527 
.561 
.609 
.554 
.397 
.383 
.384 
.391 
.430 
.467 
.510 
.561 
.634 
.705 

.524 
.527 
.386 
.406 
.634 


100 


November 


107 




114 


1918 — January. ... 


124 


February 


112 


March 


81 


April. . . 


78 


May ... 


78 


June 


79 


July 


87 


August 


95 


September 


103 


October 


114 


November 


129 


December. . 


143 


Quarters: 

1917— Fourth , 


106 


1918— Fiist 


107 


Second 


78 


Third 


95 


Fourth. . 


129 







Months: 

1917— October.... 

Novemljer . 

December.. 
1918 — January 

February . . 

March 

April 

May 

Jime 

July 

August 

September . 

October 

November . 

December.. 
Quarters: 

1917— Fourth 

1918— First 

Second 

Third 

■ Fourth 



Sugar. 



Ac- 
tual. 



.098 
.099 
.098 
.097 
.096 
.094 
.093 
.093 
.093 
.094 
.095 
.099 
.108 
.108 
.109 

.099 
.096 
.093 
.096 
.108 



Rel- 
ative. 



100 
101 
100 
99 



95 
95 
95 
96 
97 
101 
108 
110 
111 



95 



Ac- 
tual. 



.434 
.449 
.441 
.444 
.436 
.392 
.336 
.322 
.456 
.595 
.567 
.575 
.537 
.496 
.481 

.440 
.426 
.332 
.580 
.505 



Rel- 
ative. 



100 
103 
102 
102 
100 
90 
77 
74 
105 
137 
131 
132 
124 
114 
111 

101 
98 
77 
134 
116 



Beans, navy. 



Ac- 
tual. 



Rel- 
ative. 



Onions. 



Ac- 
tual. 



$0,051 
.051 
.052 
.053 
.053 
.049 
.045 
.050 
.055 
.057 
.057 
.055 
.050 
.047 
.045 

.051 
.052 
.050 
.056 
.047 



Rel- 
ative. 



100 
100 
102 
104 
104 
96 



108 
112 
112 
108 
98 
92 



100 

102 



110 

92 



Prunes. 



Ac- 
tual. 



0.173 
.172 
.170 
.170 
.169 
.169 
.169 
.169 
.164 
.165 
.168 
.171 
.175 
.177 
.179 

.172 
.169 
.168 
.168 
.177 



Rel- 
ative. 



100 
99 



98 



95 
95 
97 
99 
101 
102 
103 

99 
98 
97 
97 
102 



The eye is caught at once by the striking differences in the move- 
ment of the cereals, which were highly controlled, and the rneats, 
which were not highly controlled. The prices of wheat flour, wheat 
bread, corn meal in bulk, and oatmeal in bulk hold strikingly near, 
or even below, their level at the time retail control set in. The 



GOVEENMEE-T CONTEOL, OVER PRICES. 



143 



prices of round steak, sliced bacon, sliced ham, and pork ciiops, 
on the other hand, all show marked rises during the same period. 
Beans, which were higlily controlled, receded from their earlier 
level. ' Sugar, which was highly controlled from the outset, main- 



Months— 

1917 October — 
Novembor. 
December. . 

1918 January — 
Febmary.. 

March 

April.. 

May 

Jime 

July 

August 

September. 

October 

November. 
December. . 

Quarters— 

1917— Fourth 

1918— First 

Second.... 

Third 

Fourth 



Tomatoes. 



Actual. 



Rela- 
tive. 



Peas. 



Actual. 



).16S 


100 


.165 


98 


.161 


96 


.162 


96 


.163 


97 


. 105 


98 


.166 


99 


.167 


99 


.163 


97 


.166 


99 


.169 


101 


.172 


102 


.175 


104 


.176 


105 


.178 


106 


.165 


98 


.163 


97 


. 165 


98 


.169 


101 


.176 


105 



SO. 177 
.176 
.175 
.177 
.177 
.175 
.178 
.178 
.177 
.178 
.181 
.185 
.189 
.191 
.193 

.170 
.177 
.177 
.181 
.191 



Rela- 
tive. 



100 
99 
99 
100 
100 
99 
101 
101 
100 
101 
102 
105 
107 
108 
109 

99 
100 
100 
102 
108 



Com. 



Actual. 



$0. 177 
.173 
.171 
.171 
.171 
.170 
.172 
.173 
.172 
.174 
.177 
.181 
.186 
.189 
.189 

.174 
.171 
.172 

.177 

.188 



Rela- 
tive. 



100 
98 
97 
97 
97 
96 
97 
98 
97 
98 
100 
102 
105 
107 
107 

98 
97 
97 
100 
106 



Salmon. 



Actual. 



SO. 271 
.271 
.274 
.275 
.277 
,272 
.274 
.277 
.293 
.298 
.301 
.305 
.310 
.314 
.317 

.272 
.274 
.281 
.301 
.314 



Rela- 
tive. 



100 
100 
101 
101 
102 
100 
101 
102 
108 
110 

ill 

113 
114 
116 
117 

100 
101 
104 
111 
115 





Fish. 


Hens. 


Tea. 


CoflE 


e. 




Actual. 


Rela- 
tive. 


Actual. 


Rela- 
tive. 


Actual. 


Rela- 
tive. 


Actual. 


Rela- 
tive. 


Months— 

1917 October 


$0,231 
.234 
.242 
.257 
.281 
.257 
.252 
.244 
.241 
.249 
.249 
.255 
.255 
.256 
.261 

.235 

.258 
.246 
.251 
.257 


100 
101 
105 
111 
113 
111 
109 
106 
104 
108 
108 
110 
110 
111 
113 

102 
112 
106 
109 
111 


$0,284 
.279 
.283 
.298 
.323 
.342 
.350 
.341 
.340 
.343 
.349 
.351 
.353 
.353 
.352 

.282 
.319 
.344 
.347 
.353 


100 
98 
100 
105 
114 
120 
123 
120 
120 
121 
123 
124 
124 
124 
124 

99 
112 
121 

122 
124 


$0,617 
.618 
.629 
.627 
.631 
.621 
.625 
.630 
.622 
.625 
.630 
.636 
.646 
.653 
.653 

.621 
.626 
.626 
.630 
.051 


100 
100 
102 
102 
102 
101 
101 
102 
101 
101 
102 
103 
105 
106 
106 

101 
101 
101 
102 
106 


$0,318 
.317 
.319 
.320 
.319 
.306 
.305 
.305 
.288 
.284 
.284 
.284 
.285 
.288 
.298 

.318 
.315 
.300 
.284 
.290 


100 




100 




100 


1918 January 


101 




100 




96 




96 


May 


96 


June 


91 


July 


89 




89 




89 




90 




91 




94 


Quarters— 

1917_]?ourth 


100 


1918 — First 


99 


Second 


^ 


Third 


89 


Fourth 


91 







The above series of retail prices are averages of prices "actually paid '' by consumers, made from confi- 
dential reports to the United States Food Adioinistration by from 839 to 2,076 consumer-reporters, repre- 
senting from 798 to 1,429 cities and towns of the country. 

tained its early level strictly until the fall of 1918. The highly 
controlled canned goods, tomatoes, peas, and corn, held closely to 
their October, 1917, levels. But, on the other hand, rice, the dairy 
products (milk, butter, cheese), and eggs moved in varying de- 
grees away from their respective bases. It remains for each to in- 



144 



HISTORY or PRICES DURING THE WAB. 



terpret the movement of these retail prices as he will. But it seems 
distinctly clear that the highly controlled retail commodities, in the 
main, showed a considerable stabilization in price control after 
October, 1917. 

Retail prices in United States and Canada: — A regular check was 
Ifept, too, of the comparative movements of these 28 staple foods at 
retail in this country with corresponding ones in Canada. There is 
given below a comparison of average retail prices for the week ended 
October 6, 1917, with those for the week ended September 28, 1918 
(one year later), showing percentages of increase or decrease for 
the United States and Canada. This table has value in the com- 
parison which it affords both of rises and falls in price on the last 
of September, 1918, over quotations on that date a year previous 
within each country, and of the corresponding rises and falls between 
the two countries. The price for the weeks quoted seemed related 
closely enough to the prevailing price of that period to make this 
sampling process not wholly without significance. If the articles 
for which Canadian quotations are lacking be omitted from the 
American list also, the increase in total cost is 7.9 per cent in this 
country as against 12.3 per cent in Canada. 

A COMPARISON OF RETAIL PRICES IN THE UNITED STATES AND CANADA. 





Unit. 




United States. 




Canada. 


Commodities. 


Week ended — 


Increase (+) 

or 
decrease (—). 


Week ended— 


Increase (+) 

or 
decrease (— ). 




Oct. 6, 
1917. 


Sept. 28, 
1918. 


Abso- 
lute. 


Per 
cent. 


Oct. 6, 
1917. 


Sept. 28, 
1918. 


Abso- 
lute. 


Per 
cent. 


Wheat flour 


^ barrel . . 

Pound 

...do 

...do 

...do 

...do 

...do 

...do 

...do 

...do 

Quart 

Pound.... 

...do 

...do 

Dozen 

Pound 

Peck 

Pound 

...do 

...do 

No. 2can.. 
. .do 


SO. 869 
.109 
.068 
.089 
.109 
.291 
.462 
.397 
.368 
.308 
.116 
.511 
.324 
.348 
.482 
.098 
.419 
.187 
.049 
.171 
.168 
.175 
.175 
.272 
.227 
.279 
.616 
.318 


10. 837 
.099 
.066 
.084 
.136 
.381 
.554 
.509 
.430 
.336 
.133 
.619 
.367 
.368 
.529 
.102 
.572 
.170 
.053 
.173 
.173 
.187 
.183 
.308 
.256 
.347 
.640 
.284 


-SO. 032 

- .010 

- .002 

- .005 
+ .027 
+ .090 
+ .092 
+ .112 
+ .062 
+ .028 
+ .017 
+ .108 
+ .043 
+ .020 
+ .047 
+ .004 
+ .153 

- .017 
+ .004 
+ .002 
+ .005 
+ .012 
+ .008 
+ .036 
+ .029 
+ .068 
+ .024 

- .034 


- 3.7 

- 9.2 

- 2.9 

- 5.6 

+ 24.8 
+ 30.9 
+ 19.9 
+ 28.2 
+ 16.8 
+ 9.1 
+ 14.7 
+ 21.1 
+ 13.3 
+ 5.7 
+ 9.7 
+ 4.1 
+ 36.5 

- 9.1 
+ 8.2 
+ 1.2 
+ 3.0 
+ 6.9 
+ 4.6 
+ 13.2 
+ 12.8 
+ 24.4 
+ 3.9 
-10.7 


SO. 834 
.072 
(') 
.065 
.092 
.286 
.451 
(') 
.335 
.312 
.105 
.495 
(') 
.302 
.514 
.106 
(') 
.165 
(1) 
.159 
.141 
.160 
.189 
.264 
.180 

0) 
.493 
.405 


SO. 815 
.079 
(}) 
.080 
.121 
.347 
.535 
{') 
.398 
.369 
.101 
.525 
(') 
.307 
.554 
.119 
(') 
.168 
(') 
.183 
.170 
.202 
.245 
.330 
.174 

%, 
.451 


-SO. 019 
+ .007 

0) 
+ .015 
+ .029 
+ .061 
+ .084 

0) 
+ .063 
+ .057 

- .004 
+ .030 

(') 
+ .005 
+ .040 
+ .013 

G) 
+ .003 

(') 
+ .024 
+ .029 
+ .042 
+ .056 
+ .066 

- .006 

(') 
+ .116 
+ .046 


- 2.3 


Wheat bread 

Com meal , bulk 

Oatmeal, bulk 

Rice 

Steak, round 

Bacon, sliced 

Earn, sliced 

Fork chops 

Lard 

Milk 


+ 9.7 

0) 

+ 23.1 
+31.5 
+ 21.3 
+ 18.6 

(') 

+ 18.8 
+ 18.3 
- 3.8 


Butter 


+ 6.1 


Oleomargaiine 

Cheese '. 

Errs 


+ 1.7 
+ 7.8 


Sugar 


+ 12.3 


Potatoes 


(') 


Beans, nav5' 


+ 1.8 


Onions 

Pmnes 

Tomatoes 


(•) 

+ 15.1 
+ 20.6 


Peas ■ 


+ 26.3 


Com 


...do 


+ 29.6 


Salmon 


No. lean.. 

Pound 

...do 

..do 


+ 25.0 


Fish 


- 3.3 


Hens 

Tea 


+23.5 


CofEee 


...do 


+11.3 


Aggregate . . 


8.005 


8.896 


+ .891 


+ 11. 1 


6.125 


6.882 


+ .757 


+12.3 









1 Commodities on which comparison is impracticable. 



GOVEEl^rMENT CONTROL, OVER PRICES. 145 

ENFOr.CEMENT OF THE LICENSE CONTKOL. 

The analyses that h.ave gone before lay out the whole lot of food 
regulations, but do not tell systematically how those controls were 
enforced. The license system would have been a shell, and its re- 
quirements colorless, without practical and effective methods of en- 
forcement. Mention has been made already of the teeth which were 
put into the act itself. Those penalty clauses, beyond doubt, struck 
fear in the minds of would-be violators and inspired respect for the 
rules set up under the act generally. But, curiously, the resort to 
criminal proceedings, the seizure of hoarded commodities or the re- 
quisitioning of supplies and plants was relatively infrequent. The 
great bulk of violations, in points both of number and importance, 
Vfere treated by the quasi judicial administrative agencies created 
under the act. 

The Enforcement Divlsio7i. — The Enforcement Division of the 
Food Administration revoked altogether 8,676 licenses, in addition 
to other cases handled directly by the Federal State food adminis- 
trators, from August 10, 1917, to December 30, 1918,^ The common 
procedure with each of these administrative cases, after the facts of, 
the alleged violation were found by a State food administrator and 
sent to the Enforcement Division at Washington, was to grant a 
hearing to the parties accujsed to determine whether there was a 
violation, and, if so, what fine should be imposed. After a decision 
was reached, an order was signed by the Food Administrator and 
forwarded to the State administrator for service upon the violator. 
Orders addressed to a licensee usually revoked or suspended the vio- 
lator's license, or, when the violator chose, sometimes accepted in lieu 
of such revocation a contribution to the Red Cross or refund of excess 
profits. Orders addressed against a nonlicensee were, necessarily, 
issued in a roundabout method by ordering licensees not to sell goods 
to the nonlicensee violator. Stop orders were often given to hold 
up the issuance of a license. The Food Administration did not 
at any time hesitate to turn the open light of publicity upon these 
offenders. Notice was given through the press and trade papers of 
violations by particular persons. City grocers chose frequently to 
make literally extortionate " contributions " rather than have the 
" black-list " placard of the Food Administration hung in their shop 
windows. There were, in addition to this very important phase of the 
enforcement work, four others which were even more of an extra- 

^ A grouping of these revocations by kind shows that there were • Unlimited revocations, 
249 ; limited revocations, 187 ; unlimited unfair orders, 58 ; limited unfair orders, 43 ; 
refunds and coitributions, 4,123 ; temporary suspensions and minor penalties, 3,659 ; requi- 
Bitioas, etc., 65 ; stop orders, 210 ; cancellations, 10 ; criminal cases, 72 ; total, 8,676. 

125547''— 20 10 



146 HISTORY OF PRICES DURING THE WAR. 

judicial character but which were none the less effective— the li- 
censee reports to the Food Administration, the inspection work, the 
work of the Federal food administrators in the various States, and 
the emphasis upon publicity. 

The licensee reports. — ^A phase of the enforcement provisions which 
many officials in the administration of food control believed of 
especial potency was the general requirement of reports from the 
licensees. The regulations made each licensee liable to give under 
oath complete information on any or all aspects of his business upon 
request of the Food Administration, and to hold his records and 
properties open for inspection.^ These licensee reports, made upon 
blanks submitted by the Food Administration, became effective 
checks against violations. The report forms generally contained 
questions asking the amount on hand at the beginning of the month, 
the amount sold during the month, the amount on hand at the end 
of the month, and financial questions designed to show margins of 
profit. The system involved an infinite amount of tedious labor for 
the Food Administration and the licensee. There is need only to 
realize that the licensing sj^stem came to cover virtually all manu- 
facturers and distributors of foods and feeds at wholesale to appre- 
ciate the flood of reports that poured into the D Street office at Wash- 
ington. There were at the time of the signing of the armistice, 
moreover, 54 different kinds of periodical reports required by the 
Beport Division alone. The Food Administration, after examining 
the applications for licenses, determined which report blanks each 
licensee should fill out, monthly or quarterly. A Checking-in Divi- 
sion kept strict record of all reports returned upon these blanks, and 
sent follow-up letters after the tardy reports. The reports, after 
being edited and having the violations encircled by a red-pencil 
mark, were referred to the various commodity chiefs or other proper 
responsible administrators. There were, at full tide, about 140,000 
names upon the regular mailing lists, of which 105,000 were required 
to give monthly reports and 35,000 quarterly reports and which 
required the attention of nearly 500 clerks at the Food Administra- 
tion. If a calculation based upon the returns- made during May, 

1 Rule I of the General Regulations states : " It shall be the duty of each licensee to 
give to such representative as may be designated by the United States Food Administrator, 
vyhenever the said representative shall so require, any information concerning the condi- 
tions and management of the business of the licensee. Reports, when requested by said 
representative, shall be made on such blanks, to be furnished by the United States Food 
Administration, as the United States Food Administrator may designate, giving complete 
information regarding transactions in any commodities imported, manufactured, refined, 
packed, purchased, contracted for, received, sold, stored, shipped, or otherwise handled, 
distributed, or dealt with by the licensee, or on hand, in the possession or under the con- 
trol of the licensee, and any other information concerning the business of the licensee that 
such representative may require from time to time.. Whenever the said representative 
shall require it, the licensee shall furnish such information in writing under oath." 



GOVEESrMElSrT CONTROL OVER PRICES. 147 

1918, is typical, the cliecked-in reports numbered aloout 85 per cent 
of the blanks mailed out. 

It became apparent by the summer of 1918 that the report system, 
though in most senses effective as such, had been allowed to grow 
until it was both annoying to the licensees and top-heavy to the ad- 
ministrators. The volume of work involved in checking out blanks, 
checking in reports, returning reports for corrections and explaining- 
misunderstandings by correspondence, editing and tabulating over 
100,000 reports having as high as 70 questions each, literally snowed 
under the clerical staffs. The commodity chiefs, who were to make 
regulations from month to month by aid of those license reports, did 
not receive them with promptness. It was decided, ratlier than to 
double the clerical staff, to reduce the number of reports required. 
The number of periodical reports was cut by half before midsummer 
and to 28,000 in ISTovember, There were, then, at the signing of the 
armistice just 20 per cent as many reports made regularly as during 
the spring previous. 

The inspection work, — With the gradual reduction in the licensee 
report system, a scheme of field inspection was instituted.^ The 
impetus toward the proposed plan came largely from the success of 
such inspection as had been done, under the old report system, by 
inspectors in the service of the State organizations. Obviously the 
Food Administration could not hope to cover the country with paid 
inspectors. The prominent wholesale grocers, therefore, who dis- 
tributed a large share of foodstuffs and who were already organized, 
were called to Washington and enlisted upon a volunteer basis to act 
as field advisers. They were thoroughly instructed in the purposes, 
policies, and requirements of the Food Administration. The in- 
spection system was later reorganized on a State basis, and these 
field advisers were used as an educational staff available upon call 
of the Federal food administrators. The inspection service, though 
promising according to the view of the Enforcement Division, was 
not fully developed at the signing of the armistice. 

The Federal food administration in the States. — The temptation is 
to study closely the policy-making office of the Food Administration 
at Washington, and thus fail to a|)preciate that the administration of 
the food policies was highly decentralized. The United States Food 
Administration, in the truer sense, took in a literal hierarchy of 
national, zone. State, district, comity, and local units which were 
organized more or less formally and which were administering food 
policies. 

The Food Administration at Washington, through its States 
Administration Division, disseminated its policies and rulings 

1 At a conference held Aug. 16, 1918, the Field Supervision Section was created with 
Mr. H. A. Sturges as chief, and with a small corps of inspectors. 



148 HISTORY OF PRICES DURING THE WAR. 

directly through its ready contacts with a Federal food adminis- 
trator in each State, the District of Columbia, Hawaii, Porto Rico, 
and Alaska. These Federal food administrators were held responsi- 
ble for all food-control work within their respective States; they 
concerned themselves with the enforcement of the rules, propagated 
conservation policies, and administered distribution plans. Obvi- 
ously, then, the States Administration Division, acting as a clearing 
house between the policy-making office at Washington and the Fed- 
eral food administrators in the States, was obliged to keep the States 
informed on all actions taken at the central office. This task it did 
through " flying squadrons " going from State to State in person, zone 
meetings,^ meetings for the State and local administrators, and litera- 
ture through the mails. The Federal food administrators and their 
3,200 district and county administrators, though serving gratis, con- 
ducted locally the national campaigns to enroll 12,000,000 housewives 
as members of the Food Administration, to use more potatoes, to 
advertise conservation work for world relief, and to use " no wheat." 
Each Federal food administrator had on his staff an educational 
director, a home-economics director, a State merchant representative, 
and a library director. The most important specific controls, per- 
haps, which were administered in a large way by the Federal food 
administrators were those pertaining to wheat and flour, bakers, meat, 
sugar, perishables, ice, eggs, price publication, and public eating 
places. 

The em'p'hasis ufon publicity. — It ought. again be mentioned, by 
way simply of emphasis, that the Food Administration gave wide 
publicity to all of its policies and depended upon the patriotism of 
the people to enforce them. No housewife, grocer, manufacturer, or 
miller was left in ignorance of the war measures upon which it 
wanted vigorous cooperation, and the social organizations of all forms 
and local papers were alert to denounce violations. The effectiveness 
of this phase of the control enforcement was no less potent because 
not a kind which permits of exact analysis. 

The Centealization of Goveenment and Allied Food Purchases. 

The problem before the Food Administration was, in the last 
analysis, to anticipate and prevent a world food shortage during the 
war. The scope of its task and rising prices soon made necessary the 
setting up of affiliated boards to help control the food markets more 
rigidly. These extra efforts in food regulation were inevitable steps 

' For administrative purposes the States were divided into 11 zones, numbered from 1 
to 11, with meetings at the following points, respectively : Boston, Philadelphia, New 
York, Atlanta, Chicago, Vicksburg, Kansas City, Fargo, Denver, Boise, and San Francisco. 



GOVEEITMEZ^TT CONTROL OVER PRICES. 149 

forced, by the national and international aspects of the food situation 
and the desire to assure reasonable prices for Government and allied 
purchases. 

The food requirements of the Government and its Allies had ab- 
sorbed the lion's share of many staples, and, especially during the 
spring of 1917, opened the way to unrestrained foreign buying and 
rampant speculation. There had been no control of commodity 
prices in this country and extraordinary rises came thick and fast. 
The " all commodities " index number, which had remained near a 
prewar level throughout 1914 and 1915, shot from 123 to 189 during 
the year ending June, 1917, and the food group jumped from 111 to 
167 during that same year.^ The unregulated bidding, which con- 
tributed to the rise vfithin the food group, was later controlled in part 
by the Food Administration Grain Corporation, the International 
Sugar Committee, and the Sugar Equalization Board which are men- 
tioned elsewhere, and by the Division of Coordination of Purchase 
and the Food Purchase Board which are discussed here. 

Divisiaii of cGordination of 'purchase. — The Division of Coordina- 
tion of Purchase, which came later to supervise Government and 
allied purchases of foodstuffs aggregating $200,000,000 per month 
and over, was created as an advisory unit through which all war food 
purchases might clear.^ An arrangement was made between the 
Government and the Allies that all allied food requirements (except 
grains, flour, and meal) should be submitted to a so-called allied pro- 
visions export commission, which in turn was to give notice of those 
requirements to the Food Administration.' The Division of Coordi- 
nation of Purchase, upon receipt of that notice, advised what method 
of purchase should be adopted in order least to disturb the market. 
These purchases were either allocated to the industry in a manner 
recommended by the Food Administration, given to the purchaser for 
approval after securing bids, or allowed to be made by the purchaser 
direct in the open market. The total value of purchases cleared 

^ See " Summary of History of Prices during the War," by Wesley C. Mitchell. (W. I. 
B. Price Bulletin No. 1.) 

2 Mr. Hoover, in his formal announcement of the creation of tlie Division of Coordina- 
tion of Purchase on Oct. 24, 1917, stated that its purpose was " to coordinate the 
purchases of the Allies and the Food Administration of such important food supplies as 
those mentioned in the President's proclamation of Oct. 8, 1917, and to cooperate with 
the Army, Navy, and other Government departments in an endeavor to coordinate so far 
as practicable their purchases of such food supplies." The Food Section of the War In- 
dustries Board was transferred to the Food Administration a few days prior to the above 
announcement, on Oct. 15, 1917, and became part of the new Division of Coordination of 
Purchase. 

3 See letters dated Nov. 21, 1917, and sent by Mr. Hoover to Allied provisions export 
commission, American Red Cross, Commission for Relief in Belgium, financial attach^ of 
the Russian embassy, the War Trade Board, and the Tiaffic executive, outlining for them 
the plan of the Division of Coordination of Purchase. 



150 HISTORY or PRICES DUEIISTG THLi AVAR. 

tlirougli the Division of Cooixlinatioii of Pitrcliase umounted to enor- 
mous figures.^ 

Food Purchase Board. — Very shortly after the organization of the 
Division of Coordination of Purchase, there was created the Food 
Purchase Board with an especial design to bring a like coordination to 
all food purchases for the Army and Navy." Its function generally 
was to settle what commodities were to be placed in the category of 
allocated purchases, to define general policies in method of purchase, 
to secure costs from the Federal Trade Commission, and to recom- 
mend prices to the Army and Navy.^ Representation was given on 
that board to the Secretary of War, the Secretary of the Na^-^^, the 
Federal Trade Commission, and the United States Food Administra- 
tion. These branches of the Government submitted to the Food 
Purchase Board their requirements for licensed staple commodities 
and that board determined whether the orders should be allocated to 
the trade. If a plan of allocation was advised by the Food Purchase 
Board, the Food Administration, with whom each purchaser filed a 
statement of the amounts needed, distributed the allotments on a pro 
rata basis throughout the country. . The department for whom the 
allotment was made inspected the goods and, if the goods were satis- 
factory, completed the purchase.- The Food Adm.inistration recom- 
mended prices to the Army and Navy upon the basis of cost inves- 
tigations made by the Federal Trade Commission. Other agencies 
than the War and Navy availed themselves to an extent of the in- 
struments of the Food Purchase Board. 

The whole scheme for the centralization of Government and allied 
food jDurchases — -whether in the Food Administration Grain Cor- 
poration, the International Sugar Committee, the Sugar Equalization 
Board, or the more comprehensive Division of Coordination of 
Purchase, and Food Purchase Board — held within its grasp, though 
it did not always exercise, one of the most effective of all war instru- 
ments for general food control. 

1 The Division of Coordination of Purchase during the 8 months ending December, 1918, 
cleared altogether food purchases amounting to $1,069,370,419. Of that total, the Allies 
purchased $715,000,000 ; the Army, Navy, and Marine Corps, $206,000,000 ; and the Com- 
mission for Belief in Belgium, Red Cross, Salvation Army, and Y. M. C. A. the remainder. 
There follows a listing of those purchases by kind of commodities : 



Canned goods $111, 447, 374 

Dairy products 30, 113, 288 

Dried fruits and vegetables- 49, 618, 731 

Grains and grain products- 191, 053, 158 

Meat and hog products 566, 371, 588 



Miscellaneous $36, 534, 980 

Oils 54, 279, 440 

Sugar 29, 951, 860 



Total 1, 069, 370, 419 



2 Created about Nov. 21, 1917, at the suggestion of the Food Administrator and given 
governmental authorization on May 8, 1918, by presidential proclamation. 

3 These data appear in the minutes of the first meeting of the board held Dec. 11, 1917. 
* Second annual report of U. S. Food Administration. 



3- THE FUEL ADMINISTRATION. 

Our war experience with regulation did' not bring forth, a single 
instance of price fixing, if foods can be counted as controUea 
though not fixed, which touched so many, people as the coal prices 
modified or fixed by the United States Fuel Administration. This 
control, like that over food prices and unlike most of the other price 
controls, was administered primarily for the protection of the public 
at large. The Fiiel Administration, in so far, may be thought simi- 
lar to the Food Administration, but unlike the price-fixing com- 
mittee. Beyond this point, however, the methods of the Fuel Ad- 
ministration differ substantially from those even of the Food Ad- 
ministration. 

The points of interest in a study of war-time control over fuel are : 
the problem that prompted fuel regulation ; the early and informal 
control that was begun by the coal production committee under the 
Council of National Defense ; the kind of control over coal that was 
made possible hj the passage of the food and fuel act in 1917; the 
original prices fixed at the mine by the President for bituminous 
and then for anthracite coal; the modifications made from time to 
time in these prices by the Fuel Administrator ; the steps that were 
taken to control prices asked by middlemen and those asked by 
retailers ; and, finally, the coal costs that came later to be made the 
basis of all price fixing. It is of imiDortance, too, to know how con- 
trol was exercised over coke, and to what extent, if any, the Govern- 
ment put its hand upon the prices of petroleum. 

<i) THE WAR-TIME RISE IJSr COAL PRICES. 

The conditions of production which attach to soft or bituminous 
coal used by industry and comprising nearly 85 |)er cent of our total 
output of coal, and those which attach to hard or anthracite coal used 
by households make coal prices ordinarily an anomaly ill price 
phenomenon. The abundance of supply and the large numbers of 
mines, given adequate transportation facilities, labor, and machinery, 
result usually in the meeting of all demands by the industry at com- 
petitive prices slightly above the cost of production.^ Coal prices, 
then, under normal peace-time conditions, are not as variable in their 

1 See " Prices of Coal and Coke," by C. E. Leshcr, W. I. B. Price BuIIetiB No. 35. 

151 



152 HISTORY OF PRICES DURING THE WAR. 

fluctuations as those of pig iron, wlieat, or cotton.^ The prices'of 
bituminous coal, which relate to the general ebb and flow of in- 
dustrial activities, are more sensitive to the market than those of 
anthracite coal, which relate more especially to fireside demands. The 
price of bituminous coal, which was quoted at $0.0752 per bushel at 
Pittsburgh in 1900, did not until 1916 vary more than 19 per cent 
in any month above that level, while anthracite coal (stove) which 
was quoted at $4.3224 per ton in 1901, did not vary more than 15 
per cent." Coal prices ordinarily are stable prices, and large de- 
viations are serious in their effects on industry or the household. 

There was reason for concern, then, as nearly every industrial 
plant and householder felt when coal prices suddenly started upward 
in the latter part of 1916 and kept rising. They had throughout 
1914 and 1915 clung safely near their prewar level when, indeed, 
they had not gone below it. But a weighted average of bituminous 
coal prices, made from prices taken in all districts of the United 
States, shows that the quoted general price of that coal leaped in 
July, 1916, from its prewar level of $1.30 per net ton to $3.46 by 
December following.^ Likewise a weighted average of anthracite 
coal prices, made from our total egg, stove, chestnut, pea, and steam 
production, rose from $2.92 in May, 1916, to $4.11 by May, 1917. 
These extraordinary rises in prices are without precedent in coal 
history since 1890, if ever. 

The imminent and widespread concern of manufacturers and house- 
holders, as they faced high prices in the prosperous year 1917, was 
not alone that coal had soared to heights unknown, but that coal at 
any price was uncomfortably scarce. The war-time production 
orders, together with the excessively cold winter, were making 
heavier demands upon the coal stocks than ever before and threat- 
ened a serious coal shortage. Curiously, when it was most neces- 
sary to carry coal from the mines to central distributing points, the 
railroad system became so heavily loaded that congestion set in and 
thousands of tons of coal were left standing at the mines for lack 
of empty cars and transportation facilities. This unusual situation 
upset the coal market completely for the first time in years and dis- 
turbed beyond immediate recovery the nice balance between the pro- 
duction, the cost, and the market price for coal. 

There is listed beloAv a series of data by which may be compared 
month by month from January, 1913, to December, 1918, the total 

1 The stability of coal prices is due in part to tbe fact that the wages of lahor, which 
do not fluctuate greatly, constitute nearly 80 per cent of the cost of coal production. 

2 Wholesale Prices 1890 to 1916, by Bureau of Labor Statistics, Bulletin No. 226. 

2 In Ohio and Pennsylvania the increase was the greatest, the highest spot price 
recorded being more than 400 per cent above the prewar level, with the smokeless coals 
of West Virginia and the high-grade coal from the Georges Creek district of Mary- 
land next approaching in extent of rise in price. 



govee:jtmext control over prices. 



153 



jjrodiiction of bituminous coal in this country/ and the weighted 
market prices at which it sold,^ A ready comparison of the varia- 
tion in production and prices has been facilitated by the reduction 
of each actual figure to a relative figure, using the respective prewar 
figures (average from July 1, 1913, to June 30, 1914) as a base equal 
to 100 in each case. The figures have been extended beyond the 
time when control set in for reference later when an inquiry will be 
made into the effectiveness of that control. 

PRODUCTION OF BITUMINOUS COAL IN THE UNITED STATES. 

ACTUAL PKODUCTIOX (SHOET TONS). 



Month. 



1916 



January 

February 

March 

April 

May 

Juna 

July 

August 

September 

October 

JNoveniber 

December..... 



42,276,272 
37,056.985 
37,535,-121 
34, 188, 980 
37,204,880 
37,4a4,953 
38, 857, 053 
41 , 589, 085 
41,423,796 
45, 164, 649 
43, 233, 145 
41,519,477 



40,187, 
35,472, 
45,454, 
23,609, 
28,551, 
31,411, 
34, 305, 
37,751, 
39, 018, 
37,685, 
33, 392, 
35,862, 



37, 190, 800 
29, 32i; 4-13 
31 , 800, 830 
29, 968, 240 
30, 938, 134 
33,956,818 
35,573,809 
38, 160, 995 
40, 963, 780 
44,197,763 
44,736,760 
45, 814, 754 



45, 596, 094 
45, 185, 515 
43,821,604 
33,628,164 
38,803.759 
37, 741, 972 
38, 113, 105 
42,695,735 
42; 098, 831 
44.807,205 
44,927.817 
44, 097, 744 



47, 967, 354 
41,352,711 
47,868,652 
41,854,320 
47, 086, 452 
46,824,646 
46,291,572 
47,372,226 
45,107,956 
48, 337, 726 
47,689,801 
44, 037, 147 



Year 478, 435, 297 422, 703, 970 [442, 624, 426 502, 518, 545 551, 790, 563 



42,607,000 
44, 385, GO<J 
48, 631, OCO 
46,591,000 
50,927,000 
51, 758, 000 
55, 587, Ono 
55, 732, 000 
51,757,000 
52,88.6,000 
44,387,000 
40,635, 000 



585,883,000 



WEIGHTED AVERAGE "SPOT" PRICES OF ALL BITUMINOUS COAL IN THE UNITED 

STATES. 

ACTUAL rEICF..? PER NX:T TCN. 



Month. 



1915 



1916 



1917 



1918 



January... 
February. 

March 

ADril 

f^ 

June 

July 

An.TOst... 
September 
October... 
November. 
December. 

Year 



$1.47 
1.29 
1.25 
1.24 
1.23 
1.23 
1.25 
1.28 
1.29 
1.33 
1.35 
1.28 



SI. 27 
1.24 
1.24 
1.24 
1.24 
1.21 
1.20 
1.21 
1.20 
1.21 
1.19 
1.20 



.11.20 
1.19 
1.17 
1.16 
1.16 
1.15 
1.14 
1.15 
1.18 
1.20 
1.23 
1.36 



SI. 54 
1.44 
1.33 
1.32 
1.29 
1.33 
1.30 
1.35 
1..56 
2.11 
3.36 
3.40 



$3.73 
3.75 
3.53 
3.00 
3.72 
3.77 
2.98 
3.03 
2.12 
2.15 
2.58 
2.59 



S2.'50 
2.64 
2.67 
2.71 
2.75 
2.66 
2.66 
2.67 
2.67 
2.67 
2.67 
2.67 



1.29 



1.22 



1.19 



1.78 



3.08 



2.67 



^ The production figures represent those adopted offlcially by the United States 
G'f'ological Survey and the United States Fuel Administration for the years given. 

- The weighted average market prices for bituminous coal, representing a grand average 
g: prices from all districts of the United States, were compiled especially by C. E. 
Lesher, of the Fuel Administration, from the Coal Age. The mean of the high and 
low weekly quotations, where necessary, were reduced to a net ton basis and to 
f. 0. . b. mines by deducting the freight rate in effect at the particular time, and re- 
duced then to monthly prices by taking simple averages. A single quotation was then 
obtained for each coal for each month by averaging the quotation for prepared sizes, 
run-of-mine, and slack or screenings in accordance with the proportion of each size 
produced in each field in 1917. The final grand weighted average, therefore, representing 
an examination of 35,000 quotations, shows the " spot " prices for 15 bituminous coals. 
It should be borne in mind that the contract prices, at which a bulk of coal sold, 
did not rise as high as the " spot " prices quoted above nor did the smaller production 
of anthracite coal undergo such phenomenal rises as the bituminous coal quoted above. 



154 



HISTORY OF PEICES DURING THE WAR. 



PRODUCTION OF BITUMINOUS COAL IN THE UNITED STATES. 
EELATIVE PEODITCTION. 



Month. 



1913 



January... 
February . 
March . . . . 

April 

May 

June 

July 

August . . . 
September 
October... 
November. 
December. 

Year 



93 
98 
102 
109 
109 
121 
113 
109 



105 



1011 



105 
93 

119 
62 
75 
82 
90 
99 

102 
99 



93 

77 

S3 

79 

81 

89 

93 

100 

107 

116 

117 

120 



191C 



122 
118 
115 

88 
102 

99 
100 
112 
110 
118 
118 
116 



110 



1917 



126 
108 
126 
110 
124 
123 
121 
124 
118 
127 
125 
116 



121 



1918 



112 
116 
128 
122 
134 
136 
146 
146 
136 
139 
116 
107 



WEIGHTED AVERAGE 



'SPOT" PRICES OF ALL BITUMINOUS COAL IN THE UNITED 

STATES. 

EELATIVE PKICES. 



Month. 


1913 


1914 


1915 


1916 


1917 


191? 


Januarj'.. 


116 

102 

93 

98 

97 

97 

98 

101 

102 

105 

106 

101 


100 
98 
98 
98 
98 
95 
94 
95 
94 
95 
94 
94 


94 
94 
92 
91 
91 
91 
90 
91 
93 
94 
97 
107 


121 
113 
105 
104 
102 
105 
102 
106 
123 
166 
265 
272 


294 
295 
278 
236 
293 
297 
235 
239 
167 
169 
203 
204 


205 


February 


203 


March 


210 


April 


213 


May 


217 


June 


209 


July 


209 


August 


210 


September 


210 


October 


210 


November 


210 


December 


210 






Year 


102 


96 


94 


140 


243 


210 







The market prices of coal in this country, far from maintaining 
their usual relation to production, took a spurt which landed them 
at unprecedented heights, and alarmed the Government at Washing- 
ton early in 1917. It was apj)arent that the Government sooner or 
later must assume some sort of control over coal prices with a view 
quite as much to stimulating production as of protecting consumers 
against a further rise. 

(2) THE COAL PRODUCTION COMMITTEE. 

The intermediate step leading to the final Government control 
over coal, as was wont during war time, was taken by the Council 
of National Defense through the voluntary organization of a trade 
committee. The council, impressed with the necessity for some form 
of action to stimulate production, appointed a committee on coal 
production on April 27, 1917.^ This committee believed at the out- 
set that the increased domestic needs and those of the Allies would 



^ Mr. Francis S. Peabody, a large dealer in coal, was made chairman of this committee, 
vjomposed of various men of the coal industry in cooperation with mine workers, coke 
producers, distributors, consumers, transportation agencies, the Geological Survey, the 
Bureau of Mines, and the Department of Labor. 



GOVERNMElsrT CONTROL, OVER PRICES, 155 

. push tlie 1917 requirements far in excess even of the bumper produc- 
tion of 1916.^ With the assistance, accordingly, of the Bureau of 
i^iines and the Geological Survey, a survey of the coal situation was 
made which revealed that the limiting factors in meeting the coal 
requirements were the shortage of mine workers and the inadequacy 
of distributing facilities.- The potential capacity was, of course, in 
excess of the maximum requirements. The early war-time control 
of fuel later taken over by the Fuel Administration can not be un- 
derstood without taking serious account of the l,TOO,000-ton Navy 
order placed by the early coal production committee, the agreement 
made with the industry upon the Peabody-Lane prices, and their 
immediate repudiation by the Secretary of War. 

The 1,700,000-topv- Navy Order. 

The jSTavy Department, unable to secure bids for supplying the 
coal needed by its battleships, called upon the committee on coal 
production to negotiate a satisfactory purchase. The committee, 
early in June, 1917, called the coal producers to Washington for con- 
ference. The producers, already well loaded with orders, promised 
to deliver the full 1,700,000 tons required at a suggested price of 
$2.95 per ton. Secretary of Navy Daniels, regarding that price as 
excessive, gave orders June 19, or thereabouts, under the authority of 
the naval act, that coal producers prepare to furnish the required 
tonnage at an allowance of $2,335 per gross ton f. o. b. mines. The 
final price, he announced, would be determined later when the Federal 
Trade Commission had completed its inquiry into costs, and might be 
adjusted to a point below or in excess of that price.^ The firmness 
which characterized this mandatory order, and its insistence upon 
an initial price far below the market or even that asked by the pro- 
ducers, made the coal dealers realize that regulation of some form 
was within sight. 

The Peabody-Lane Prices. 

The coal-production committee, fully aware of the necessity for 
fostering the increased production that had already set in, called 
about 400 of the coal producers again to Washington during the last 
week of June to discuss methods of reducing the prices of coal to the 
Government and to the public. These producers, at a three-day 
conference held in the new Interior Building, met with the commit- 

iThe production of 502,518,545 tons of Wtuminous coal in 1916, though csceoded 
both in 1917 and 1918, wasi a high record for the industry at the time the Government 
faced the necessity for increased production early in 1917. 

2 Report of F. S. Peabody made to the Council of National Defense, and printed in its 
first annual report, p. 33. 

3 See the Peabody report referred to above, and an announcement made by the Navy 
Department printed in the Official Bulletin for June 19, 1917. 



156 HISTORY OF PRICES DURING THE WAR. 

tee and conferred with Secretary of the Interior Lane, Secretary of 
the Navy Daniels, John T. Fort, of the Federal Trade Commission, _ 
which was investigating coal costs, and other officials. The outcome 
of this conference, at which price fixing was freely discussed and 
tentative maximum prices for coal agreed upon, is peculiarly sig- 
nificant in the light of later coal- control. 

Secretary Lane, strongly backing the action of the coal-production 
committee, was especially instrumental in finally drawing to a head 
on June 28 a voluntary agreement by the bituminous producers to 
set a maximum price of $3.50 per ton for domestic lump, egg, and 
nut coal, and a maximum of $3 per ton for run-of-mine coal to be 
effective on July 1.^ These agreed prices, prior to any actual price 
fixing by the Government, were distinctly lower than the quoted 
prices for various districts. Indeed, the weighted average price of 
all bituminous coal for June w^as as high as $3.77 per ton. Not only 
did the coal-production committee agree with the operators at that 
early time upon tentative maximum prices for coal but likewise 
upon jobber, broker, and retailer commissions. These latter dealers, 
it was determined, would be allowed to charge no more than one 
commission, and that not in excess of 25 cents per ton. It is note- 
worthy that the producers, although informally agreeing upon the 
above tentative prices, appointed committees and formally au- 
thorized them and the Government to fix further prices.^ 

1 Secretary Franklin K. Lane in a letter to F. S. Peabody dated June 28, 1917, said : 
" I feel that the present extremely high prices on coal require immediate action by the 
coal operators, and, therefore, would urge upon you that they should be reduced at once 
and maximum prices fixed which would apply to sales on and after July 1, 1917, and 
continue until such time as the investigation which you propose into costs and conditions 
shall warrant a reduction or increase. These prices should not be used to affect present 
contracts or apply to export or foreign trade. In other words, the people of the United 
States should have, as I urged upon the operators the other day, immediate relief and 
knowledge of their disposition to make a reasonable price irrespective of the possibilities 
of obtaining higher prices. This would be regarded by the people as meeting the situ- 
ation promptly and wisely if the prices materially cut those which exist." 

" A report of the proceedings of this meeting, as printed in the Commercial and 
Financial Chronicle for June 30, 1917, shows that the producers resolved that " these 
committees report forthwith to the Secretary of the Interior, the Federal Trade Com- 
mission, and the committee on coal production of the Council of National Defense, costs 
and conditions surrounding the production and distribution of coal in each district and 
that these committees are authorized, in their discretion, to give assent to such maxi- 
mum prices for coal f. o. b. cars at mines in the various districts as may be named by 
the Secretary of the Interior, the Federal Trade Commission, and the committee on coal 
production of the Council of National Defense. 

" This convention by resolution heretofore adopted having requested the Secretary of 
the Interior, the Federal Trade Commission, and the committee on coal production to 
fix a fair and reasonable price at which the several operators in the several coal districts 
of the United States shall sell coal, do hereby further authorize said Government repre- 
sentatives, so named in said resolution, to forthwith issue a statement fixing a tentative 
maximum price, which, in their judgment, is fair and reasonable as applied to the several 
coal districts, at which coal shall be sold from and after the 1st day of July next 
and until the accurate costs have been ascertained and a fair and reasonable price based 
thereon fixed by said Government agencies designated under said resolution." 



GOVERNMENT CONTROL OVER PRICES. 157 

A full account of this historic coal meeting with the bituminous 
producers and the Peabody-Lane prices that were established, as 
authorized by the- Bepartment of the Interior follows : ^ 

As a result of the conference between tlie mine operators, the Secretary of 
the Interior, Federal Trade Commissioner Fort, Chairman Peabody, and the 
committee on coal production of the Council of National Defense, the following 
reductions were made to go into effect July 1 next in the prices of coal. This, 
according to the statement of Director George Otis Smith, of the Geological 
Survey of the Interior Department, will effect a reduction to the consumers 
east of the Mississippi River of $15,000,000 a month, based on the output of 
free coal in May of this year. These prices are maximum prices per ton of 
2,000 pounds aboard the cars at mine pending further investigation. These 
prices do not affect in any way contracts in existence or sales of coal for 
foreign or export trade. 

The operators tendered to the Government a reduction from these reduced 
prices of 50 cents per ton for coal that the Government may need. 

No action was taken upon anthracite prices, because of the fact that these 
prices had already been acted upon by the Federal Trade Commission. 

Twenty-five cents per net ton was fixed as the maximum price for coal jobbers' 
commission, with only one commission, no matter how many jobbers' hands the 
coal may pass through. 

On account of an inadequate representation of operators west of the Missis- 
sippi River, no maximum prices were fixed for coal from those districts. A 
supplementary statement will be issued within a few days covering prices on 
coal produced in those districts. 

The action taken at this conference brings about the following results : Pres- 
ent prices on bituminous coal mined in Pennsylvania have ranged from $4.75 to 
$6. Under the ruling the price is reduced to $.3 for mine run and $3.50 for 
domestic lump, eggj and nut. 

The present range of prices in West Virginia Is from .$4.50 to $6; price 
reduced to $3 for mine run and $3.50 for domestic lump, egg, and nut. 

The range of prices for Ohio coal has been from $4.50 to $5 ; prices reduced to : 
No. 8 district, the thick vein Hocking and Cambridge districts, $3 for mine run 
and $3.50 for domestic lump, egg, and nut; thin vein Hocking, Pomeroy, Cooks- 
ville, Coshocton, Columbiana County, Tuscarawas County, Amsterdam-Bergholz 
district, $3.25 for mine run and $3.50 for domestic lump, egg, and riut; the 
Massilon and Palmyra districts, and Jackson County. $3.50 for all grades of coal. 

The prevailing prices in Alabama have been from $5.50 to $5.75 ; prices reduced 
to: Cahaba and Black Creek, $4; Prat, Jaeger, and Corona, $3.50; Big Seam, 
$3 for all grades. 

The prevailing prices for coal mined in Maryland have been from $5.75 to 
$5 ; reduced prices will be $3 for mine run and $3.50 for domestic lump, egg, 
and nut. 

The prevailing prices on coal mined in Virginia have been $4.50 to $5 ; reduced 
price, $3 for mine run and $3.50 for lump, egg, and nut. 

The prevailing prices on coal mined in Kentucky have been from $4 to $4.50 ; 
reduced price, $3 for mine run and $3.50 for the domestic sizes. 

The prevailing prices on coal mined in Illinois and Indiana have been from 
$3.50 to $4; reduced price, $2.75 for mine run and steam sizes and $8.50 for 

1 Issued June 28, 1917, by the Secretary of the Department of Interior and printed in 
full in the coal hearings before the subcommittee of the Senate Committee on Manufac- 
tures, pursuant to Senate resolution 163, Sixty-fifth Congress, second session. 



158 HISTORY OF PEICES DURIISTG THE WAE. 

screened domestic sizes, 50 cents per ton above these prices in tlie long-wail 
lield of northern Illinois, Assumption, and Murphreesboro. 

The prevailing prices on coal mined in Tennessee have l>een from $4.50 to 
$5 ; reduced price, $3.50 for all sizes. 

Secretary Lane, with the coal production committee, highly pleased 
at the outcome, sent the coal operators home happ}^ by a closing ad- 
dress, declaring " tliis is a very novel proceeding. I think I am 
within the fact when I say that no such hearing or gathering as this 
has ever been held in the United States before, or perhaps in the 
world." ^ 

Theie Repudiation ey Seceetaby Baker. » 

Scarcely had the Peabody-Lane prices been agreed upon and the 
operators had reached their homes then the agreement was flatly de- 
nounced and repudiated by Secretary of War Baker. The Secre- 
tary of War, who was president of the Council of National Defense 
and therefore in authority over the Peabody coal production com- 
mittee, wrote to the director of the council on June 30, characteriz- 
ing the whole proceeding of the coal meeting as misleading and dis- 
claiming any authority for price fixing.^ This show of seeming 

^ Senate hearings refeiTed to above. 

2Tlie letter written to W. S. Gifford, Director of the Council of National Defense, by 
Newton D. Baker, its president, on June 30, 1917, follows iii^full : 

" My attention has been called through the newspapers to the action reported to have 
been taken at Washington, D. C, during the past week by the so-called committee on coal 
production of the Council of National Defense, in cooperation with certain coal producers 
and representatives of coal-mining enterprises, with regard to the price of bituminous and 
anthracite coal. 

" The facts seem to be that the coal production committee invited to Washington various 
coal operators and arranged conferences between them, members of the coal production 
committee, and members of the Federal Trade Commission, leading to the adoption of reso- 
lutions in favor of an early and accurate determination of the costs involved in the pro- 
duction of bituminous and anthracite coal, as a basis for some future action by some offi- 
cial agency of the Government in fixing fair and just prices for these products, should any 
such agency be given power to do so. Pending such an g.scertainment of costs this meet- 
ing seems to have adopted a resolution whereby the operators present agreed to sell 
bituminous coal at a price not higher than $3 per ton, and that this obligation should 
lemaiu in force until some such action had been taken by an authorized governmental 
agency. 

" The color which has been given to this meeting and this resolution in the newspapers 
may well mislead the public into believing that the Council of National Defense has either 
undertaken itself to fix the price of coal, or to sanction its being fixed by the coal px-o- 
■ductiou committee, or that committtee in conjunction with the coal operators. I, there- 
fore, as president of the Council of National Defense, write to say that the Council of 
National Defense has no legal power, and claims no legal power, either to fix the price of 
coal, or to fix a maximum price for coal or any other product. The coal production com- 
mittee is a subordinate committee of the Council of National Defense, purely advisory in 
its character, formed for the purpose of advising the council as to steps which might be 
recommended leading to a stimulation of production and distribution of coal. No power 
has been even attempted to be delegated to it to consider or deal with the question of 
price, and any action taken by that committee, or sanctioned by that committee, dealing 
with price, either fixed or maximum for coal, is clearly beyond the legal power of the 
coal production committee and of the Council of National Defense from which the com- 
mittee derives whatever authority it has. 

"As you are aware, the Federal Trade Commission has been directed by the President 
to ascertain for his information the costs involved in coal production, I am to some 



GOVERlsrMElsrT COIsTTEOL OVEE PEICES. 159 

dissension within the Government threw chaos into the ranks of the 
producers and uncertainty whether the agreement was or was not 
longer binding upon them or upon the Government/ The whole 
affair, believed by Secretary Baker to be a dangerous precedent and 
destined to forestall a firmer control by the Government, produced a 
situation of utter confusion..^ 

It appears that the failure of officials to agree among themselves 
upon an immediate relief to the coal situation, and the threatening 
shortage, provoked rather serious discussion in several States dur- 
ing the summer. Ohio, Indiana, Illinois, Wisconsin, and others, 
through their State councils of national defense, began to plan in- 
dependent action. Scores of individual letters from various sections 
showed clearly that the rising prices and the coal shortage were 
touching the people to the quick.^ The Illinois Council of National 



extent familiar with the progress made by the commission. The information I have from 
that and other sources, I think, justified me in believing that the price of $3 suggested, 
or agreed on, as a maximum, is an esorhitant, unjust, audi oppressive price. 

" The fact that these conferences were attended by members of the Federal Trade Com- 
mission and by members of the Council of National Defense, of course adds nothing to 
their legal powers, and I am sure that none of my associates in the council will dissent 
from the view that I have herein expressed, both on the limitation upon the powers of the 
council and the coal production committee, and the efEect of the action alleged to have 
been taken. 

"I write this for the information of the coal production committee, and for the 
guidance of all other subcommittees of the council." 

1 An especially lucid definition of the general price functionsi of the Council of National 
Defense as he saw them and as provoked by the coal meeting was made by Newton D. 
Baker in a letter to Director W. S. Gifford on July 13, 1917. 

2 Francis S. Peabody, after' the repudiation of the coal prices, by Secretai-y Baker, wrote 
Director Gifford the following letter, in part, on July 13, 1917 : 

" The letter of the Secretary of War of June SO, criticizing the tentative maximum 
prices established for bituminous coal, and the action of the committee on coal produc- 
tion, has created a serious condition in the industry. Unless some definite announcement 
is made at once, by the Council of National Defense, which will remove existing uncertain- 
ties and promptly reestablish the active production and distribution of coal, hardship and 
suffering will result this winter. 

" The Secretary's letter carrying such weight, a-S it naturally would, with the public, 
and characterizing the tentative prices as it does, has produced in the minds of a gi-eat 
number of cons.umers the expectation that by deferring their purchases they would obtain 
their supplies at figures below those heretofore named. The natural and inevitable result 
of these uncertainties is that the buying of bituminous coal for storage purposes has pi-ac- 
tically ceased, and normal current stocking is gravely threatened. * * * 

" The sentiment of the operators, as expressed in the convention, had a marked effect 
on prices, even before any definite action had been taken, and before the convention ad- 
journed prevailing abnormally high prices had substantially disappeared. With deference 
to the opinion of Secretary Baker, as expressed in his letter, I still adhere to the opinion 
that the action of this convention which resulted in the establishment of tentative maxi- 
mum prices, pending the conclusion of the investigation of costs of production being 
made by the Fedei-al Trade Commission, was not only wisely taken but was absolutely 
necessary to stimulate production, stabilize market conditions, and secure equitable distri- 
bution of coal to the people at fair and reasonable prices." 

"The following letter fi-om CoL A, M. Shook, dated June 16, 1917, and showing the 
disquiet in Tennessee over the coal situation, was typical of others : 

" In this particular section the question of fuel is to-day the most vital one. The 
abnormal demand for coal is such that mine operators are enabled to sell their output 
at prices varying from 100 to 300 per cent above prevailing prices of one year ago. I 
see no way to remedy these conditions except by Federal legislation. As long as the 
consumer will agree to pay from $3 to $5 per ton for coal that was selling a year ago 



160 HISTORY OF PRICES DTJRIXG THE WAR. 

Defense, indeed, went so far as to discuss seizure of the mines by the 
State, independent of the National Government.^ The pressure of 
the State councils of national defense from the northern Middle 
States — Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minne- 
sota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and 
Wisconsin — which was exerted upon the national council at a meet- 
ing in Chicago was a considerable factor in urging the Government 
to action. 

(3) THE FOOD AND FUEL ACT. 

The alarm at the rising prices for coal, and the distressing status 
of its di.stribution prompted Senator Pomerene to urge, against at- 
tack from several sides in the Congress, a rider to the pending Lever 
bill, permitting the President to fix coal prices. The President, too, 
took a firm personal interest in the coal problem, and finally, on 
August 10, 1917, the food control act was passed with the Pomerene 
amendment and is now often called the food and control act.^ 
The Fuel Administration was created by the President under the 
authority given him by this act. To no other price-fixing agency at 
Washington were there given such definite legal powers to fix prices 
or such sharp instruments for their enforcement. 

The Power to Fix Coal and Coke Prices. 

The food and fuel act, without any ado, gave authority to the 
President, whenever in his judgment it was necessary for the efficient 
prosecution of the war, " to fix the price of coal and coke, wherever 
and whenever sold, either by producer or dealer, to establish rules 
for the regulation of and to regulate the method of production, sale, 
shipment, distribution, apportionment, or storage thereof among 
dealers and consumers, domestic or foreign." 

st $1.50 per ton, the operator will not refuse to accept it. As a rule, here, the operator 
is the only beneficiary from these ahnormal prices. Labor has not been materially ad- 
vanced. Freight rates are practically the same as they were a year ago. The con- 
sumer pays the price and the operator reaps the benefit. These conditions will con- 
tinue unless legislative authority is placed somewhere to control these abnormal con- 
ditions." 

' The committee on law and legislation of the State Council of Defense of Illinois, 
highly agitated by their failure to find relief otherwise, on Aug. 7, 1917, recommended 
steps no less drastic than the following : 

1. Seizure by the State, and operation by it during the period of the war, of the coal 
mines in this State. 

2. Call an immediate meeting of representatives of the State councils of the neigh- 
boring coal-producing States so that an adequate and uniform measure of relief can bo 
at once contemporaneously adopted and enforced in all these States. 

3. Either separately or in conjunction with the State councils of the neighboring coal- 
producing States, take immediate steps to bring about the adoption of a Federal law which 
will give full and sweeping Federal powers of control over prices and distribution to an 
administrative body possessing the machinery to render complete and instant relief. 

2 The so-called Pomerene amendment was written into the food control act as see. 25. 
(Public Documents, No. 41, 65th Cong.) 



GOVEEFMEISTT CONTROL, OVEE PRICES. 161 

Enforcement Peovisions. 

A no less unusual feature of the food and fuel control act than the 
breadth of its delegated powers was the stringency of its enforce- 
juent provisions. The fuel section of the act not only allowed a fine 
of $5,000 or two years of imprisonment as a punishment to violators, 
but gave the President power to requisition and take over plants 
virtually at his own will. The law declared, in part, " that if, in the 
opinion of the President, any such producer or dealer fails or neglects 
to conform to such prices or regulations, or to conduct his business 
efficiently under the regulations and control of the President as afore- 
said, or conducts it in a manner prejudicial to the public interest, 
then the President is hereby authorized and empowered in every such 
case to requisition and take over the plant, business, and all appur- 
tenances thereof belonging to such j^roducer or dealer as a going 
concern, and to operate or cause the same to be operated in such 
manner and through such agency as he may direct during the period 
of the war or for such part of said time as in his judgment may be 
necessary." 

(4) THE KINDS OF FUEL CONTROL. 

Apparently the persuasions of the chairman of the Federal Trade 
Commission had influenced Senator Pomerene to urge his coal 
amendment to the so-called Lever bill in the hope that coal control, 
when begun by the Government, would be delegated to the Federal 
Trade Commission. The clauses of the act itself make frequent 
authorizations for coal control, referring over and again to the Fed- 
eral Trade Commission and making no mention of any other body in 
particular.^ 

But the President, who had started the Federal Trade Commission 
long since upon an inquiry into coal costs and allowed it to remain in 
semiofficial control for a fortnight after the passage of the act, finally 
set up an independent body to control coal. The Fuel Administra- 
tion, obliged to shape its general plans of administration somewhat 
after those written into the law for the Federal Trade Commission, 
soon organized and began a control over distribution, production, 
conservation, and prices. 



^ George H. Cnshing, in an article on " Ending the coal dilemma," in tlie Atlantic 
Monthly for Novemher, 1918, says in part : " The Federal Trade Commission had a well- 
defined ambition to control the coal industry. Indeed, William B. Colver, now its chair- 
man, and several of its employees had, while the Lane-Peabody conference was still 
sitting, appeared before a Senate committee to outline their plan of control. At about 
that time Mr. Colver had persuaded Senator Pomerene, of Ohio, to present his plan to 
Congress as an amendment to the Lever bill then under consideration. It is now a part 
of that statute.'' 

12G547°— 20 11 



162 HISTORY OF PRICES DURING THE WAR. 

Obganization. 

The President, who had named a Food Administrator immediately 
after signing the food and fuel act, did not announce his appoint- 
ment of Harry A. Garfield as Fuel Administrator until August 23, 
1917. The new administrator, during the late summer and early fall, 
began the appointment of State and local fuel administrators and 
committees. The Fuel Administration finally was organized some- 
what like the Food Administration, with an hierarchy of adminis- 
trators and committees penetrating even the smallest of the cities 
in the country and all heading up to the office at Washington. 
That similarity of method was not to be wondered at, since fuel 
problems, like food, have peculiarly local aspects. 

Control Over Disteibution. 

The Fuel Administration, impressed over and' again by the de- 
mands for empty cars, saw shortly that one of its most formidable 
problems would be to effect a proper distribution of coal. The Sen- 
ate inquiry, through the testimony of John F. Fort, of the Federal 
Trade Commission, had found that ^ " transportation was the great- 
est problem during the whole of 1917, as was pointed out in both 
the May and June, 1917, reports of our commission. The facts 
disclosed at the hearings and in our investigations made it clear 
that the percentage of cars delivered at the mouth of the mine by 
the railroads was in almost all cases far below the number of cars 
which the increased production by the operators could hare used 
if furnished." 

By all odds, the most important step taken for a better distribu- 
tion of bituminous coal orders, and that looking to a relief in the 
transportation congestion problem, was the establishment of a zone 
system on March 22, 1918.^ That system, carefully worked out 
and finally put into effect by the joint efforts of the Fuel and Eail- 
road Administrations, had in mind the saving of car-miles and 
offered a sure and flexible means of controlling distribution. 

Coal theretofore had been distributed practically without regard 
to the distance between the mine and consumer. The consumers, the 
Government, and the distributors each to a degree had, amid the 
tremendous shortage prevailing, been guilty of carrying coal to 
Newcastle. It had been the ordinary thing for producers or pur- 
chasers to pass by nearer stores and ship coal halfway across the 
continent to satisfy their choices in selection. A plan was accord- 

^ Coal hearings of Senate committee pursuant to Senate resolution 163, held December, 
1917, and January, 1918. 

2 This whole plan is outlined in full by the Fuel Administration in its Publication 
No. 21 and in its " General Orders, Regulations, and Rulings," p. 213-351. 



GOVEKNMEISrT COI^TEOL OVER PRICES. 163 

ingly established^ by which loroducers were not allowed, without 
a si^ecial permit, to sell coal beyond designated consuming zones. 
The main object of the zone system was to restrict eastern coal to 
eastern markets and fill vacancies in the Central and Western States 
with near-by coal produced in those States. The zone system af- 
fected all bituminous coal except that for railroad fuel, coal for 
movement on inland waterways, and coal delivered to Canada. The 
zones, which were not made applicable either to anthracite coal or 
coke, were made effective for bituminous and cannel coals on April 
1, 1918. It would seem that the methods for enforcing the zone 
plan were efficacious, since the Fuel Administration prohibited the 
distribution beyond the limits of the zones, and the Eailroad Ad- 
ministration helped to enforce them by railroad embargoes. 

The movements of bituminous coal, regulated by the zone system, 
was about 300,000,000 tons, or QO per cent of the total production. 
It was estimated by the Fuel Administration that there would thus be 
realized a saving, on the round trip from and to the mines, of almost 
160,000,000 car-miles. That saving was enough to permit the same 
cars to make nearly 300,000 additional trips from the mines, equiv- 
alent to an increase of 5 per cent in the production.^ 

OOXTROL OVEK PRODrCTION. 

The tremendous exigencies of war, since this country had never 
in peace times feared so gigantic a shortage of coal, made the in- 

1 These zones were geographical units in which the Fuel Administration, with the 
assistance of the Eailroad Administration, regulated the distribution and apportion- 
ment of bituminous coal. They were designated by letters and covered the foUowing 
territories : Zone A — Missouri, Arkansas, Kansas, Oklahoma, and Iowa ; zone B — Minne- 
sota,^ the ^Upper Peninsula of Michigan, and Wisconsin on the western bajsls of Lake 
Michigan, and on Lake Superior ; zone C — Illinois : zone D — Indiana : zone E — western 
Kentucky; zone F— Virginia, eastern Kentucky, and Tennessee: zone G — certain parts 
of Tennessee, Georgia, and Kentucky ; zone H— Alabama ; zone K— Ohio ; zone L — certain 
parts of West Virginia ; zone M — certain other portions of West Virginia ; zone N cer- 
tain other portions of West Virginia and Virginia; zone P — northern West Virginia, 
Pennsylvania, and Maryland. 

" The primai-y savings, contemplated by the Fuel Administration in the announcement 
of its zone system on Mar. 22, 1918, are briefly summarized. It was believed that, in 
addition to the saving in transportation, there could be effected a retention of about 
5,000,000 much-needed tons for the Eastern States, which, theretofore, had gone west 
all rail. The plan, it was thought, would eliminate the movement of more than 2,000,000 
tons of Pocohontas coal to Chicago and other western points over a haul of 660 miles. 
Chicago, then, under the plan, would be compelled to obtain that amount instead large! v 
from southern Illinois mines, an average haul of 312 miles. This change alone meant, 
allowing for the differences in quality in the two coals, a saving of 11,400,000 car- 
miles, or 285,000 car-days. Such a saving, if utlUzed in West Virginia mines, would 
permit 14 additional round trips of 20 days each and an additional oroduction of at 
least 700,000 tons of Pocohontas coal. 

In like manner it was flgiired that in the movement of 550.000 tons annually from 
Kanawha districts to Wisconsin points there could be saved 2,500,000 car-miles, with 
a consequent increased production of about 300,000 tons. A saving of 800,000 car-miles 
in the movement from southeastern Kentucky to Chicago was calculated to inrvease pro- 
duction 50,000 tons. Still another elimination of the Indiana to Iowa movement was 
figured to save 1,600,000 car-mUes and permit 100,000 tons additional production 



164 HISTORY OF PRICES DURIT^G THE WAR. 

crease of production generally the primary concern in the coal prob- 
lem. It is estimated, in a general way, that an army uses 10 tons of 
steel per man each year. But since it requires, on an average, 5 tons 
of coal to produce 1 ton of steel, 50 tons of coal are needed for each 
soldier.^ The situation was the more threatening since England, 
which ordinarily produces coal in abundance, had difficulty with her 
coal-production progi^am and had come seriously to rely upon Ameri- 
can coal. This statement is true, not in the sense that England took 
to shipping that needed supply from American ports to her own in 
the form of coal, but in the sense that she came in large ways to rely 
upon our steel, which could be shipped with a lesser tonnage. 

The prices fixed tentatively by the early coal-production committee 
Avere not accepted, but the Peabody-Lane agreement succeeded in im- 
pressing industry with the paramount necessity for increasing pro- 
duction. Mr. John F. Fort, of the Federal Trade Commission, 
indeed, who took a hand in the Peabody-Lane agreement with the 
operators at the three-day conference beginning June 26, 1917, said 
frankly : ^ 

When \Ve were cojasidering tliis question of fixing the price, the question of 
production was the thing that entered into the problem most seriously. The 
coal output was recognized as at that time not to be sufficient to meet the cur- 
rent demands. The business interests of the country were perfectly willing 
to pay the price fixed at that time, and were paying a very much larger price, 
and to them the question of getting coal was more important than the price. 

The Fuel Administration, facing an exceedingly intricate problem, 
recognized in the coal shortage one of its most difficult problems. 
There has, for all of that, been made a charge that it gave too much 
emphasis to the price phases of the problem and too slowly turned to 
the production phases, and that this error resulted later in a serious 
coal shortage in the country.^ It can not be judged whether that was 
true or not. It would not, if true, have been strange, since the coun- 
try always has had too much coal quickly to appreciate the serious- 
ness of a shortage. Nor did the country realize how dependent the 
world had become upon the American supply in 1917. 

There is especial interest, in the face of these facts and with a 
knowledge of the steps taken to alleviate the coal situation, to note 
the course of production during 1917 and later. A preceding 
table in this chapter shows that the total bituminous-coal production 
in the month of May, 1917, was, in round numbers, 41,000,000 tons. 
It jumped the following month to 47,000,000 and remained relatively 
near that figure each month for the remainder of the year, except for 

^ An estimate made by George H. Gushing. 

2 Senate hearings referred to above, p. S54. 

3 This notion has been especially urged by George II. Gushing, in the Atlantic Monthly 
for November, 1917, pp. 589-598. , 



GOVERNMEIirT COISTTROL OVER PRICES. 165 

September, when it fell to 45,000,000, and for December, wlien it fell 
to 44,000,000. The 1918 production remained near or above 50,000,000 
tons per month from March until November. . There then began a 
skimp in production which had not j^et disappeared by the early- 
summer Df 1919. The December, 1918, production, although the pre- 
ceding months it had been around 50,000,000, fell to 40,000,000 tons. 
In February, 1919, it fell to 31,000,000 and did not rise over 2,000,000 
tons above that amount either in April or May. Altogether 1916, 
1917, and 1918 were, each in their turn, all record years for the indus- 
try. The control over coal production did, beyond any question, 
stimulate production. The total production of bituminous coal in 
this country in 1916, before Government regulation set in, was 
502,000,000 tons. When Government control began, that amount was 
increased to 551,000,000 tons in 1917 and to 585,000,000 tons in 1918. 

CoNTROi. Over Conservation. 

It is of passing interest in a price inquiry that the Fuel Adminis- 
tration, though on a much less extensive scale than the Food Admin- 
istration, did institute a coal conservation program. That program 
in the main, went little further than a cutting down of fuel for cer- 
tain nonwar industries, the advocacy of lightless nights, the skip- 
stop systems, no-coal days, and the recommendations against uses of 
coal for private yachts and for country clubs. 

(5) THE CONTROL OVER COAL PRICES. 

The administration, after securing power from Congress to act, 
found itself squarely under the necessity of bringing some kind of 
relief to the coal situation. The distribution and price phases, 
whether or not more fundamental than increased production, were 
after all sorer points with the people at large, and the}' were the first 
to which the Government turned. It is of especial note that the 
President himself, after analysis of the Federal Trade Commission's 
cost figures at the White House, fixed the basic prices for bituminous 
and later for anthracite coal, as well as jobbers' margins, before ap- 
pointing a Fuel Administrator. But prior even to his putting a 
hand upon the alarming rise in coal prices, the President sought more 
efficaciously to distribute coal by appointing a new director of pri- 
ority of transportation of freight.^ The new director, under ap- 
proval of the President, within three days after his appointment, di- 
rected that rail and steamship lines give bituminous coal shipments 
to the Northwest preference over all other shipments.- Now that a 



1 Judge Robert S. Lovett, appointed Aug. 2 ,1917. 

= A full account and copy of this important priority order may be found in the Com- 
mercial and Financial Chronicle, Aug. 25, 1917, p. 766. 



166 HISTORY OF PRICES DUEIISTG THE WAR. 

law had passed, apparently the Government meant to lose no time be- 
fore controlling the distribution and prices of coal. 

An inquiry into the control that was exercised over coal prices 
leads naturally into a study of the prices fixed for bituminous coal 
at the mine, those fixed for anthracite coal at the mine, the margins 
established to prevent extortionate profit taking by middlemen, the 
control over coal at retail, and the peculiarly refreshing cost data 
that were later made the bases for coal price fixing. 

Price Fixing of BitxjminoL'S Coal at the LIines. 

The need for the fixing of a price for soft or bituminous coal in the 
summer of 1917 was, perhaps, more XDressing than for fixing one for 
hard or anthracite coal. The production of bituminous coal, at any 
rate, makes up in bulk well above three-quarters of our annual total 
500,000,000 tons of outi^ut and its rises in price were far more 
violent than those of hard coal. Of the total bituminous output, 
moreover, about 80 per cent goes to the railroad, public utility, and 
manufacturing industries which were our most vital secondary war- 
making weapons. It does not appear that the President entered 
again into protracted conferences with the industry, such as the 
Peabody-Lane conference or those which attended the later price 
fixing of iron and steel, while formulating the basic tentative prices 
which finally he announced from the White House on August 21, 191T. 

Prices fixed T?y the President. — The President upon that day fixed 
a schedule of prices for all bituminous coal in the country, f. o. b. 
mine basis for tons of 2,000 pounds, " subject to reconsideration when 
the whole method of administering the fuel supplies of the country 
shall have been satisfactorily organized and put into operation." 
He further expressed an intention soon to control these prices not 
only at the mines but at wholesale and retail. The President, in the 
interest of fairness, divided the country into 29 coal districts and 
decreed that every producer in each district should market his coal 
at the particular price fixed there for coal, run of mine, i)repared 
sizes and slack or screenings. These newly fixed prices ranged in 
the various districts from $1.90 to $3,25 for run of mine, $2.15 to 
$3.50 for prepared sizes, and $1.65 to $3 for slack or screenings.^ 

1 Regarding these prices, the President's statement said : / 

Figures submitted to the commission * * * show that most of the present prices 
now charged * * * are far in excess of cost as shown by the operators' books, asany 
of the operators frankly take the position that they are trying to get for their coal the 
highest prices possible under the present demand and are refraining, even at prices greatly 
increased over last year, from contracting their output to the extent of their usual cus- 
tom. They defend this action by claiming that under the operations of the law of supply 
and demand they have for many years past been getting little more for their coal than 
the bare cost of production ; that the mining of bituminous coal during that period has 
been a most unprofitable industry, and that this is their chance to recoup themselves for 
the losses of several years. Accordingly, they are demanding prices at the mine to-day 
which run from 50 per cent to several hundred per cent over the cost of their output. 



GOVEENMEISTT CONTROL OVEE PRICES. 167 

These prices were, so the President said, " based upon the actual cost 
of production and deemed to be not only fair but liberal as well," 
and " under them the industry should nowhere lack stimulation." ^ 

The new soft coal prices ranged from 20 to 35 per cent under tha 
maximum prices established on June 28, previous to the Peabody- 
Lane agreement. The Peabody-Lane prices for Pennsylvania coal 
had been $3 for mine run and $3.50 for domestic lump, egg, and 
nut. The President's prices were $2 for mine run and $2.25 for 
the prepared sizes. The Peabodj'-Lane prices for West Virginia 
coal were likewise $3 for mine run and $3.50 for domestic lump, 
egg, and nut, while the President's prices were $2 and $2.25, respec- 
tively. The Peabody-Lane prices for Illinois and Indiana coal were 
$2.75 for mine run and steam sizes, and $3.50 for screened domestic 
sizes. The President's jjrices, on the other hand, were $1.95 for mine 
run and $2,20 for prepared sizes. The new jprices were, indeed, be- 
low the price tentatively fixed earlier by the Navy for Virginia 
coal at $2,335.2 Mr. C. E. Lesher, delegated from the Geological 
Survey for the statistical work upon coal at the Fuel Administra- 
tion, very tersely remarks that the bituminous prices fixed by the 
President on August 21 were as far below the Peabody-Lane prices 
established June 28, as they in turn had been below the prevailing 
market.® 

Modifications made ty the Fuel Administrator. — The President, 
in his announcement of bituminous coal prices prior to his appoint- 
ment of a Fuel Administrator, had taken especial care to designate 
them as tentative and subject to change by any fuel agency which 
might be created. The Fuel Administrator did, in point of fact, 
during the remainder of 1917 and particularlj^ in 1918, make con- 
siderable modifications in general, and in particular districts, of the 
original prices. The Fuel Administrator, made aware of serious 
demands from miners for wage increases in West Virginia, Illinois, 
Indiana, Ohio, and other districts early in the fall, wrote the 
President* and asked that bituminous coal prices be increased by 
enough to allow operators to satisfy wage demands. The President 
thereupon issued an Executive order, on October 27, 1917, to be 
effective October 29, 1917, allowing producers to add an additional 



1 Letter from the President, announcing tlie new coal prices, dated Aug. 21, 1917. 

2 It was estimated that the coal producers, under the new price, would have to refund 
approximately 131 cents per ton to the Government, since the fixed price of $2 per short 
ton was calculated as equal to .$2.20 per long ton. The Secretary of the Navy, when in- 
formed of the new Government prices, said in part : 

" The Navy will, of course, get back any excess we paid in the $2,335 advance, as it was 
agreed that this was merely a tentative figure. When I fixed that rate I took the highest 
price suggested by any one whose .judgment of prices at the mine I listened to. I wanted 
to be sure that enough was paid, and resolved all doubt in favor of the coal dealers. I 
hope now that we will get coal at a reasonable figure." 

3 " Prices of Coal and Coke," by C. E. Lesher, W. I. B. Price Bulletin No. 85. 
*Oct, 26, 1017. 



168 HISTOKY OF PEICES DURING THE WAR. 

45 cents for the bituminous coal at the mine to every price fixed on 
August 21, or subsequently modified.^ It was later ruled by the 
Fuel Administration ^ that consumers having contracts for the pur 
chase of coal, made before August 21, 1917. at j^rices below the 
President's prices, need not add 45 cents to those contract prices, 
when the early contracts contained no provision for a variation in 
X)rice to correspond with changes in the wage scale. The 45-cent 
increase for bituminous coal was made generally applicable except 
for Alabama, a nonunion State.^ Alabama, because the Fuel Ad- 
ministration found her producers' and miners' committees in agree- 
ment upon a scale of v.'ages, was excepted from the terms of the 
Washington wage agreement of October G and the Executive order 
of October 27, 1917.^ 

The Fuel Administrator, on the other hand, issued an order May 
24, 1918, and effective the following clay, reducing the price of all 
bituminous coal by 10 cents per net ton of 2,000 pounds, f. o. b. mines 
in various districts. The reduction pertained to all bituminous 
schedules, irrespective whether there had or had not been modifica- 
tions of the President's prices, and was made in no way to affect the 
45-cent increase that had been previously allowed.^ This reduction 
was made because of the estimated general leveling and lowering 
of costs of production, accomplished by the elimination of all prefer- 

^ There follows in full a copy of this important order, increasing the fixed price for 
fcituminous coal by 45 cents subject to two esceptions, issued Oct, 27, 1917 : 

The scale of prices prescribed Aug. 21, 1917, by the President of the United States for 
bituminous coal at the mine, as adjusted and modified, by order of the United States Fuel 
Administrator, to meet exceptional conditions in certain localities, is hereby amended by 
adding the sum of 45 cents to each of the prices so prescribed or so adjusted and modified, 
subject, however, to the following express exceptions : 

(1) This increase in prices shall not apply to any cojal sold at the mine under an exist- 
ing contract containing a provision for an increase in the price of coal thereunder in case 
of an increase in wages paid to miners. 

(2) This increase in prices shall not apply in any district in which the operators and 
miners fail to agree upon a penalty provision, satisfactory to the Fuel Administrator, for 
the automatic collection of fines in the spirit of the agreement entered into between the 
operators and miners at Washington, Oct. 6, 1917. 

This order shall become effective at 7 a. m. on Oct. 29, 1917. 

-Jan. 25, 1918. 

" Alabama was excepted by order from the Fuel Administrator dated Oct. 31, 1917. 

* Alabama producers and miners, who had been allowed to make a separate and satis- 
factory agreement effective Feb. 6, 1918, came to a new agreement on Apr. 20, and they 
too were given the 45-cent increase (as of the order of Oct. 27, 1917) effective May 15, 
1918. 

s The effect of the order making a reduction of 10 cents per net ton from the mine 
price on all bituminous coal shipped after 7 a. m.. May 25, 1918, is that no one shall 
aslj, demand, or receive more than the applicable Government mine price thus reduced 
for any coal shipped after 7 a. m.. May 25, 1918, unless the same was shipped pursuant 
to a bona fide contract enforcible at law entered into prior to Aug. 21, 1917. Contracts 
made between Aug. 21, 1917, and Dec. 29, 1917, do not authorize any exception to the 
above. Contracts made after Dec. 29, 1917, must, under the provisions of the order 
dated Dec. 24, 1917, contained in Fuel Administration Publication No. 16, provide that 
all shipments thereunder shall be at the applicable Government mine price at date of 
shipment. 



GOVERlSrMEiSrT CONTROL, OVER PRICES. 169" 

ments in car supply, brought about by the President acting through 
the United States Eailroad Administration. 

In addition to the above general increase of 45 cents above the 
President's prices, and later decrease of 10 cents per ton, applicable 
virtually to the whole lot of bituminous coal in the country, the 
Fuel Administrator made numerous lesser modifications of the Presi- 
dent's prices within various particular districts. The general intent 
of these many district changes was to adjust more precisely the 
selling prices to the varying costs of each district by comparison 
with other districts, and of various sections within the same district. 
The President, for example, had fixed a flat price of $2, run of mine, 
for all coal in Pennsylvania, Mr. Garfield, at different times, divided 
Pennsylvania into sections on the basis of similarity in production 
costs, and not only assigned each section of the district a separate 
fixed price in accordance with its costs of production, but increased 
those prices somewhat above the President's prices. The modified 
prices, without here designating the districts, ran $2.25, $2.75, $2.60, 
$2.60, $2, $2.50, $1.90, and $2.95, respectively. The Ohio prices 
which the President had fixed at $2, run of mine (thick vein), and 
$2.35 (thin vein), in like manner were modified to meet the costs 
instead of 24 different cost districts, and the prices of $3.75, $3.25, 
$2, $2.35, $3, $2.10, $2.50, $2.50, $2.25, $2.50, $3, $1.90, $2.50, $2.30, 
$2.95, $2.05, $2.45, $2.45, $2.20, $2.45, $2.95, $1.90, $2.05, and $2.50 
established.^ Perhaps the most important of the revisions made of 
the original prices were those for eastern Kentucky; Kanawha, 
W. Va. ; Georges Creek, Md. ; central Pennsylvania; and Hocking, 
Ohio. These typical illustrations and others which may be made 
for any particular coal district, show that the Fuel Administration 
did allot much more carefully than had the President, prices with 
respect to locality costs, and that it generally increased the Presi- 
dent's prices. 

A comparison of prewar and f^xed prices. — It can not be said how 
much the fixing of bituminous-coal prices by the President and their 
subsequent control and modification by the Fuel Administration held 
prices down. It would be inaccurate, indeed, to compare the fixed 
prices with the previously tabulated market quotations for pre- 
regulation months, since the bulk of bituminous coal has always sold 
by contract and at much below the " spot " market. But in order 
that there might be afforded some rough measure of the actual realiza- 
tion prices, Mr. C. E. Lesher has prepared a unique scheme for the 
reduction of the preceding weighted market prices to theoretical 

^ For a more detailed designation of the yarioiis new coal districts established by 
the Fuel Administration, and a . comparison of the many modifications made of the 
President's prices, one should refer to the rules and regulations of the Fuel Administra- 
tion appended to thig inquiry. 



170 



HISTORY OF PRICES DURING THE WAR. 



realization prices.^ These x>rices, which, perhaps, represent more 
accurately the true status of the weighted average bituminous coal 
market for the United States than any data that have been found, 
afford the best known basis for a comparison of bituminous prices 
before and after control. They give a fair measure of the actual 
movement of coal prices up to September, 1917, when price fixing 
had begun, and. therefore, a measure by which to compare the subse- 
quent fixed pricas. 

WEIGHTED REALIZATION TRICES OF ALL BITUMINOUS COAL IN THE UNITED 

STATES. 

ACTUAL PRICES PEU KET TON. 



Month. 


1913 


1914 


1915 


1916 


1917 


1918 




$1 22 
I.IS 
1.17 
1.17 
1.17 
1.17 
1.17 
1.18 
1.18 
1.19 
1.19 
1.18 


$1.17 
1.18 
1.10 
1.17 
1.17 
1.16 
1.18 
1.17 
1.18 
1.18 
1. 16 
1.16 


81.18 
1.18 
1.15 
1.12 
1.12 
1.11 
1.11 
1.11 
1.12 
1.12 
1.13 
1.18 


SI. 19 
1.17 
1.15 
1.20 
1.20 
1.20 
1.20 
1.20 
1.23 
1.29 
1.45 
1.46 


$1.48 
1.48 
1.45 

2.:ot 

2.44 
2.46 
2.30 
2.31 
2.12 
2.12 
2.19 
2.19 


.112. 19 




2.20 


March 


2.21 




2.71 




2.75 




2.66 


Jiilv 


2.66 




2.67 




2.67 




2.67 




2.67 


December 


2.67 








1.18 


1.16 


1.13 


1.24 


2.07 


2.53 







RELATIVE PrjCES. 



January. . . 
Febraary. . 

March 

April 

May 

June...... 

July 

August 

September 
October... 
November. 
December. 

Year 



104 


100 


99 


101 


128 


101 


99 


99 


100 


126 


100 


99. 


98 


98 


124 


100 


100 


95 


102 


196 


100 


100 


95 


102 


208 


100 


99 


95 


102 


210 


100 


99 


95 


102 


196 


101 


100 


95 


102 


196 


101 


99 


95 


105 


181 


101 


99 


95 


110 


181 


101 


99 


96 


124 


187 


101 


99 


99 


124 


187 


101 


99 


98 


106 


175 



187 
188 
188 
231 
234 
227 
227 
228 
228 
228 
228 
228 



213 



1 The method by which Mr. C. E. Lesher, of the United States Fuel Administration,' 
reduced the spot prices, which are quoted previously in this chapter, to theoretical 
aveifege realization prices was as follows : 

An average realization per ton for each calendar year was obtained from the coal 
reports of the Geological Survey, by dividing tlie total dollars received f. o. b. mines 
by the total tons of each coal prodneed. This figure was an average for 12 months 
and if charted would be represented by a straight line, showing none of the monthly 
fluctuations which really tools: plade. These annual averages, moreover, were for 
calendar years, whereas the annual hreali in average realization more nearly correspond:^ 
to the coal year beginning with Apr. 1. These annual average figures of realization, there- 
fore, were arbitrarily moved forward 3 months, and the figures for the calendar year 
1914 considered to apply to the 12-month period beginning Apr. 1, 1914, and ending 



GOVERNMENT CONTROL OVER PRICES. 171 

The comparison is facilitated, by the reduction of the theoretical 
weighted realization prices to corresponding relative prices by adopt- 
ing the average realization prices for the prewar year (July 1. 1913, 
to June 30, 1914) as a base equal to 100. 

It is clear from this statistical picture that the actual reduction 
in bituminous-coal prices for the bulk of production, as affected by 
l->rice fixing, was much less than might be supposed on looking at 
any compilation of market quotations for spot transactions. Indeed, 
there was no greater reduction than 32 cents per net ton from May, 
well before regulation, to October, 1917, after control had begun, 
xind not again throughout the whole period of fuel control does 
this theoretical realization price fall as lov/ as the October price 
($2.12). Instead, it begins a rise which reaches a record peak of 
$2.75 per ton in May, 1918, nearly a year after the spot prices had 
reached their peak. It would seem clear that the control of bitumi- 
nous coal scaled clown tremendously the enormous and unprece- 
dented rise which spot coal in the open market had attained during 
the six months prior to j)rice fixing. But it is open to question 
whether there were such perceptible scalings in the sales which repre- 
sented the bulk of bituminous transactions. The record height of 
these actual sales, for the country as a whole, came eight months 
after control had set in. Bituminous-coal prices, which were con- 
trolled in part to stimulate production, judging them as a whole 
and ignoring exceptions within particular districts,^ did not main- 
tain the lower level to which they yvqyq scaled by price fixing in the 
summer of 1917. They, whether measured by the spot prices or the 
realization prices, were brought down through price fi-xing to $2.12 
per ton in September, 1917, but rose to $2.75 by May, 1918. 

Mar. 31, 1915. Quite without regard to quantity of coal produced in any month, the 
spot prices for each coal year were reduced or raised proportionately, so that their 
arithmetic mean would equal the average realization. It was arbitrarily assumed that 
the average realization was represented by the sale price of coal delivered on contract, 
that the modified spot prices represented the price on current sales, and that three- 
quarters of the coal was sold on contract and one-quarter at the spot market. A figure 
for each coal for each month was thus calculated, i. e., three-quarters average realization 
and one-quarter spot prices reduced to average realizatiois. For the period from 
September, 1917, to December, 1918, the prices flsed by the Government were considered 
spot prices and from April to December, 1918, the same prices were taken for the 
spot reduced to average realization, since the actual realization for 1918 was not yet 
available. It is believed that these figures record more accurately the true price status 
of the coal market than do the spot prices. They are, at any rate, based upon the 
actual annual average return per ton of coal. 

1 A study of the stabilizing effects of coal regulation may be made within each 
bituminous district by use of materials already segregated iu " Prices of Coal and Coke," 
by C. E. Lesher. 



172 HISTORY OF PRICES DURING THE AVAR. 

Price Fixing of Anthracite Coal at the Mine. 

It is to be reiiieniberecl that hard or anthracite coal, which is used 
in the main by householders, constitutes only 15 per cent of our total 
coal production, and was not regulated by the earlier Peabody-Lane 
agreements or by the coal-production committee. The Federal Trade 
Commission, on the other hand, undertook during the spring of 
1917 anc.1 until the President fixed anthracite prices, to control the 
prices of anthracite coal by various voluntary agreements which 
were entered into with the anthracite producers.^ Anthracite prices, 
as a whole, were thus well under control by the summer of 1917, at 
the direction of Congress. These full data were presented to the 
President on August 22, and on August 23, 1917, he fixed the prices 
of anthracite coal for the country. 

^ There follows a chronological review in brief, authorized by the Federal Trade Com- 
mission, of each important agreement looking to a regulation of anthracite coal prices, 
between the Federal Trade Commission and the anthracite producers up to the time of 
the President's prices (Aug. 23, 1917) : 

1. See letter of commission dated Mar. 12, 1917, to 25 principal anthracite operators 
concerning rumored suspension of spring discounts (see Exhibit I, p. 371, S. Doc. No. 50, 
65th Cong., 1st sess.). With this letter the commission inaugurated a policy of endeavor- 
ing to limit the price of anthracite to domestic consumers. 

2. The May price on anthracite egg, stove, and chestnut sizes virtually was fixed for 
coal produced by railroad coal companies through publication of the commission's interim 
report to the Senate (see Schedule Exhibit II, p. 373, S. Doc. No. 50). This report fol- 
lowed conferences with the so-called railroad coal company operators early in May. To 
May prices add 10 cents per ton of 2,240 pounds each succeeding month, up to and includ- 
ing August, 1917, to ascertain approximate f. o. b. mine prices on the sizes mentioned, 
charged by the railroad coal companies. By adding another 10 cents, the price fixed by 
the President on these sizes, effective Sept. 1, 1917, Is obtained. Broken, pea, and buck- 
wheat sizes were not the subject of agreement, since they have a large industrial use, and 
the commission was concerned principally with the prices of sizes most in use by domestic 
consumers. 

3. Later in May (about the 11th) a conference was held with individual operators to 
discuss their prices, since the individual output continued to go out at high prices (reach- 
ing as high as $8 and $8.50 per ton of 2,240 pounds f. o. b. mines in some instances). 
This conference is discussed in Commissioner Colver's testimony, par. 1, p. 264, Pt. I of 
the hearing before the Committee on Interstate Commerce. Jobbers' and retailers' rep- 
resentatives also were present at this conference. No fixed price was agreed on with indi- 
vidual operators at this conference, but high prices realized by individual operators were 
severely criticized by the commission. 

4. The commission's letter of May 14, 1917, Exhibit IV, pp. 374, 375, Senate Document 
No. 50, and the form of weekly report printed on p. 376, that was required of individual 
operators for the last part of May, 1917, was the first intimation given them concerning 
what the commission considered the maximum permissible f. o. b. mine prices for their 
output of egg, stove, chestnut, and pea sizes, when sold for domestic consumption. This 
price (May) was 35 cents per gross ton above the railroad coal company prices already 
referred to on egg, stove, and chestnut (no price for pea was agreed on with the railroad 
coal companies). 

Subsequently it was found that it would be difficult or impossible to hold all individual 
operators to these prices, and the June reports for individual operators (printed on p. 
S77, S. Doc. No, 50) provided for a maximum differential of 75 cents per gross ton over 
the railroad coal company prices. Ten cents per ton of 2,240 pounds was added for 
each month up to and including August, 1917. In this connection it should be noted 
that all individual operators did not avail themselves of the full differential. For in- 
stance, the Kingston Coal Co., the largest individual operator, with a total yearly ton- 
nage (all sizes) of 1,200,000 tons, at no time took more than 35 cents. It was agreed 
with representatives of the individual operators that this differential should not at that 
time be made applicable to egg and pea coal sold for industrial use, provided that the 



GOVERIiFM-EIsrT CON^TKOL OVER PRICES. 173 

Prices fixed hy the President^ August 23^ 1917. — The President's 
maximum prices for anthracite coal, announced like those for bi- 
tuminous coal before he had appointed his Fuel Administrator, ^ were 
to be effective September 1. They vere virtually the same as the 
prices then charged at the mines under the voluntary agreement made 
by the producers with the Federal Trade Commission, if indeed not 
slightly higher.^ The one exception to this rule was pea coal, which 
was increased above the market upon recommendation of the Federal 
Trade Commission, but which was subsequently reduced by 60 cents 

normal percentage of the total output of each operator sold for these purposes were 
Dot exceeded, and that no attempt should then be made to limit the price on broken and 
tucliwheat sizes, generally used in the industries. 

For the purposes of observing the proportion of controlled and uncontrolled sizes 
produced by individual operators, monthly reports were required ; and these were checked 
with the percentages of the different sizes that were normally produced (see Forms 3 and 
3A, reproduced on p. 379, S. Doc. No. 50). 

It should be remarked that some independent operators voluntarily abrogated contracts 
made at higher prices than those suggested as the limitation maximum, and shipped the 
coal so contracted for at the lower prices suggested as permissible maxima by the com- 
mission. 

The commission's views respecting limitation maximum f. o. b. mine prices were rein- 
forced by agents in the anthracite fields who frequently called upon operators for inspec- 
tion of their sales records, consultations, etc. 

5. Several jobbers attended the conference of May 11 by invitation, and while no 
agreement was then made respecting a limitation jobbers' margin on anthracite coal, the 
commission's viev/s ■ respecting exorbitant ma.rgins, and on interbuying among jobbers 
with the consequent multiplication of jobbers' margins, were made known to them. 

About the middle of May or shortly afterwards, the commission began to express in- 
formally to leading jobbers its view that 20 cents per ton of 2,240 pounds should be the 
maximum jobbers' margin on anthracite shipped to Buifalo, or points east of Buffalo, 
that 25 or SO' cents should be the maximum on shipments west of Buffalo, and that the 
combined margins of any number of jobbei's handling a given shipment should not exceed 
these maxima. 

A system of weekly reports from jobbers also was inaugurated in May. (See letter 
of commission to jobbers and report required, reproduced as Exhibit VIII, pp. 382, 383, 
384, S. Doc. No. 50.) 

The commission's views respecting limitation jobbers' margins on anthracite were com- 
municated to all anthracite jobbers in its letter of June 9. (See Exhibit IX, p. 385, S. 
Doc. No. 50.) 

Field agents of the commission reinforced the commission's views as to jobbers' margins 
by frequent insiDection of jobbers' records, interviews, etc. 

6. At the conference of May 11 several representatives of retailers' associations were 
present by invitation. They were given an opportunity to hear the commission's views 
on excessive prices, but no agreement was attempted respecting retailers' margins. 

Subsequently the commission sent to retailers in many different cities letters and forms 
similar to those shown in Exhibit X, pp. 385, 386, 387, 388 of Senate Document No. 50. 
From these forms comparative statements of tonnage received in given cities or towns 
during stated periods were compiled, the gross margins of retailers in those towns or 
cities were computed, and the results given publication through the local press. The com- 
mission counted on such publicity to restrain retail dealers' margins to a certain extent. 
End while no names were published, except in Washington and Indianapolis, these 
press statements no doubt had some effect in restricting retail margins and prices during 
the summer and fall of 1917. 

7. The commission's activities in the matter of anthracite pea control were placed fully 
before the President on Aug. 22, before the anthracite prices effective Sept. 1, 1917, were 
fixed by him. 

^ Mr. Harry A. Garfield, president of Williams College and chairman of the wheat price- 
fixing committee of the Pood Administration, was appointed the same day (Aug. 23, 1917). 

^ Mr. David L. Wing of the Federal Trade Commission, in his testimony at the coal 
hearings referred to previously, declared that the President's prices were found by adding 
10 cents. (Pee Exhibit No. 272, p. 014 of printed hearings, pursuant to S. Res. 163, 65th 
Cong. 2d sess.) 



174 HISTORY OF PRICES DURING THE WAR. 

]")Ci' gross ton by the Fuel Administration on October 1, 1917. The 
new anthracite prices, fixed for broken, egg, stove, chestnut, and 
pea coal under each of the three grades, white ash, red ash, and 
Lykens Valley, varied from $1 to $1.50 per ton of 2,210 pounds f. o. 
b. cars at the mine. The President, curiously, made the new prices 
applicable specifically to 16 leading Pennsylvania anthracite pro- 
ducers whom he named in the price-fixing announcement. It was 
then provided that anthracite producers, other than the 16 named, 
should not sell anthracite coal at prices to exceed by more than 75 
cents per ton the schedule established for the larger producers.^ The 
anthracite schedule of fixed prices showed important and interesting 
variations in practice from the earlier bituminuous schedule. 

Modifications made hy the Fuel Administrator. — The Fuel Admin- 
istrator made more modifications of a general character in the Presi- 
dent's anthracite prices than in his bituminous prices. The whole 
schedule of anthracite prices, as fixed by the President August 23, 
was increased by Executive order to be effective December 1, 1917, 
to allow an addition of 35 cents per gross ton for each fixed price. 
That modification was made to provide for wage increases author- 
ized by the President. The usual summer reductions in the prices of 

^ There follows so much of the President's order of Aug. 23, 1917, as pertains to the 
fixing of anthracite coal prices at the mine : 

4. Effective Sept. 1, 1917, the maximum prices per ton of 2,240 pounds free on bora-d 
cars at the mines for the grades and sizes of anthracite coal hereinafter specified shall not 
exceed the prices indicated in par. 5 when such coal is produced and sold hy the Phila- 
delphia & Reading Coal & Iron Co., Lehigh Coal & Navigation Co., Lehigh & Wilkes- 
Barre Coal Co., Hudson Coal Co., Delaware & Hudson Co., Scranton Coal Co., Lehigh Val- 
ley Coal Co., Coxe Bros. & Co., Pennsylvania Coal Co., HiUside Coal & Iron Co., Delaware, 
Lackawanna & Western Railroad Co., Delaware, Lackawanna & Western Coal Co., Susque- 
hanna Coal Co., Susquehanna Collieries Co., Lytle Coal Co., or the M. A. Hanna Coal Co. 

5. The grades and sizes for which the maximum prices are specified are as follows : 
White ash anthracite coal of the grade that between Jan. 1, 1915, and Jan. 1, 1917, was 
uniformly sold and recognized in the coal trade as coal of white-ash grade; red-ash 
anthracite coal of the grade that between Jan. 1, 1915, and Jan. 1, 1917, was imiformly 
sold and recognized in the trade as coal of red-ash grade ; and Lykens Valley anthracite 
coal that is mined exclusively from the Lykens Valley seams and of the grade that between 
Jan. 1, 1915, and Jan. 1, 1917, was uniformly sold and recognized In the coal trade as 
coal of Lykens Valley grade. 



White-ash grade : 

Broken $4. ,55 

Egg 4.45 

Stove 4.70 

Chestnut 4.80 

Pea 4. PO 



Red-ash grade : 

Broken $4. 75 

Egg 4.65 

Stove 4.90 

Chestnut 4. 90 

Pea 4.10 



Lykens Valley grade : 

Broken .$5. 00 

Egg -. 4.90 

Stove 5.30 

Chestnut 5. 30 

Pea 4. 35 



6. Producers of anthracite coal who are not specified in par. 4 shall not sell the various 
grades and sizes of anthracite coal at prices that exceed by more than 75 cents per ton 
of 2,240 pounds free on hoard cars at the mines the prices enumerated in par. 5 ; provided 
that any producer of anthracite coal who incurs the expense of resereening it at Atlantic 
or Lake ports for transshipment by water may increase the price thereof by not more 
than 5 cents per ton of 2,240 pounds. 

7. Producers of anthracite coal specified in par. 4 of these regulations shall not sell 
anthracite coal to producers of anthracite coal not specified in par. 4. 

8. Dealers and selling agents shall not sell coal produced by the producers included in 
par. 4 on the basis of the prices fixed at the mine for coal produced by producers not 
specified in said paragraph. 



GOVEENMEIJTT CONTEOI. OVEE PKICES. 175 

domestic sizes were offered to tlie trade by the producers in 1918, 
althougli not required by the Fuel Administrator. Still a further 
and much, greater increase, $1.05 per gross ton, was allowed to the 
prevailing maximum prices for Pennsylvania anthracite coal by the 
Fuel Administrator after JSTovember 1, 1918. This modification, too, 
was made to provide for increased costs of production and for wage 
increases.^ Two weeks later (November 15) a maximum price for 
steam sizes of anthracite coal was fixed for the first time by the 
President,^ 

A compaHson of prewar and -fixed prices. — The stabilizing effects 
of coal regulation upon the prices of anthracite can be more easily 
measured than those of bituminous coal. Tliere are, however, certain 
very marked seasonal fluctuations in the prices of anthracite which 
must be held firmly in mind while attempting any measure. The 
anthracite producers, in order to make for uniform operations at the 
mines during the slack j)art of each year, liave for years offered a 
reduction of 60 cents a gross ton each April for all purchases of 
domestic sizes, followed by a reduction of 40 cents in May and a 
30 cents reduction in June, 20 cents in July, and so on until Septem- 
ber, when the normal lorice would be again reached. These, summer 
reductions have become so much a factor in the general level of an- 
thracite coal XDrices that they constitute the primary fluctuation dur- 
ing the year. Prices of anthracite coal ordinarily remain fairly level 
until April, fall several per cent, and come gradually back to normal, 
reaching their level again in September. But these important sea- 
sonal fluctuations of anthraeiate coal are concealed by the much 
larger and more irregular fluctuations since the latter part of 1916, 

The only available method by which to judge the stabilizing effects 
of price fixing upon the prices of anthracite coal, as was the case 
with bituminous coal, is to compare the prices before and after con- 
trol. It can not, of course, be concluded hastily from that compari- 
sion whether coal regulation was or was not effective, since there 
was presented to it the pr-oblem not only of stabilizing prices, but 
of stimulating production. The theoretical realization prices for 
all anthracite coal in the United States, in contrast to those prices 

1 The engineers committee of the Fuel Administration, through Mr. R. V. Norris, makes 
the following summary and observations relative to labor increases which entered into 
the prices of anthracite coal : 

Effective Dec. 1, 1917, a labor war bonus, ranging from 60 cents to $1.10 per day for 
labor and 25 per cent for contract miners was granted over and above the wage scales 
effective by agreement Apr. 1, 1916, expiring Apr. 1, 1920, and the prices fixed Aug. 2.3, 
1917, and modified Oct. 1, 1917, by reducing pea coal 60 cents per ton, were increased by 
35 cents per ton to compensate for this labor increase. The actual reported increase in 
labor cost due to this advance was figured by the Federal Trade Commission from the 
operators' reports to be 60.3 cents. From the actual pay-roll figures later obtained by 
the U. S. Fuel Administration, this increase was found to be 76.3 cents per ton. 

' The maximum price thus established was 50 cents a ton less tha^i that fixed for pea 
coal. 



176 



HISTORY OF PRICES DURIISTG THE WAR. 



for bituminous coal, show a rise very similar to the spot prices. 
There are printed here, therefore, only the relative prices, taking 
the prewar year (July 1, 1913, to June 30, 1914) as a base equal 
to 100, for the series of realization prices,^ because of the marked 
similarity between them and the less adequate spot prices. 

WEIGHTED REALIZATION PRICES OF ALL ANTHRACITE COAL IN THE UNITED 

STATES. 

ACTUAL PRJCES PEP. GIlO:;:5 TOST. 



Montli. 



1913 


1914 


1915 


1916 


1917 


S2.69 


$2.06 


?.2.58 


$2.60 


.$3.08 


2.64 


2.65 


2.57 


2.59 


3.09 


2.63 


2.65 


2.56 


2.58 


2.97 


2.60 


2.44 


2.44 


2.70 


3.08 


2.52 


2.47 


2.46 


2.66 


3.45 


2.56 


2.49 


2.48 


2.67 


3.36 


2.57 


2.52 


2.49 


2.71 


3.37 


2.61 


2.55 


2.52 


2.75 


3.39 


2.65 


2.58 


2.57 


2.79 


3.47 


2.65 


2.58 


2.58 


2.84 


3.47 


2.65 


2.58 


2.58 


3.09 


3.50 


2.65 


2.58 


2.59 


2.99 


3.63 


2.60 


2. 56 


2.54 


2.74 


3.32 



1918 



January 

February. . 

March 

April 

May 

June 

July 

August 

September . 

October 

November. 
December. . 



Year . 



?3. 63 
3.60 
3.63 
4.31 
4.31 
4.34 
4.30 
4.33 
4.54 
4.54 
5.30 
5.30 



4.35 



P.ELATIVE PKICE.'^ 



Month. 


1913 


1914 


1915 


1916 


1917 


1918 


January 


104 
102 
101 
99 
97 
99 
99 
101 
102 
102 
102 
102 


103 
102 
102 
94 
95 
96 
97 
98 
99 
99 
99 
99 


99 
99 
99 
94 
95 
96 
96 
97 
99 
99 
99 
100 


100 
100 
99 
104 
103 
103 
104 
106 
108 
109 
119 
115 


119 
119 
114 
119 
132 
129 
130 
131 
134 
134 
135 
140 


140 


February 


139 


March. , ■. . . . 


140 


April 


166 


May 


166 


June 


167 


July . . 


166 


August 


167 


September 


175 


October 


175 


November 


204 


December 


204 






Year 


101 


99 


97 


100 


128 


1G7 







The weighted average realization prices for all anthracite coal 
sold in the United States, made by abstracting some 5,000 quota- 
tions and reducing them to a basis at which, it is estimated, the bulk 
of sales were made, shows an exceedingly steady market during 1913, 
1914, and 1915. Anthracite coal in the latter part of 1916, however, 
began a rise which continued steadily in the main until the end of 
1918. The general price held steady for a brief space only at $3.47 
per ton, following the President's first announcement, and then rose 
in the latter part of 1917 by reason of the increase of 35 cents per 
ton that was allowed, effective December 1. The price rose from $3.63 
per ton in December, 1917, and January, 1918, steadily, except for 
slight reductions during the summer, to the latter part of 1918, when 



1 These realization prices were made by C. E. Lesher in lilte manner to the realizat:on 
prices previously printed for bituminous coal. A study of the spot or market prices for 
anthracite coal may le made from Mr. Lesher's pamphlet. 



GOVERNMENT CONTROL, OVER PRICES. 177 

unother increase of $1.05 was allowed. The price realized for an- 
thracite coal throughout the country as a whole, thus advanced rather 
steadily under Government regulation, from the time control set in 
until after the signing of the armistice. It made during that time 
a gain from $3.47 per ton in September, 1917, to $5.30 in Novem- 
ber, 1918. 

Control Ovee thk Prices of Coal Middlemen. 

Joh'bers' margins. — It must have been obvious to the President at 
the outset that, while the fixing of fair prices for coal at the mine 
would stimulate production, it would not insure against extortionate 
profits to middlemen. He, in his first announcement of bituminous 
prices, gave promise soon of a fair and equitable control of prices 
for sales by middlemen and retailers. The President's order of 
August 23, fixing prices of bituminous coal at the mine, left middle- 
men and retailers a free hand to charge consumers what they would. 
But on August 23, 1917, in the same order by which he also fixed 
anthracite coal prices, the President set certain jobber margins. 
Bituminous coal jobbers, by that order, were not allowed to add to 
their purchase price a gross margin above the fixed price in excess 
of 15 cents per ton of 2,000 pounds, nor were the combined gross 
margins of a number of jobbers allowed to exceed that amount. An- 
thracite coal jobbers were not allowed a gross margin above the fixed 
price in excess of 20 cents per ton of 2,240 pounds when delivery 
was at or east of Buffalo, or in excess of 30 cents for delivery west 
of Buffalo.! The modifications of these original margins made by 
the Fuel Administration were of less importance than its changes in 
prices fixed by the President.- 

iThe section!? of the President's order of Aug. 23, 1917, which relate to bituminous 
and anthracite jobber margins follow : 

1. A coal jobber is defined as a person (or other agency) who purchases and resells 
coal to coal dealers or to consumers without physically handling it on, over, or through 
his own vehicle, dock, trestle, or yard. 

2. For the buying and selling of bituminous coal a jobber shall not add to his pur- 
chase price a gross margin in excess of 15 cents per ton of 2,000' pounds, nor shall the 
combined gross margins of any number of jobbers who buy and sell a given shipment 
or shipments of bituminous coal exceed 15 cents per ton of 2,000 pounds. 

3. For buying and selling anthracite coal a jobber shall not add to his purchase price 
a gross margin in excess of 20 cents per ton of 2,240 pounds when delivery of such coal 
is to he effected at or east of Buffalo. For buying or selling anthracite coal for delivery 
west of Buffalo a jobber shall not add to his purchase price a gross margin in excess 
of 30 cents per ton of 2,240 pounds. The combined gross margins of any number of 
jobbers who buy and sell a given shipment or shipments of anthracite coal for delivery 
at or east of Buffalo shall not exceed 20 cents per ton of 2,240 pounds, nor shall 
combined margins exceed 30 cents per ton of 2,240 pounds for the delivery of anthra- 
cite coal west of Buffalo. Provided that a jobber's gross margin realized on a given 
shipment or shipments of anthracite coal may be increased by not more than 5 cents 
per ton of 2,240 pounds when the jobber Incurs the expense of rescreening it at 
Atlantic or Lake ports for transshipment by water. 

2 For a full compilation of all subsequent orders relating to jobbers' margins, one 
should consult " General Orders, Regulations, and Rulings " of the Fuel Administration, 
Chapter III, Title IX; Chapter II, Title IV; Chapter III, Title VII ; and notes under each. 

125.j47°— 2(y 12 



178 HISTORY OF PRICES DURING THE WAR. 

Distributors' tiuogln^. — It became necessary in the spring of 1918 
to bring certain distributors under license control in order to admin- . 
ister regulation more effectively. A presidential proclamation,^ ac- 
cordingly, was issued requiring all distributors of coal or coke as 
jobber, broker, selling agent, or " in any capacity whatever," to se- 
cure a license on or before April 1, 1918,^ from the Fuel Administra- 
tor and under such conditions as might be prescribed by him. 

Mr. Garfield then issued an order with the approval of the Presi- 
dent, prescribing that licensees who sell coal or coke w^ithout phy- 
sically handling it should not ask more than the prevailing fixed 
price plus 5 cents per ton of -2 ,240; and licensees who act as purchas- 
ing agents without becoming the owner might charge a purchasing 
commission not in excess of 15 cents per ton of 2,000 pounds of bitu- 
minous coal, or 20 cents per ton of 2,240 pounds of anthracite coal 
for delivery at or east of Buffalo and 30 cents for delivery west.^ 

Control Over Coal at Retail. 

One of the most difficult tasks of the war-time control over fuel 
was the regulation of the retail prices of coal. The Fuel Adminis- 
trator, realizing the x^rinie necessity of assuring stable i^rices to the 
small purchasers and consumers, set forth a scheme for the control 
of retail coal prices as early as October 1, 1917. The administration 
of the plan involved, of course, the assistance of the State and local 
committees, of whom there were legion.* 

No retail dealer under the j)lan was allowed to charge consumers 
a retail gross margin of coal or coke in excess of the average gross 
margin, above his average cost, added by the same dealer during 
1915, plus 30 per cent of the 1915 margin.^ 

A measure of the movement of retail prices, before and after regu- 
lation, is given in the table below. This table shows average and 
relative retail prices, as compiled by the Bureau of Labor Statistics, 
for Pennsylvania white-ash coal, both stove and chestnut sizes, and 
bituminous coal for the United States on January 15 of each year, 
1913 to 1919, inclusive. An average price for the year 1913 has been 
made from the averages for January and July of that year. This 

1 Tlais proclamation, Lssued under authoritj- of the food and fuel act, was made Mar. 
15, 1918. 

2 An exception was made to those specifically exempted hy tlie food and fuel act, 
producers and miners of coal and manufacturers of coke, distrihutins: exclusively their 
own product, and retail dealers, as defined in the Fuel Administrator's order of Oct. 1, 
1917. 

* A full listing of all orders relating to Ucensed distributors may be found in Fuel 
Administration "General Orders, Regulations and Rulings," Chap III, Title IX, sec. 2. 

* See fuel orders referred to above, Chap. II, Title VI, for full retail price regula- 
tions. 

8 Provided that the retail gross maigin added by any retail dealer sliould iu no case 
exceed the average added by such dealer for the same size and grade during July, 1917. 



GOVEElSrMEjSrT COi^^TROL, OYEE PRICES. 



179 



awrag-e price for tlie year 1913 lias been divided into the average 
price for January of each subsequent year to obtain tlie relative 
prices. 

Since January, 1913, Pennsylvania white-ash stove coal has ad- 
vanced 44 per cent, chestnut 42 per cent, and bituminous coal 44 per 
cent. The first big jump in the price of all kinds of coal came in the 
year from January 15, 191T, to January 15, 1918, Another interest- 
ing fact is that in the last year, from January 15, 1918, to January 15, 
1919, stove coal increased 17 per cent, chestnut 16 per cent, while 
bituminous coal increased only 3 per cent. 

WBRAGE AND RELATIVE RETAIL PRICES OP COAL IN TON LOTS, FOR HOUSE- 
HOLD USE, JAN. 15 OF EACH YEAR, 1913 TO 1919, INCLUSIVE. 

[Average price for year 1913=100.] 





Pennsylvania anthracite, white ash. 


Eitun 




Period. 


Stove. 


Chestnut. 






Average 
price. 


Relative 
price. 


Average 
price. 


Relative 
price. 


Average 
price. 


Relative 
price. 




37.73 
7.99 
7.80 
7.83 
7.93 
9.29 
9.88 

11.52 


100 
103 
101 
101 
103 
120 
128 
149 


$7.91 
8.15 
8.00 
7.99 
8.13 
9.40 
10.03 
1L61 


100 
103 
■ 101 
101 
103 
119 
127 
147 


$5.41 
5.48 
5.97 
5.71 
5.69 
6.96 
7.68 
7.90 


100 


Jan. 15, 19131 


101 


Jan. 15, 191-J 


110 


Jan. 15, igi-^i 


106 


Jan. 15, 1916 


103 


Jan. 15, 1917 


129 


Jan. 15, 1918 


142 


Jen. 15. 1919 


146 







Special Prices, Premiums, and Chaeges. 

In addition to the prices fixed at the mine, margins for middlemen 
and retailers, various special prices, premiums, and charges deter- 
mined by the Fuel Administration were also established.^ These 
in the main pertained to smithing coal, cannel coal, export and 
bunker coal, coal at Lake Michigan and Lake Superior docks, and 
coal from wagon mines, prices of specially prepared coal and coal 
iiot properly picked or cleaned, and miscellaneous orders affecting 
the delivered price of coal. 

Costs Made the Basis of Price Fixing. 

The coal prices fixed by the Fuel Administration were based upon 
scientific analyses of costs conducted by a special committee. Neither 
the price-fixing committee nor the Food Administration to any 
extent availed themselves of a detached scientific committee whose 
business it was to analyze for them and interpret the cost sheets 
prepared by the Federal Trade Commission. The Fuel Adminis- 

i See fuel order.s referred to above, Cliap. II, Title IV, sees. 1, 2, 8, 4, 5, 6, and 7, 



180 HISTOKY OF PRICES DURING THE WAR. 

tration, indeed, during 1917 and until early in January, 1918, took 
the President's tentative prices as tlie basis for all revisions and 
adjustments without serious inquiry into their justice.^ But early 
in 1918 the Fuel Administrator appointed his notable committee of 
engineers to make a painstaking and general review of all coal- 
production costs in the United States and to recommend to him 
scientific verification or revision of each price tentatively fixed.^ 
The Fuel Administration thus, more than any other of the larger 
price-control agencies, made intensive and highly specialized studies 
of production costs. It, unlike either the price-fixing committee or 
the Food Administration, was concerned primarily with the price 
fixing of but a single commodity — coal — and could make close 
analyses of costs for various parts of the country. The elaborate 
confidential cost tables worked out by the engineers' committee for 
Mr. Garfield, though happily as often useful to verify as to revise 
former prices, gave very comprehensive bases for the fixing of 
bituminous and anthracite coal prices. 

The engineers' committee at the outset determined upon a method 
for arriving at a fair price for coal. It considered the (a) straight 
cost-plus method — the actual cost at each colliery plus a fixed sum 
or percentage of profit; (h) modified cost-plus method — the actual 
cost at each colliery plus a graduated profit decreasing as costs 
increase; (c) average cost methods — prices fixed on the average 
cost in each district ; and, (d) pooling methods — all coal sold at the 
average cost of each district plus a profit, and the returns to each 
colliery adjusted through a clearing house at a price proportioned 
to its cost of production.^ 

^ These prices, though perhaps made upon a belter body of fact than were a majority 
of prices fixed, were based on average figures of approximately 100,000,000 tons' produc- 
tion, prepared by the Federal Trade Commission. They were relatively meager data, com- 
prising generally costs from the larger and lower-cost operators of each district. 

2 In January, 1918, Mr. Garfield appointed three mining engineers, Mr. Cyrus Garnsey, 
jr., Mr. R. V. Norris, and Mr. J. H. Allport, to constitute the engineers' committee of the 
Fuel Administration. They were men of scientific training and considerable practical 
experience. The committee was not authorized itself to fix prices of coal, but to study and 
report upon methods of price fixing and to present the Fuel Administrator with compre- 
hensive cost data. 

* Mr. Cyrus Garnsey, jr., Mr. R. V. Norris, and Mr. J. H. Allport, in Publication No. 
29, of the Fuel Administration, issued September 20, 1918, outline the following ad- 
vantages and disadvantages of each of these methods : 

1. Straight cost-plus method — Advantages. — (a) All producers would receive the same 
profit, and no one would have an advantage over another in this respect, (b) Apparently 
simple in plan and execution. 

Disadvantages. — Impracticable of application, by reason of: (a) Resultant multiplicity 
of prices, with grave disturbance of markets. (7j) Continual changing of prices due to 
inevitable variations in each producer's costs, (c) Instability of the industry, due to 
the natural disposition of consumers to purchase the lowest-price coal, (d) Inefiiciency 
in operation always resulting from lack of incentive in cost-plus operations, (e) Mate- 
rial reduction in output and reduction in quality, due to the natural tendency to mine 
the poorer and more expensive coal with a guaranteed profit, and to leave the better 
and cheaper coal in reserve to be mined on the return of normal conditions. (f) Con- 
tinual increase in all costs incident to extravagant methods encouraged by guaranteed 



GOVERNMENT CONTROL OVER PRICES. 181 

It seemed to the engineers' committee that they must find a system 
of price fixing which would meet especiallj^ these requirements : 

1. A price fair to the public. 

2. Prevent excessive prices or profiteering. 

3. Prevent a multiplicity of prices in any district. 

4. Encourage legitimate production. 

5. Discourage production from inefficient and unduly costly opera- 
tions. 

profits. (g) Labor unrest and constant demands for increases due to the knowledge 
of a guaranteed profit regardless of cost. (h) Practical impossibility of arriving witli 
technical accuracy at the costs of each separate operation, (i) Impracticability of the 
Government's policing the mines and securing the same efficient operation and pro- 
duction attained by the individual producer under the stimulus of increased profits. 
(/) niogical, in that the better planned and managed operations are discouraged, as 
compared with poor and inefficiently managed properties. 

2. Modified cost-plus method. — This is but a modification of the preceding, and the same 
discussion applies, modified only by the inclusion of a somewhat greater incentive to 
the better and more economical operations. 

3. Average cost methods — Advantages. — A minimum uniform price for each district ,or, 
if desired, for the entire country. Disadvantages. — (a) The average cost is necessarily 
less than the cost of about half the total tonnage. Hence, a reasonable profit put on 
the average cost would not produce the necessary tonnage. (6) The tonnage below and 
up to the average cost is actually produced by less than 30 per cent of the operators of 
the country. Hence, the great majority of the operators producing at above average cost 
would be put out of business by a price based on the average. 

-}. Pooling methods. — Pooling may be done on either cost-plus, modified cost-plus, or 
on the Iprices established by the United States Fuel Administration. Advantages. — (a) A 
uniform price to consumers for sections and, if desired, for the entire country. (&) A 
present lower price to consumers based on weighted average cost, (c) A simplification of 
all present pooling arrangements, as all coal to each pool would have, or could be ar- 
ranged to have, the same price. (c7) A return to the consideration of quality instead of 
cost, as, with all coal at the same price to consumers, the higher qualities would naturally 
be preferred. Disadvantages of pooling cost-plus or modified cost-plus methods. — (a) 
Continual variation in pool prices, due to inevitable variations in producers' costs. (6) 
Unfair and illogical, in that the better located and managed operations are made to pay 
tribute to the poor and badly managed ones, (c) A general and considerable increase in 
cost inevitably resulting from any method involving guaranteed profits with a disregard 
of economy, (d) A material reduction in output, due to lack of incentive and resulting 
inefficient methods, the employment of unnecessary labor, the mining of the more ex- 
pensive and less desirable qualities of coal for the ultimate benefit of the mines, and the 
execution of development not immediately needed, (e) A slackening of the efforts of em- 
ployees, which is the usual result of a lack of incentive to the producer, with the I'e- 
sulting lack of interest. if) The installation of an unsound policy tending to encourage 
the inefficient and discourage the efficient producer, (g) The ever-present temptation 
to allow costs to increase with the hope of readjustment of prices. (70 Dissatisfaction 
to both labor and to producers from the knowledge that other and less efficient operations 
have higher limits of price. The disadvantage of pooling on the prices fixed by the 
United States Fuel Administration are the same as suggested above, without some of the 
special disadvantages of cost-plus methods. Disadvantage of pooling in general. — (a) A. 
very large capital required tO' handle such stupendous operations. (6) Enormous and 
extended credits required to finance the producers, (c) Lack of organization to handle 
this new business. (d) Undesirability of creating an organization with its army 
of additional employees at the present time, (e) Inadvisability of putting a new and 
untried plan into operation at the present time. (/) Impossibility of obtaining, with 
sufficient promptness, the costs necessary to fix pooling prices with the necessary ac- 
curacy, ig) Interference with present established methods of handling coal, with 
serious risk of crippling its distribution and unnecessarily creating a shortage. 

None of these suggested methods seemed to fill the peculiar conditions incident to 
price-fixing of coal at the mines, and it devolved upon the engineers' committee to de- 
velop some method better suited to the conditions of the prohlem. 



182 HISTORY OF PRICES DUEIXG THE WAR. 

6. Insure to the producer " the cost of production,, including the 
expense of operation, maintenance, depreciation, and depletion, with 
a just and reasonable profit," as required by the Lever Act. 

The committee determined finall}^ that it could best attain these 
ends b}^ finding the bulk line of production, and allowing the Fuel 
Administrator personally to add whatever margin in his judgment 
each district required. Costs, accordingly^, were obtained from the 
Federal Trade Commission as filed b}' each operator in the country, 
and were studied by the committee, listed and adjusted^ for price 
fixing. These data, together with the percentages of each cost in the 
total production of each district, were plotted to show graphically the 
range and extent of variation in each district. Then, upon these 
diagrams, was drawn the bulk line, showing the indispensable ton- 
nage required from that district.^ 

When the committee set about its inquiry early in 1918, it had 
costs for the production of coal in the United States during August 
and September, 1917. These data, together with later reports, were 
generally used as a basis of costs.^ 

Bitunidnous costs, — The committee, confronted with a eonfusing 
mass of cost figures representing 95 per cent of the bituminous pro- 
duction of the country, evolved a scheme of unique graphic pre- 
sentation which made comparisons simple. It made for each coal 

'■ Many, especially of the small operators, were inexperienced in bookkeeping, and sub- 
mitted cost sheets, which, while accurate in totals, were grievously mixed in detail?. 
The most common of the cost adjustments which were made pertained to supplies, re- 
serves, salaries, special charges, outside profits, and fuel charges for colliery power. 
These adjustments of the Federal Trade Commission cost figures were made simply to put 
all costs on the same basis. 

2 Since the " bulk line " of production, adopted by the Fuel Administration, came so 
prominently into the consideration also of the price-fixing committee, it is of especial 
interest to note the following frank outline of its merits and demerits by the engineers' 
committee, who recommended it to the Fuel Administration. 

Advantages of the " hulk line " Si/stem. — -The method of fixing prices by the "bulk line" 
principle recognizes the economic syllogism that " the price of any article necessary to a 
community will be fixed by the cost of producing that necessary portion of such article 
involTing the greatest expense." (a) This assures to all producers profits dependent 
upon their ability and exertions, only limited by tiie establishment of a reasonable price 
to the consumer, (h) It does not unduly increase the price of coal to the con.sumer over 
the minimum price possible under other methods. (c) It tends to encourage maximum 
production and necessary development by allowing to the producer the benefit of reduced 
costs due to greater production. (d) It avoids bad feeling among the producers and 
among the workmen by allowing a fixed price in each district and not apparently show- 
ing favoritism to special producers, (e) It tends to encourage the fit and discourage 
the unfit. (/) The method is susceptible of refinement and extension, making it possible 
to eliminate undue profits to the producer and adjust prices from time to time to the 
ultimate advantage of the consumer. 

Disadvantage of the "hulk line" system. — (a) Considerable profits to the lowest-cost 
operators. (T)) A price for coal greater than one based on the average cost, by the 
amount by which the " bulk line " exceeds such average. 

This method appeared to be better suited to the conditions than any of the others 
suggested, and after a careful study by the United States Fuel Administrator it was 
adopted. 

" It is of interest that the committee later found, M'hen cost data for extended periods 
were had, that the two months mentioned above were fairly representative, as to cost, 
of the average year. 



GOVERNMENT CONTROL OVER PRICES. 183 

\ 

district in tlie country, of which there, were 99, a graph showing 
horizontally from left to right various percentages of production 
from to 100. That same graph, when read vertically from the 
lower left corner, showed various unit costs of production per ton 
from to the highest cost found. There were then drawn upon 
each chart the total costs for the district, as reported and also as 
adjusted, beginning at the lowest cost and the tonnage which could . 
be produced at that unit cost. The two cost lines thence (i. e., the 
reported and adjusted cost lines) were made gradually to rise from 
this lowest to the very highest cost in the district, showing con- 
stantly the increased i)roduction that could be had with each in- 
crease in cost. The bulk line, between these two extremes, repre- 
sented the percentage of production required and marked, there- 
fore, the basis for fixing a price. The bulk line usually was fixed 
at a point to assure the production at a minimum of profit, of 90 
per cent of the total capacity, thus cutting off the upper crust of 
high-cost producers.^ The bulk line of the chart, after adding 
whatever margin was determined upon by the Fuel Administrator, 
gave the necessary realization for run-of-mine coal, in that district. 
Spreads were, however, frequently added to this price to make pos- 
sible screening and special prices for prepared sizes. 

A study of the average costs, bulk line, and prices fixed for 84 
per cent of the bituminous coal production in the United States 
during August and September, 1917, gives interesting generaliza- 
tions.^ The weighted average margin between costs and the prices 
fixed for substantially the entire bituminous production of the coun- 
try was 15.6 cents. It is of equal interest that the weighted average 
margin between the bulk line, which represents the highest price 
necessary to produce any part of the necessary coal, and the prices 
fixed by the Fuel Administrator was 26 cents.^ 

1 These include : Mines wliich have failed under normal competitive conditions and have 
heen reopened under the stimulus of the high prices preceding Government control ; 
mines abandoned as exhausted and reopened for the few remaining pillars ; new enter- 
prises in the development stage ; mines opened on beds so thin or of such poor quality 
that they could not operate under normal conditions ; small mines on outcrop coal, often 
of poor quality, which have neither capital nor equipment for economical working ; 
mines which have encountered faults or in which the coal has thinned or split, or the 
quality has so deteriorated as to prevent working at a reasonable cost ; and, not the 
least of this group, mines so badly managed as to show unwarrantable costs of 
operation. 

All these classes of mines are unjustifiable under war conditions. They use labor 
inefficiently. Often their records show less than half the tonnage per employee usually 
obtained in their disti'ict, and their elimination is an economical advantage to a district 
in releasing labor to more efficient mines. 

In this high-cost group- occasionally are found mines which have a coal of unusually 
high quality or fitted for special use, for which a market at prices above those of the 
district has always existed. Such mines, on proving their special conditions, may re- 
ceive consideration, for special prices sufficient to allow a fair proflt on their higher costs. 

2 See bituminous chart in section on " The determination of a fixed price." 
5 The engineers' committee add that : 

The average cost of the 84 per cent of the total coal represented for the two months 
of August and September, 1917, was reported to be $1,696. The adjustments heretofore 



HISTORY OF PRICES DURING THE WAR. 



Anthracite costs. — The inquiry into the costs of mining anthracite 
coal, Avhich followed that for bituminous, covered costs for the vari- 
ous sizes of white-ash anthracite, red ash, and Lykens Valley coals 
for the six months' period, December, 1917, to May, 1918, inclusive. 
The anthracite field covers a smaller district, is indeed itself a single 
district, and gave relatively few problems in the adjustment of re- 
ported costs to a price-fixing basis.^ But the spread in anthracite 
prices of the varying sizes, which for the chosen period ranged from 
$5,244 for nut to $2,074 for barley coal, made vital the question of 
the percentage of sizes produced at the different collieries. The 
percentage of prepared coal reported from different collieries, more- 
over, varied from over 80 per cent to below 30 per cent for fresh- 
mined coal, and the spread in prices for the various sizes had to be 
predicated upon some percentage to allow for variations.^ 

described raised this reported cost to $1,706, a very strong indorsement of the honesty 
of the reports made by the operators. 

The average " bulk line " was fixed at $1,902, or 19.6 cents above the average adjusted 
cost. This represents the margin required to assure the mining of the necessary coal, as 
compared with the average cost, which, of course, involves the mining of only coal up to 
or below the average .cost ; in other words, half the available output. 

The weighted average of all prices fixed is $2,162 per ton and the average margin 
above the " bulk line *' is 26 cents, representing all the above mentioned charges and all 
profit for the higher cost necessary mines ; the margin above the average weighted cost 
for the whole country is 45.6 cents per ton, which, compared with profits in other busi- 
nesses, certainly does not show any signs of profiteering in the coal business as a whole. 
The prices fixed are also sufficient, on the basis of the reported costs, to permit the mining 
of 98.4 per cent of all available coal, without loss. 

^ Mr. R. V. Norris, a member of the engineers' committee of the B"'uel Administration 
and also of the price-fixing committee, has prepared an interesting paper on " Anthracite 
mining costs," which was printed in Bulletin No. 146, by the A. I. M. S., in February, 
1919," by the Fuel Administration. 

2 Mr. Norris explains the method of making these adjustments as follows: 

The logical method of adjustment is to calculate actual costs to costs as of the stand- 
ard percentage of sizes, so that the margin between the adjusted costs and the average 
realization shall be the actual margin for each colliery between its actual costs and actual 
realization due to its particular percentage of sizes. As a basis for realization the 
actual percentage of sizes for fresh-mined coal for the 6-month period was adopted. 
This percentage is given below. 





Mesh, in inches. 


Percentage of sizes. 


Size of coal. 


Through, 
round. 


Over, 
round. 


Fresh 
mined. 


Washery. 


Fresh 

mined 

and 

washery. 


Broken 


2^21 
li-l| 

1 

A- A 


3f -3i 
2T^2i 
M -If 


6.S 

14.6 

19.6 

24.7 

9.1 

11.6 

3.2 

4.9 

3.9 

1.6 


0.4 

1.2 

2.3 

10.1 

10.0 

21.4 

14.9 

27.5 

8.8 

3.4 


6.2 


Eg? 


1.3.5 


Stove. . 


18.2 


Nut 


23.5 


Pea 


9.2 




12.4 




4.2 




6.8 


Boiler 


4.3 




1.7 









For adjustment as a base for fixing a spread of prices the percentages used were, 
taken at even figures, prepared, 65 per cent; pea, 9 p'er cent; buckwheat, 12 per cent; 
and smaller, 14 per cent. 

The adjustment finally arrived at after long study was tested on actual reports from 
collieries having percentages that varied from over 80 per cent to under 30 per cent pre- 



GOVERlsrMElSrT CONTROL OVER PRICES. 



185 



The eno-ineers' committee, wlien it came finally to overhaul the 
earlier prices that had been fixed for the three important grades of 
anthracite coal, made charts to show the reported and adjusted costs 
for white ash, red ash, and Lykens Valley coal.^ They found, after 



pared coal and was found to be correct within a maximum variation of less than Ih per 
cent. It was as follows : 




As examples of the working of this adjustment with prices assumed at about the 
average for the 6 months and taking mines well away from average percentage of sizes. 



Size. 


! 

Base 

per Base 
cent price, 
sizes. 


Realiza- 
tion. 


Mine A 
per 

cent 
sizes. 


Correc- 
tion 
percent. 


Actual ^i^«/: Correc- 

realiza-- *". j tion 

tion. sizes. il*^-'=«^^t- 

i 

— . 


Reali- 
zation. 




05 S5. 10 
9 3.70 
12 3. 20 
14 2.20 


S5.315 
.333 

.384 
.308 


73.1 
6.4 
10.4 
10.1 


-9.72 
+2.21 
+1.20 
+1.95 


.S3. 730 
.237 
.333 
.222 


55.1 
15.3 
13.7 
15.9 


+ 11.880 

- 5.355 

- 1.275 

- .950 


$2,810 


Pea 


.566 




.438 


Smaller 


.350 


Total 


100 




4.340 


100.0 


-4.36 


4.522 


100.0 


+ 4.30 


4.164 















Ass-omed cost for each mine ^ S$4.000 $4,000 



4.172 



Actual margin 

Standard realization 

C alculated cost as of standard per cent sizes— 

Mine A— 84X0.9564 per cent ^- *^<' 

Mine B— 554X104.30 per cent 

Calculated margin 5^* • ^^^ 

The correction for mine A is then 4.36 per cent and the adjusted cost $.3,826, showing 
51.4 cents margin on the $4.34 standard realization against 52.2 cents actual margin. 
Similarly for mine B, the correction is 4.30 per cent, giving an adjusted cost of $4,172 
and a margin of 16.8 cents, as compared with tlie actual margin of 16.4 cents. Thus the 
adjusted costs on the chart bear a time relation to the realization received from a scale 
of prices for the various sizes based on the standard or average percentage of sizes 
adopted as a base, regardless of the actual percentage of sizes produced by each opera- 
tion, and prices can be fixed from the chart line of adjusted costs which will result 
in giving each mine its intended margin. The correction, of course, is an allocation based 
on realization from the different sizes and could be made more accurately by taking 
into account each size produced, but at the cost of more time than was available for 
the work. With a material variation in price, different factors of correction should be 
calculated. 

1 See anthracite chart in section on " The determination of a fixed price." 



186 



HISTORY OF PEICES DURING THE WAR. 



making weighted averages, the following average and bulk-line costs 
for standard fresh-mined white ash anthracite: 



De.scription. 


^°^^^' Cost.s 


Co.5t, 90 
per coin. 
bulk line. 


Excluding washery coal: 


S3. 85 
3.71 
4.37 
3.85 

3.57 


83. 91 
3.79 
4.. 36 
3.91 

3.77 


$4.80 




4.65 


All iudppendent operations, each colliery separate 


4.97 


All operations , each companj' operating 2 or more collieries consolidated . 
Including washery coal. 

All operations, each company operating 2 or more collieries consolidated . 


4.38 
4..3ii 



A differential of 75 cents per ton, as had been made by the Presi- 
dent on August 23, 1917, was made for pea size and above (equivalent 
to 52.95 cents per ton for all sizes) for the independent operators 
over certain companies with railroad affiliation, known as the " com- 
panies." It is of interest, in connection with the above table of 
average and bulk-line costs, to study the prices received for white- 
ash anthracite as prepared by the engineers' committee.^ 

It is noteworthy that, despite the elaborate anthracite cost analyses 
later made by the engineers' committee, the prices of anthracite coal 
were left substantially as fixed by the President save for two labor 
increases and the early reduction in the price of pea coal. The tables 
following make possible a comparison of anthracite prices as origi- 

* The prices received by the companies and independents have not been separately 
averaged, as were the costs, but calculating on the differential and assuming the per- 
centages the same for companies and independents, which is only approximately the case, 
the selling price of fresh mined coal would average for companies $4,287 and for inde- 
pendents $4,817. Margins over reported costs of companies would be 58 cents and for 
independents 45 cents, with a general average margin for all ft'esh mined coal of 56 
cents and for all coal including washery of 71 cents per ton, and under " talk-line " 
costs fresh mined companies, 36 cents; independents, 15 cents; total, 39 cents, including 
washeries consolidated sheets total of 7.5 cents. 

These margins include all expenditures for Federal income and excess-profits taxes, 
selling espenses, interest charges, expenditures for improvements, and developments to 
increase output, excess of capital expenditures over normal cost, and all profit on the in- 
vestment of about $8 per ton annual output. 



Size. 


Fresh mined coal. 


Bank coal. 


Total, including 
banks. 


Per cent. 


Average 
price. 


Per cent. 


Average 
price. 


Per cent. 


Average 
price. 


Broken 

£gg 

Stove . 


6.8 
14.6 
19.6 
24.7 

9.1 


$4. 889 
5.028 
6.161 
5.244 

3.687 


0.4 

1.2 

2.3 

10.1 

10.0 


$4,416 
4. 815 
5.060 
5.246 
3.696 


6.2 
13.5 
18.2 
23.5 

9.2 


$4,886 
5.027 
5 160 


Nut... 


6.244 

3.698 


Pea 




Total and weighted average pre- 
pared and pea 


74.8 


4.959 


24.0 


4.544 


70.6 


4 947 






Buckwhear 


11.6 
3.2 
4.9 
3.9 
1.6 


3.342 
2.482 
2. 231 
2.341 

2.202 


21.4 
14.9 
27.5 
8.8 
3.4 


3. 213 
2.452 
1.767 
2. 123 

1.555 


12.4 
4.2 
6.8 
4.3 
1.7 


3 324 


Rice 


2 473 


Barley 


2 974 


Boiler 


2 304 


Pcre.p.ning'? , 


2 162 






Total and weighted average small 


25.2 


2.795 


76.0 


2.339 


29.4 


2 697 






Grand total 


100.0 


4.414 


100.0 


2.868 


100.0 


4 285 







GOVEElSrMEIsrT COISTTROL OVEE PRICES. 



187 



nally fixed bv the President and as they stood after the signing of 
the armistice.^ 

PRICES FIXED BY THE PRESIDENT AUG. 23, 1917. 





White ash. 


Red ash. 


Lykens Valley. 




Company. 


Independ- 
ent. 


Company. 


Independ- 
ent. 


Company. 


Independ- 
ent. 


Broken 


U.5o 
4.45 
4.70 
4.80 
4.00 


$5.30 
6.20 
5.45 
5. 55 
4.75 


$4.75 
4.65 
4.90 
4.90 
4.10 


$5.50 
5.40 
5.65 
5.C.5 
4.85 


S5.00 
4.90 
5.30 
5.30 
4.35 


$5 75 


Egg 


5.65 


Stove 


6 05 




6.05 


Pea 


5 10 







FIXED PRICES. DEC. 31, 191S. 





White ash. 


Red ash. 


I.ykens Valley. 




Company. 


Independ- 
ent. 


Company. 


Independ- 
ent. 


Company. 


Independ- 
ent. 




$5 95 
5.85 
6.10 
6.20 
4.80 


$6.70 
6.60 
6.86 
0.95 
5.55 


$6.15 
6.05 
6.30 
6.30 
4.90 


$6.90 
6.80 
7.05 

7.05 
5.75 


$6.40 
6.30 

•6.70 
6.70 
5. 15 


$7.15 


Egg . 


7 05 


Stove 


? 45 




7 45 


Pea 


5.90 





The average costs of producing anthracite coal, as they were re- 
ported for the six-month period from December, 1917, to May, 1918, 
including the increase of December 1, 1917, but not that of Novem- 
ber 1, 1918, follows : 2 

AVERAGE ANTHRACITE COST, DECEMBER, 1917, TO MAY, 1918. 



Labor 

Supplies 

Transportation, mine to breaker 

Royalty, current 

Royalty, advance 

Depletion 

Amortization of cost of leasehold 

Depreciation 

Pro rata suspended cost of stripping . 

Contract stripping and loading . . 

Taxes, local 

Insurance, current 

Insurance, liability 

Officers' salaries and expenses 

Office salaries and expenses 

Legal expenses 

Miscellaneous 

Total 

Increase over May to November, 1917 





Cost per ton 




Fresh 
mined coal, 


Wa.shery 
operations, 


Total, in- 

cludmg 

washerie.s, 

38,688,466 

tons. 


35,256,550 
tons. 


3,431,916 

tons. 


$2. 593 


$0. 687 


S2. 423 


.616 


.260 


.584 


.004 


.007 


.004 


.153 


.102 


.148 


.002 




.002 


.099 


.077 


.097 


.014 


.024 


.016 


.091 


.086 


.090 


.023 




.021 


.009 




.009 


.054 


.034 


.052 


.010 


.014 


,016 


.058 


.018 


.0.55 


.030 


.019 


.029 


.048 


.024 


.045 


.005 


.003 


.005 


.026 


.023 


.028 


3.841 


1.378 


3.622 


.764 


.365 


.719 



^ Mr. R. V. Norris, backed by the engineers' committee, concludes from these tables 
that " the selling price of anthracite has been increased but 30..'> per cent over tlie 
prewar price, v\4iile the cost of production has gone up 5- per cent, the difference having 
been absorbed by the operators." 

2 Fuel Bulletin No. 146. 



188 HISTORY OF PRICES DURING THE WAR. 

The filial realization for all companies and all sizes, including 
■washeiy coal and both of the labor increases, was calculated to aver- 
age $5.13 per ton, while the bulk line, as shown previously, plus the 
November, 1918, labor increase, amounts to $5.32.^ 

(6) THE CONTROL OVER COKE.2 

It has already been noted that the market prices of coke, so closely 
allied with iron and steel, rose to unprecedented heights during the 
summer of 1917. The wholesale price for Connellsville coke, furnace, 
prompt shipment, f. o. b. ovens, which just a year before had stood at 
$2.75, shot to $13.42 in August, 1917. The War Industries Board, 
by reason of its concern in the stabilization of iron and steel prices, 
had rescued coke quotations from a runaway market by fixing them 
definitely at a flat rate of $6 per ton on September 24, 1917. It is of 
interest that the Fuel Administration later confirmed this price and 
upon it as a basis figured numerous differentials and special prices 
for various districts.^ The Fuel Administrator on November 9, 1917, 
without any specific mention of previous price fixing, established 
maximum prices to be effective the following clay. These maximum 
prices for coke made in ovens without by-product recovery east of 
the Mississippi Eiver were: 

Blast furnace $6. 00 

Foundry coke, 72-liour selected 7.00 

Crushed coke, over 1-incli size 7. 30 

These prices were made applicable per ton of 2,000 pounds f. o. b. 
cars at the plant where coke was manufactured. It was declared 
that the maximum prices for various grades of beehive coke made in 
districts other than these should bear the same ratio to the estab- 
lished price of the coal from which the coke was made as the aver- 
age contract prices of the same grades of coke had to the average 
contract prices of coal during the years 1912 and 1913. 

It is estimated that 10 per cent only of the total output of coke 
is sold on the open market, and there is no satisfactory measure 
from market quotations, therefore, of the relative point at which 
coke prices were fixed or the effect of price fixing upon the general 
market level as realized for the bulk of sales. There can be no ques- 
tion that the September price fixing had a tremendous influence in 
the pulling of the market price from its historic peak in August and 
holding it at a lower level thereafter. But if one would measure the 
effects of price fixing upon the remaining 90 per cent of' the total 

iR. V. Norris. 

" See also chapter on " lion and steol," under the War Industries Board controls. 
3 See " General Orders, Regulations, and Rulings " of the Fuel Administration, Ch. 
VI, Title I, see. 1. 



GOVER]SI"MENT CONTROL. OVER PRICES. 



189 



output, lie must compare the fixed price with previous contract 
prices. There have been calculated below so-called realization prices 
for the United States from the spot quotations and the average 
annual realization reported by the Geological Survey.^ The com- 
parison has been facilitated by turning the weighted realization 
prices into relative prices, by letting the base price from July 1, 1913, 
to June 30, 1914, equal 100, 

The accompanying table of " spot " prices presents a marked con- 
trast to the realization price table.^ Price fixing beyond doubt scaled 
the market quotations from unprecedented heights for the smaller 
percentage of coke sales. The effect of price fixing upon the great 
bulk of sales by contract is, however, not so clear. The realization 
prices, indeed, went far beyond their 1917 peak several months after 
control had set in, and not during the whole of 1918 did they come 
down from that height. 



WEIGHTED KEALIZATION PRICES FOR ALL CONNELLSVILLE COKE. 

ACTUAL PRICES PEE NET TON. 



Januarj' 

February . . 

March 

April 

May 

June 

July 

August 

September. 

October 

November . 
December. . 



Year . 



January 

February . . 

March 

April 

May 

June 

July 

August 

September . 
October — 
November . 
December. , 



Year . 



- Month. 



1913 



?2. 51 
2.38 
2.37 
2.34 
2.34 
2.34 
2.37 
2.38 
2.36 
2.33 
2.31 
2.30 



2.36 



1914 



$2.12 
2.12 
2.12 
2.12 
2.11 
2.10 
2.10 
2.10 
2.09 
2.08 
2.08 
2.07 



2.10 



1915 



$2.03 
2.03 
2.03 
2.03 
2.03 
2.04 
2.05 
2.03 
2.05 
2.09 
2.12 
2.17 



2.06 



1916 



12.65 
2.68 
2.69 
2.61 
2.60 
2.62 
2.64 
2.64 
2.65 
2.78 
2.93 
3.03 



2.71 



1917 



KELATIVE PKICES. 



113 
107 
106 
105 
105 
105 
106 
107 
106 
104 
104 
103 



106 



94 



119 
120 
121 
117 
117 
117 
118 
118 
119 
126 
131 
136 



S4.87 
4.88 
4.88 
4.77 
4.79 
4.97 
5.04 
5.09 
4.96 
4.69 
4.69 
4.69 



218 
219 
219 
214 
215 
223 
226 
228 
222 
210 
210 
210 



218 



S6.03 
6.03 
6.03 
6.03 
C.03 
6.03 
6.03 
6.03 
6.03 
6.03 
6.03 
6.03 



6.03 



270 
270 
270 
270 
270 
270 
270 
270 
270 
270 
270 
270 



270 



1 These realization pricesi figured by Mr. C. B. Lesher, were found in the same manner 
as those for bituminous coal, except that the assumption was made that 10 per cent of 
the total output was sold on the market and 90 per cent under contract, and that the 
coke year was from January to December. The prices for furnace and foundry coke 
were averaged in accordance with the relative production of each in 1916, as reported to 
the Geological Survey by the producers. ^^ 

a Both of these series are presented with more detail in " The Prices of Coal and Coke, 
by C. E. Lesher, W. I. B. Bulletin No. 3.^. 



190 



HISTORY OP PRICES DURING THE WAR. 



WEIGHTED "SPOT" PRICES OF ALL CONNELLSVILLE COKE. 

ACTUAL PRICES PER NET TON. 



Month. 


1913 


1914 


1915 


1916 


1917 


1918 




$3.90 
2.54 
2.42 
2.18 
2.15 
2.13 
2.46 
2.61 
2.31 
2.10 
1.84 
1.77 


SI. 87 
1.87 
1.92 
1.88 
1.79 
1.77 
1.76 
1.72 
1.66 
1.61 
1.53 
1.51 


$1.52 
1.52 
1.52 
1.52 
1.52 
1.57 
1.65 
1.52 
1.62 
2.04 
2.30 
2.65 


$2. 96 
3.38 
3.48 
2.44 
2.33 
2.51 
2.76 
2.82 
2.95 
4.85 
6.91 
8.39 


$9.51 
9.66 
9.66 
7.43 
7.83 
11.26 
12.76 
13.59 
11.14 
6.00 
6.03 
6.03 


$6.03 


February 


6.03 
6.03 




6.03 




6.03 




6.03 


July 


6.03 


August 


6.03 




6.03 


October 


6.03 


November 


6.03 


December 


6.03 






Year 


2.36 


1.74 


1.75 


3.82 


<).24 


6.03 







KELATITE PRICES. 



.January — 
February . . 

March 

April 

May 

June 

July 

August 

September . 

October 

November .. 
December,. 

Year. 



194 


93 


78 


147 


474 


127 


93 


76 


168 


481 


121 


96 


76 


173 


481 


109 


94 


76 


122 


370 


107 


89 


76 


116 


390 


106 


88 


78 


125 


661 


123 


88 


82 


137 


636 


125 


86 


78 


140 


677 


115 


83 


81 


147 


555 


105 


80 


102 


242 


299 


92 


76 


115 


344 


300 


88 


75 


132 


418 


300 


118 


87 


87 


190 


460 



300 
300 
300 
300 

300 
300 
BOO 
300 
300 
300 
300 
300 



300 



(7) THE CONTROL OVER CHARCOAL. 

The Fuel Administrator did not bring charcoal under formal price 
control until the middle of 1918.^ Maximum prices were then fixed 
for charcoal f. o. b. cars at the point of shipment as follows: 

Cents. 

Lump in bulk, per bushel (20 pounds) 20 

Lump in bags, per bushel (20 pounds) 22 

Screening in bags, per bushel (20 pounds) 20 

A reasonable charge, subject to the approval of the Fuel Admin- 
istration, was allowed for handling and delivery where wagon de- 
liveries were made from the producer to the purchaser. 

(8) CONTROL OVER FUEL WOOD. 

It is of interest that the Fuel Administration on October 29, 1918, 
authorized the Federal fuel administrators in the various States to 
establish such reasonable regulations as to the length of rail ship- 
ments of fuel wood cut within the State as they deemed necessary, 
and to stipulate the conditions of such shipments. 



^July 9. 



GOVER]S"ME]SrT COJJ-TROL OVER PRICES. 



191 



(9) THE CONTROL OVER PETROLEUM. 
The Eaeet Wae Situation. 

The tremendous demands for petroleum and its products during 
the past decade brought the industry by 1915 to face a consumption 
demand which surpassed the annual domestic output. Indeed, for 
more than a year prior to the declaration of war by the United States 
we had been drawing upon reserve stocks and imports fi-om Mexico 
in order to supply our needs.^ The war, of course, both through the 
acceleration of industries and the large military consumption, in- 
creased the demand for petroleum products of all kinds. Moreover, 
the acute coal shortage and the transportation congestion of the 
winter of 1917-18 encouraged the substitution of fuel oil for other 
kinds of fuel. The demand for fuel oil, as might be expected, in- 
creased until a shortage developed and prices soared. Fuel oil, 
which had previously been of secondary importance in the refining 
of petroleum, took the lead among the various products. 

The Regulation of Prices. 
The rise in the price of fuel oil was naturally reflected in the price 
of crude petroleum, and market quotations for the latter soon reached 
a level 100 per cent higher than the prewar average.- (See chart on 
p. 195.) It soon became apparent, both to the petroleum industry 
and the various governmental agencies, that something would have 
to be done toward stabilizing prices. Several suggestions were made 
relative to governmental intervention. The opinion of the trade 
was that the " price of petroleum products be fixed in the same way 

*A review of the petroleum situation in the United States immediately prior to our 
entrance into the war is presented at length in Bulletin 3G of the present series, 
" Prices of Petroleum and Its Products," by Joseph E. Pogue, assisted hy Isador Lubin. 
(W. I. B. Price Bulletin No. 36.) 

2 The following data present the course of the fuel oil and crude petroleum prices for 
the 6 years 1913 to 1918. Fuel oil spot quotations are not as representative of typical 
conditions as might be desirable, since the greater part of our supply is sold under con- 
tract. TaWes of actual and relative realizations at a centrally located refinery, there- 
fore, ai-e appended in order that the reader may obtain a truer picture of the price 
situation. 

ACTUAL REALIZED PRICES OF FUEL OIL JANUARY, 1913-DECEMBER, 1918. 

[Per barrel.] 



Month. 



January 

February . . 
March..!... 

April, 

May 

June 

July 

August 

September . 

October 

November . 
December. . 



1913 



S2. 15 
2.15 
2.15 
2.15 
2.15 
1.67 
1.67 
1.67 
1.67 
1.67 
1.67 
1.90 



1914 



SI. 90 
1.90 
1.90 
1.67 
1.55 
1.55 
1.55 
1.67 
1.67 
1.55 
1.55 
1.55 



$1. 55 
1.50 
1.50 
1.50 
1.50 
1.50 
1.50 
1.96 
2.20 
2.31 
2.79 
3.26 



1916 



$3.26 
3.26 
3.26 
3.02 
2.79 
2.79 
2.79 
2.30 
2.30 
2.30 
2.30 
3. 26 



S3. 74 
3.98 
3.98 
3.98 
3.45 
3.45 
3.45 
3.93 
3.93 
3.93 
3.93 
3.93 



S4.76 
4.76 
4.76 
5.36 
5.36 
5.36 
5.36 
5.36 
5.36 
5.36 
5.36 
5.36 



Footnote continued on page 192. 



192 



HISTORY or PRICES DTJEIISTG THE WAR. 



that iron and steel prices were fixed." ^ It was not until August 18, 
however, that any definite action w^as taken in the matter, and on 
that date the plan (1) to stabilize the price paid for crude oil; (2) 
to maintain the continued and uninterrupted flow of crude oil in its 
present channels in so far as is practicable and just to the interests 
involved through the voluntary action and cooperation of the indus- 
try itself was inaugurated. This system of voluntary price fixing 
was nothing more than a voluntary agreement made by the trade 
whereby the prevailing market prices were to be continued without 
increase, and premiums were to be limited to' certain fixed maxima.'^ 
The amount allowed for premiums varied from 10 cents per barrel 
of crude oil in the Appalachian districts to $1.50 for certain parts of 
the Mid-Continent. 



Footnote continued from page 191. 

RELATIVE REALIZED PRICES OF FUEL OIL JANUARY, 1913-DECEMBER, 1918. 



Month. 



1913 


1914 


1915 


1916 


1917 


125 


110 


90 


189 


217 


125 


110 


87 


189 


231 


125 


110 


87 


189 


231 


125 


97 


87 


175 


231 


125 


90 


87 


162 


200 


97 


90 


87 


162 


200 


97 


90 


87 


162 


200 


97 


97 


114 


133 


228 


97 


97 


127 


133 


228 


97 


90 


134 


133 


228 


97 


90 


162 


133 


228 


110 


90 


189 


189 


228 



1918 



January.... 
February . . 

March 

April 

May 

June 

July 

August 

September . 

October 

November. 
December. . 



276 
276 
276 
311 
311 
311 
311 
311 
311 
311 
311 
311 



1 The solution of the problems relating to petroleum was centered in the hands of the 
Oil Division of the Fuel Administration, which was established on Jan. 10, 1918, with 
Mr. M. L. Requa as general director. From the very beginning he placed considerable em- 
phasis vipon the price situation. Through his efforts the problem of petroleum pi-ices was 
settled with a minimum of administrative interference. On Apr. 25, he approached the 
War Industries Board with the request that action be taken along the lines adopted for 
other essential commodities. The attitude of the petroleum industry toward this matter 
is made evident in the following extract from Mr. Requa's letter to Mr. Baruch : 

" The petroleum war service commitee, as a result of an extended conference with me 
on the subject of prices, have requested that prices of petroleum products be fixed in 
the same way that steel prices were fixed. If this be done, it will greatly simplify the 
matter of allocation of purchases." 

No action, however, ^^■as taken by the War Industries Board at this time. Again on 
July 15, the price-fixing committee was asked to fix the price of fuel oil, especially for 
Navy purchases, but this request also was followed by no action, since it was the opinion 
of the committee that adequate power to regulate prices of fuels lay in the hands of the 
Fuel Administration. 

2 Many small refiners are in the habit of paj'ing certain premiums above posted market 
prices of crude petroleum in order that they may obtain sufficient supplies. Mr. Requa 
in approving the plan referred to these premiums and their relation to the price of 
petroleum products as follows : 

" I want first to say that it is the understanding of this department that the pre- 
miums mentioned are to be maximum and are not to be paid unless absolutely necessary ; 
are not to be used in justification for a demand for increased prices for refined 
products and that prices above existing posted prices, if justified at all, can only be 
so upon the score of existing trade practices making such premiums necessary to permit 
the small purchaser to secure his crude. If Government control and direction finally 
follow as a national need, premiums, I believe, will be entirely wiped out, as present 
posted prices are in themselves ample to stimulate and encourage production." 

Moreover, the industry was given to understand that should the occasion arise for any 
readjustments in the prices of petroleum products, adequate proof of such necessity would 
have to be furnished. Sir. Requa goes on to say : 

" Broadly speaking, it is the hope of the Fuel Administration Oil Division that 
further advances in finished products will not be necessary ; but should it prove that 



GOVEEIsrMEN"T C02<rTK0L, OVEB PEICES. 193 

The administration of this agreement was left entirely in the 
hands of the trade and through a series of local and national com- 
mittees all points of issue were settled. Appeal to Washington 
was made " only as the last resort after all means of settlement had 
been exhausted."^ The established prices were to affect all contracts 
existing on August 8 which had been entered into after May 17, 
1918, and were to be in force until November 1, 1918, when they were 
further extended to December 16.^ 

The Licensing of the Peteoleum Industry. 

On January 31, 1918, a presidential proclamation required the 
licensing of "all firms, corporations, and associations engaged in the 
business of both manufacturing and distributing fuel oil" whose gross 
sales were more than 100,000 barrels per year. The purpose of such 
licensing appears to have been the regulation of the distribution of 
fuel oil in order that various essential consumers such as the Rail- 
road Administration, the Shipping Board, and the war agencies 
might have sufficient supplies to meet their needs.^ A system of de- 
livery priorities was inaugurated and distributors were forbidden to 
deliver fuel oil to aiiy customer in any class before fulfilling the de- 
mands of customers in those classes which had prior rating. 

In September the need for still further control of the petroleum 
industry led to the licensing of virtually all members of the trade 
with the exception of those retailers whose sales were below $100,000. 
Whereas formerly only dealers and producers of fuel oil were un- 
der direct control, now all importers, manufacturers, distributors, 
marketers, and transporters of petroleum and its products were 
placed under license. Licensees were not allowed to make unjust 
profits or commissions and were limited even in the storage rates 
they could charge. Resales and the cornering of supplies were for- 
bidden. Regulations as to methods of manufacturing gasoline 
were also put in force, so that the Army and Navy might have suf- 
ficient supplies of the type necessary for their operations; and cer- 
tain refiners were compelled to produce a specified proportion of 
their gasoline in accordance with Army and Navy specifications. 

this is not the case it means that such proof must be carefully, completely, and accurately 
made and presented to this department before any acquiescence or approval can be 
expected. 

^ See letter of Mr.Requa to Mr. A. C. Bedford of the national petroleum war service 
committee Aug. 8, 1918. 

2 The prices fixed in the respective fields were : Pennsylvania, $4 ; Illinois, $2.32 ; 
Mid-Continent, $2.25 ; Gulf, $1.35 ; California, $1.26. The price for the Gulf fields was 
later increased by Mr. Requa to $1.80 and a 10-cent per barrel increase was allowed 
for Illinois. An increase was also allowed in the late summer for oils mined in north 
Louisiana. 

2 Indeed, the order of the Fuel Administrator establishing the rules governing 
licensees engaged in the distribution of fuel oil specifically states : 

" These rules and regulations are promulgated * * * for the purpose of assuring 
an adequate supply and equitable distribution of fuel oil for the purposes vitally essential 
to the national security and to the successful prosecution of the war." 

125547°— 20^ l.S 



194 



HISTOEY OF PKICES DURING THE WAB. 



The Gasoline Emekgency. 

Even licensing, however, did not meet all the necessary require- 
ments of the emergency. Every effort had been made toward the 
l^roduction and marketing of more crude oil, so that refiners who 
had been compelled constantly to increase their plants might be as- 
sured adequate supplies. Yet the extended use of motor trucks, 
the demands of our submarine chasers, and our air fleet continued 
to draw more and more upon our resources. Our gasoline reserves 
were being depleted. Talk of gasoline allocation for essential use 
became rife, and conservation data were distributed far and wide. 
Finally, beginning September 1, " gasless Sunday " was inaugurated 
and operators of gasoline-consuming vehicles east of the Mississippi 
Eiver were "requested" to refrain from using gasoline on Sundays. 
In addition the refinery output of gasoline was restricted as far as 
possible to essential uses, and x)roducers under the license regula- 
tions were forbidden to make deliA^eries of gasoline to any cus- 
tomer until all orders for export to the United States Army or 
Navy or to the Allies had been delivered.^ 

Control and Its Effect ltpon Prices. 

The signing of the armistice, followed by the cancellation of Gov- 
ernment contracts, put an almost immediate end to the activities of 
the Oil Division of the Fuel Administration on December 7. On 
this date many of the license restrictions were removed and nine 
days later the price agreement of the previous summer terminated.' 
On May 15, 1919, all restrictions upon the petroleum industry were 
removed. 

The leveling effect of the price agreement of the summer of 1918 
is prominently brought out by the contrast between the price tend- 
encies of both crude petroleum and its most important products, 
gasoline and fuel oil, during the period of its operation and before 
that time. Still more significant, however, is the comparison between 
the price level of the direct petroleum products and such by-products 
as paraffin and petrolatum. 

^ See Fuel Administration order governing manufacturers of kerosene and gasoline, 
Oct. 30, 1918. 

The above regulations and " requests " were no doubt instrumental in alleviating a 
situation which had become exceedingly acute, as is evidenced by a comparison of sup- 
plies on hand at the end of the several months of the early autumn in 1917 and 1918. 
Stocks were consistently smaller in 1918 than in the preceding year in spite of in- 
creased production, conservation measures, and the direction of distribution. 

STOCKS OF GASOLINE HELD IN THE UNITED STATES. 



Date. 


1917 


1918 


Date. 


1917 


1918 


July 31 


Gallons. 

345,199,195 

298,548,699 


Gallons. 

349,928,604 

285,446,538 


Sept. 30 


Gallons. 

287,758,562 

320,203,770 


Gallons. 
269,772,723 


Aug. 31 


Oct. 31..." 


250, 328, 329 









4. THE WAR INDUSTRIES BOARD. 



j,|li , ,t .. ? . i,,M^j , iii! . U . M . .U . p 



(i) THE DEVELOPMENT OF A 
CONTROL OVER WAR IN- 
DUSTRIES. 

The growth of a fuller con- 
trol over mdiistries was a more 
gradual thing than would 



BeLATIVE PBICE5 OF 

—PETROLEUM 

5 FIELDS 

— FUEL OIL 

S CITIE5 

"« GASOLINE 

5 CITIES 
BY MONTHS 
JANUARY, 1913 -DECEMBER 19!8. 
AVERAGE: QUOTED PRICES JULY1913^0UNe 1914-100 



-' K>a I }SIA I 1313 



j lgl7 I JSJ& I 



The War Industries Board was the industrial pivot about which 
war-time controls turned. From an idea, and then a committee 
within the Council of National Defense, it grew quickly into the 
most powerful arm of the President for converting the industries 
into war uses. It was the meeting point of the war machine and 
industry. It at once cleared requirements for the Government war 
agencies, allocated to the trade 
the output of commodities 
required immediately or in the 
future, assigned priority of 
production and delivery to 
war materials, curtailed non- 
essential production, conserved 
wasteful production by vari- 
ous restrictions, and controlled 
prices. The ramifications of 
these controls, within the Gov- 
ernment and out, make them 
relate intimately to prices. 
The price control exercised by 
the board proper, or that ex- 
ercised by the price-fixing 
committee, can not be dis- 
cussed without first under- 
standing the relations of these 
other controls over industry. 




Relative prices. — Petroleum, 5 fields ; Fuel 
oil, 5 cities ; Gasoline, 5 cities. — By 
months, January, 1913, to December, 191S. 
(Average quoted prices, July, 1913, to 
June, 1914=100.) 



seem from an examination simply of the finished monmnent. The 
Government, though educated in the doings of Europe for the 
three years previous, had not appreciated that it too might enter 
the combat, and had not yet prepared itself when war came. The 
Cabinet, high officials of the Government, and lower officials, went 
into all-day and evening conferences, inside the Government and 

195 



196 HISTOEY OF PEICES DUEIHG THE WAE. 

out, to learn tlieir problem and solve it. There was no conviction, 
aside from the need for soldiers and ammunition, that pressed 
more insistently upon the Government than the need for some 
form of control oyer industry. The gradual evolution of the ma- 
chinery of war-time industrial control was one of the greatest of 
the nonmilitary developments within the Government. A full 
story of the rise of the War Industries Board, which was the center 
of that control, falls into three separate parts: (1) The early work 
of the general munitions board, the committee on supplies, and the 
committee on raw materials, minerals and metals within the Council 
of National Defense; (2) the creation of the War Industries Board 
within the Council of National Defense on Juily 28, 1917; (3) and, 
finally, the creation of the War Industries Board as an independent 
organization under the Overman Act on' May 28, 1918. 

The Eaely Woek of the Council of National Defense. 

A comprehension of how the War Industries Board came into itg 
control over industry can not be had without tracing its earlier 
growth from a mere committee of the Council of National Defense 
to an independent board. The Council of National Defense was con- 
ceived, and later authorized under the Army appropriation bill of 
August 29, 1916, simply as a peace-time body to work broadly upon 
preparedness for war. The act itself declared it to be established 
" for the coordination of industries and resources • for the national 
security and welfare," and made it the duty of the Council of Na- 
tional Defense " to supervise and direct investigations and make 
recommendations to the President and the heads of executive de- 
partments as to the location of railroads with reference to the 
frontier of the United States so as to render possible expeditious 
concentration of troops and supplies to points of defense ; the coordi- 
nation of military, industrial, and commercial purposes in the loca- 
tion of extensive highways and branch lines of railroad ; the utiliza- 
tion of waterways ; the mobilization of military and naval resources 
for defense; the increase of domestic production of articles and ma- 
terials essential to the support of armies and of the people during 
the interruption of foreign commerce; the development of seagoing 
transportation ; data as to amounts, location, method and means of 
production, and availability of military supplies; the giving of in- 
formation to producers and manufacturers as to the class of supplies 
needed by the military and other services of the Government, the 
requirements relating thereto, and the creation of relations which 
will render possible in time of need the immediate concentration and 
utilization of the resources of the Nation." 



GOVERISTMENT CO]SrTROL, OVER PRICES. 197 

The Council of National Defense (consisting of the Secretary of 
War, the Secretarj^ of the Nayy, the Secretary of the Interior, the 
Secretary of Agriculture, the Secretary of Commerce, and the Secre- 
tary of Labor) and its advisory commission^ had only the above 
general powers, as a basis in law. for the structure of control which 
it later built.^ 

Our determination to enter upon war caught the country, except 
for the paper-organized Council of National Defense, quite without 
a Government organism to assume control over its industries. The 
need for an organized industrial fabric, moreover, was then our 
paramount one. The Allies needed our munitions, metals, foods, and 
manufactures more immediately than they needed our men. The 
Council of National Defense, thus long before authorized as a peace- 
time body, was formally organized on March 3, 1917, and was seized 
upon as the best available organ for the control of industry. The 
council, which represented virtually the President's Cabinet, with 
the Secretary of War acting as chairman, and the advisory commis- 
sion met several times each week during the spring after our en- 
trance into war and planned how best to meet the war emergencies. 
A surprising number of the more important war agencies grew out 
of their early plans and their early committees. The Council of 
National Defense made the initial survey of the food problem which 
developed into the formation of a Food Administration; it created 
the Aircraft Production Board which later became separate ; it cre- 
ated an important committee on coal production which later went 
into the Fuel Administration ; it established the commercial economy 
board ; and the munitions standards board. But the three most im- 
portant committees which grew up under the newly organized Coun- 
cil of National Defense, and those which relate peculiarly to later 
price control, were the general munitions board, the committee on 
supplies, and the committee on raw materials, minerals and metals. 

The general mufrdtions hoard.— The general munitions board, cre- 
ated on March 31, 1917, and going for several days under the name 
of the purchasing commission, began three days after we entered the 
war to coordinate purchases for the Army and Navy, to assist them 
in the procurement of raw materials, and to assign to war orders 
priorities as between the Government departments and between the 
Government and industry. Since the board was destined ultimately 

^The Council of National Defense, by authority of tbe statute, appointed an advisory 
commission of 7 members wlio administered tbe work of tbe council, as follows : Daniel 
Willard (chairman), transportation and communications; Howard E. Coffin, munitions 
and manufacturing ; Julius Rosenwald, supplies ; Bernard M. Barucb, raw materials, 
minerals, and metals; Hollis Godfrey, engineering and education; Samuel Gompers, labor; 
Franklin Martin, medicine and surgery. 

2 See section 2 of H. R. 17498, known as the Army appropriation act. 



198 HISTOKY OF PRICES DURING THE WAR. 

to grow into the War Industries Board, it is of peculiar interest to 
note the resolution by the Council of. National Defense creating the 
general munitions board : 

Such committee shall have no authority at this time to issue purchase orders, 
make contracts or bind the Government in its purchases ; all these things to 
be done, as at present, by the respective departments. The chairman of the 
committee, however, shall have authority to require, when necessary, that cer- 
tain (conflicting) purchases be not made until the same, with a full statement 
of the facts, have been submitted to the Secretaries of the War and Navy.* 

The general munitions board, moreover, at its initial meeting con- 
ceived as its purpose — 

to assume the prompt equipping and arming with the least possible disadjust- 
ment of normal industrial conditions, of whatever forces may be called into the 
service of the country. The immediate efforts of the board will be directed on 
lines calculated to coordinate the making of purchases by the Army and Navy ; 
to assist in the acquirement of raw materials and of manufacturing facilities ; 
and to establish the precedence of orders between the departments of War 
and of the Navy and between the military and industrial needs of the country.^ 

A perusal of the original minutes of the general munitions board 
shows that the board, despite its assigned narrower task, became 
peculiarly concerned with prices and their informal control. The 
board attacked, and virtually eliminated, competitive bidding by the 
Army and Navy for the same materials. It developed policies for 
the procurement of commodities required by war agents. It recog- 
nized from the outset that the Government, if it procured the esti- 
mated requirements, was confronted with the necessity of cutting 
down some and directing much of the industrial output, clearing 
all Government requirements over one table, and assigning priority 
of production and delivery to war materials. It helped to develop 
sources for rifles and other small arms, machine guns, ordnance, 
ammunition, gun forgings, carriages, limbers, caissons, forge wagons, 
military vehicles, steel helmets, armor-piercing shells, surgical sup- 
plies, optical glass and gauges, tools, and dies. Especial progress 
was made toward the production of the estimated requirements (gun 
forgings, small arms, ammunition, lumber for Army vehicles, and 
machine guns) of the Army and Navy. The real beginnings of the 
price-control problem came with the purchase of these materials, 
when the general munitions board advised the military departments 
how to determine prices and itself considered whether prices should 
be made a flat rate to the Government, or based upon cost plus a 
percentage of profit. 

1 The general munitions board began work on Apr. 9, 1917, under the chairmanship of 
Frank A. Scott, and by June 30 was composed of IT representatives from the War and 
Navy Departments and 6 other civilians. 

- See minutes of general munitions board for Apr. 9, 1917. 



GOVEKE'MEIirT CONTROL OVER PRICES. 199 

No doubt the first important recognition, or grant of authority, 
which enabled the general munitions board to influence prices was 
that given on April 17, 1917, by the Secretary of War, then chairman 
of the Council of National Defense : 

The general munitions board, having been appointed by the Council of 
National Defense, and having been called upon to perform, among other duties, 
that of determining what are fair and just prices to be paid by the Government 
for munitions and related supplies, I authorize the general munitions board 
to act on questions involving the determination of fair and just prices for 
munitions and related supplies, when called to do so by a Department head.^ 

This edict gave the munitions board, in so far as it could win coop- 
eration from any Government department, a free hand to determine 
upon and recommend " fair and just " prices for war materials. 

An inquiry, at a very early date, was made by the general muni- 
tions board into the more technical questions of how to determine 
" fair and just " prices and what understanding was to be made 
with the trade, pending that determination for purchases needed 
immediately. The board after a time, concluded that where a flat 
rate could not be agreed upon a cost plus percentage basis should be 
followed.^ It frequently happened that certain purchases were re- 
quired so promptly that deliveries were delayed awaiting the de- 
termination of a fair price. The board, in order to hasten deliveries, 
was authorized in such cases to assure the manufacturers a price of 
actual cost plus 10 per cent of profit.^ That general practice was 
often followed, in a modified form, in the later price fixing. 



^ Minutes of general munitions board for Apr. 17, 1917. 

2 The general munitions board, after hearing the report of its price committee, adopted 
the following policy on Apr. 25, 1917 : 

That whenever experience or public or competitive quotations make it possible for 
the department to be assured of the reasonableness of the price, a straight price method 
is to be preferred. 

In cases where a flat price can not be agreed upon, it is suggested that a cost plus 
percentage basis be followed ; the method of figuring cost to be the one laid down in the 
present law providing for the payment of a munitions tax. 

In cases where it is desirable to use the cost plus percentage basis, but where the 
Government and contractor are already aware of a fair s^verage cost for producing the 
article the method might be cost plus percentage, providing that if the cost falls below 
the average amount prescribed, the contractor shall receive half of the saving. If the 
cost passes above the amount prescribed, half the excess will be deducted from the 
contractor's percentage of profit. 

8 The minutes of the general munitions board for May 5, 1917, show the following 
resolution made then a policy by the board : 

" Resolved, That where prices of material, machinery, manufactured articles, etc., 
named by the manufacturers are in excess of those recently paid for similar material, 
and prompt action is necessary to prevent delay in actual work of manufacture, the 
orders for such material may be placed immediately with such manufacturers and the 
actual prices to be paid settled after further investigation, provided that the manu- 
facturer is assured of a price of actual cost plus 10 per cent after submitting com- 
plete and satisfactory data as to items controlling increase in cost and an affidavit as 
to accuracy of data." 



200 HISTOEY OF PRICES DURING THE WAR. 

Another important step toward the final plan of price control 
was the authorization given by the munitions board for its sub- 
committee (on prices) to " fix specific prices " in cases of emergency. 
The writing of that informal power into its minute book, though 
without any authority in statute, was a leap peculiarly significant 
as paving the way to future control. This resolution of the general 
munitions board, adopted May 1, 1917, says: 

That all questions regarding prices be laid before a general meeting of the 
board, except in cases where specific power is delegated by the board. How- 
ever, in case of emergency the chairman shall be. and he is hereby, empowered 
to appoint a committee to fix specific prices. 

The more or less formal records of the general munitions, board, 
quite apart from the many unwritten tales that are passed from ear 
to ear, show clearly that the beginnings of price control date back 
not only before the creation of the price-fixing committee but be- 
fore the creation of the War Industries Board. The general muni- 
tions board, created by the Council of National Defense on March 
31, 1917, for the purpose of coordinating war purchases, of its own 
initiative concerned itself with prices. It, without the authority of 
a statute, studied how prices ought to be controlled and, more and 
more, assumed an informal control over them. The policies then 
elaborated comprehend to a surprising degree the essentials of the 
later price control. 

The committee on supplies. — The Council of National Defense, 
two months before we declared war, created a committee on supplies 
to advise with the purchasing officers of the War and Navy Depart- 
ments and to help them coordinate their requirements 'for clothing, 
equipment, and subsistence. 

This committee, one of the first seriously to give its attention to 
the question of stabilizing prices, was the first to ask the Secre- 
tary of War to abandon the peace-time Army and Navy practice 
of advertising for bids. It believed that advertisements for enor- 
mous quantities of staples would disturb industry and stimulate the 
inflation of prices. This change effected, the Government was en- 
abled to go over the heads of the middlemen directly to the manu- 
facturers for its purchases. In the past, when these middlemen heard 
of proposed Government purchases, they commonly secured options 
in advance upon such supplies and then quoted them to the Govern- 
ment at increased prices. 

The committee on supplies organized various subcommittees from 
every trade (notably cotton goods, woolen goods, knit goods, shoes, 
leather equipment, and canned goods), which later were made into 
commodity sections and assisted materially in the turning of manu- 
facturing plants into Government uses. ' 



GOVEEN-MEDSTT COISTTEOL OVER PRICES. 201 

The committee, in a word, concerned itself primarily with com- 
modities difficult to secure because of the excessive requirements 
of the Government, shortage of raw material involved in their 
manufacture, or of the competition for civilian uses. It opened a 
way to later price control, in a sense, by its experience at securing 
options, the "pegging" of prices by various informal methods, the 
allocation of requirements to the industry, and by the reduction of 
competition between Government departments for the same goods.^ 
The committee on raw materials, minerals, aiid metals.— The com- 
mittee on raw materials, minerals, and metals under the direction 
of Bernard M. Baruch, which was the nucleus about which the com- 
■ modity sections of the War Industries Board later grew, was created 
to survey the supply of raw materials available for our own and 
allied uses. The European war needs, prior to our entrance into 
war, had exhausted many of our surplus stocks and our prewar busi- 
ness contracts had tied up immense quantities of the remaining 
stocks. Those limitations, coupled with the reduction in shipping 
space for imports, made the problem before the Baruch committee 
one of the most pressing of that time. 

It soon became apparent to the committee on raw materials, min- 
erals, and metals, after several initial inquiries,^ that the satisfac- 
tion of all Government and allied commodity needs would require 
a thorough-going organization of industry. Mr. Baruch, himself a 
man of business viewpoint, put supreme confidence in widely re- 
spected business men and organized a series of cooperative com- 
mittees under their leadership. It was largely through these early 
contacts with, the trade that he, and his committee, were able to 
strike agreements for the placement of Government orders at lower 
than market prices. The committee gave marked impetus to the 
later work by the prompt organization of commodity committees for 
the alcohol, aluminum, anthracite and bituminous coal, asbestos 
magnesia, roofing, brass, cement, chemicals, copper, lead, lumber' 
mica, nickel, oil, rubber, steel, and steel products, and zinc indus- 
tries.3 The chief services, perhaps, of these commodity committees 
as a working part of the raw materials committee, were their help 
m providing trade information relative to supplies, their technical 
advice pertammg to the procurement of requirements, and their 
ability to hasten deliveries. 






202 HISTORY OF PRICES DURING THE WAR. 

The foregoing beginnings of industrial control form a background 
of all control over prices later exercised by the War Industries 
Board. The committee on raw materials early recognized the need 
for stabilization of the market and for the purchase of Government 
requirements at reasonable prices. The committee itself, for example, 
as early as March, 1917, arranged informally for the purchase of 
45,000,000 pounds of copper at 16f cents at a time when the prevailing 
market price was 35 cents. Soon afterwards a trade agreement was 
made for the purchase of 500,000 tons of steel at a price over one- 
third below the market price; and large purchases of zinc and lead 
were' also bought at like reductions. The committee, through the 
cooperative subcommittee on lumber, "pegged" lumber prices below 
the prevailing market and effected an estimated saving to the Gov- 
ernment of $10,000,000.^ These and other similar agreements all, it 
should be emphasized, were of a highly informal character. But, 
as such perhaps, they served the more to impress the Government and 
the trade with a confidence m prices jointly made. That belief, 
whether for better or worse, played a leading role in the subsequent 
system of price control. 

The. War Industries Boaed Oeeated Under the Council on July 28, 1917. 

The Council of National Defense, recognizing shortly the need 
for a broader control over industry, created the War Industries 
Board on July 28, 1917. The creation of the new board, approved 
by the President, emphasized simply the urgency for more control 
than the general munitions board, the committee on supplies, and 
the committee on raw materials, minerals and metals had been ex- 
ercising. It, therefore, was empowered to exercise control over more 
industries than had the general munitions board and to take over 
bodily the whole of the committee on supplies, and that on raw ma- 
terials with the numerous commodity committees under it.^ In these 
three early committees of the Council of National Defense the newly 
created War Industries Board had its nucleus. 

The official announcement of the creation of the War Industries 
Board declared that it was to act " as a clearing house for the 
war-industry needs of the Government, determine the most effective 
ways of meeting them, and the best means and methods of increasing 
production, including the creation or extension of industries de- 
manded by the emergency, the sequence and relative urgency of the 

1 These data are set forth in the first annual report of the Council of National De- 
fense, issued for the fiscal year ended June 30, 1917. 

2 Mr. Frank A. Scott, who had heen chairman of the general munitions board of the 
council, was retained as chairman of the new board. The chairmanship, later in the 
fall, was given to Mr. Daniel Willard. 



GOVERNMENT CONTROL. OVER PRICES. 203 

needs of the different Government services, and consider price fac- 
tors." The board, under this definition of powers, after taking juris- 
diction over the work of the various advisory committees on raw 
materials and supplies, within a few months re-formed those com- 
mittees into what later became commodity sections.^ 

The appointinent of Chairman Baruch. — A noteworthy reorgani- 
zation of the internal work of the War Industries Board, and one 
which went far toward placing it upon its final basis, occurred when 
the President asked Mr. Bernard M. Baruch to become its chairman 
on March 4, 1918. The President had by then become impressed with 
the need for even a more far-reaching control over industry than 
the law specifically provided or than had been yet exercised by the 
Council of National Defense or the 7-month-old War Industries 
Board. He, therefore, upon the apointment of Mr. Baruch, redefined 
the functions of the board and read into them a number of sweeping 
war powers. This broad survey of powers to be exercised made Mr. 
Baruch "the general eye of all supply departments in the field of 
industry," responsible to anticipate prospective requirements of the 
Government and to turn the full capacity of the country to their 
production. It made his board responsible to create new facilities 
and to find new sources of supply; to advise the Government pur- 

1 There follows a statement in full of the official outline of the powers and organi- 
zations of the War Industries Board as created on July 28, 1917 : 

The hoard will act as a clearing house for tlie war-industry needs of the Government, 
determine the most effective ways of meeting them, and the best means and methods of 
increasing production, including the creation or extension of industries demanded by the 
emergency, the sequence and relative urgency of the needs of the different Government 
services, and consider price factors and, in the first instance, the industrial and labor 
aspects of problems involved and the general questions affecting the purchase of 
commodities. 

Of this board Mr. Baruch will give his attention particularly to raw materials, Mr. 
Brookings to finished products, and Mr. Lovett to matters of priority. These three 
members, in association with Mr. Hoover so far as foodstuffs are involved, will con- 
stitute a commission to arrange purchases in accordance with the general policies formu- 
lated and approved. 

The Council of National Defense and the advisory commission will continue un- 
changed and will discharge the duties imposed upon them by law. The conunittees here- 
tofore created immediately subordinate to the Council of National Defense, namely, 
labor, transportation and communication, shipping, medicine and surgery, women's de- 
fense work, cooperation with State councils, research and inventions, engineering and 
education, commercial economy, administration and statistics,, and inland transportation, 
will continue their activities under the direction and control of the council. Those whose 
work is related to the duties of the War Industries Board will cooperate with it. The 
subcommittees advising on pai-ticular industries and materials, both raw and finished, 
heretofore created, will also continue in existence and be available to furnish assistance 
to the War Industries Board. The purpose of this action is to expedite the work of the 
Government, to furnish needed assistance to the departments engaged in making war 
purchases, to devolve clearly and definitely the important tasks indicated upon represen- 
tatives of the Government not interested in commercial and industrial activities with 
which they will be called upon to deal, and to make clear that there is total disassocia- 
tion of the industrial committees from the actual arrangement of purchases on behalf 
of the Government. It will lodge responsibility for effective action as definitely as is 
possible under existing law. It does not minimize or dispense with the splendid service 
which representatives of industry and labor have so unselfishly placed at the disposal of 
the Government. 



204 HISTOKY OF PRICES DURING THE WAR. 

chasing agents relative to prices that ought to be paid; and to de- 
termine priorities in production and deliverj^ It is of especial inter- 
est that in this letter the President asked Mr. Baruch, as chairman, 
to be governed in his determination of prices by a committee sitting 
AA'ith him, and consisting of members of the board charged with the 
study of raAY materials and manufactured products, the labor mem- 
bers of the board, the chairman of the Federal Trade Commission, 
the chairman of the Tarijff Commission, and the Fuel Administrator.^ 

' There follows a copy in full of the letter written to Mr. Bernard M. Baruch from 
the White House on Mar. 4, 1918, and redefining the work to he done hy the War In- 
dustries Board under his chairmanship : 

My Dbak Mr. Baruch : I am writing to ask if you will not accept appointment as 
chairman of the War Industries Board, and I am going to take the liberty at the same 
time of outlining the functions, tlie constitution, and action of the board as I think they 
should now be established. 

The functions of the hoard should he: 

II) The creation of new facilities and the disclosing, if necessary the opening np, 
of new or additional sources of supply ; 

(2) The conversion of existing facilities, where necessary, to new uses ; 

(3) The studious conservation of resources and facilities by scientific, commercial, and 
industrial economies ; 

(4) Advice to the several purchasing agencies of the Govei-nment with regard to the 
prices to be paid ; 

(5) The determination, wherever necessary, of priorities of production and of delivery 
and of the proportions of any given agencies when the supply of that article is in- 
sufficient, either temporarily or permanently ; 

(6) The making of purchases for the Allies. 

The board should be constituted as at present and should retain as far as necessary 
and so far as consistent with the character and purposes of the reorganization, its 
present advisory agencies, but the ultimate decision of all questions, except the de- 
termination of prices, should rest always with the chairman, the other members acting 
in a cooperative and advisory capacity. The further organization of advice I will in- 
dicate below. 

In the determination of priorities or production, when it is not possible to have the 
full supply of any article that is needed produced at once, the chairman should be 
assisted, and so far as practicable guided, by the present priorities organization or its 
equivalent. 

In the determination of priorities of delivery, when they must be determined, he should 
be assisted when necessary, in addition to the present advisory priorities organization, by 
the advice and cooperation of a committee constituted for the purpose and consisting 
of official representatives of the Food Administration, the Fuel Administration, the 
Railway Administration, the Shipping Board, and the War Trade Board, in order that 
when a priority of delivery has been determined there may be common, consistent, and 
concerted action to carry it into effect. 

In the determination of prices the chairman should be governed by the advice of a 
committee consisting, besides himself, of the members of the board immediately charged 
with the study of raw materials and of manufactured products, of the labor member 
of the board, or the chairman of the Federal Trade Commission, the chairman of the 
Tariff Commission, and the Fuel Administrator. 

The chairman should be constantly and systematically informed of all contracts, pur- 
chases, and deliveries, in order that he may have always before him a schematized an- 
alysis of the progress of business in the several supply divisions of the Government in all 
departments. 

The duties of the chairman : 

(1) To act for the joint and several benefit of all supply departments of the Gov- 
ernment ; ■ 

(2) To let alone wbat is being successfully done and interfere as little as possiljle 
with the present normal processes of purchases and delivery in the several departments ; 

(3) To guide and assist wherever the need for guidance or assistance may be re- 



GOVERNMENT CONTROL OVER PRICES. 205 

The Wak Ixdustkies Boaed Made Independent Under the Overman Act on 

May 28, 1918. 

A still further independence was given the War Industries Board 
on May 28, 1918, when, by the authority of the Overman Act, the 
President separated the board from the Council of National Defense. 
There were, it appears, no additional powers over industry granted 
to the board in law or in proclamation by virtue of its new inde- 
pendent status. It was set apart from the Council of National De- 
fense, and given its independence, by an Executive order. But that 
order did not itself, nor did any accompanying proclamation, set up 
new functions or powers. The order, indeed, specifically referred to 
the previous letter written to Mr. Baruch on March 4, 1918, and de- 
clared that the functions, duties, and powers of the War Industries 
Board, as outlined there, " shall be and hereby are continued in full 
force and effect." 

(2) THE POWERS AND POLICIES OF THE WAR INDUSTRIES BOARD. 

A search after the powers and policies of the War Industries Board 
leads to such a dearth of material that it is curious how industry 
was put under control so easily. That board, though charged with 
the control of all industry save food and fuel, had a more doubtful 
statutory basis for pushing rigid control policies than any other war 
board. It had fewer specific powers in law than either of the boards 
responsible for controlling simply the food and fuel phases of in- 
dustry respectively. But, despite all, the War Industries Board 
gradually assumed the functions of coordinating Government pur- 
chases and of maintaining a widespread and effective control over 
industry. It is of interest to trace the basis in law for all of this 
war-time control, the policy of control which Mr. Baruch sponsored, 
the scheme of organization he administered, and finally, the relation 
which the work' of the board itself bore to the regulation of prices. 



vealed ; for example, in the allocation of contracts, in obtaining access to materials 
in any way preempted, or in tlie disclosure of sources of supply ; 

(4) To determine what is to be done when there is any competitive or other conflict of 
interest between departments in the matter of supplies ; for example, when there is not 
a sufficient immediate supply for all and there must be a decision as to priority of need or 
delivery, or when there is competition for the same sources of manufacture or supply, or 
when contracts have not been placed in such a way as to get advantage of the full 
productive capacity of the country ; 

(5) To see that contracts and deliveries are followed up where such assistance as is 
indicated under (3) and (4) above has proved necessary; 

(6) To anticipate the prospective needs of the several supply departments of the 
Government and their feasible adjustment to the industry of the country as far in ad- 
vance as possible, in order that as definite an outlook and opportunity for planning 
as possible may be afforded the business men of the country. 

In brief, he should act as the general eye of all supply departments in the field of 
industry. 

Cordially and sincerely yours, 

(Signed) Woodkow Wilson. 



206 HISTOKY or PRICES DURI^TG THE WAR. 

Its Basis in Law. 

It is not difficult to find all of the basic powers that were given 
to, and taken by, the War Industries Board to authorize its controls. 
The mandates of the War Industries Board, with scarcely a single 
exception, were accepted throughout the Nation, as authoritative 
arrangements for the general good, without question as to the author- 
ity upon which they were issued. The war-time spirit of the country 
and its industry was, in the main, weapon enough to enforce any 
regulation necessary for the common weal. But, withal, the com- 
pulsory forces behind the war-industry controls exercised by the 
board were not altogether lacking. They came, directly or indi- 
rectly, from the Army appropriation act, which was made law on 
August 29, 1916 and authorized the creation of a Council of National 
Defense; the President's well known letter of March 4, 1918; the 
Overman Act ; and other grants of lesser importance.^ 

The Army appropriation act, of which the pertinent section was 
analyzed earlier in the chapter, authorized the creation of a Council 
of National Defense.^ It was given power to investigate and rec- 
ommend to the President and heads of the executive departments 
in matters relating to the location of railroads to help concentrate 
troops and supplies most expeditiously ; the coordination of military, 
industrial, and commercial purposes in the location of highways; 
the utilization of waterways ; the increase of domestic production of 
articles and materials essential to the support of armies and of the 
people during the interruption of foreign commerce; the develop- 
ment of sea-going transportation; data as to amounts, location, 

1 A brief digest is here given of the various statutes from which the War Industries 
Board claimed power to enforce its mandates either directly or indirectly. 

The Council of National Defense act (39 Stat., 619) authorized the President to take 
possession and assume control of systems of transportation. The naval emergency fund 
•act (39 Stat., 1168) authorized the requisition of raw materials for the Navy and, in so 
far as they pertained to aircraft, for the Army. The emergency shipping fund act (40 
Stat., 182) authorized requisition of materials for ships ; the food control act (40 Stat., 
276) granted requisitory powers over foods, fuels, and other supplies necessary to the 
support of the Army, the maintenance of the Navy, or any other public use connected 
with the common defense, over storage facilities for supplies, over plants for the pro- 
duction of such supplies, over plants for production or merchandising of coal and coke, 
and over distilled spirits. A power of compulsorj' order with penalties for refusal was 
granted in the national defense act (39 Stat., 166). These, with various powers of 
regulation and license granted in the food and fuel acts, the espionage and trading- 
with-the-enemy act (40 Stat., 225; and 40 Stat., 411), and the power of regulation of 
prices granted in the former act, and of priorities in transportation under the priority 
in transportation act of Aug. 10, 1917 — lodged in various agencies of the Government 
such power to vitalize governmental preferences in particular fields as to render a com- 
plete system of such preferences practicable. While these powers were not given to 
the War Industries Board in specific statutory terms, by close cooi)eration between 
the agencies to which they were granted, and by the transfer of power to the War In- 
dustries Board under the Overman Act, the whole legislative mechanism was amply 
sufficient to have enforced the execution of all directions that were given. 

8 That section, quoted earlier In the chapter, is -Section 2, H. R. 17498. 



GOVERNMENT CONTROL OVER PRICES. 207 

methods, and means of the production of military supplies ; inform- 
ing the producers and manufacturers what classes of supplies are 
required by the Government ; and, from the standpoint of the study 
at hand, most important of all, " the creation of relations which will 
render possible in time of need the immediate concentration and 
utilization of the resources of the nation." It was primarily under 
this last general grant of power that the Council of National De- 
fense found statutory authority for setting up, as a part of it, a so- 
called War Industries Board.^ 

The Army appropriation act, authorizing the parent council, 
gave it power specifically to do no more than "supervise and direct 
investigations and make recommendations to the President and the 
heads of executive departments." The War Industries Board, as 
a creature of the council, had no leg in law more firm to stand upon 
than that early fragmentary power given during peace time. 

More specific far, if not more basic, than the clauses of the Army 
appropriation act were the functions which the President inter- 
preted under it in his letter of March 4, 1918. That letter, writ- 
ten by authority of the above act and his general war powers, was 
the immediate and most definite of all grants of power made to the 
War Industries Board. In it, after appointing a new chairman 
of the board, he redefined its functions to include the creation of 
new facilities and disclosing new sources of supply; conversion of 
existing facilities to new uses; conservation of resources and facili- 
ties by scientific, commercial and industrial economies; advice to 
the Government purchasing agents with regard to prices to be paid ; 
the determination of priorities in production and delivery where 
necessary; and the making of purchases for the Allies. Then 
apart from the above powers and duties assigned by him to the 
board as a whole, the President made it the duty of the chairman 
to act for the joint and several benefit of all supply departments of 
the Government; to guide and assist in allocation of contracts, in 
obtaining access to materials, the finding of new supplies or what- 
ever need may be revealed; to determine how to eliminate conflict 
of interest between departments in the matter of supplies; to see 
that contracts and deliveries are followed up; to anticipate the re- 
quirements of the Government and to meet them.^ 

The act creating the council, while not defining the methods to 
be followed in planning the "concentration and utilization of the 
resources of the Nation," had placed, on the other hand, no restric- 



1 The Council of National Defense was given authority hy the act itself ' to organize 
subordinate bodies for its assistance in special investigations, either by the employment 
of experts or by the creation of committees of specially qualified persons to serve with- 
out compensation, but to direct the investigations of experts so employed." 

2 Letter of the President to Bernard M. Baruch of Mar. 4, 1918. 



208 HISTORY or PRICES DURING THE WAR. 

tions upon the council within its general grant of power. The 
President's letter, though more specific and sweeping in its enu- 
meration of powers, did clamp upon the War Industries Board as 
such two distinct restrictions in power. The President specifically 
asked Mr. Baruch. as chairman of the War Industries Board, "to 
let alone what is being successfully done and interfere as little as 
possible with the present normal process of purchases and delivery 
in the several departments." The other, and for this inquiry more 
pertinent, restriction upon the War Industries Board and its chair- 
man was the limitation placed upon its right to fix prices. The 
President left the final decision of all questions relative to its control 
over industry, except the determination of prices, with its chairman. 
This specific exception was striking, and gave rise to the. creation by 
the President of a price-fixing committee. 

The passage of the Overman Act on May 20, 1918,^ gave a new face, 
if not a new content, to the powers of the War Industries Board. 
One of the purposes of the act was the "better utilization of re- 
sources and industries," but under it the President was given no new 
powers other than those pertaining to a redistribution of functions, 
duties, and powers already conferred by law. It authorized him, 
as he did on May 28, 1918, to break the War Industries Board apart 
from the Council of National Defense and set it up as a body quite 
independent and charged to perform the duties outlined in his 
earlier letter. That separation itself gave a considerable show of 
added authority, which for war-time purposes was about as effective 
as additional statutory powers. 

The basis in law of the creation and powers of the War Industries 
Board, then, was not as firm or definite as that of the Food Adminis- 
tration and Fuel Administration. The latter were the creatures of 
specific legislative action by the Congress after we had entered the 
war^ and were given very definite war-time controls to administer 
Avith ample power and with the enforcement of penalties. The War 
Industries Board was the creature of a peace-time statute, adopted 
as the nearest authority at hand for a makeshift but immediate or- 
ganization of the board, and later, filled with new purpose and in- 
spiration by a letter from the President. The war-time spirit of the 
country was an immeasurable power upon which to draw for the 
enforcement of regulations. It is much more evident that the War 
Industries Board sadly lacked a full grant of legislative power than 
that it suffered much from the lack. 

1 See S. 3771 for Overman Act in full. 

2 Created by the food and fuel act of Aug. 20, 1917. 



GOVEE]SrME]SrT COlsTTROL OVER PRICES. 209 

The Policy of INIe. Baeuch. 

The paucity of power given by law to the War Industries Board 
and, more especially, the ill-defined character of that power, aroused 
a lively interest in the policies of Mr. Bernard M. Baruch. He, it 
might be supposed, had at his disposal a wider freedom to control 
after his own fashion than had any other industry-controlling chair- 
man at Washington. If the Congress had not created his board by 
special enactment, neither had it defined his course for him or tied 
his hands. Mr. Baruch, with the war on, was not in need of more 
far-reaching powers unless he contemplated somewhat radical regu- 
lation. He did not, in point of fact, complain of lack of power or 
go to the Congress for more. It might from these points be inferred, 
as was a fact, that Mr. Baruch by necessity and by choice ordinarily 
did not announce policies of control until each problem arose and was 
attacked. There is little more to say of his policies than that he went 
before the country with no hard and fast policies of control ; he dele- 
gated the making and administering of those policies to commodity 
chiefs, known as " dollar a year " men, and chosen from the trade ; 
and that he maintained a well-planned organization of contacts with 
all of the Government and the industry. 

The problem put to the War Industries Board was too involved, 
difficult, and big to state in a word or comprehend at once how best 
to attack it. The Board became virtually responsible for turning 
the whole of industry, save the food and fuel industries, into war 
uses. But, except where there appeared a war requirement to fill, it 
pursued religiously a policy of noninterference. The task of fulfill- 
ing Government and allied orders made the War Industries Board 
deal, in the main, with the big-business end of industry, much as the 
task of conserving foods made the Food Administration deal so 
largely with the smaller dealers and consumers. The regulation of 
the steel industry, which was said to be controlled by seventeen men 
who could be gathered into one room at Washington, required a quite 
different method from that applicable to the regulation of wheat. 
Mr. Baruch, himself strictly a business man by experience and point 
of view, was in a strategic position to fraternize with the trade and 
give it a more tolerant attitude toward Government interference. 
He, as they knew, had been in Washington a full year when the 
President asked him to take the chairmanship of the War Industries 
Board on March 4, 1918. During that time, furthermore, he had 
mixed freely with them and convinced them that he was bent upon 
no revolution of industry and would ask nothing beyond what was 
vitally needed in war time. 
125547°— 20 14 



210 HISTOKY OF PRICES DURING THE WAR. 

There seemed to Mr. Baruch no occasion for wide publicity or 
propaganda among the millions of small dealers and consumers, 
and the majority of contacts made by the board with the country 
were made informally around conference tables with the leaders 
of industry. He preferred frankly, as necessity to control an addi- 
tional industry arose, to meet that industry separately and make 
individual agreements which seemed at the time the most expedient. 
Mr. Baruch, therefore, did hot during the whole war formulate and 
advertise any general or dominating principles of industrial control. 

As said above, it was the policy of Mr. Baruch to delegate the 
making and administration of detailed policies to his " dollar-a- 
year " men, whom he had called to the board from the trade. These 
commodity chiefs, who were presidents and managers of large firms 
during peace time, brought the Government and the industry quickly 
together. All of them, through the cooperation of hundreds of war- 
service committees authorized to speak for the various trades, main- 
tained an intimate and frequent contact with production and price 
conditions of each important raw material and finished product. 
They formed the most ready and most effective of all the links 
between the Government and industry. The most distinguished of 
all the policies of Mr. Baruch was found in the organization of con- 
tacts. He believed thoroughly in, and did develop, a wide scheme 
of contacts within the Government and out. One of the first things 
which Mr. Baruch set out to do, when he came into the chairmanship 
of the board, was to perfect and establish lines of personal contact 
with every war agent of the Government and every organized branch 
of war industry under his control. 

The Organization of the Boakd. 

There is little danger of emphasizing too often the value to the 
war-industry control, realized through the organization scheme of 
the War Industries Board. That board was made at every angle to 
synchronize Government requirements and supply. The functions 
of gathering requirements, clearing purchases, allocating orders to 
the trade, making procurements, determining priorities in production 
and delivery, curtailing less or nonessential production, instituting 
conservation programs, and controlling prices were conceived and 
assigned to distinct divisions of the War Industries Board. Each 
commodity section, headed by a chief from the board proper, was 
composed of members from all other Government purchasing agencies 
interested in that particular commodity. The chief, through his 
war-service committees, was also as closely affiliated in contact with 
the trade. Each commodity section, then, to a smaller degree, was 
the center of information pertaining to the demand and supply of its 



GOVERNMENT CONTROL OVER PRICES. 211 

particular commodity as was the Board for the whole of industry.^ 
These smaller sections were organized in larger divisions subordinate 
to the board proper consisting of Chairman Bernard M. Baruch, a vice 
chairman who also represented the allied purchasing commission, a 
representative of the Army, a representative of the Navy, the priori- 
ties commissioner, the chairman of the price-fixing committee, a 
representative of labor, the director of steel, the commissioner of 
finished products, and a technical advisor. 

The Relation of the Board to Peice Fixing. 

Scarcely an important action was taken by the War Industries 
Board which did not affect prices, and account should be taken of 

' A clearer idea of the important organization scheme, set up by the War Industries 
Board, to unite Government requirements and industry production, as it stood at the 
signing of the armistice, follows : 

Organisation scheme of the War Industries Board. — Divisions : Building materials 
division, chemical division, conservation division, division of planning and statistics, ex- 
plosives division, facilities division, finished products division, hide, leather, and leather 
goods division, labor division, price fixing committee, priorities division, pulp and paper 
division, purchasing commission for the Allies, requirements division, steel division, 
textile division. Sections : Acids and heavy chemicals section (chemical divi- 
sion), agricultural implements, animal and hand-drawn vehicles, and wood products 
section, alliali and chlorine section (chemical division), automotive products 
section, belting section (hide, leather, and leather goods division), boot and shoe sec- 
tion (hide, leather, and leather goods division), brass section, bureau of warehouse 
distribution (steel division), chain section, chemical glass and stoneware section 
(chemical division), clearance office, coal-gas products section (chemical division), 
cotton and cotton linters section (textile division), cotton goods section (textile division), 
crane section, creosote section (chemicals division), division of business administration, 
domestic skins and hides section (hide, leather, and leather goods division), electrical 
and power equipment section, electrodes and abrasives section (chemical division), elec- 
tric wire and cable section, emergency construction committee, ethyl alcohol section 
(chemical division), felt section (textile division), ferro-alloys section (chemical divi- 
sion), fiber board and container section (pulp and pai)er division), fire prevention section, 
flax products section (textile division) , forgings, guns, small arms, and small-arms 
ammunition section, gloves and leather clothing section (hide, leather, and leather 
goods division), gold and silver section (chemical division), hardware and hand tool sec- 
tion, harness and personal equipment section (hide, leather, and leather goods division), 
hides and sliins section (hide, leather, and leather goods division), inland traflSc section, 
iron and steel scrap section (steel division), jute, hemp, and cordage section, linit goods 
section (textile division), labor section (priorities division), legal section, lumber sec- 
tion, machine tool section, , manufacturing section (pulp and paper division), medical 
section, mica section (chemical division), military optical glass and instrument section, 
miscellaneous chemicals section (chemical division), miscellaneous commodities section, 
news section — committee on public information, newspaper section (pulp and paper 
division), nitrates section (chemical division), nonfeiTous metals section, nonwar con- 
struction section, paint and pigment section (chemical division), paper economies section 
(pulp and paper division), periodical section (pulp and paper division), platinum section 
(chemical division), power section, projectile steel rails, alloy steel, and cold-drawn steel 
section (steel division), permit section (steel division), pig iron section (steel division), 
price section (division of planning and statistics), railway equipment and supply section, 
refractories section (chemical division), resources and conversion section, rubber section 
(textile division), sheepslsin and glove leather section (hide, leather, and leather goods 
division), silk section (textile division), sole and belting leather section (hide, leather, 
and leather goods division), special advisory committee on plants and munitions, statis- 
tics section (steel division), steel products section (steel division), ^stored materials sec- 
tion, sulphur-pyrites section (chemical division), synthetic dye and intermediate section 
(chemical division), tanning materials and vegetable dye section (chemical division), 
technical and consulting section (chemical division), tin section, tobacco section, upper, 
harness, bag, and strap leather section (hide, leather, and leather goods division), wood 
chemicals section (chemical division), woolens section (textile division), wool section, 
domestic (textile division), wool section, foreign textile division). 



212 HISTORY OF PRICES DURING THE WAR. 

all that the board did if it is hoped to tell in full the tale of war- 
time control over prices. 

But, strictly speaking, the War Industries Board was not a price- 
fixing agency and had no independent hand in the fixing of prices. 
The price-fixing committee, while popularly thought a creature of 
the War Industries Board and under its directions, was really created 
by the President as an organization independent of the board. 

It will be recalled that the President, in his letter of March 4, not 
only failed to give the War Industries Board powers to control 
prices, but specifically limited it in that power. He gave the chair- 
man a free hand in all other delegated controls, " except the deter- 
mination of prices," and declared that — 

In the determination of prices the chairman should be governed by the advice 
of a committee consisting, besides himself, of the members of the Board imme- 
diately charged with the study of raw materials and of manufactured products, 
of the labor member of the board, of the chairman of the Federal Trade Com- 
mission, the chairman of the Tariff Commission, and the Fuel Administrator.' 

It seems doubtful, in view of these limitations, whether any con- 
siderable formal power to fix prices was given to the War Industries 
Board of itself. The commodity chiefs, again and again, however, 
came to informal agreements with the trade and in reality often de- 
termined what prices should be asked of the Government and the 
civilian trade. The board worked hand in glove with the price-fixing 
committee and, in a large way, was the administrative organ to 
which the committee looked for the enforcement of prices which it 
fixed. 

(3) THE KINDS OF CONTROL EXERCISED. 

Once the War Industries Board had learned the problem facing ity 
and saw that it must make itself the Government clearing house for 
war-time industrial needs, there was presented the necessity for or- 
ganizing controls to that end. The departments came with war re- 
quirements, and left it to the War Industries Board to meet them as 
it would. No war board at Washington undertook such a multi- 
plicity of controls, for no other covered a field so wide. It was re- 
sponsible virtually for the whole of industry save food and fuel, and 
had to administer it by the use of many quite distinct forms of con- 
trol. Any person who served with the War Industries Board instinc- 
tively thinks of its work under the technical terms, — " requirements," 
" clearances," " priorities," " allocations," " curtailments," " conserva- 
tion," " prices," and others of lesser importance. Each of these spe- 
cial kinds of control affected prices and, indeed, might be called 
phases of price control. No study of the problem touching Govern- 

1 The price fixing committee, with Mr. Robert S. Brookings as chairman, was ap- 
pointed by the President and had its first meeting Mar. 14, 1918. 



GOVERIsTMENT CONTEOL, OVER PRICES. 213 

ment control over prices could claim comprehensiveness without some 
analysis of these phases. 

Requirements. 

There were few problems which Mr. Baruch at the outset saw 
more clearly than the need for a mechanism to receive and classify 
Government requirements. He impressed that fact, through his 
chiefs, upon the Government and on April 2, 1918, announced the 
creation of a new requirements division. It was, in a sense, the 
funnel through which the Government sent its requests for com- 
modities to the War Industries Board preparatory to later clearance 
and allocation. It was the organ which Mr. Baruch set up in re- 
sponse to the President's letter asking him to keep " as far in ad- 
vance as possible " a watch of the " respective needs " of the Govern- 
ment and Allies and saying that he " should be constantly and scien- 
tifically informed of all contracts, purchases, and deliveries in order 
that he may have always before him a schematized analysis of the 
progress of business in the several divisions of the Government in 
all departments." The new requirements division, as conceived by the 
President and by his newly appointed chairman, was to be the focus 
of all the war-industry controls over the production and distribution 
of raw materials or finished products required by the Government 
or her Allies. There passed through it during the war literally 
thousands of requirements.^ 

The requirements division, because designed to bring to one table 
all Government requirements, was organized to include representa- 
tives, from all agencies which made considerable purchases for war 
purposes in the Government and out (Army, Navy, Emergency Fleet, 
Marine Corps, Eailroad Administration, Housing Corporation of 
the Department of Labor, Purchasing Agency of the Panama Canal, 
Allied Purchasing Commission, Eed Cross, Y. M. C. A., Knights 
of Columbus, and the Commission on Training Camp Activities). 
The Food Administration and Fuel Administration, too, were given 
opportunity to attend the meetings when they desired projects'^that 
involved materials, supplies, facilities, electrical power, fuel or trans- 
portation affecting the industries. The requirements division, though 
loosely organized enough to permit changes and the entrance of 
new representatives from time to time, consisted of its chairman 
and the more important divisional heads of the War Industries 

'The records of the requirements aivision show that the consecutive numbers of 
separate requirements totaled five thousand odd, which included all of the Government 
and part of the allied requirements handled. But in addition, there were hundreds of 
allied requirements not so numbered. The bulk of all these requirements did not start 
coming in until the fall of 1918, when, sometimes, several hundred came in a s'no- e 
morning. ^'"sie 



214 HISTORY OF PRICES DURING THE WAR. 

Board, assembled in conference with the supply heads for the Govr 
ernment and the Allies.^ 

It took, in i^oint of fact, some months to impress the Government 
and the Allies with the necessity for a strict and constant estimate of 
future requirements. That shortsightedness gave the War Indus- 
tries Board one of its most difficult problems. A vast number of the 
shortages had come simply from failure to look ahead for needs. 
The new requirements division, therefore, devoted itself to the task 
of gathering future requirements and left the immediate needs to the 
clearance committee. The work of the division, as the plan behind 
it gradually took root, grew tremendously in importance and in 
effectiveness. 

The routine by which all requirements were received at a central 
point and distributed to the commodity chiefs is indicative of the 
policy behind the whole scheme. The various Government and allied 
representatives, who throughout Washington on the day previous had 
made new requirement estimates, brought those requirements to the 
War Industries Board each morning. They were there read aloud in 
the requirements division and, as the representatives chose, discussed. 
The discussion did not, of course, turn upon whether the future 
requirement should be allowed or disallowed. That determination 
was left to the time when these requirements should ripen into clear- 
ances. It turned rather upon whether there was a shortage and, if 
so, how the requirement should be met. The requirements, after the 
meeting, were sent forthwith to the commodity chiefs of the War 
Industries Board. 

These commodity sections, each headed by a chief representiifg the 
War Industries Board, included representatives from each supply 
department of the Government interested in the commodity required. 
It was the business of the commodity chief, with the advice of his 
section members, to find ways to meet the requirements and, later 
on, to allocate them. The department which originally submitted 
the requirement was expected to keep account of it through a repre- 
sentative in the commodity section to which the requirement had been 
referred. At the last, the commodity chiefs were asked to fill out a 
blank for the requirements division in receipt of each requirement, 
stating in detail whether and how the industry could meet the 

1 The requirements division, as originally organized, was made to include Mr. Alex. Legge 
(chairman), the executive secretary of the War Industries Board, the priorities com- 
missioner, the chief of finished products division, the chief of the iron, steel, and steel 
products division, the chief of the chemicals and explosives division, the chief of the 
nonferrous metals section, one or more representatives of the War Department, one or 
more repi'esentatives of the Navy Department, a representative of the Marine Corps, 
one or more representatives of the Emergency Fleet Corporation, and a representative 
of the Railroad Administration. Later, Mr. James Inglis and finally Mr. W. E. Guylee 
was made secretary. 



GOVERITMENT CONTROL OVER PRICES. 215 

requirement. Each commodity chief was asked to consider market 
conditions pertinent to the requirements ; recommend purchase plans 
to the several purchasing departments ; and, if it seemed necessary to 
control an industry in whole or in part by allotments, to determine 
the allocation of materials, commodities, and facilities to the several 
Government departments. Allies, and to civilians. 

Cleaeances. 

The War Industries Board, with all of its emphasis upon the need 
for anticipating and recording future Government requirements, had 
only perfected its mechanism to that end a short while before the 
armistice was declared. These so-called requirements, as time went 
on, each ripened into a clearance and in theory every clearance 
should have been anticipated in some previous requirement. A 
" requirement," as commonly termed, was a future requirement, and 
a " clearance " was an immediate requirement. The one in logic 
preceded the other. But, in point of practice, under the intense 
pressure of their other work the officials found it exceedingly difficult 
to estimate their requirements until the very hour when there came 
a pressing need for them. The beginnings of clearances, therefore, 
date back to the start of the war and they far exceed the estimated 
requirements which were sent to the requirements division prior to 
their being actually cleared. 

The dearcmce committee. — The General Munitions Board at the 
beginning of the war saw the necessity for coordinating the pur- 
chase branches of the Government,^ and created under it a clearance 
committee comprising a chairman, a secretary, and representatives 
from the General Staff, the separate purchase branches of the Army, 
the Navy, the Allied Purchasing Commission, the Marine Corps, and 
the important sections of the General Munitions Board.^ This early 
committee attempted to bring together the purchasing of war mate- 
rials, to adjust matters of priority between the various departments 
and to keep a watch over shortages of materials. One of the 
most important of the early functions, perhaps, was the meeting 
ground it afforded to the supply bureaus of the Army. In May, 
1918, however, the Army centralized its own purchases in a newly 
created purchase and supply branch of the purchase, storage, and 
traffic division. There was then less occasion for the Army to send 
more than one representative to the clearance committee conferences. 



iThe Council of National Defense first asked the General Munitions Board to make 
clearances on Apr. 28, 1917. 

2 Mr. Frank A. Scott was made chaii-man of the clearance committee at its inception. 
When he resigned the chairmanship passed to Lieut. Col. C. C. Bolton, who held it 
until the reorganization of the committee, when Rear Admiral F. F. Fletcher was made 
chairman. 



216 HISTORY OF PRICES DURING THE WAR. 

The clearance committee, by coordinating all supply purchases, elimi- 
nated in large measure competitive bidding by various branches of 
the Government for the same material. It took especial interest in 
"watching prices and, where there appeared shortages of materials, 
issued clearance lists. But it became more and more difficult for the 
clearance committee, even as reorganized in May, to handle the volume 
of work before it. 

The numbers of immediate requirements that needed clearance each 
morning grew into the hundreds and made utterly hopeless any more 
tlifin a mere perfunctory reading of them at the clearance committee 
meetings. The enormous increases in Government purchases, though 
none the less demanding coordination or clearance, gave the committee 
more work than it could do either with care or expedition. That con- 
sideration, and the development of the commodity sections within the 
War Industries Board, contributed to another and final organiza- 
tion of the clearance work. The commodity sections, after a time, 
were made to include representatives from each of the Government 
purchasing agencies. Obviously, then, the logical disposal for the 
clearance committee to make of each immediate requirement was to 
clear it directly through the commodity chiefs. These reasons ex- 
plain why the deliberative work became less and less important and 
the routine of distributing clearances more and more so. They ex- 
plain why, in a word, the old clearance committee was abolished on 
July 24, 1918, and its work was delegated to a newly created clearance 
office within the requirements division. 

The clearance office. — It was the business of the clearance office to 
receive all requests for clearances, record them, and distribute them 
promptly to the proper commodity sections. It had, furthermore, to 
urge action by the commodity sections and, after clearance, to in- 
form every purchasing department of the Government of the pros- 
pective purchases of every other department. Throughout the war 
there were cleared, by the clearance committee and later by the clear- 
ance office, altogether 29,000 immediate requirements. Of that total, 
80 per cent emanated from the War Department, 15 per cent from 
the Navy Department, and 5 per cent from the other departments. 
It is interesting and relevant to note that the War Industries Board 
granted about 95 per cent of all requests for clearance and that 5 
per cent were refused by reasons of adjustment of war needs between 
ourselves and the Allies. The War Industries Board was, of course, 
the central point to which all prospective war purchases were 
brought for clearance. It, therefore, required that all Govermnent 
departments report such purchases to its clearance office in so far as 
they appeared on a confidential so-called clearance or " shortage " 
list. 



GOVER^rMEIN'T CONTEOL, OVER PRICES. 217 

Tli£; clearom,ce list. — Xo bureau of the Government had such a 
check upon shortage of supplies as had the War Industries Board 
through its clearance vrork. There was early made up as a working 
basis a clearance list, upon which were entered from time to time the 
specific articles of which there was shortage and for which clearance 
was required. The practice at the start was to list separate com- 
modities as necessity demanded. The clearance office later, however, 
made the sweeping additions to the clearance list of — 

all schedules of prospective purchases involving orders for any articles or 
commodities, to be placed in the congested district, which orders shall call for 
or involve the creation or use of additional fuel, power, or transportation 
facilities, 

and 

all schedules of prospective purchases involving the creation of new or addi- 
tional facilities wherever placed and however created. 

The clearance list, in point of fact, came at last to cover virtually 
the whole list of important war-making materials.^ 

1 There follows a copy of the clearance list (or "shortage list") as it stood at the 
signing of the armistice. 

Clearance list. — Before negotiations are instituted clearance must be obtained on pro- 
posed purchases of articles or commodities in the four following general classifications : 

1. All schedules of prospective purchases involving articles or commodities on the list 
given below, entitled " Clearance schedule." 

2. All schedules of prospective purchases involving orders for any articles or com- 
modities, to be placed in the congested district, which orders call for or involve the crea- 
tion or use of additional fuel, power, or transportation facilities. The boundaries of the 
congested district will be defined from time to time by the Railroad Administration, Fuel 
Administration, and War Industries Board, and will be published by the latter. This con- 
gested district now is included between the Atlantic Ocean and a line drawn through 
Chesapeake Bay to Baltimore, north to Harrisburg, west to Altoona, northeast through 
Williamsport, Binghampton, and Schenectady to the Hudson River, and thence north to 
the northeastern boundary of the State of New York. The districts served by the electrical 
power companies of Canton, Baltimore, Massillon, Alliance, Niagara Falls, Pittsburgh, 
Connellsville, Wheeling, Toungstown, and Akron are also prohibited centers due to lack 
of power. 

3. All schedules of prospective purchases Involving the creation of new or addi- 
tional facilities wherever placed and however created ; that Is, either direct or indirect 
Government business ; and including all war building of any nature whatsoever. 

4. The orders for production in Government plants do not require clearance so far 
as the actual order itself is concerned, though the material required for filling the order 
will require clearance if on the clearance list. At the time requirements are presented, 
statement must be made as to whether the Government department at interest is in a 
position to handle all or any part of the order within its own plants. 

Clearance schedule. — Acids, agricultural implements, vehicles (not auto propelled), and 
wood products : 

(a) Vehicles: 

Army wagons. 
Ai-my carts, two-wheel. 
Artillery wheels, spokes, and hubs. 
Spare parts. 
(6) Truck bodies. 

(c) Wood products, meaning handles, boxes, containers, crates, propellers, etc, 
t*) Agricultural tractors. 
Automotive products, meaning : 

(a) Motors, truck, tractor, aeroplane. 
(6) Transmissions. 



218 HISTORY OF PRICES DURING THE WAR. 

Priorities. 

Little control would, indeed, have been exercised over industry 
in this country had the War Industries Board simply gathered in, 

Automotive products, meaning — Continued. 

(c) Axles. 

(d) Springs. 

(e) Forgings. 
(t) Tires, solid. 

(g) Rims, pressed on. 

(7i) Motor-cycle rims. 

(i) Pneumatic tires. 

(j) Steel wheels. 

(k) Magnetos. 

(I) Spark plugs. 

(m) Valves. 

(n) Cam shafts, finished and rough. 

(o) Ci'ank shafts, finished and rough. 

(p) Trucks. 

(g) Military tractors. 

(r) Motor cycles. 

(s) Trailers. 

(t) Storage batteries. 

(w) Ball and roller bearings. 

(v) Steel castings for motor cars. 

(iv) Drive and link belt chains. 

(x) Radiators. 

(y) Babbitt-lined bearings. 

(z) Frames. 

(aa) Truck bodies for motor chassis. 

(6B) Sets of spare parts for automotive vehicles. 
Brass and copper rods, tubing, and sheets. 
Chains (all chains other than automotive drive and link belt). 
Chemicals. 
Cordage, hemps, and fibers, including — 

(a) Jute. 

(B) Manila. 

(c) Kapok mattresses, pillows, pads, and life garments. 

(d) Coir yarns. 

(e) Manila rope. 
if) Sisal rope. 

(g) Cocoa mats and cocoa matting. 

(h) Linoleum. 

(i) Oakum. 

(j) Burlap. 
Cork. 

Cotton linters. 
Cotton goods. 
Cranes — 

(a) Locomotive. 

(6) Electric traveling. 

(c) Gantry. 

(d) Shipyard. 

(e) Buckets (grab buckets). 

(f) Hoists. 

(fif) Portable electric. 

(h) Electric monorail 

(i) Wrecking. 

(;■) Track pile drivers. 
Cylinders and containers (pressure). 
Drawing instruments. 
Electric equipment — 

(a) Generators. 

(&) 'furbines. 



* GOVERNMENT CONTROL OVER PRICES. 219 

for analysis, a record of all Government requirements and cleared 
all prospective purchases. Such a record would mean only that 

Electric equipment — Contuiued. 
(e) Condensers. 

(d) Pumps. - , 

(e) Compressors. 
if) Transformers. 

(g) Current breakers. 

(h) Oil switches. 

(i) Lightning- arresters. 

(/) Motors, special, machine tool, and adjustable speed, direct-current, and crane. 

(7c) Electrical supplies. 
Electric wire ana cable. 
Explosives and components thereof. 
Felts. 
Fire prevention apparatus — 

{a) Hand fire extinguishers. 

(6) Fire hose. 
Forging and machining for guns, projectiles, or shafts. 
Hardware, mill, plumbers', and heating supplies. 
Hides and skins. 
Iron and steel, of which the following are allocated through the director of steel : 

(a) Bands. 

(6) Billets. 

(c) Blooms. 

{d) Boiler tubes. 

(e) Cold-rolled steel. 

(f) Hoops. 

(g) Ingots. 

(h) Merchant bars. 

(i) Fig iron. 

(j) Pipe. 

(&) Plates. 

(Z) Rails and accessories. 

(m) Rods. 

(n) Seamless tubing. 

(o) Shapes. 

(p) Sheets. 

(q) Sheet bars. 

(r) Sheet steel. 

(s) Skelp. 

(t) Slabs. 

(u) Tin plate. 

(v) Wire and wire products. 

(w) Wire rope. 
Knit goods. 

Leather and leather goods. 
Linen and linen thread. 
Lumber. 

Machine guns and accessories (cleared through Ordnance Department, United States 
Army) . 

Metal-working machinery, including tools, forge-shop machinery, and plate-working 
machinery. 

Mica (cleared thorugh Bureau of Supplies and Accounts, United States Navy). 

Needles. 

Nonferrous metals : 

(a) Aluminum. 

(b) Antimony. 

(c) Copper. 
(,d) Lead. 

(e) Zinc. 

(f) Mercury (cleared through Bureau of Supplies and Accounts). 
iff) Nickel. 

(h) Tin. 



220 HISTORY OF PRICES DURING THE WAR. 

the Government knew Avhat commodities it "would need, and had 
coordinated all of its purchases. But it did not follow, of course, 
that the whole or an^^ of industr}^ would nicely adjust itself so as 
to produce or to deliver commodities in precisely the order which 
these Government requirements demanded. One of the most vital 
of all the War Industries Board controls came by reason of its 
power to tell the industry of the country what orders should have 
priority in production and what in delivery. It meant, in a word, 
that the War Industries Board, through thousands of decisions, 
must decide the relative importance of services and of commodities 
for war purposes. The determination of those priorities arose in 
all manner of ways between the various departments of the Govern- 
ment; the Allies; the Government and the Allies; the Government 
and individuals; the Allies and individuals; and as between par- 
ticular individuals.^ The details involved in the administration of 
l^riorities control are deserving of especial and technical study be- 
cause they form the basis of almost all the war-industry controls and 
bear peculiarly upon prices. 

The beginnings of control through the issuance of priorities ex- 
tended back to the authorization of a priority subcommittee by the 
General Munitions Board on May 3, 1917. The director of the 
Council of National Defense briefly and pointedly defined the func- 
tions of priority by declaring that the committee — 

sliall exercise full power in the determination of priority of delivery of ma- 
terials and finished products whenever there is a conflict in delivery in accord- 
ance with the general policy of the Government. It is fvirther understood 

Oil: 

Castor oil (cleared through Signal Corps, United States Army). 
Linseed oil. 

Optical glass and optical instruments. 

Paper, 100 per cent sulphate, Kraft. 

Paper and paper pulp. 

Power equipment. 

Railway equipment. 

Eubher. 

Rubber goods. 

Silk noil and silk cartridge cloth. 

Small arms (small-arms ammunition) cleared through Ordnance Department, United 
States Army. 

Small tools. 

Tobacco. 

Typewriters. 

AVool. 

Woolen goods. 

1 It would be amiss to omit the precise wording by which the priorities committee 
of the War Industries Board later defined, over and again, the purpose of priorities and 
the method of determining them : The paramount purpose of priorities is the selective 
mobilization of the products of the soil, the mines, and the factories for direct and in- 
direct war needs in such a way— as will most effectually contribute toward winning the 
war. In requesting priority the petitioner should join with the committee in applying 
the test : To what extent, if at all, will the granting of this application contribute, 
directly or indirectly, toward winning the war ; and if at all, how urgent is the need. 



GOVERIfTMENT CONTROL OVER PRICES. 221 

that at present the prioritj- committee of the General Munitions Board lias 
no power in regard to the determination of priority in regard to civilian needs 
in which the Army and Navy requirements are not involved. It is further 
understood that as between the needs of our Allies and our civilian popula- 
tion, the priority committee of the General Munitions Board for the present 
has no authority to act. In this connection, however, the priority committee 
should keep full information as to such cases or instances as come to its 
attention, in order that plans maj"^ further be developed for properly handling 
the matter. 

That early committee, though not given all powers which were 
later granted, was forced npon the General Munitions Board by 
reason of the quantities of requests from manufacturers and con- 
tractors doing Government work asking which orders should be 
filled first. Before mid-summer the new committee was receiving 
from 50 to 75 appeals a day for preference policies. But the real 
work of control through priorities began early in the fall of 1917, 
after the creation of the War Industries Board, and with the ap- 
pointment of Judge Eobert S. Lovett to priority supervision,^ 

Authority for priority control. — Congress seems to have author- 
ized control of industry through the issuance of priorities more 
specifically than any of the other controls exercised by the War 
Industries Board. The act of August 29, 1916, said: 

That a Council of National Defense is hereby establislaed for the coordination 
of industries and resources for the national security and welfare. It shall 
be the duty of the Council of National Defense to supervise and direct inves- 
tigations and make recommendations to the President and the heads of execu- 
tive departments as to the location of railroads with reference to the frontier 
of the United States so as to render possible expeditious concentration of troops 
and supplies to points of defense ; the coordination of military, industrial, and 
commercial purposes in the location of extensive highways and branch lines 
of railroad ; the utilization of waterways ; the mobilization of military and 
naval resources for defense ; the increase of domestic production of articles 
and materials essential to the support of armies and of the people during the 
interruption of foreign commerce ; the development of sea-going transportation ; 
data as to amounts, location, method and means of production, and availability 
of military supplies ; the giving of information to producers and manufacturers 
as to the class of supplies needed by the military and other services of the 
Government, the requirements relating thereto, and the creation of relations 
which will render possible in time of need the immediate concentration and 
utilization of the resources of the Nation, 

That legislative authorization, the agreement between the more 
important Government departments,^ the various resolutions of the 

1 Judge Edwin B. Parker, by appointment from tlie priorities commissioner .Judge Robert 
S. Lovett, was put in active charge of the organization of the new committee on Aug. 
23, 1917. After Mar. 4, 1918, Judge Parlcer succeeded Judge Lovett as priorities com- 
missioner and chairman of the priorities committee. 

2 The President, the Secretary of War, the Secretary of Navy, the chairman of the 
United States Shipping Board, and the president of the United States Shipping Board 
Emergency Fleet Corporation agreed to confer upon Judge Lovett, and through him, 
the priorities committee, such powers of priority as lay within their legal right. The 
important priority circulars were signed by each of these officials except the President. 



222 HISTORY OF PRICES DURING THE WAR. 

Council of National Defense,^ and the President's letter of March 4, 
1918, declaring that one of the six functions of the "War Industries 
Board should be — 

the determination, wherever necessary, of priorities of production and of deliv- 
ery and of the proportions of any given agencies when the supply of that article 
is insufficient, either temporarily or permanently, 

gave an abundance of war-time authority .for the exercise of wide 
priority powers. 

The priority cireulars. — The consideration of 211,430 applica- 
tions ^ for priority in production or delivery, made by agencies hav- 
ing war needs, was a highly complicated and technical business. The 
priorities committee set about that task in a thoroughgoing manner 
when it issued priority circular No. 1 on September 21, 1917, giving 
general directions as to priority and outlining the method of apply- 
ing for priority assistance. That and subsequent circulars attempted 
to classify and rate orders in accordance with their relative need for 
war and national purposes.^ The first circular required that a rating 
of orders be made only by persons producing iron and steel or their 
j)roducts. The classes of producers required to observe priority 
rating in the fulfillment of their contract orders were extended grad- 
ually from that beginning until on July 1, 1918, the well-known cir- 
cular No. 4 was issued stating that — 

during the war in which the United States is now engaged all individuals, 
firms, associations, and corporations engaged in the production of raw materials 
and manufactured products (save foods, feeds, and fuels) are requested to 
observe regulations respecting priority.* 

The War Industries Board came then into priority control over 
virtually the whole industry (not already controlled by the Food 
Administration and Fuel Administration) of the country. 

The method of rating. — The priorities committee, in order that 
purchasers and producers might know what priority to follow, di- 

1 Note especially the resolution of Sept. 25, 1917, assigning the priorities activities 
of the War Industries Board of the Council of National Defense to Judge Lovett. 

2 A large number of applications for priority assistance were handled prior to Sept. 
21, 1917, the date when the use of formal application blanksi and formal certificates 
was begun. The first priority certificate issued was dated Sept. 25, 1917. Since that 
date 211,430 applications have been received ; 191,966 priority certificates have been 
issued, of which, however, 8,448 were reissued certificates with amended ratings ; 27,912 
declinations and withdrawals of applications were issued. The highest number of ap- 
plications received and numbered in one day was 1,901 on July 8, 1918. The highest 
number of certificates issued in one day was 2,121 on Sept. 30, 1918. Weekly reports 
of applications received and certificates issued are to be found in the weekly " Office 
Review." 

" In order to get the system satisfactorily started all orders which had been placed 
prior to Sept. 21, 1917, by or on behalf of the War Department, the Navy Department, 
or the United States Shipping Boaj.'d Emergency Fleet Corporation were automatically 
rated as class A-1 unless otherwise directed ; and, likewise, all orders for military sup- 
plies and equipment placed by or for the Allies as cl^ss A— 2. 

* There were in all issued 60 separate priority circulars from Sept. 21, 1917, to Dec. 
20, 1918, extending the control over priorities. Circular No. 60, issued on the latter 
date, revoked as of .Tan. 1, 1919, all rules, regulations, and directions of every nature 
issued by the priorities division. 



GOVERZ^TMENT CONTROL OVER PRICES. 223 

vided all orders and work into five general classes : Class AA, class 
A, class B, class C, and class D, with subdivisions of class AA, class 

A, and class B, indicated by suffix number, thus: Class AA-1, class 
AA-2, etc.; class A-1, class A-2, etc.; class B-1, class B-2, etc.^ 
Orders and work in class AA took precedence of orders and work in 
all other classes ; those in class A took precedence of those in classes 

B, C, and D ; those in class B took precedence of those in classes C 
and D; those in class C took precedence of those in class D; all 
irrespective of the dates the orders were placed. The classification 
of an order meant that it should be given such precedence over 
orders of a lower classification as were necessary (and only such as 
were necessary) to insure delivery on the date specified in the order. 
It did not mean that work should cease on orders of a lower classi- 
fication, or that the order should be completed and delivery' made in 
advance of orders taking a lower classification if this was not neces- 
sary to effect delivery within the time specified. Any person or 
agent, entitled to preferential treatment under the policies of the 
priorities committee, ordinarily made application to the committee 
for an order running against a manufacturer or distributor and call- 
ing for delivery by a certain date. The priorities committee, if im- 
pressed after a consideration of the claim, assigned one or the other 
of the above ratings to the order and issued a certificate. This cer- 
tificate was issued to the applicant direct, unless otherwise requested, 
and not to the person against whom it ran. The applicant then 
presented his certificate to the person against whom it ran, and the 
latter arranged his production program to give delivery to that pri- 
ority order in its relative turn with respect to other priority orders. 

AutomMio rating. — It was soon found that certain classes of 
orders so obviously deserved preference, that a priority rating could 
be assigned automatically. A scheme of automatic classifications 
was set up accordingly, on July 1, 1918,2 which made unnecessary 
any application for certain written priority certificates, or any refer- 

1 Class AA comprised only emergency war work of an esceptional and urgent nature. 

Class A comprised all other war work; that is to say, orders and work necessary 
to carry on the war, such as arms, ammunitions, destroyers, submarines, battleships, 
transports, merchant ships, and other water craft, airplanes, locomotives. 

Class B comprised orders and work which, while not primarily designed for the prosecu- 
tion of the war, yet were of public interest and essential to the national welfare or other- 
wise of exceptional importance. 

Class C comprised all orders and work not covered by priority certificates issued by 
the priorities committee or not taking an automatic rating, which orders and work were 
to be utilized in furtherance of one or more of the purposes embraced within the " General 
classification of purposes demanding preference treatment" promulgated by the pri- 
orities board, or which orders and work were placed by or utilized in connection with 
an industry or plant appearing on preference list No. 1. No class C certificates were 
issued. 

Class D comprised all orders and work not embraced in class AA, class A, class B, 
or class C, and no certificates were issued therefor. 
2 See sees. 7, 8, 9 of priority circular No. 4. 



224 HISTORY OF PRICES DURING THE WAR. 

ence to the priorities committee. The applicant simply attached to 
his order an affidavit in prescribed form setting forth the facts es- 
sential to automatic rating, and the war uses for which materials 
were needed. 

The new scheme gave no automatic rating higher than A-4, thus 
leaving the ratings of AA, AA-1, AA-2, etc., A-1, A-2, A-3 to 
be given onl}^ by specific action of the Priorities Committee. All 
orders by the War Department, the Navy Department, or the Emer- 
gency Fleet Corporation, falling within class A were automatically 
rated A-5 upon their proper signature to the following statement : 

Unless rerated by express order in writing by the Priorities Committee of 
the War Industries Board, this order is by authority-of said Priorities Com- 
mittee rated as class A-5, and its execution shall take precedence over all your 
orders and work of a lower classiiication to the extent necessary to insure 
delivery according to the date specified herein, as prescribed by Circular No. 4, 
issued by the priorities division of the War Industries Board, of date July 1, 
1918, and all amendments thereto. 

There was set forth a series of automatic ratings covering all 
priorities below A-4, which gave the applicant, when an affidavit 
was attached stating that materials would be used for purposes 
having the specified rating, his proper precedence.^ 

^ Circular No. 4, issued July 1, 1918, recognizes the following purposes which may take 
priority rating automatically as indicated : 

(a) For the manufacture of turbines (all classes) A-4 

(b) For the repair or construction of steam railroad locomotives for use on the 

railroads under the jurisdiction of the United States Railroad Administra- 
tion , A— 4 

(c) For the production of electrodes A-5 

{d) For the manufacture of rope wire and of wire rope A-5 

(e) For the building of ships or other water craft for and under direct contracts 

with the United States Shipping Board, Emergency Fleet Corporation A-5 

if) For the building of all cargo water craft (but not pleasure craft) save such 
as are under construction by or for the United States Shipping Board, Emer- 
gency Fleet Corporation A-6 

(g) For the manufacture of machine tools for working both metal and wood ; of 
machinists' tools, of small tools, of hand tools, "and of mining tools, ma- 
chinery, and equipment A-6 

(h) For the manufacture of steam railroad materials, equipment, and supplies 
(other than locomotives), for use on the railroads under the jurisdiction 

of the United States Railroad Administration B-1 

(i) For the manufacture of locomotive cranes and traveling cranes B-1 

(;■) For the manufacture of electrical equipment other than turbines (but not 

electrical supplies as distinguished from equipment) B-2 

(ft) For the manufacture of farm implements B-2 

(7) For the manufacture of textile machinery B— 2 

(wi) For the manufacture of tools, implements, machinery, and equipment required 
for the production, harvesting, distribution, milling, canning, and refining 

of foods and feeds B-2 

(n) For the manufacture of binder twine and rope B-2 

(o) For the manufacture of oil-well supplies or equipment, by which is meant 
supplies for the production of petroleum and natural gas, but not includ- 
ing pipe lines, storage tanks of 1,000 barrels capacity ov over, tank cars, 

or refineries B-2 

Each order for materials, equipment, or. supplies for such purposes or uses as fall 
within class C, as defined by the priority committee, will automatically be classed as 
class C ; and all orders save such as are automatically classed above shall be automatically 
classed as class D unless otherwise provided. 



GOVBE]SrMEN"T CONTROL OVER PRICES. 225 

Unifying priorities in production and those in delivery. — A serious 
need soon developed for a more organized attention to priorities 
in delivery swch as had already been given to priorities in pro- 
duction. It was found that, even when manufacturers had observed 
priority policies in making materials, confusion and conflicts within 
the Govermnent were delaying the deliveries of those materials. 
The President in his letter of March 4, accordingly, suggested the 
creation of a Priorities Board within the priorities division. That 
board, by his recommendation, was made to include representatives 
from the various Government departments in order that, after a 
priority of delivery had been determined upon, there might be " com- 
mon, consistent, and concerted action to carry it into effect." The 
priorities division was then composed of a priorities committee and a 
Priorities Board, the latter administering the policies of the former. 
The priorities commissioner, as the War Industries Board member in 
charge of the priorities division, was chairman of both the board and 
the committee. The committee and the board working together, after 
the creation of the latter on March 27, 1918, effected a greater 
harmony in the administering of priorities over production and 
deliveries. 

Purposes demanding preferential treatment. — A very important 
undertaking of the Priorities Board was its issuance on March 27, 
1918, of a general classification of purposes demanding preferential 
treatment for the guidance of agencies in the production, supply, and 
distribution of raw materials, finished products, electrical energy, 
fuel and transportation by rail, water, pipe lines, and otherwise. 
That list gave preference to the raw materials going into, or sup- 
plies necessary to, the manufacture of ships, aircraft, munitions, mili- 
tary and naval supplies and operations, fuel, food and collateral 
industries, clothing, railroads, and public utilities. These were the 
" purposes " demanding preference treatment and were made known 
to the whole Government. The issuance of ever increasing numbers 
of priority orders had long since made the problem of synchronizing 
priorities within the Government and the industry an involved one. 
The Priorities Board, by drawing into its deliberations other govern- 
mental departments (Eailroad Administration, Emergency Fleet 
Corporation, the War Trade Board, the Fuel Administration, the 
Allied Purchasing Commission, the War Labor Policies Board, the 
Army, and the Navy), created a unit to administer priority orders, 
as well as to help form them. The cooperative scheme worked with 
great effectiveness, for, it should be noted, the decisions of the Prior- 
ities Board so organized were subject to review only by the chainnan 
of the War Industries Board and by the President. The general 
classification of purposes demanding preference treatment made by 
the Priorities Board, and its later similar but more refined preference 
125547°— 20 15 



22G HISTORY OF PRICES DURIl^G THE WAR. 

lists, went a long way toward uniting the Government and the indus- 
try upon priority policies. 

The yrefeTenwe lists. — A list of 45 industries (more commonly 
known as " Preference list No. 1 ") where operations were deemed of 
exceptional importance during the war, was drawn up by the Priori- 
ties Board on April 6, 1918. The list was made for the guidance of 
all agencies of the Government in the supply and distribution of 
coal and coke, in the supply of transportation by rail or water, and 
for the movement of coal and coke to those industries. The scope of 
that list was extended to cover 73 industries.^ and it was again very 
much broadened by " Preference list No. 2," and its supplement is- 
sued respectively on September 3 and October 1, 1918. 

The purpose of the preference list, as it stood at the signing of the 
armistice, was to govern the Government and others in the production 
and supply of fuel and electric energy to certain necessary industries ; 
in the supply of labor; and in the supply of transportation service 
by rail, water, pipe lines, or otherwise. The preference list, includ- 
ing the 73 industries, was made up of industries entitled to preferen- 
tial treatment. But the inclusion of those industries, or the plants on 
the 7,000 list, did not operate as an embargo against all others. The 
requirements of all other industries and plants were simplj^ deferred 
until the requirements of those on the preference list were satisfied. 
In the compilation of this list, industries and plants were divided 
according to their relative importance into four classes, viz, Class I, 
Class II, Class III, and Class IV.^ 

1 List No. 2, unlike list No. 1, included also an individual rating for about 7,000 
specific plants. This departure was made in cases where it seemed that particular 
plants should have preference even though the industries to which they belonged should 
not ; or where particular plants deserved a higher rating than that given their industry. 
Each of these plants which failed to file a monthly report of its. activities was dropped 
from the preference list. 

2 Class I. — Aircraft : Plants engaged principally in manufacturing aircraft or aircraft 
supplies and equipment. Ammunition : Plants engaged principally in manufactui'ing same 
for the United States Government and the Allies. Army and Navy : Arsenals and navy 
yards. Army and Navy: Cantonments and camps. Arms (small): Plants engaged 
principally in manufacturing same for the United States Government and the Allies. 
Blast furnaces: Producing pig iron. Chemicals: Plants engaged principally in manufac- 
turing chemicals for the production of military and naval explosives, ammunition, and 
aircraft, and use in chemical wai-fare. Coke : Plants engaged principally in producing 
metallurgical coke and by-products, including toluol. Domestic consumers : Fuel and 
electric energy for residential consumption, including homes, apartment houses, resi- 
dential flats, restaurants, and hotels. Explosives : Plants engaged principally in manu- 
facturing same for military and naval purposes for the United States Government and 
the Allies. Feed : Plants engaged principally in preparing or manufacturing feed for 
live stock and poultry. Poods : Plants engaged principally in producing, milling, refining, 
preserving, refrigerating, wholesaling, or storing food for human consumption embraced 
within the following description : All cereal and cereal products, meats including poultry, 
fish, vegetables, fruit, sugar, sirups, glucose, butter, eggs, cheese, milk and cream, lard, 
lard compounds, oleomargarine and other substitutes for butter or lard, vegetable oils, 
beans, salts, coffee, baking powder, soda, and yeast ; also ammonia for refrigeration. 
Gas : See oil and gas, also public utilities. Guns (large) : IMants engaged principally 
in manufacturing same for the United States Government and the Allies. Hospitals : 
See Public institutions and buildings. Mines : CoaL Navy yards : See Army and Navy, 



GOVERNMENT CONTEOL. OVER PRICES. 227 

The order by alphabetical listing has no significance, but all in- 
dustries and plants grouped under class I had exceptional im- 

Oil and gas : Plants engaged principally in producing oil or natural gas for fuel or for 
mechanical purposes, including refining or manufacturing oil for fuel, or mechanical pur- 
poses. Oil and gas : Pipe lines and pumping stations engaged in transporting oil or 
natural gas. Public institutions and buildings (maintenance and operation of ) : Used as 
hospitals or sanitariums. Public utilities: Gas plants producing toluol. Railways: 
Opel-ated by United States Railroad Administration. Sanitariums : See public institutions 
and buildings. Ships (maintenance and operation of) : Excluding pleasure craft not 
common carriers. Ships: Plants engaged principally in building ships, excluding (a) 
pleasure craft not common carriers, (6) ships not built for the United States Govern- 
ment or the Allies nor under license from the United States Shipping Board. Steel- 
making furnaces : Plants engaged solely in manufacturing ingots and steel castings by 
the open-hearth, Bessemer, crucible, or electric furnace process, including blooming mills, 
billet mills, and slabbing mills for same. Steel-plate mills. Toluol : See coke .also public 

" Ctoss JJ —Brass and copper: Plants engaged principally in rolling and drawing 
copper, brass and other copper alloys in the form of sheets, rods, wire, and tubes. Coke : 
Plants not otherwise classified or listed, producing same. Copper and brass : See brass 
and copper. Cranes: Plants engaged principally in manufacturing locomotive cranes. 
Ferro-alloys : Plants engaged principally in producing ferrochrome, ferromanganese, ferro- 
molybdenum, ferrosilicon, ferrotungsten, ferrouranium, ferrovanadium, and ferrozir- 
conium Gas: See oil and gas. Machine tools: Plants engaged principally m manu- 
facturing same Mines : Producing metals and ferro-alloy minerals. Navy department : 
See War and Navy Departments. Public utilities: Street railways, electric lighting, 
and power companies, gas plants not otherwise classified, telephone and telegraph com- 
panies water supply companies, and like general utilities. Public utilities : Plants en- 
gaged 'principally in manufacturing equipment for railways and other public utilities. 
Railways • Not operated by United States Railroad Administration (excluding those op- 
erated as plant facilities). Rope wire: See wire rope. Steel rail mills: Rolling rails 
50 or more pounds per yard. War and Navy Depatments : Construction work con- 
ducted by either the War Department or the Navy Department of the United States 
in embarkation ports, harbors, fortified places, flood protection operations, docks, locks, 
channels, inland waterways, and in the maintenance and repair of same. Wire rope and 
rope wire: Plants engaged principally in manufacturing same. 

Class 77/.— Buildings : See public institutions and buildings. Chain : Plants engaged 
principally in manufacturing iron and steel chain. Cranes: Plants engaged principally 
in manufacturing traveling cranes. Domestic consumers: Fuel and electric energ-y not 
otherwise specifically listed. Electrical equipment : Plants engaged principally in manu- 
facturing same. Explosives : Plants, not otherwise classified or listed, engaged principally 
in manufacturing same. Foods : Plants engaged principally in producing, milling, prepar- 
ing, refining, preserving, refrigerating, or storing foods for human consumption not other- 
wise specifically listed (excepting herefrom plants producing confectionery, soft drinks, 
and chewing gum). Gas: See oil and gas. Ice: Plants engaged principally in manu- 
facturing same. Mines: Plants engaged principally in manufacturing mining tools or 
equipment. Oil and gas: Plants engaged principally in manufacturing equipment or 
supplies for producing or transporting, oil or natural gas, or for refining and manu- 
facturing oil for fuel or for mechanical purposes. Public institutions and buildings 
(maintenance and operation of) : Other than hospitals and sanitariums. Steel : All plants 
operating steel rolling and drawing mills, exclusive of those taking higher classification. 
Tin plates : Plants engaged principally in manufacturing same. Tools : Plants engaged 
principally in manufacturing small or hand tools for working wood or metal. 

Class IV. — Agricultural implements : See farm implements. Bags — hemp, jute, cotton : 
Plants engaged principally in manufacturing same. Boots and shoes : Plants engaged 
exclusively in manufacturing same. Chemicals : Plants, not otherwise classified or listed, 
engaged principally in manufacturing chemicals. Cotton: Plants engaged in the com- 
pression of cotton. Cotton textiles: See textiles. Drugs — medicines and medical and 
surgical supplies: Plants engaged principally in manufacturing same. Farm imple- 
ments: Plants engaged principally in manufacturing agricultural implements and farm 
operating equipment. Fertilizers: Plants engaged principally in producing same. Fire 
brick: Plants engaged principally in manufacturing same. Food containers: Plants en- 
gaged principally in manufacturing same. Foundries (iron) : Plants engaged principally 
in the manufacture of gray iron and malleable iron castings. Insecticides and fungicides : 
Plants engaged principally in manufacturing same. Laundries. Newspapers and periodi- 



228 HISTORY OF PRICES DURING THE WAR. 

portance in connection with the prosecution of the war. Their re- 
quirements were fully satisfied in preference to those of the three 
remaining classes. Requirements of industries and plants grouped 
under class II, class III, and class IV had precedence over those not 
appearing on the preference list. As between these three classes, 
liowever, there was no complete or absolute preference. The division 
into classes was for the purpose of presenting a composite picture of 
the relative importance of the industries and plants embraced within 
each group. It was not intended that the requirements of class II 
should be fully satisfied before supplying any of the requirements of 
class III or that those of class III should be fully satisfied before 
supplying an}' of those of class IV. 

War-industry controls center about priorities. — The widest of all 
the controls extended over industry b}^ the War Industries Board 
was that which it got by determining for industry what priority 
should be given all war orders both in production and in delivery. 
The other kinds of control exercised, indeed, led into priorities con- 
trol. It came to be the strongest weapon in the hands of the Gov- 
ernment for enforcing its industrial control rules. The Government, 
through the War Industries Board, estimated its requirements and 
made clearances for war purchases. But those actions really did no 
more than pave the way to control. They did not generally reach 
beyond the walls of the Government. They enabled a single agent 
of the Government to say what the war would require from all in- 
dustry and when. The so-called requirement and clearance controls 
simply opened a way, then, if there appeared a shortage, for the 
board to allocate the war orders to the trade, to curtail certain in- 
dustries and to conserve nonessential production. But these potent 
controls, it should be emphasized, all tied directly into the control 
over priorities, for by determining priorities, in a large way, the 
War Industries Board enforced them. It" seems doubtful whether 
any other control during the war, amid the confusion and conflict 
of orders within the Government and out, introduced a scheme so 
powerful in its effects toward sjaichronizing production and deliv- 
eries for war ends. 

cals : Plants engaged principally in printing newspapers or periodicals which are entered 
at the iXDst office as second-class mail matter. Paper and pulp : See pulp and paper. 
Periodicals : See newsjiapers and periodicals. Pulp and paper : Plants engaged exclusively 
in manufacturing same. Rope : See twine and rope. Soap : Plants engaged principally 
in manufacturing same. Surgical supplies : See drugs and medicines. Tanners : Plants 
engaged principally in tanning leather. Tanning : Plants engaged principally in manu- 
facturing tanning extracts. Textiles : Plants engaged principally in manufacturing cotton 
textiles, including spinning, weaving, and finishing. Textiles : Plants engaged principally 
in manufacturing woolen textiles, including spinners, top makers, and weavers. Textiles : 
Plants engaged principally in manufacturing cotton or woolen, knit goods. Textiles : 
Plants engaged principally in manufacturing textile machinery. Tobacco : Only for 
preserving, drying, curing, packing, and storing same — not manufacturing and marketing. 
Twine (binder) and rope : Plants engaged principally in manufacturing same. Woolen 
textiles : See textiles. 



GOVER]SrME]SrT COI^TROL, OVER PRICES. 229 

This powerful scheme, permitting the Government at any moment 
to check the production of a less essential commodity for a more 
essential one, gave it an effective instrument to control prices. 
Priorities, of course, were not designed or ever issued specifically 
to " peg " prices. But, for all that, in a very real, though indirect, 
way they did affect prices to greater and lesser extents.^ Threats 
of a shortage in a basic material ordinarily provokes confusion and 
soaring prices, and opens the door to competitive bidding for priority. 
Those bid prices are made in war time with less regard to the actual 
cost of production than to the cost of purchasing priorities in pro- 
duction and delivery under an abnormal condition. But the priority 
policies announced to the country that it could not at any price 
purchase priorities either in production or deliveries. Priorities, 
it came to appreciate, were determined and controlled by the Govern- 
ment solely for war ends. While the priorities system was not an 
instrument for the fixing of prices, the stabilizing effects of priorities 
control upon prices were not less powerful because there is no way 
in which they can be measured. 

Allocations. 

All of the relations which allocation- bore to price control are 
covered in a study of the Government requirements, the clearance 
list, and priorities. The allocation of Government requirements, or 
clearances, meant simply their distribution to particular industries 
and firms for fulfilhnent. The requirements division, after clearing 
all of the prospective purchases of the Government, forwarded a 
record of those immediate needs to the proper commodity section 
chiefs. The commodity chief and his staff, after determining 
Avhether there was a shortage of the commodity required, either al- 
located the order or returned it without restriction. The Govern- 
ment department, from which the order asking for privilege to pur- 
chase had originally come, if there was no shortage, could buy its 
goods in the open market without restiftction. . But, where the com- 
modity section had found a shortage, the section itself allocated the 
order to various parts of the industry or firms before returning it. 
Allocation, obviously, was not a separately administered function of 
any division of the War Industries Board as were most of the other 
controls. It was really a principle of procedure, commonly followed 
by all of the commodity sections, designed properly to distribute the 
burden or fruit of certain Government orders. It pertained only to 
purchases of those commodities in which a shortage threatened. 

1 Tie War Industries Board goes so far as to write into its final report that " war 
prices were liigh prices, bnt they were stabilized prices. The most effective organ of 
stabilization was the operation of the priorities system." 



230 HISTORY OF PRICES DURING THE WAR. 

Curtailments. 

Curtailment was commonly administered by various units within 
the War Industries Board when an extremely serious shortage 
threatened. The production of certain less essential commodities was 
cut off or curtailed to make way for the production of allocated and 
other orders. The administration of priorities was one of the most 
effective instruments of curtailment, and the material for a study of 
curtailment falls largely in that chapter. The curtailment of all or 
any part of an industry, because much more sweeping and heartless 
than its conservation, was a program entered upon with far more 
caution. An Industrial Adjustment Committee, composed of repre- 
sentatives from the War Industries Board, the War Trade Board, 
the Food Administration, the Fuel Administration, the United States 
Shipping Board, the War Labor Policies Board, and the Treasury 
Department, was appointed upon the approval of the President to 
form a plan for the safe but systematic curtailment of nonessential 
industries. That committee, after permitting the industries affected 
a hearing, determined upon curtailment policies which would effect 
equitable reductions without killing the industry. The actual ad- 
ministration of all curtailment programs, as were those for conserva- 
tion, was put into the hands of the commodity sections of the War 
Industries Board. 

Conservation. 

The War Industries Board, after balancing roughly the Govern- 
ment and civilian demands against supplies, found, in the main, that 
the threatened shortages could be met adequately without absolute 
curtailment by so-called conservation programs. The conservation 
of a supply, as distinguished from cutting it off or curtailing it, 
meant simply spreading its use out thinner^ The board, under its 
conservation division,^ studied carefully the industries which were 
not strictly serving the war requirements and set itself to eliminate 
their wastes and turn their available materials to the best war uses. 
The purpose of conservation was, by means of substitution, conserva- 
tion or standardization to give the military, naval and shipping 
agencies of the war machine exactly what they required for full 
effectiveness. It was the business of the War Industries Board, with 
all war demands coming under its eye, to introduce schemes of effi- 
ciency for the proper coordination of supply and demand. 

' The conservation division of the War Industries Board was created May 9, 1918, 
to carry on the work commenced on Mar. 24, 1917, by the commercial economy board 
under the Council of National Defense. The function of the new division, as outlined 
by the President in his letter of Mar. 4, was " the studious conservation of resources 
and facilities by means of scientific, Industrial, and commercial economies." 



GOVERKTMEISTT CONTROL OVER PRICES. 231 

Conservation measures were effected, outside the Government and 
in, by the strictest cooperation with the industry through the various 
war-service committees and by technical advice and consultation with 
the Government war-making agencies. Those measures scarcely per- 
mit of a tangible analysis because of their number and their variety. 
Conservation, however, was generally effected by securing a maxi- 
mum reduction in the number of styles, varieties, sizes, colors, or 
finishes of the product ; eliminating the number of styles and varie- 
ties that took more than the amount of material strictly necessary 
(as, for example, restricting the length and sweep of overcoats) ; 
eliminating features or accessories which used materials for adorn- 
ment or convenience but wliich were not essential to the utility of the 
product ; eliminating patterns and types of products which were less 
essential to the civilian needs; substituting materials which were 
plentiful in the place of those which were not plentiful and were 
needed for the war program (for example, zinc was substituted for 
steel and other metals) ; discontinuing the use of certain materials 
for unnecessary purposes (such as caustic soda in the manufacture 
of automobile tires) ; standardizing sizes, lengths, widths, weights, 
thicknesses, and gauges of materials, parts and sections ; reducing the 
excessive waste of materials in manufacturing processes (such as 
chrome chemicals in certain branches of the leather-tanning indus- 
try) ; securing economy in samples used for selling products; secur- 
ing economy in containers by eliminating boxes or cartons which re- 
quired excessive shipping space (as, for example, eliminating small 
sizes of containers) ; securing economy in packing by increasing the 
number of units per package. 

Under this general scheme, the board made conservation rules 
applicable to various industries and, before putting them into effect, 
asked each industry for technical advice upon them. Once adopted, 
the enforcement of each conservation program was left for adminis- 
tration to the proper commodity chief. 

No adequate analysis can ever be made to cover in full the extent 
of saving which each of the conservation programs effected. A com- 
prehension in general of the more specific programs undertaken, 
however, is ^dtal because of its bearing upon price control. The 
programs, in each case, were addressed by necessity to the industries 
themselves through the War Industries Board, since there was no 
means of effective enforcement other than the enlistment of their 
cooperation. The more important of the programs were those in- 
tended to conserve materials within the agricultural implement, 
automobile tire, barrel goods, bedding, bicycle, book cloth, bottle, 
boys' clothing, camera, chain, chandelier, chinaware, clock, compo- 
sition roofing, corset, delivery service, electric appliance, fabric 
glove, felt shoe, furnace, furniture, gas range, hand stamp and mark- 



232 HISTORY OF PRICES DURING THE WAR. 

ing device, hardware, harness and saddlery, hosiery and underwear, 
household wringer, leather glove, mackinaw, men's clothing, metal 
bedstead, motorcycle, moving-picture machine, office appliance, oil 
refining, oil storage tank and pump, oil stove and heater, optical 
goods, overall, paint, pencil, plumbing supply, radiator, railroad 
machinery, range, refrigerator, rubber clothing, rubber footwear, 
rubber goods, safe and vault, shoe, steel pen, steel pipe, stove, straw 
hat, sweater, talking machine, thread, tin, tin plate, traveling bag, 
trunk, typewriter ribbon, vacuum cleaner, vehicle, waist, washing 
machine, weather-strip, wholesale dry goods, wooden container, wool 
felt hat, and women's clothing industries. 

The conservation program, put well underway by the War In- 
dustries Board before the end of the war, was a big and compre- 
hensive one. It, like the priority program, had a very vital though 
a very intangible bearing upon the price level. The stabilizing effect 
of the one upon prices is as impossible to measure as the other. But 
the conservation schedules introduced into various industries, while 
generally of a less potent influence upon prices than the priority 
certificates, must be taken into account in an analysis of price control. 
Conservation, by turning materials into strictly essential industry 
and spreading their uses out thinner, helped to postpone the shortage 
point and stave off higher rises in price, 

Peices. 

The War Industries Board was not a price-fixing agency strictly 
speaking, but it did undertake a wide range of formal and informal 
price controls through agreements with the industry. The creation 
of the price-fixing committee in March, 1918, relieved the board 
proper of the further administration of virtually all its important 
price-fixing work, though it did afterwards exercise some price 
control. The peculiar relation of the War Industries Board and 
the price-fixing committee and the difficulties of separating clearly 
their controls make it advisable to divide the discussion of what 
these two organizations did in regulating prices. A statement of 
individual price regulations undertaken by the War Industries Board 
is, therefore, postponed until after the general discussion of the work 
of the price-fixing committee. 



5. THE PRICE FIXING COMMITTEE. 

There was not, during the last seven months of war, any other 
agency of the Government at Washington so strictly giving its 
whole attention to the business of fixing prices as the price fixing 
committee. The , President had come to believe in the necessity of 
systematic methods of determining the great basic raw-material 
prices, and on March 4, 1918, wrote asking that price determination 
problems be transferred from the War Industries Board to a special, 
independent committee. That action came long after the Food Ad- 
ministration had assumed control over food prices, and the Fuel Ad- 
ministration control over fuel prices. It marked a clear break with 
earlier methods of price control, though not necessarily with earlier 
policies, and was the longest stride toward a somewhat organized 
price fixing that was taken. 

The new price fixing committee, created too late to formulate the 
initial price policies upon many of the basi« materials, grew week 
b}^ week, through revisions of earlier policies and the initiation of 
new controls, into a direct responsibility for the majority of all 
general fixed prices.^ To understand the committee's work it is 
necessary to know how the price fixing committee was organized, 
what basis of power it had to fix prices at all, the sphere of its ac- 
tivity within the Government, the character of price agreements en- 
tered into by it, the price policies which the committee worked out, 
and how it enforced its price regulations. 

(i) ORGANIZATION OF THE COMMITTEE. 

The price fixing committee, created under the authority of the 
President's letter to Mr. Bernard M. Baruch, dated March 4-, 1918, 
was made up of a chairman, a representative of the War Department, 
a representative of the Navy Department, a representative of the Fuel 
Administration, a representative of the Tariff Commission, a repre- 
sentative of the Federal Trade Commission, the labor representative 
of the War Industries Board, and the chairman of the War Industries 
Board ex officio. ^ This committee, appointed by the President, was 

1 The first meeting of the price fixing committee was held in the War Industries Board 
on Mar. 14. 1918. 

2 The organization in full of the price fixing committee at the time the armistice was 
signed was as follows : Rohert S. Brookings, chairman ; Bernard M. Baruch, chairman 
of the XVar Industries Board ex officio ; F. W. Taussig, chairman United States Tariff 
Commission ; W. B. Colver, chairman Federal Trade Commission ; H. A. Garfield, United 
States Fuel Administrator ; Hugh Frayne, labor representative of the War Industries 
Board ; Commander John M. Hancock, representing the Department of Navy ; Lieut. Col. 
Rohert H. Montgomery, representing the Department of War ; Henry C. Stuart, repre- 
fcenting the Department of Agriculture ; and W. W. Phelps, secretary. 

233 



234 HISTORY OF PRICES DURHSTG THE WAR. 

called together by the War Industries Board for its first meeting, 
and by them given its original general instruction.^ This quasi- 
judicial committee thereafter, whether in regular executive session 
or in conferences with the trade, sat at times almost continuously 
in the Council of National Defense Building. 

It is not precisel}^ accurate to say that the price fixing committee 
was either independent of the War Industries Board or that it was 
a subsidiary part of the board. Not to the very last were it and the 
board agreed concerning the place of the committee in the War In- 
dustries Board organization. The President, in reorganizing the 
board on March 4, 1918, had provided for the creation of a price- 
fixing committee in the same letter by which he outlined the func- 
tions of the board and appointed Mr. Bernard M. Baruch its chair- 
man. The board, after the appointment of the committee, formally 
marked out a set of policies for the committee, and its chairman 
called together the committee for their first meeting and told them 
their function. The chairman of the board, indeed, and another 
member were made members of the committee. The committee took 
over formally the fixing and revision of many prices already con- 
sidered by the board and worked hand in glove with it. The com- 
mittee announcements v^ere printed as from the price fixing com- 
mittee of the War Industries Board. But there was no real authority 
which the board held over the committee. 

The President in his letter specifically took price determination 
from the board and gave it to a separate committee, and he, inde- 
pendent of the board, named the members of the price fixing com- 
mittee. The committee considered itself responsible directly to the 
President and, irrespective of the board, made its reports to him.^ 
It was the President, not the board, who approA^ed all prices fixed 
and made them official. 

1 Tho functions of the price fixing committee as determined by the War Industries 
Board, enilier that day, and delivered to the committee, were as follow;^: (1) To advise 
upon prices of basic materials; (2) from time to time to advise as to general price 
policies, acting in this way as a coordinating price body; (3) the committee will advise 
when requested by any department upon a specific contract, assuming, however, that no 
department will submit for advice those problems which it is organized and qualified 
to handle itself; and (4) when materials are commandeered prices of the same will be 
fixed by this committee. 

2 Mr. Robert S. Brookings, chairman of the price fixing committee, in a conference 
held with the copper industry as late as July 2, 1918 (price fixing committee minutes for 
that day, p. 433), said: "The facts are, we represent the President absolutely. Our 
appointment, while we are a part of the War Industries Board, is absolutely separate 
and distinct ; we have absolutely separate and distinct obligations. * * * We sub- 
mit these things to him (President) for approval when they involve a change, or when 
there is anything to approve ; in fact, we go into detail sometimes more than I think 
he cares to have it, because we have reason to know that when it comes to exercising 
a far-reaching judgment, especially where it involves the Nation, he frequently has 
suggestions to make." 



GOVERNMEE'T CONTEOL OVER PRICES. 235 

(2) THE BASIS OF POWER TO FIX PRICES. 

After what has already been said about the legal basis of the 
powers exercised by the War Industries Board at large, it will not be 
surprising to find that the legal basis of the price fixing committee's 
work was somewhat indefinite. This committee, though deter- 
mining a far wider range of prices than either, had only a fraction 
of legal power by comparison with its sister price-determining 
agencies, the Food Administration and the Fuel Administration. No 
specific statute could be quoted as its authority for deciding what 
prices should be. That fact, beyond doubt, somewhat circumscribed 
its method of price fixing, if not the extent, and made the committee 
fix prices almost altogether by agreements with the producers. 

The Theeats of Requisitioning and Commandeering. 

But, if there was no law to which the price fixing committee might 
turn for making its decrees effective, there were other less direct yet, 
in war time, equally powerful weapons. Foremost among these, as 
all producers knew, were the well-nigh absolute rights to requisition 
goods or place commandeering orders witli plants for supplies. 
True, neither of those powers was open to the Government for other 
than its own needs, but there could scarcely have been made a more 
satisfactory resort for war times. The latent power, given to the 
President by authority of the food control act and the national 
defense act, under which virtually all Government requisitioning and 
commandering were done respectively, enable the price fixing com- 
mittee in substance to tell producers : 

These are the prices to which the Government will agree; if you are willing 
to enter into a voluntary arrangement with us, you will be paid these prices for 
your goods, but if you refuse to do so, we will be compelled to ask the properly 
constituted authorities to commandeer your output or your plant and give you 
just compensation therefor as provided by statute/ 

The food control act (H. R. 4961, Public No. 41), approved August 
10, 1917, was the law which authorized the requisitioning of certain 
existing properties for the support either of the Army, Navy, or any 
other public use. It provided in section 10 : 

That the President is authorized, from time to time, to requisition foods, 
feeds, fuels, and other supplies necessary to the support of the Army or the 
maintenance of the Navy, or any other public use connected with the common 
defense, and to requisition, or otherwise provide, storage facilities for such 
supplies ; and he shall ascertain and pay a just compensation therefor. 

This act, which was really the basis for all Government requisition- 
ing of subsistence supplies for the Army during the war, pertained 

^The legal section of the War Industries Board on June 11, 1918, prepared a memo- 
randum In which it concluded that a threat to commandeer expressed in the above form, 
and made to enforce the fixing of a certain price does not constitute duress. 



236 HISTORY OF PRICES DURIiSTG THE WAR. 

only to foods, feeds, and fuel and was not, therefore, of so niucli value 
to the price fixing committee as the national defense act. 

The national defense act (H. R. 12766, Public No. 85), approved 
June 3, 1916, authorized the Secretary of War to determine reason- 
able prices for military supplies and, upon failure of compliance, 
gave the President power to take over any plant. This act, which 
was the one giving authority for the commandeering of output, made 
it possible to place with any manufacturing establishment a compul- 
sory order for the production of any manufacture usually produced 
by the firm. The Government could,, thus, by the payment of a just 
compensation, require or commandeer the whole output of a plant and 
itself determine the price to be paid for everything taken under com- 
pulsory order. This possibility, in so far as the price fixing committee 
had a legal weapon, was the most formidable weapon the committee 
had for compelling acceptance of its price determinations.^ 

It should be mentioned, too, that, aside from these direct threats 
to requisition or commandeer, the committee had effective weapons 

^ A brief digest of the main acts, including tlie two above, under whicb requisitioning 
of goods miglit be accomplished or commandeering orders issued to plants, follows : 

1. Public il. Sixty- fifth Congress^ section 10. — The food control act authorizes the 
President to requisition foods, feeds, fuels, and other supplies necessary to the support 
of the Army or the maintenance of the Navy or any other public use connected with 
the common defense. 

2. Public 85, Siorty-fourth Congress, section 120. — The national defense act provides 
for the placing of orders with any concern for such product or material as may be re- 
quired, and which is of the nature and kind usually produced, or capable of being pro- 
duced, by such concern. In the event of a refusal so to produce, the plant of such concern 
may itself be taken over by the Government. 

3. PiMic 391, Sixty-fourth Congress, pages 28-29. — The naval appropriations act 
authorizes the President to place an order with any person for ships or war material 
if such ships or material are of the nature, kind, and quantity usually produced or 
capable of being produced by such person. Upon refusal, here, also, the plant may be 
taken over. Under this act " war material " is made to include arins, armament, am- 
munition, stores, supplies, and equipment for ships and airplanes, and everything re- 
quired for or in connection with the production thereof. Another paragraph provides 
for the modification or cancellation of any existing contract for the building, production, 
or purchase of ships or war material. It is further provided that the owner or occupier 
of any factory in which ships or war material are built or produced shall place at the 
disposal of the United States, if required, the whole or any part of the output of such 
factory. Finally, the Government may requisition any factory or part thereof. It Is 
open to argument whether the authority here granted should have terminated on March 
1, 1918, no decisive ruling on the point having been made. 

i. Public 23, Sixty-fifth Congress. — The so-called emergency shipping fund allows the 
placing of an order with any person for such ships or material as the necessities of 
the Government, to be determined by the President, may require during the period of the 
war and which are of the nature, kind, and quantity usually produced or capable of 
being produced by such person. Also, power is given to requisition ships or parts 
thereof. 

Requisitioning under the ^oar poiver. — Finally, with regard to the power to requisition, 
some mention should be made of the war power. The President, as Commander in Chief 
of the Army and Navy, has undoubtedly a vast field over which he may exercise his 
control without legislation. Under this head he has a right to take private property for 
public use upon payment of just compensation, even if such taking is not authorized 
specifically by Congress. Just how far this right extends it is hard to tell, inasmuch as 
presidential action would depend on the nature of a given emergency. It is important 
to make mention of it merely because of the right to requisition which is thus in the 
hands of the Executive. 



GOVEEN^MENT COiSTTEOL OVER PRICES. 237 

for fixing prices in its influence with tlie Eailroad x^dministration, 
the Priorities Committee, the Fuel Administration, the War Trade 
Board, and the Food Administration. These bodies, each in control 
of a basic material or service, could be persuaded to withhold trans- 
portation, license, fuel, supplies, or priority to enforce price agree- 
ments demanded by the committee. 

The Wae-Time Spirit. 

It made really little difference, while the country was united to 
achieve a national ideal, that the price fixing committee had a 
somewhat indefinite statutory authority. For the legal powers 
of the price fixing committee, applicable at best only to articles 
needed for the use of the Government, were of much less prac- 
tical consequence than public opinion and patriotic spirit. The 
universal feeling of support to public actions taken for a war pur- 
pose was the most potent of all powers behind the price fixing com- 
mittee. The prices in all cases were reached in conferences by agree- 
ments with the trade. It is beside the point to inquire whether so 
slight an authority would suffice for peace-time regulation. No 
better word can be said for the efficacy of the war-time spirit for 
enforcing price agreements, despite the lack of law, than that no 
occasion ever arose for putting to a test the nature or extent of its 
legal authority.^ 

(3) ITS SPHERE OF ACTIVITY. 

The sphere of activity peculiar to the price fixing committee, and 
its distinction from the Food and Fuel Administrations require ex- 
planation. Obviously, these latter agencies controlled foods, feeds, 
and fuels, and left the price fixing committee to determine prices, if 
necessary, over the whole remaining lot of materials needed for war. 
But there are other differences less apparent and more important. 
The price fixing committee, unlike these two administrations, was 
not a huge institution responsible upon its own initiative to keep con- 
sumers' prices stable and send its administrators into every town and 
city to that end. It was a very small quasi-judicial committee, acting 
only upon request of a war agency. It sat primarily to hear evidence 
and determine fair prices for Government purchases, and was con- 
cerned almost altogether with producers' prices. 

Committee Coxceexed Peimakily with Goveenment Pitechases. 

One of the features of the control exercised by the price fixing 
committee, which differentiates it sharply from the food and fuel 

1 '■ I'riue-Fixing as seen l5y a Price-Fixer," by P. W. Taussig, Quarterly Journal of 
Economics, February, 1919. 



238 HISTORY OF PRICES DURIN^G THE WAR. 

controls, was that it was concerned primarily with stabilizing tne 
market for Government purchases. The Food Administration and 
the Fuel Administration, each with thousands of representatives and 
an enormous administrative machinery, undertook as their primar}'^ 
concern the stabilization of prices for the public. Their control, de- 
signed to cover the whole gamut of food and fuel prices from the big 
producer to the country retailer, required them, within a much nar- 
rower field of activity, to consider greater numbers of problems. 
But the price fixing committee, with its wider range of controls, and 
a more highly technical problem, began with the purpose simply to 
protect the Government. It came but gradually to concern itself 
with the protection of the public.^ 

The price fixing committee, to the end that it might protect the 
Government in making purchases, was organized to include repre- 
sentatives of the Army and Navy, who could keep it informed of 
contemplated purchases and price problems which arose in connec- 
tion with them; representatives of the War Industries Board, who 
personally were familiar with the available raw materials in various 
industries and the supply of labor ; a representative of the Fuel Ad- 
ministration, through whom control over fuel for manufacturers 
could be held; and representatives of the Tariff and Federal Trade 
Commissions, who could supply technical data tending to show how 
prices would affect production. It was not until toward the last that 
a representative of the agricultural interests was appointed, and 
never was it attempted to give the purchasing public, retail trade, or 
wholesale trade special representation directly in the committee.^ 

The Committee Fixed Prices Only Upon Request. 

As already said, the price fixing committee did not deem it a part 
of its function, as ,did both the Food and Fuel Administrations, 
to make and keep strict watch over prices in which the Government 
itself had no direct concern. The committee, even if inclined to 
exceed its primary resi^onsibility to protect the Government, had no 
staff adequate to maintain control over the price level in a larger 
way. It did not ask for itself any considerable powers of initiating 

1 A statement of this policy is made by a member of the price fixing committee, F. W. 
Taussig, in the Quarterly Journal of Economics for February, 1919, as follows: "The 
action of the committee in every case had its origin in the circumstance that Govern- 
ment purchases were on a great scale and threatened to disturb market prices. The ex- 
tension of the function of the committee to the regulation of prices for the public was, 
if not an afterthought, at all events not among the things contemplated at the start. 
The committee stepped in when Government purchases threatened to upset the market, 
but soon found itself compelled to protect the public also." 

2 Mr. Robert S. Brookings, in an early conference of the committee with the trade 
(minutes of the price fixing committee, Book II, Apr. 3 to Apr. 24, p. 29), said 
frankly : " When we fix prices for the Govei-nment we have no difficulty, but when we fix 
prices for the public there is always difficulty." 



GOVERlSrMElsrT CONTROL OVER PRICES. 239 

price control.^ Yet,, the necessities of the case gradually forced the 
committee to take a broader view of the whole price situation. 

Fixed Pkodtjcee Prices. 

The sphere of activity of the price fixing committee is especially 
well defined with respect to the kinds of prices which it undertook 
to fix. There is a vast difference in the complexity of problems 
arising in the fixing of prices for the producer and in fixing those 
for the retailer, or in fixing those for the wholesaler, distributor, 
and middleman of all sorts in between. The committee, happil}^, was 
not obliged, in the main, to deal with other than the prices at which 
the producer should sell his materials. The Government usually 
bought in large quantities direct from the primary source of supply. 
If the committee, as the war went on, had gone further in the direc- 
tion of protecting the public, it is doubtful whether they would 
have found it sufficient to fix prices at the primary distributing 
points. That scheme, though highly extended by the requirement of 
a like price for the Allies and public, gave no real protection from 
high retail prices to the consumer. In n© other respect was the 
sphere of activity of the price fixing committee so narrow as in the 
stage at which transactions were controlled. ^ 

(4) THE CHARACTER OF THE PRICE-FIXING AGREEMENTS. 

The price-fixing committee, in the strict sense of the term, fixed 
no prices. A perusal of the various terms of the so-called fixed-prico 
announcements and the minutes of the meetings of the committee 
shows clearly that the prices fixed represented simply agreements 
entered into with the industry by the committee. 

The Method of Making the Agreements. 

The price-fixing committee, in part as a measure of expediency 
and in part because of lack of authority, undertook generally to 
arrive at a fair price by series of conferences with the trade, rather 
than through any more high-handed or independent method. A 
leading member of the committee, Dr. F. W. Taussig, goes so far 
as to say that — 

the prices fixed were in all cases reached by agreement with the representatives 
of the several industries. In strictness they were agreed prices rather than 



^Mr. Robert S. Brookings, chairman of the price fixing committee, when asked by 
certain private interests to fix the price of wool on Apr. 19, 1918, said (p. 63 of 
minutes of price fixing committee for a conference upon that day), that the price fixing 
committee "do not feel that it is any part of our function to take initiative; at least 
we have not," and, when pressed to say whether a price would or would not be fixed 
on wool he said: "You might ask the Pi-esident. He is the only man who has any 
authority to say yes or no on anything. We have nothing to do with it." 

2 An interesting comment is made upon this point by F. W. Taussig in the article 
referred to previously. 



240 HISTORY OF PRICES DURING THE WAR. 

lixed prices. Tlie agreements were usually reached in cordial cooperation with 
the producers concerned, and thus were in reality voluntary. There were cases, 
however, in wliicli they were agreements only in name. The representatives 
of some industries, though they accepted tliem, did so virtually under duress. 
In these cases the committee to all intents and purposes decreed prices and 
was enabled to impose them, under the form of agreement, by a more or less 
veiled threat of commandeering, and also by the certainty that public opinion 
would condemn those Avho failed to accede. 

It was the custom of the committee, once it seemed likely that the 
necessity for fixing a price had arisen, to call the representatives of 
the industry to Washington for conference. The committee, after 
itself going over cost figures prepared for it by the Federal Trade 
Commission, talked freely with the trade the situation at hand, 
heard the trade viewpoint, and finally, with them, arrived at a price 
mutually satisfactory. It was the practice usually on important 
matters to allow the trade to retire for confidential discussion between 
members. Similarly the committee usually went into executive session 
before finally announcing the price agreed upon and reviewing the 
facts of the agreement. The committee, after dismissing the rep- 
resentatives of the industry, usually submitted the price fixed to the 
President for his approval and public announcement. 

All Prices Were Maximum Prices. 

It was characteristic of the prices fixed by the price-fixing com- 
mittee, if indeed not of all prices fixed in this country during the 
war save those for wheat, pork, and hemp, that no more rigid control 
was attempted than the fixing of a maximum price. The committee 
really set limits above which the so-called fixed prices might not 
rise, but left them to play freely below those points. This distinc- 
tion, though precisely accurate, is of more importance in theory than 
in practice, because usually the maximum prices became the actual 
prices and operated, in the main, as fixed prices.^ The various Gov- 
ernment departments (the Department of War, the Department of 
Navy, the United States Shipping Board Emergency Fleet Corpora- 
tion, and the Railroad Administration) were usually guided in their 
purchases by the fixed maximum prices and paid them without more 
ado. 

Fixed Prices Applicable Alike to Low and High Cost Producer. 

The prices fixed by the price fixing committee were made ap- 
plicable alike to sales made by low-cost and high-cost producers. 
That practice, of course, put decided advantages into the hands of 
many larger manufacturers and producers who turned out enormous 

''The Instances in which the market sank helow the fixed prices, as it did with zinc 
and lumher, are relatively few. The committee, when such a circumstance occxirred, 
simply reduced the fixed maximum price to a lower level. 



GOVER]SrMEIS"T COI^TROL OVER PRICES. 241 

quantities of product at relatively low figures and handicapped, 
in a sense, the smaller high-cost producers. It gave rise to no end 
of discussion among economists within and outside the Government 
during war, but no departure from this simple measure of setting a 
single price for all was ever adopted.^ 

The price fixing committee, in a very rough way, attempted to fix 
a flat price at a point which would, starting from the lowest-cost 
producer, take in enough of the higher-cost producers to bring out 
in quantity the approximate production required. It is estimated 
by Dr. Taussig that the price usually was fixed which would secure 
four-fifths or nine-tenths of the entire output. When reminded that 
the inevitable corollary of that procedure was that many low-cost 
producers would reap large profits, the price fixing committee pointed 
in answer to the excess profits tax. The chairman of the price fixing 
committee freely said that what the Government did not get from 
the low-cost producer through price fixing, it would get in another 
form through taxation.^ The price fixing committee then sttick 
throughout to its policy of fixing a flat rate for all producers whether 
having low or high costs. 

Fixed Peices Applicable Alike to Government, Allied and Public Purchases. 

Long before the work of the price fixing committee was under way, 
the President in no unmistakable terms had mapped out the policy 
that "prices mean the same everywhere" and "we must make the 
prices to the public the same as the prices to the Government." ^ Not 
a month after the President had determined upon this broad policy, 
the War Industries Board, in keeping with it, declared that " our 
Allies shall be charged no more than our own Government has to 

1 A fuller discussion of this problem, from a slightly different standpoint, may be 
found in a later section, discussing the basesi for determining upon what price to fix. 

2 At an executive session, of the price fixing committee, held July 8, 1918, a dis- 
cussion took place to determine to what extent, if any, the excess profits tax should be 
considered in the fixing of prices. Mr. Brookings submitted a memorandum stating that 
the price fixing committee was created to stabilize values and prevent extortionately 
high prices. It was not intended, however, unnecessarily to depress values to a point 
AA'here there would be little or no excess profits tax. The policy of the committee should 
be, he believed, so to shape prices that the less efficient or small producer would receive 
a fair profit, even though that gave the larger and more efficient producer a very liberal 
profit. It was expected that the new excess profits tax would equalize this discrepancy 
by taking a larger proportion of the.^liberal profits earned. In connection with this sub- 
ject, the probable effects of the new excessi profits tax were then discussed, and the 
chairman was requested to call Mr. Kitchin's attention to the probable influence on 
production of a very high percentage tax. 

^ An address to the mine operators and manufacturers made by the President, July 
12, 1917. 

125547°— 20 16 



242 HISTOKY OF PRICES DURING THE WAR. 

pay." ^ There are instances of prices fixed for the Government alone, 
prices fixed for single branches of the Government only, and for allied 
purchases only. But, b}^ and large, the prices fixed by the price fix- 
ing committee were applicable alike to the Government, Allies,^ and 
the public. 

(5) THE PRICE POLICIES OF THE COMMITTEE. 

A search through the voluminous minutes of the price fixing com- 
mittee for their great underlying policies would yield few quotable 
passages. A statement of policy here may be implicitly contradicted 
by another statement there. In the record of most cases, indeed 
there is no mention of any underlying policy whatever. 

There is a striking difference in this respect, between the determi- 
nations of the price fixing committee and the Food Administration, 
though it is perhaps more apparent than real. The former seldom 
and the latter usually talks about policies, as might be expected from 
an analysis of the two kinds of control. One would get as far, 
perhaps, if he accepted literally the statement of Chairman Brook- 
ings of the price fixing committee that " we have nothing to say about 
our own polic}^, we may change it to-morrow,"^ or that of another 
member, Dr. Taussig, that " a frankly opportunist policy alone was 
possible." ^ But the price fixing committee, though operating with- 
out any deep controlling policies, had in mind certain broad aims 
which throw some light upon their actions. 

It is noteworthy that Mr. Baruch, in calling the committee together 
for organization, impressed it with a responsibility to guard against 
" runaway markets " and, too, with the necessity for fixing prices at 

^ This policy was announced by the War Industries Board, Aug. 8, 1917, with but 
two limitations : That the Allies must henceforth apply the same principle in dealing 
with their own producers and in selling to us and in selling to each other ; and that the 
arrangement must be limited to war materials. 

2 The price fixing committee information book, recording a meeting of Aug. 27, 1918, 
defines its application of fixed prices to allied purchases by the following resolution : 

" Be it resolved. That where prices are stated to be fixed for the United States Govern- 
ment, the governments associated with it in this war, and the public (or primary 
civilian sales) the said prices are hereby declared to extend to the Government and 
civilians of the United States (including civilians of its Territories and insular posses- 
sions), and to the following Governments, i. e.. Great Britain, France, Italy, Belgium, 
and Japan ; 

"And 6e it further resolved. That these maximum prices shall not extend to purchases 
made by the civilians of the above-mentioned allied nations nor to the Governments or 
civilians of nations other than those above enumerated." 

2 Minute Book of the Price Fixing Committee, Book 2, Apr. 19, p. 63. 

* Dr. Taussig, in his article referred to above, goes on to say : The price fixing com- 
mittee, whose wide range of operations might make its doings of most general interest to 
economists, was slowest in developing a general policy ; and this probably for the very 
reason that its scope was wide, its principles of action little prescribed by any legisla- 
tive or administrative instructions. There was no more than a gradual and tentative 
approach to any principle of action whatever. This restraint was as wise as that of 
a court of law which refuses to commit itself on any questions of principle not es- 
sential to tJie case in hand. Had the war continued, and had the regulation of industry 
lasted longer and extended farther, all sorts of new situations and new problems would 
have arisen, for whose wise disposal no rule could be laid down in advance. 



GOVERISTMENT CONTKOL OVER PRICES. 243 

a point where they would stimulate production.^ He then delivered 
to them a plan whi'CfTthe War Industries Board, earlier that day, had 
set down for the committee to follow in its deliberations but which 
marked out no single general policy.^ The committee, after being 
called together, plunged at once into the task before them and began 
to discuss the fixing of a price for Oregon and Washington fir without 
laying out for themselves any general principles. 

It does not appear that the price fixing committee undertook 
formally to set down for its own guidance any general lines of policy 
or functions until an executive meeting held July 8, 1918, when 
Chairman Brookings got approval for the following statement: 

First. Where the different purchasing departments of tlie Government re- 
quire so large a proportion of any commodity as to produce such scarcity of 
said commodity as to require price control with a view of avoiding a runaway 
market, the price fixing committee is expected by conference with the said 
manufacturers of said commodity to stabilize prices by agreement. Failing to 
agree, the price fixing committee will fix a price and enforce same through some 
purchasing department of the Government, using to that end not only the va- 
rious purchasing enabling acts, but such indirect pressure as priority in fuel, 
transportation, etc., will permit. 

Second. Where a scarcity is produced in part or in whole by limitation of 
imports, it is the Government's duty through the price fixing committee, and a 
system of import licenses under control of the War Trade Board, to see that 
control is secured of said importations through an option reserved in the im- 
port licenses so as to prevent a runaway market in said imported commodity. 

While prices as above outlined may only be arranged for the Government and 
those associated with us in the war, they, as a rule, are made for the public 
as well, and where made for the public, the price paid both by the public and 
the Government is made the same, and, while it is the custom to make maxi- 
mum prices only, it is generally understood that unless there is a larger supply 
than the demand, the maximum prices will by necessity also become the mini- 
mum price, and the purchasing departments of the Government are usually 
expected to pay this price. 

Third. While the different purchasing departments of the Government are 
expected to fix prices on their current purchases where there are no special 
problems involving a lack of supply, the price fixing committee may, on appli- 
cation, solve any special price-fixing problems, the nature of which would seem 
to require its .iurisdiction, and which are in scale with the time involved. 

1 Minutes of the price fixing committee for Mar. 14, 1918. 

2 The Council of National Defense, in its announcement of the creation of a price 
fixing' committee made Mar. 19, 1918, gave at least the following pertinent statement 
relative to the aim of the committee : The object of the price fixing committee is two- 
fold : First, it will be a separate body, quasi judicial in nature, for the purpose implied 
in its name, and it will serve this purpose through being made up of men separated so 
completely from industrial interests that their motives and actions in the determination 
of prices can be subject to no suspicion of mercenai-y interest. Prices will not be 
made until after costs have been passed upon by the Federal Trade Commission. With 
costs as a basis, the price fixing committee will then consider problems of production and 
distribution before arriving at its decisions. 

The second object to be achieved by the price fixing committee is speed. The com- 
mittee will sit all the time and will thus eliminate unnecessary delay caused by the con- 
sideration of price fixing problems in several different quarters. 



244 HISTORY OF PRICES DURIISTG THE WAR, 

Perhaps there 'was no single aim more desired by the price fixing 
committee than that brought out succinctly by its Army member, 
Lieut. Col. Robert H. Montgomery, " to stimulate production by one 
way or another." That policy was always uppermost in the minds 
of the committee. 

(6) ADMINISTERING COMMITTEE DECISIONS. 

The price fixing committee, quite without administrative ma- 
chinery, left the task of administering controls designated by it and 
the enforcing of fixed base prices or differentials entirely with the 
commodity chiefs of the War Industries Board. The commodity 
chiefs, familiar with the technical problems of the various trades 
and in touch with the hundreds of war service committees, were in a 
peculiarly favorable position to enlist a full cooperation from the 
industry. 

(7) THE COMMODITIES FIXED IN PRICE BY THE WAR INDUSTRIES 
BOARD AND THE PRICE FIXING COMMITTEE. 

It is scarcely feasible to consider separately the commodities 
fixed in price by the War Industries Board and the price fixing 
committee, though note should alwaj^s be made of the special phases 
of any regulation which each contributed. The controls undertaken 
by the War Industries Board between September, 1917, and March, 
1918, and then transferred to the price fixing committee concerned 
copper, iron and steel, cement, yellow pine, Douglas fir, zinc, alumi- 
num, hemlock. North Carolina pine, and spruce. The controls initi- 
ated by the price fixing committee between March 14 and the close of 
war concerned hides and skins, wool, munition linters, harness leather, 
sulphuric acid, nitric acid, cotton textiles, cotton linters, sand and 
gravel, manila fiber, building tile, sole and belting leather, rags, 
wool grease, compressing rates for cotton, brick, millwork, and gyp- 
sum wall board. The informal controls exercised by the War In- 
dustries Board itself independently of the price fixing committee 
concerned lead, wood chemicals, nitrate of soda, alkalis, nickel, quick- 
silver, platinum, manganese ore, and burlap. 

There follows a discussion of the most important of these controls 
under the following main commodity headings in the order named : 
Iron and steel, and their products; copper; aluminum; lead; zinc; 
nickel; quicksilver; platinum; cotton textiles; cotton linters wool; 
hides, skins and leather; manila fiber and hemp; burlap; lumber; 
building materials ; and chemicals. 

Ieon and Steel and their Peoducts. 

There is scarcely an experience with jorice-fixing, throughout our 
whole war period, which is more striking or more important than 



GOVERNMENT CONTROL OVER PRICES. 245 

that with the iron and steel family.^ Regulation was invoked within 
our first six months of war to rescue iron and steel prices from a 
runaway market. The extraordinary demands of the Allies for 
war-making steel, and the sudden potential demands of the American 
Government, combined to squeeze short the civilian supply and start 
prices skyward. Prices did, in point of fact, attain a peak in July, . 
1917, without precedent in the epochal year 1899, or in earlier iron 
and steel history. The Government and everyone saw then a need 
to do something, and they began considering how best to make the 
market stable. 

An analysis of price control within the iron and steel group, then, 
entails a comprehension of the runaway market in 1917; the dis- 
position to control iron and steel prices reached both by the Govern- 
ment and the industry ; the kinds of problems facing the Government 
in assuming control ; the raw -material prices fixed on September 24, 
1917; the semifinished-product prices fixed on October 11, 1917; the 
finished-product prices fixed on November 5, 1917; and the deter- 
mination of differentials upon these basic prices. 

The rvmaioay steel market in 1917. — A careful study of the war- 
time prices of the basic raw materials of the iron and steel industry 
(iron ore, coke, pig iron, scrap steel, steel billets, steel bars, steel 
shapes, steel plates, steel rails, steel spikes, steel skelp, rivets, cast- 
iron pipe, steel hoops, steel sheets, tinplate, wire rods, and wire 
fence), and especially of those most used in making war, shows 
clearly that iron and steel prices held steadily below their prewar 
level for a full year after Europe started war. The market then, 
however, became sensitive and prices, in the main, began soaring. 
The open market price of Connellsville coke, for example, which is 
a principal factor in the price of pig iron, jumped from $1.67 per 
ton in September, 1915, to $12.25 in July, 1917, with but two set- 
backs. The price of basic pig iron itself began rising in June, 1915, 
vv-hen it was selling for $12.59 per ton, and climbed steadily to $52.50 
per ton in July, 1917. Bessemer steel billets jumped in a straight 
line from $19.50 per ton in May, 1915, to $95 per ton during June and 
July, 1917. Structural steel shapes rose from 0.012 per pound in 
December, 1914, to 0.062 per pound in July, 1917. Steel tank plates 
shot from $1.22 per hundredweight in July, 1915, to $9 per hundred- 
weight in July, 1917.2 

But even these phenomenal rises are less impressive than the 
index number constructed to reflect a grand average of the whole 
steel market. An index number for the iron and steel group, includ- 

1 The control of iron and steel, and their products was begun, and put well under way, 
hy the War Industries Board before the creation of the price fixing committee in March, 
1918. The whole subject is treated here, however, for the sake of continuity. 

2 Quotations from Iron Age of open market prices. The contract prices, which are not 
available, of course underwent less violent fluctuations. 



246 



HISTORY OF PRICES DURING THE WAR. 



ing 88 leading iron and steel prices and weighted to assign each 
commodity its due influence upon the final average, has been pre- 
pared to measure the general trend of iron and steel prices away 
from their prewar level, from January, 1913, to December, 1918, 
For later reference this index number is here shown for the months 
subsequent to the i)eak point in July, 1917, as well as before.^ 



WEIGHTED INDEX NUMBERS OF PRICES. 

IKON, STEEL, AND THEIR PRODUCTS AND " ALL COMMODITIES." 



Month. 



1913 


1914 


1915 


1916 


1917 


121 


95 


89 


138 


235 


120 


98 


90 


143 


238 


119 


97 


90 


160 


254 


116 


96 


91 


164 


274 


115 


93 


92 


161 


294 


113 


92 


93 


162 


344 


112 


92 


97 


164 


370 


111 


93 


103 


168 


346 


108 


95 


108 


170 


310 


104 


92 


111 


175 


243 


98 


90 


117 


202 


218 


96 


89 


131 


221 


217 


120 


97 


90 


145 


242 


114 


94 


92 


162 


306 


110 


93 


103 


167 


342 


99 


90 


119 


198 


226 


111 


93 


101 


168 


279 


103 


100 


100 


115 


148 


102 


100 


100 


118 


151 


102 


99 


100 


121 


156 


101 


98 


100 


123 


170 


100 


97 


100 


123 


178 


100 


97 


100 


122 


183 


100 


97 


102 


123 


189 


101 


101 


102 


125 


187 


102 


101 


102 


127 


186 


102 


99 


104 


132 


183 


102 


98 


107 


141 


183 


101 


98 


111 


144 


182 


102 


100 


100 


118 


152 


100 


97 


100 


123 


177 


101 


100 


102 


125 


187 


102 


98 


107 


139 


182 


101 


99 


102 


126 


175 



1918 



Iron and steel and their products: 

January 

February 

March 

April. 

May 

Jime 

July 

August . 

September 

October 

November 

December 

Quarters- 

First 

Second 

Third 

Fourth 

Years 

"All commodities". 

January 

February 

March. . '. 

Apnl 

May 

June 

. July 

August 

September 

October 

November , 

December , 

Quarters: 

First 

Second 

Third 

Fourth 

Years 



218 
218 
218 
217 
217 
218 

218 
219 
219 
222 
222 
217 

218 
217 
219 
220 
218 



185 
187 
188 
191 
190 
189 

193 
196 
201 
201 
201 
203 

187 
190 
197 
202 
194 



^ The index number for iron and steel prices is made of the monthly averages from 
January, 1913, to December, 1918, of 88 separate and more important commodities, 
ranging from the raw material to finished product state, which make up the iron and 
steel group. In order not to allow extraordinary rises within less important com- 
modities an undue influence upon the index number, each commodity was weighted, hy 
multiplying each of its monthly prices, by the amount produced in 1917 plus the imports 
for that year. The aggregates thus found were then turned into relative prices on a 
prewar base, by accepting arbitrarily as 100 the average aggregate from July, 1913, to 
June 30, 1914. The index number includes the following commodities of one or more 
series : Iron ore, coke, pig iron, steel scrap, steel billets, steel bars, iron bars, steel 
shapes, steel plates, steel rails, steel spikes, rivets, steel skelp, cast-iron pipe, steel 
hoops, steel sheets, tinplate, wire rod, wire fence, adzes, anvils, augers, axes, braces, 
butts, calks, chain, chisels, cutlery, files, gimlets, hammers, hinges, hods, hooks, hooks 
and eyes, knobs, locks, lock sets, nails, pans, pails, planes, punches, rasps, rings and 
ringers, saws, screws, shaves, shoes, shovels, spoons, springs, staples, swages, tongs, 
traps, trowels, trucks, turns, vises, washers, wedges, wheelbarrows, wire. See " Prices 
of iron, steel, and their products," by Walter W. Stewart (War Indu'stries! Board Price 
Bulletin No. 33). 



GOVBRNMEN'T COlsTTROL OVER PRICES. 



247 



The iron and steel market, according to these comprehensive figures 
remained safely below its prewar level for a year after war broke 
out in Europe. It then mounted steadily, without a single note- 
worthy setback, to the historic peak attained for steel prices in July, 
1917, at 270 per cent above the 
prewar level. That rise was out 
of all bounds with the point 
reached by the " all commodities " 
index number for the same month 
at 89 per cent above its prewar 
level.^ Iron and steel prices, by 
midsummer of 1917, when the 
Government began seriously to 
lay its hand upon them, were 
literally running away. 

The disposition to control iron 
and steel prices. — The runaway 
steel market, coming just at a 
time when the Government was 
beginning to anticipate extraordi- 
nary requirements of steel for war- 
making purposes, gave alarm to 
the President, the Congress, and 
the more sober element of the steel 
industry. It became obvious that 
the Government, in order to as- 
sure itself and the Allies steel at 
reasonable prices, would need to 
take a more radical action than 
had previously been determined 
upon.^ 

The policy of the President and 
his war ojficidls. — The determined 
stand made by the President upon 
price control, in the official state- 
ment of July 12, 1917, came just at the time when steel was at its 
highest point, and affected generally the disposition toward exces- 
sive profit taking. It, therefore, hastened steel control. The Presi- 




Weighted index numbers of prices. — 
Iron and steel ; and "All Commodities." — 
By months, January, 1913, to December, 
1918. (Average quoted prices, July, 
1913, to June, 1914=100.) 



iThe "all commodities" index number, weighted in the same way, represents 1,366 
individual commodities within the food, clothing, rubber, paper, fiber, metals, fuels, build- 
ing materials, and chemicals groups. (See " History of Prices during the War, Sum- 
mary," by Wesley C. Mitchell, War Industries Board Price Bulletin No. 1.) 

2 A special board, appointed by the Secretary of War " for the purpose of investigating 
and reporting upon the feasibility, desirability, and practicability of the Government 
manufacturing arms, munitions, and equipment," made public their conclusion Jan. 9, 
1917, advising a reliance upon private industry. 



248 HISTORY OF PRICES DURING THE WAR. 

dent declared unqualifiedly for a " just price " and declared that 
those — 

who do not respond in the spirit of those who have gone to give tlieir lives i'or 
us on bloody fields far away, may safely be left to be dealt with by opinion 
and the law, for the law must of course command these things. 

The President added succinctly that — 

the Government is about to attempt to determine the prices at which it will ask 
you henceforth to furnish various supplies which are necessary for the prosecu- 
tion of the war and various materials which will be needed in the industries by 
which the war must be sustained. We shall of course try to determine them 
justly and to the best advantage of the nation as a whole. 

It is pertinent that the President, in making his statement, gave 
assurance that the industries would be sustained at a point of ade- 
quate production. 

There followed in rapid succession an expression of viev^s regard- 
ing price control of iron and steel by various high officials. The 
Secretary of the Navy said : 

There is no justification for a tremendous increase In the cost of basic ma- 
terials. The Almighty put these things in the ground, and the only additional 
cost over normal times is in getting them out. Under the law the President is 
authorized to fix a reasonable price for what is needed for the Government. 
There is no disposition whatever to cause any hardship to the producers. We 
are perfectly ^^illing and intend to pay them a fair, even a liberal profit, but 
we will not pay exorbitant prices, such as are being quoted in some instances. 

The Secretary of War, after a conference with steel manufacturers 
about the middle of July, 1917, declared for a control of iron and 
steel which would " insure reasonable profits " and determined upon 
" with reference to the needs of this vital and fundamental industry." 
The chairman of the Shipping Board was reported to say that in 
case the steel producers refused to accept the prices fixed on the basis 
of the proposed cost investigation by the Federal Trade Commis- 
sion, he favored the commandeering of all steel plants. The chair- 
man of the Senate Committee on Interstate Commerce, whose com- 
mittee had been charged to inquire into the high prices of certain 
materials, said that — 

it had been demonstrated that competition was powerless to keep the prices of 
the basic materials at the normal level ; that the result of the law of supply and 
demand had been that an enormous demand had been precipitated upon a lim- 
ited supply, and thus there was no limit to which the prices might soar. 

Meantime a controversy over the prices to be paid by the Gov- 
ernment for structural shapes and steel plates arose between the 
chairman of the United States Shipping Board and the manager 
of the Emergency Fleet Corporation, which residted in a request 
by the President that the Federal Trade Commission inquire into the 



GOVERNMEisrT co:n-tiiol over prices. 249 

costs of producing steel. The manager of the Emergency Fleet 
Corporation announced on June 16, 1917, that he had agreed pro- 
visionally upon a price of 3.75 cents per pound for shapes and 4.25 
cents per pound for plates, with the understanding that the com- 
mittee on raw materials, minerals, and metals of the Council of 
National Defense would later go into the question of costs and 
determine an equitable return to the steel men. The chairman of the 
Shipping Board, on the other hand, declared that these provisional 
prices were $30 a ton higher than prices which the Navy Depart- 
ment was paying for the same material, and that he, therefore, 
would sign no contracts at those figures. The steel makers agreed 
finally to furnish steel plates at a tentative price of 2.50 cents per 
pound, pending the determination of a final price. Controversies 
of this sort, to say nothing of other official opinion as indicated 
above, were potent factors in persuading the President and the 
Government to control iron and steel prices. 

The PoTwerene hill in Congress. — The concern within the Govern- 
ment over the steel situation was not confined alone to the President 
and his war officials. The Congress, too, became uneasy, and 
while the rampant steel market was on. Senator Pomerene of Ohio 
introduced a bill providing for Government control over iron and 
steel prices. The bill was designed to afford the President the same 
power over the prices and distribution of iron ore, pig iron, steel, 
and their products as the food and fuel act (Lever bill) had given 
him over foods, feeds, and fuel. It should be said that the bill, in 
some respects, contemplated even further control than that given 
in the food and fuel act. The bill went so far as to provide that the 
President should have power, whenever in his judgment it became 
necessary — 

for the efficient prosecution of the war and for the purposes aforesaid, to fix 
the price of iron ore, iron, steel, and their products wherever and whenever 
sold, either by producer or dealer, to establish rviles for the regulation of and 
to regulate the method of production, sale, shipment, distribution, apportion- 
ment, or storage thereof among dealers and consuiifers, domestic or foreign.^ 

It is noteworthy that the Pomerene bill made the Federal 
Trade Commission, rather than the Council of National Defense, 
the agency for exercising the presidential authority over iron and 
steel prices and gave it an abundance of power to investigate costs. 

The Pomerene bill, quite aside from these drastic provisions, gave 
the President a commandeering power which struck fear in the 

1 A full account of the provisions of the Pomerene Mil is given in the Iron Age for 
Aug. 16, 1917 ; that for Aug. 30, 1917 ; and an especially illuminating account of the 
hearing on the bill held Sept. 21, 1917, by the Senate Committee on Interstate Commerce, 
is found in the Iron Age for Sept. 27, 1917. 



250 HISTORY OF PRICES DURING THE WAR. 

minds of many producers. The President was authorized, when- 
ever any producer or dealer failed to conform to his stipulated 
regulations — 

to requisition and take over the plant, business, and all appurtenances thereof 
belonging to such producer or dealer as a going concern, and to operate or 
cause the same to be operated in such manner and through such agency as he 
may direct. 

The discussion in the Congress of this bill, though it was never 
made law, aroused the legislators quite as much to the need of iron 
and steel control as the experience of the Executive and his Cabi- 
net had aroused them. 

The attitude oj the iron mid steel industry. — It is not the least 
significant of the factors which brought on control of iron and steel 
prices, that the industry itself came to recognize the need for and to 
desire control. It is not easy to trace the conversion of the iron and 
steel trade to an appreciation of the need for Government inter- 
ference, so gradually did it come. But by midsummer of 1917 the 
more conservative factions of the steel industry saw only peril ahead 
unless the Government brought stabilization to the market. By 
late September virtually the whole industry was disposed to recom- 
mend that a formal regulation begin. 

No doubt an influence of consequence in changing the attitude of 
the steel men toward control was their knowledge that the Govern- 
ment was determined upon it. The Iron Age, a leading journal of 
the industry, foretold Government regulation in its feature edi- 
torial as early as June 28, 1917, although it then looked a bit askance 
at the prospect. It said in part : 

Predictions are becoming more and more common that it will become neces- 
sary for the Government to regulate prices in the steel industry. The pro- 
posal is glibly made, but it involves serious and far-reaching consequences. 
* * * It is difficult to see how the fixing of maximum prices for this com- 
modity or that could make the conduct of business more orderly. 

That same journal less than a month later, July 19, declared: 

What is certain is that the fixing of new prices by the Government is at 
hand * * * the Government is not alone in wanting regulation of steel 
prices. Many producers and buyers of steel have feared the consequence of 
the ungoverned upward movement of the past six months. 

and still a month later, August 30, it said frankly in another leading 
editorial on the subject that — 

undoubtedly there are commodities the price of which the Government should 
seek to reduce * * * undoubtedly the war necessitates practices that would 
not be resorted to in time of peace, but such practices are no better than 
necessary evils * * * it is no time for some to make inordinate profits and 
add largely to their wealth, when the total material wealth is increasing less 
rapidly than usual. 



GOVEKN'MEDSTT CONTROL OVER PRICES. 251 

The preceding paragraphs have been extended to some length to 
show the prevailing attitude toward iron and steel control before 
it set in. It is of peculiar bearing upon the whole institution of 
steel control that it came not until after the President, his war 
officials, the Congress, and the industry itself believed that it ought 
to come. The Government and the industry, then, were in a state 
of mind to sit around the same table and determine together what 
kind of control they wanted and how it should be exercised. 

Prohlems facing the Government masswnving control. — Even though 
the Government, and subsequently the industry, had made up their 
minds to a control over iron and steel prices by midsummer of 1917, 
there were still several important technical questions facing the 
Government in assuming that control. The Government had then 
learned neither the technique of price fixing, nor the general policies 
underlying it. It knew little more at the outset than that in de- 
termining upon reasonable prices, it ought not to hamper the 
production of steel. A host of inquiries made the Government 
think seriously whether any prices fixed for its own purchases should 
be made applicable to public purchases; whether Government prices 
should be extended to the Allies; whether the fixed prices should 
be determined through a flat rate or a flexible cost-plus profit scale ; 
whether the proposed fixed-price schedule woidd or not abrogate 
outstanding contract price agreements; whether the Government, 
in determining upon prices, should take cognizance of the incidental 
labor, fuel, and transportation problems; and whether control over 
the producers would take proper account of the middlemen. 

Should control extend to civilian purchase. — The President left 
little opportunity for officials to disagree among themselves whether 
the public should be made a party to war prices fixed for Government 
purchases. The interpretation given by the President in his well- 
known letter of July 12, left few doubts what attitude the country 
might expect the Government to take in setting the prices for iron 
and steel. In it he declared unequivocally that — 

We must make the prices to the public the same as prices to the Government. 
Prices mean the same everywhere now ; they mean the efficiency of the Nation 
whether it is the Government that pays tliem or not. They mean victory or 
defeat. 

The War Industries Board later in the summer indorsed heartily 
that expression and thus, too, made clear its determination to follow 
the President's lead. The problem was settled once for all by open- 
ing to the public generally the full advantage of prices fixed by the 
Government. 

Should control extend to allied purchases. — The War Industries 
Board did not. moreover, hesitate long to extend to the Allies gen- 



252 HISTOEY OF PPJCES DUEING THE WAR. 

erously the advantages to be had from price regulation within the 
iron and steel groups. The earlier policy of the Presideht again 
dominated the policy of the board in announcing finally that^ — 

It is the pui-pose of the War Inuustiies Board to carry out the policy recently 
aunounced by the President * * * that in the purchase of war materials 
in this country our allies shall be charged no more than our own Government 
has to pay. * * * But this policy has two important limitations. First, it 
must be reciprocal. The Allies must henceforth apply the same principle in 
dealing with their own producers and in selling to us and in selling to each 
other. Second, the arrangement must be limited to war materials, in order 
to protect our own industry. We must not allow raw material sold by our 
producers at prices patriotically conceded to our own Government and its 
allies for war purposes to be diverted to industry and trade abroad which may 
come in competition with our ow-n maniifacturers and producers. 

The decision to extend prices fixed for Government purchases to 
the allied purchases came with but little more hesitation than that 
to extend them to public purchases. 

"~ Flat rate or cost plus profit scale. — There was not a little disturb- 
ance among officials at Washington over the problem whether prices 
for iron and steel ought to be fixed at a flat i-ate, applicable alike to 
high and low cost producers, or determined variously by use of a 
flexible scale allowing each producer a certain profit above his legiti- 
mate costs. The proper basis for determining upon a fixed or maxi- 
mum price for iron and steel was by no means clear to the Govern- 
ment even when it came to the very threshold of control. 

The Federal Trade Commission, for the purpose of helping to 
solve the problem, had been requested to submit current figures show- 
ino- the cost of production. But it was not then known whether cost 
data should be adopted as a basis for price fixing or, if so, what costs. 
The Federal Trade Commission figures showed nothing so clearly as 
that there was no uniformity in the costs of various producers. The 
difference in costs of production was made only the more confusing 
and complicated by testimony given at the time before the Senate 
Committee on Interstate Commerce by Joseph E. Davies, of the 
Federal Trade Commission. It was brought out that there were 
not only varying costs within each class, but also as between four dis- 
tinct classes of iron and steel producers based upon their degree of 
integration. There were, in other words, those owning their own ore, 
transportation facilities for shipping it, blast furnaces, rolling mills', 
and works for the manufacture of the finished products; those who 
bought their ore and coke in whole or part, but controlled the other 
stages of production ; those who purchased their pig iron, but manu- 
factured their own steel ; and those Avho bought their steel ingots and 
billets and rolled their own plates, shapes, and other products.- The 

1 Iron Age, Aug. 16, 1017. = Iron Age, Sept. 27, 1917. 



GOVEElSrMEIsrT CO^sTTEOL OVER PRICES. 253 

commissioner showed that i^roducers within the first of these classes 
generally have the lowest costs, and that those within the last class, 
which make up a fair percentage of the total number of producers, 
have the highest costs. 

These data, and others like them, made the Government exceed- 
ingly fearful of reducing prices to a strict cost basis, lest, through a 
scaling down of prices, the production be diminished. It was at 
one time suggested that there be devised a pooling agreement be- 
tween producers which would provide that the profits of low-cost 
producers be shared with those of high-cost producers. The para- 
mount desire of the Government to maintain production of steel 
at its maximum made it take no chance with too drastic measures. 
It, therefore, determined to fix the maximum prices by a flat rate 
and at a point high enough to keep substantially in full operation 
every mill and blast furnace which contributed appreciably to the 
country's supply,^ 

Should higher contract prices already made he abrogated. — Thfire- 
had^een made during the market earlier in 1917 contract agree- 
ments for iron and steel at prices much higher than the Government 
contemplated fixing as a maximum. It was believed that the Gov- 
ernment, in fixing prices lower than outstanding contract prices, 
could not abrogate those contracts. The concern within the Govern- 
ment, however, and the industry over this problem turned chiefly 
upon the advantages which would accrue to buyers who had not con- 
tracted ahead and could, under the fixed-price schedule, buy cheaper! 
steel than had their competitors just two months earlier under con- 
tract agreement. This problem resolved itself into a simpler one as) 
time passed because of the moderate policy adopted by the Govern- 
ment and the fair point at which steel prices were put. The Govern- 
ment finally gave the industry full assurance that all past contract 
obligations should be carried out as agreed upon.^ 
^ Should the Government reoognize the lahor^ fuel, and transporta- 
tion proUems.—lt is noteworthy that the Government, when it set 
about controlling steel prices, was confronted at once with the solu- 
tion of incidental labor, fuel, and transportation problems that had 
for some time puzzled the industry. The Government found it neces- 
sary to take into its deliberations a consideration of these very ma- 
terial factors which help to determine the market price of steel. 

Should acGount he taken of the middlemen. — The concentration of 
iron and steel production in the hands of relatively few producers 
made it simpler to control prices at the source than in some other 

^ See article by Abraham Berglund on " Price Fixing in the Iron and Stepl Industrj-,'' 
in the Quarterly Journal of Economics for August, 1918. 

2 Iron Age, July 19, 1917, p. 142. See also ibid., Oct. 4, 1917, p. 832. 



\ 



254 HISTORY OF PRICES DURING THE WAR. 

industries. A price may be fixed for a producer, but where the 
product passes through the hands of the jobber to the ultimate con- 
sumer the jobber's interest in the fixed price is that of purchaser and 
not that of .seller. An interesting phase of this problem was the at- 
tempt of the American Steel & Wire Co., which controls over half 
the wire output of the country, to check the upward movement of 
prices by selling wire nails at $3.20 per keg when they were quoted 
at $4 per keg. Independents in several cases were selling wire nails 
at $4, and the jobbing trade began basing its sales to retailers on 
the $4 price at mill. Thus in several instances $4.50, and in Phila- 
delj)hia $5, were charged on sales to retailers. 

The practices of trade with reference to dealers or jobbers were 
also phases of the same problem. Furnace coke is not usually sold 
through dealers, whereas the great bulk of foundry coke is. In fix- 
ing the necessary differential between furnace and foundry coke the 
dealer's compensation should be provided for. Again, a rule applica- 
ble to one class of dealers may not be applicable to another class. 
Foundry coke and steel bars or plates are both sold through dealers, 
but there is no relation whatever between the dealer in coke and 
the dealer in steel bars and plate. In the case of the former, busi- 
ness is often done on a brokerage basis, whereas in steel bars there 
is practically no brokerage business. There is, furthermore, the 
divergence with reference to price practices. The coke dealer or 
broker frequently buys at an inside price, or something less than 
that at which the coke operator would sell directly to a consumer, 
while the jobber in steel products often pays a higher price than 
that at which the mill sells direct to the large consumer. It is the 
'usual case in a rising market for mills to sell bars, sheets, etc., for 
shorter periods to jobbers than to manufacturing consumers. The 
jobber pays a higher price, but his business is profitable because he 
furnishes deliveries. The middleman in certain branches of the iron 
and steel trade is still a problem, and there has been some disposition 
to criticize the price-fixing policy of the Government in largely ignor- 
ing the importance of the jobber and trade practices of the kind 
referred to. It must be said, however, that over a great part of the 
industry the middleman does not play anything like so important a 
role as in many other industries, and the problem of regulating prices 
in intermediate sales has been on the whole relatively simple.^ 

Raw -material prices fixed September 24^ 1917. — Events fore- 
shadowing a control over iron and steel came fast and thick at the 
War Industries Board, after the middle of September in 1917. Mr. 
J. L. Eeplogle, at the request of the board, on September 14, submitted 

* The materials for this paragraph on the middlemen (based upon the Iron Age, July 
19, 1917, p. 146, and ibid., Oct. 4, 1917, pp. 828, 829), were taken bodily from Mr. 
Berglund's article. 



GOVERlsTMENT CONTROL OVER PRICES. 255 

a report of the iron and steel situation, urging that the steel men be 
called at once to Washington for a conference, that an immediate 
step be taken to alleviate the chaotic steel situation, and outlining in 
more detail the condition peculiarly demanding maximum production 
of coke, pig iron, sheared plates, shell steel, billets and rounds. It 
was recommended, furthermore, that there be fixed upon those items 
prices to take effect "at the earliest possible date."^ 

1 The text of Mr. Repl ogle's report follows : 

In compliance with your request, I inclose herewith a memorandum showing my ideas 
as to prices on various iron and steel products. Whatever prices are determined upon 
should be put into effect at the earliest possible date, as conditions in the steel line 
are in an extremely chaotic condition, and I believe many manufacturers in anticipation 
of what they consider very low prices to be established on steel products, are giving 
right of way in their mill operations to the more profitable product such as are pur- 
chased by the automobile manufacturer who is willing to pay the exorbitant prices 
asked if he can secure delivery, with the result that too much steel is going into non- 
essentials and entirely too little into war necessities. 

Certain manufacturers * * * jj^ve given us every cooperation, while others have 
shown a very indifferent attitude. Despite the fact that the output of * * * is only 
about 50 per cent of the total capacity of the country, they have taken approximately 
70 per cent of all the orders placed by the United States Government and in many 
cases the prices were far below their competitors, and in all cases where asked to do so, 
they have taken orders subject to the Government pl-ices to be established, based on the 
Federal Trade Commission report as to cost. When prices are established and priority 
schedules are out, I believe most of the others will fall into line. 

Products most essential to ivar.~The products most essential to the war and on which 
we must have the maximum production are coke, pig iron, sheared plates, shell steel 
billets and rounds. I believe on the products most needed that it would be well to es- 
tablish a stimulating price, as in most cases a steel manufacturer has a finishing capacity 
far in excess of his ingot capacity, this being due to the fact that in normal times one 
line or another may be inactive and the demands on other products will be such that he 
can work up through other lines his entire ingot production. 

The situation on the various products is about as follows : 

Coke.— The total production of coke in 1916 was approximately 54,000,000 tons, 
about 35,000,000 tons or 65 per cent of which was Beehive coke and about 19 000 000 
or 35 per cent being made in by-product ovens. Owing to the insufficient car supply and 
shortage of labor, the production of Beehive coke has fallen off in a very serious waj/ 
duz-ing the past five or six months, with the result that the price has gone as high as 
$17 at the ovens, as compared to an average price of about $2.20 during the past 10 
years. The Connellsville ovens are now running at the rate of about 70 per cent ca- 
pacity, and are losing about 20 per cent of their output on account of labor shortage 
and 10 per cent on account of car service and other causes. Coke will be, I think, the 
limiting factor in our iron and steel production, although the shortage of iron ore may 
also be a contributing element. 

Iron ore.— On Sept. 1, the shipment to lower lake ports was about 3,000,000 tons less 
than the same time last year, this being largely due to the late opening of lake naviga- 
tion and insufficient vessel capacity and more particularly, inadequate car service at 
lower lake points. This matter is receiving every consideration by the ere committee 
but I strongly recommend that the movement to take about 86 vessels from the Great 
Lakes for use in ocean traffi^c be dropped, as the boats are badly needed for the ore 
carrying trade. .In order to take them through the Welland Canal and make them 
serviceable, an enormous amount of labor and money would be necessary to cut them in 
half and repair them and even after this was done, they would not be suitable for ocean 
traffic. I understand that of the 86 boats under consideration, 37 of them are packet 
boats which can be spared. The ore consumption in 1916 was approximately 57,000,000 
tons, and the annual capacity now with about 19 new furnaces in blast is about 64 000 000 
tons, and if the 86 boats are taken from the lake trade, it wtould cut their tonnage to 
the extent of probably 3,500,000 tons annually, which would seriously cripple the 
industry. "-^ 

Pig iron.— The output for 1916 was approximately 39,500,000 tons, but the produc 
tion of iron m the first half of this year was considerably under the previous six months, 
this being largely due to the shortage of coke and labor. Most of the furnaces make 



256 . HISTORY OF PEICES DURING THE WAR. 

The War Industries Board, four days later, called its committee^ 
into a special meeting and asked for views of tlie proper method to 
be followed in fixing- the price of steel. The com mittee reported 
that they had examined the cost figures found by the Federal Trade 
Commission on coke, iron ore, pig iron, and steel products. They 
believed in general, however, that those data really reflected the 
prevailing condition of a year previous since the materials used 
during the first half of 1917 had been contracted for then. The 
committee made recommendations relative to the methods of con- 
trol and they emphasized certain phases of it which proved later 
to be vital factors in the whole scheme of iron and steel regulation. 
It said in part that— ■ 

It is our judgment that the question of price fixing may be best approached 
by considering the individual processes or stages comprising tlie manufacture 
of the finished product. Each of these practically constitutes an independent 

iron, of course, only for their own use and the average monthly production for sale 
during the first six months of this year, was about 940,000 gross tons. The sales 
obligations of the various manufacturers on July 21, 1917 were 8,233,130 tons, of which 
about 250,000 tons were for export largely to Canada, Great Britain, Italy, and Japan. 
From this you will note that the merchant furnace production of the country is sold up 
for a little over nine months. There has been a great increase in steel making capacity, 
but the production of iron has not kept pace with it. A number of our Allies, par- 
ticularly Italy, are in the market for very heavy tonnages, and I think their necessi- 
ties are such that they can not be denied. 

Plates. — Supplementing my letter of the 30th ultimo, I consider plates about the 
weakest link in our chain. The total production of sheared and universal plates ii 
1916, which was a record year, was 3,687,384 tons, of which 1,224,234 tons were uni- 
versal mill plates not adaptable to any great extent for ship construction. As a matter 
of fact, the production of sheared plates J inch or over was 1,865,642 tons. The sales 
obligations of the various plate manufacturers as of July 21 last total about 2,300,000 
tons and the requirements of the Shipping Board and of the Navy and Army to the end 
of 1918 will approximate 1,750,000 tons, so that it is plain that we have fully two solid 
^ years maximum operation now in sight, without taking into consideration the needs of 
our allies, which will be very heavy. The British war mission is now trying to secure 
right of way on a plate specification ; the Italian missioni informs us that their re- 
quirements will also be quite heavy, and Japan wants an enormous tonnage. Of the 
425,556 tons of plates for export on the books of the plate manufacturers July 21 last, 
292,000 or about 68 per cent were for shipment to Japan, and about 70,000 tons for 
shipment to Canada. If w^e continue to permit the export of plates, it is plain that the 
output of our own. ship yards will be restricted. I can not too strongly impress upon you 
the grave situation in this particular line. There was considerable new plate capacity 
under serious consideration some months ago ; in fact, some of the work on the mills 
had alreadj' been started, when for some reason construction was called ofC at the time 
Government prices on plates were discussed by representatives of the Government and 
the manufacturers. 

If the demand for pipes and tubes can be reduced by discouraging building construc- 
tion and all nonessential work of this character, these skelp mills could be used to very 
great advantage on ship plates. I think that this is one of the greatest possibilities we 
have and it must promptly be taken advantage of by some one in authority. 

In view of the above conditions, which I consider most serious to our war program, 
I believe a stimulating price on plates would be advisable to encourage the mills in ex- 
erting every possible influence for maximum tonnage from their existing mills, and also 
to influence new construction. 

Projectile steel. — The situation in this line is equally as bad as on plates. The re- 
(luirements of this Government for the next year will approximate 1,600,000 tons. The 
British war mission advise us that they have approximately 700,000 tons now on order 
with various plants in this country which have not yet been delivered, and their require- 
ments will be at least 1,000,000 tons additional. Italy wants about 40,000 tons and 
Belgium about 28,000 tons, making a total of 3,368,000 tons. I have not yet been able 



GOYERNMEIfTT CONTROL OVER PRICES. 257 

industry. Many of the operators are engaged in only one of tlie processes, 
wliile a few of tlie larger companies cover all operations from the raw material 
to the finished product. As each industry must be allowed a profit to sup- 
port that particular industry, the integrated companies who cover all processes 
from raw materials to highly finished products must necessarily receive a 
profit on each of the processes. 

Conditions prevailing in the steel trade for a considerable period made it 
necessary for all lines of industry using steel products to order their supplies 
further in advance than would be necessary under normal conditions, and as 
a consequence these industries have on hand substantial stocks of steel acquired 
at prices A'ery much higher than any we could recommend as being fair or 
equitable. To partially meet this situation and avoid demoralizing the many 
industries that are largely dependent upon steel products, we recommend 
the establishment of what might be termed an intermediate scale of prices 
for a period of three months with the expectation of a further reduction at 
the end of that period. 

With that purpose in mind we submit the attached schedule of proposed 
prices on the raw materials and various products, also showing the approxi- 

to get the requirements of France and Russia, but I assume that there will be a tre- 
mendous tonnage required by them. 

Prior to the war there was comparatively little of this tonnage rolled and there 
are practically no mills in this country adapted particularly for this character of prod- 
uct, as the ordinary bar mill is designed more particularly for bars of i inch to, say, 
2 inch diameter, and the shell steel in this country is largely rolled on rail mills and 
heavy structural mills, and the rolling of this tonnage on these mills displaces a very 
much heavier tonnage of the products for which the mills were designed. 

We have had the greatest difficulty in placing a small requisition for about 30,000 
tons for the Ordnance Department, as all the mills are filled up largely on foreign orders. 
The British, Italian, and Belgian missions are all pushing us for deliveries on their 
requirements in this line, and to place additional tonnages, which we can not see any 
possibility of their getting, without a serious shortage in our own requirements. We 
are giving this subject a lot of detailed study, but we can not see any possible chance 
of meeting our requirements in this line, unless something is done promptly to prevent 
the manufacture of the enormous tonnage of steel going into nonessentials. 

I believe on the larger shells we will have to go to the steel casting companies, al- 
though I understand the War Department is not very favorable to this. This has been 
done by some of the foreign governments in an emergency, and I believe we will have to 
come to it here, which will help the situation to some extent, but not greatly. 

A very serious complication is the closing of shell factories in Canada, where they 
have a capacity of 400,000 shells per day, which is considerably in excess of the out- 
put in this country. I have talked with three of the Canadian munition manufacturers 
who state they propose to change their factories to other lines of product, as they can not 
get additional shell orders from the British Government, which insists that Canada 
must finance their own requirements in this line, which they state they are unable to 
do, and according to the terms of the United States Government's loan to Great Britain, 
this money can only be used for purchases in this country, with the result that they are 
trying to divert this Canadian business to us. They have been consuming 225,000 tons 
of shell steel monthly in Canada, about 190,000 tons of which was supplied by the 
Canadian steel plants, and approximately 35,000 tons imported from this country. 

I certainly feel that some arrangement should promptly be made to continue the manu- 
facture of shell steel and finished shells in Canada, and understand that negotiations 
are now on with this object in view. 

Siiininayy. — As previously advised, coke, pig iron, plates, and projectile steel will be 
the most serious factors in the steel situation. The situation on structural steel, pipe, 
and tubes, wire products, rails, merchant bars, etc., is approximately as reported in my 
letter of the 30th ultimo. These lines will all have to be materially curtailed in order 
to meet the absolute war necessities. I again recommend that the leading steel manu- 
facturers be called to Washington at the earliest possible date for a full discussion of 
the serious condition, with the hope that immediate action will be taken to improve it, 
as we can not continue on the present basis without most serious results. 

1 Mr. J. Leonard Replogle, Alex. Legge, and L. L. Summers. 

125.047 °— 20 17 



i 



258 HISTORY OF PRICES DURING THE WAR. 

mate market prices at the present time and the amount of tlxe reduction from 
such prices. 

Tliis scale of prices is recommended on the basis of offering a premium on 
ship plates and slaell steel witli the object of stimulating production, as the 
present capacity is inadequate to meet the requirements. 

It is evident that to be effective any price regulations must be rigidly en- 
forced. Serious consideration should be given to the question of abrogating 
contracts which were entered into prior to establishing this suggested schedule 
of prices. We have asked the Federal Trade Commission to advise the War 
Industries Board further in regard to these contracts, which must be consid- 
ered an important factor in the situation as some furnaces have entered into 
contracts without regard to the price established on coal. 

The War Industries Board on September 18, 1917, after hearing 
the above report in substance, agreed that the prices of ore, coal, 
coke, transportation, and pig iron should be fixed separately and 
thus build up a fair price for steel. It was likewise then agreed 
that should the steel interests not be willing to give their full co- 
operation because of the prices being fixed, that the War Industries 
Board would take the steps necessary to assume control over the 
steel plants.^ 

The jDrices fixed on the great basic raw materials of the iron and 
steel group, which proved later to have been the basis for all price 
fixing within that group, were announced toy the President on Sep- 
tember 24, 1917, but were, in point of fact, fixed by an oral agree- 
ment between the War Industries Board and the industry on Sep- 
tember 21, 1917, The iron and steel industry of the country, as rep- 

^ A chief concern of tbe War Industries Board, in fixing the prices of iron and steel, 
was to maintain production at a maximum. It is therefore of interest to note that on 
Sept. 18, 1917, the chief of the board's production committee, Mr. S. M. Vauclain, pre- 
pared a memorandum stating the production of ore, colce, pig iron, and plates should be 
stimulated. Mr. Vauclain gave it as his confident belief that the maximum production 
of the mills would be assured should the Board establish prices substantially in con- 
formity to those recommended by him as follows : 

Of course the cost of pig iron must necessarily regulate the price of steel and the 
price of pig iron naturally depends upon the price of ore and coke. There are four items 
which should be stimulated so that no question of labor or profit should arise in their 
production and the minimum price should be named that will secure for the United 
states the maximum production, as follows : Ore, coke, pig iron, and plates ; therefore, I 
suggest to you the following : 

(1) Ore.- — Ore is now sold at lake ports, at Mesabi, at $5.05 and at Old Range at 
$5.20, Such Cuban, Spanish, and Chilean ore as it is possible to bring in costs about the 
same at plants along the Atlantic seaboard, therefore it is suggested that the price of 
$5 per ton at lake ports should be the price to all for ore. 

(2) Coke. — There is universal regret among manufacturers that the price of coal has 
been placed at .'i!2. It is considered a grave mistake and that $3 coal would have brought 
about a maximum production of this much-needed article. Therefore, we should not 
make the same mistake on coke. The cost of beehive coke is usually practically the cost 
of two tons of coal plus $1. It is therefore suggested that the price of coke, without 
distinction between beehive or by-product, should be, at the Connellsville district, $6. 

(3) Pig iron. — At the present time there is at most bla.st furnaces large quantities of 
fuel and ore which will make operation safe, which has been purchased at ruling market 
prices. Therefore, in order to enable the manufacturer to work off this high priced 
material, I suggest the following rates for pig iron : $35 per ton from Oct. 1, 1917, to 



GOVEEWMBIirT COlirTROL OVER PRICES. 



259 



resented by 65 high officials, met the War Industries Board at Wash- 
ington about 10 o'clock on the morning of September 21, at the call 
of the board. The steel men were told that the President had re- 
quested the board to ask their opinions as to proper prices to be 
fixed. An informal discussion took place on the basis of data at 
hand and in mind and then "the meeting adjourned until 4 p. m. 
to give the steel iiiterests the opportunity of discussing the proper 
prices to fix." ^ 

When the meeting reconvened at 4 p. m. Judge E. H. Gary, speak- 
ing for the steel industry, explained to the board that the steel inter- 
ests had appointed committees covering ore, coke, and pig iron and 
that those committees would make and explain their recommenda- 
tions. The suggestions made by these committees were virtually the 
prices adopted by the board and later announced by the President. It 
is of especial interest, therefore, to read in detail the specific recom- 
mendations formally made to the board by the steel committees, of 
prices which they considered fair and proper. The minutes of the 
War Industries Board for that day say : 

Ore. — The committee on ore then stated that the ore sold last year for this 
year's consumption was on a basis of $5.05 per ton, lower lake port, for non- 
Bessemer Mesabi ore. They suggested that the same price might be considered 
fair for the ore to be purchased this fall for consumption from June, 1918, to 
June, 1919, provided that wages for labor and cost of transportation remained 
the same. If they did not, a corresponding increase in price should be allowed. 
They stated that the projQts for last year were higher than the average for 
previous years, but not as high as they have been in certain years of the past. 

Jan. 1, 1918 ; $32.50 per ton from Jan. 1, 1918, to Apr. 1, 1918 ; and $30 per ton there- 
after, it having been ascertained that with regulated prices for ore and coke any blast 
furnace in the United States can produce with a fair profit pig iron at the last-named 
price. Therefore, at the above prices, I suggest the following schedule : 



Item. 



Pig iron 

Steel ingots 

Blooms 

BiUets 

Slabs 

Bars 

Shapes 

Plates 

Steel rails (Ught special). 



Oct. 1, 

1917, to 

Jan. 1, 

1918. 



$35.00 
45.00 
54.00 
55.00 
55.00 
65.00 
67.00 
77.00 
65.00 



Jan. 1, 

1918, to 

Apr. 1, 

1918. 



S32.50 
42.50 
51.50 
52.50 
52.50 
62.00 
64.50 
74.50 
62.50 



There- 
after. 



S30.00 
40.00 
49.00 
50.00 
50.00 
60.00 
62.00 
72.00 
60.00 



In^chstge_,the manufa c toer;s^profltJma^beenJnj;luded. You wiU note at these prices that the base 
pnce of plates will be 3.437, 3.321, and 3.215 pel "pound. I feel confident that should prices, approximately 
mconformity with these figures, be estabhshed that the maximum production of our mills would be assured. 
There would also be an incentive for new capital to get into this business, as there would be small chance 
of making an actual loss and the patriotism of our manufacturers would be more active toward a higher 
production of steel products, and unless we do have a higher production of steel products the war wiU be a 
slow and tedious process. 

1 The War Industries Board Minutes for Sept. 21. 1917. 



260 HISTORY OF PRICES DURING THE WAR. 

Roughly speaking, tliey stated that the protit per ton hist year was approxi- 
mately $1. It was understood that the usual differential obtaining in the trade 
for higher grades of ore should be considered operative. 

Coke. — The committee covering coke stated that they considered a price of 
ft;6.50 per ton ovens for coke should be established. Judge Gary stated that he 
thought $6 a ton would allow a sufficient margin ; Mr. Schwab confirmed Judge 
Gary's statement. 

Piy iron. — The committee covering pig iron stated that in their opinion $35 
a ton valley for basic iron would permit of 90 per cent of the blast furnaces 
operating at a profit, and if coke can be established at $6 ovens, $30 pig iron 
is fair. Some exception Avas taken to this, largely because of the fact that con- 
tracts for coke at high prices for future delivery had been placed by many 
furnaces. 

Steel. — Mr. Schwab presented figures showing that if a profit of 1.5 per cent 
were allowed, ingots should sell at $52.2,5 a gross ton, billets at $60.30 a gross 
ton, and plates at $85.30 a gross ton. The representative of the Lukens Iron 
& Steel Co. stated that if pig iron were fixed at $35 per ton, plates would cost 
him on a basis of $3.45 per hundred pounds. 

The members of the War Industries Board retired from the meeting to per- 
mit the steel interests to suggest prices on these commodities, which, in their 
opinion, would be for the greatest benefit of the Nation. 

The board was then waited upon by a special committee appointed by the 
steel interests, consisting of Judge Gary, Mr. Schwab, and Mr. Dalton, who 
presented certain figures as being acceptable to the steel interests, whereupon 
the board informed them that at the earliest opportunity they would wait upon 
the President relative thereto. 

One of the most striking of all the features of the early fixing of 
iron and steel prices was the informality of it and the reliance of the 
whole scheme upon a cordiality between the Govermnent and the 
industry.^ 

The fruit of all these confidential meetings came finally to a full 
public knowledge on September 24, 1917, when the President ap- 
proved the prices therein determined upon by fixing the following 

1 Judge R. S. Lovett, acting chairman of the War Industries Board, on Sept. 25, 1917 
wrote the following letter to .Judge E. H. Gary, authorized spokesman for the steel 
industry : 

" This is to confirm the oral agreement between the War Industries Board and your- 
self and other representatives of the steel industry, arrived at on Sept. 21 and approved 
by the President, as announced by him on Sept. 24, 1917, fixing the following prices 
which became effective immediately and are subject- to revision Jan. 1, 1918, for 
the articles mentioned, viz : Iron ore, lower Lake ports basis, .$5.05 per gross ton ; coke, 
Connellsville basis, .?6 per net ton ; pig iron, Valley basis, $3.3 per gross ton ; steel bars, 
Pittsfiurgh and Chicago basis, $2.90 per hundred ; steel shapes, Pittsburgh and Chica.go 
basis, $3 per hundi-ed ; and steel plates, Pittsburgh and Chicago basis, $3.25 per hun- 
dred. Also, first, that there should be no reduction in the present rate of wages ; second, 
that the prices above named shall be made to the public and to the nations associated 
with the United States in the present war with Germany, as well as to the Government 
of the United States; and, third, that the steel producers represented at the meeting 
pledge themselves to exert every effort necessary to keep up the production to the maxi- 
mum of the past so long as the war lasts. Will you or those associated with you in the 
negotiations referred to please take up promptly or send representatives here to take xip 
with Messrs. Baruch and Lovett the details for working out the placing of orders, the 
settlement of questions of priority, etc., and other matters necessary for carrying out 
the arrangement, and oblige?" 



GOVERlSrMElsrT CONTROL OVER PRICES. 261 

basic prices effective immediately and subject to revision January 1, 
1918, viz : 



Commodity. 



Basis. 



Price. 



Iron ore . . . 

Coke 

Pig iron. . . 
Steel bars . 

Shapes 

Plates 



Lower Lake ports . 
Connellsville 



Pittsburgh-Chicago . 

do 

do 



$5.05 per grods ton. 
$6 per net ton. 
$33 per gross ton. 
$2. SO per 100 pounds. 
$3 per 100 pounds. 
$3. 25 per 100 pounds. 



It was made a part of the informal oral agreement between the 
War Industries Board with the steel men, and announced with the 
above price schedille as a policy by the President, first, that there 
should be no reduction in the present rate of wages ; second, that the 
prices above named should be made to the public and to the Allies, 
as well as to the Government; and third, that the steel men pledge 
themselves to exert every effort necessary to keep up the production 
to the maximum of the past, so long as the war lasts.^ The Presi- 
dent at the same time directed that measures be taken by the War 
Industries Board for placing orders and supervising the output of 
the steel mills in such manner as to facilitate the requirements of the 
Government and the Allies for war purposes, and the public needs 
where practicable. 

The prices fixed by the War Industries Board did not represent 
reductions as enormous as many people believed the elaborate Fed- 
eral Trade Commission inquiries into costs justified. They were, 
though generally below the historic high-price level of July previous, 
all materially higher than the average prices prevailing for those 
same commodities during 1911-1914. The falling off in quoted prices 
for iron and steel, due in part to the knowledge of forthcoming Gov- 
ernment regulation, began immediately after the July market. The 
prices fixed by the board represented a considerable scaling ddwn 
from the July prices as is strikingly emphasized by the downward 
and then level turn of the iron and steel index number earlier in the 
chapter. Coke was reduced in price from $12.75 to $6, pig iron from 
$55 to $33, steel bars from $4.50 to $2.90, shapes from $6 to $3, and 
plates from $9 to $3.25. It should, of course, be remembered that 
the very high quotations of July, 1917, were never realized in the 
majority of contract placements. They represented simply the ex- 
orbitant p rices which certain sales could command because the bulk 
of steel w as booked up under contract. The real scaling down of 
.^grices from the high point of July, 1917, therefore, was actually much 



Official Bulletin, Sept. 25, 1917. 



262 



HISTORY OF PRICES DURING THE WAR. 



less than one might suppose on examining the above figures.^ It_ 
was quite as much the object of tlie Government to stabilize the mar- 
ket at a point that would effect a maximum of production as to scale, 
down prices from higher levels. There follows a table showing the 
quoted prices on iron ore, coke, pig iron, steel bars, shapes, and 
plates as they prevailed during 1911-1914; at their average in July, 
1917; and as finally fixed by the Government on September 24, 1917.^ 



Commodity. 


Basis. 


Average 
for years 
1911-1914. 


Average 

for July, 

1917. 


Price 
fixed by 
Govern- 
ment, 
Sept. 24, 
1917. 


Iron ore (non-Bessemer, 51. .50 per cent iron), 
per gross ton. 




S3. 15 

2.05 
14.90 

1.31 

1.32 
1.32 


$5. 05 

13.42 
52.50 

4.50 

4.50 
9.00 


$5.05 


ConneUsville 


6.00 


Pig iron (No. 2, foundry and basic), per gross 

ton. 
Steel bars (not including sheet steel and small 

shapes under 3 inches per pound), per cwt. 


Valley and Chicago 

Pittsburgh or Chicago. . . 
do 


33.00 
2.90 
3.00 




do 


3.25 









No better basis, for a more detailed inquiry into the comparison 
of fixed prices with prevailing market quotations, can be had than 
the monthly prices from 1913 to 1918 of each basic raw material that 
was fixed on September 24, 1917 (iron ore, coke, pig iron, steel bars, 
shapes, and plates). The market quotations for Mesabi, non- 
Bessemer (51^ per cent iron) iron ore at the lower lake ports, which 
was adopted as the "basis in fixing iron ore prices, held an average 
price of $3.3083 per gross ton for the year just preceding the out- 
break of war (July 1, 1913, to June 30, 1914), and fell as low as $2.80 
the latter part .of 1915. But it reached a level of $5.05 in December, 
1916, which it maintained steadily to September, 1917. The War In- 
dustries Board, at that time, fixed the price at $5.05. ConneUsville 
coke, furnace, prompt shipment f. o. b. ovens, which was adopted 
as the basis for fixing coke prices, was selling for $1.75 per short 
ton when war broke out in Europe. During the last quarter of 
1916 the market became erratic, and coke prices reached $9 in Decem- 
ber of that year. They remained enormously high during 1917 and 
in August attained a peak at $13.42. The War Industries Board 
in September fixed the price at $6 per ton. The quotation of pig 
iron f. o. b. Mahoning or Shenango Valley furnace, was $13 per 

' It is aptly pointed out by Mr. Berglund that, though considerable reductions took 
place before the War Industries Board actually acted upon prices, the reductions made 
by the new schedule were material even in tlie market as it existed in September. On 
Sept. 20, four days before the first publication of fixed prices, basic pig iron at Valley 
furnaces was quoted by the Iron Age at !f42 per gross ton and No. 2 foundry pig iron, 
Chicago, at .$54. Soft steel bars, Pittsburgh, were quoted at $4 per hundredweight and 
tank plates at $8 per 100 pounds. 

2 Made from quotations carried by the Iron Age and " Maximum Prices , on Iron and 
Steel Products," as published by the American Iron and Steel Institute. 



GOVERNMEKT CONTROL OVER PRICES. 



263 



gross ton when war broke out in Europe. It began going higher 
the latter part of 1915 and reached $52.60 in July, 1917. The 
War Industries Board fixed the price on September at $33 per 
gross ton. The price of steel bars, Pittsburgh, stood at $1.12 when 
war began but reached $4.50 by the middle of 1917. The War 
Industries Board fixed the price at $2.90 per hundred pounds in 
September, 1917. Structural shapes, Pittsburgh (beams and chan- 
nels, 3-inch to 15-inch) were selling at the same level as steel bars 
when the war began and reached the same peak by the middle of 
1917. The price for shapes was fixed at $3 per hundred pounds in 
September, 1917. Steel plates, tank plates at Pittsburgh, were selling 
at $1.11 when the war began but rose to $9 in July, 1917. Their price 
was fixed at $3.25 per hundred pounds in September, 1917. There 
follows a more detailed exhibit of the prices of these articles. 

MARKET PRICES, AT WHOLESALE, OF IRON ORE, MESABI NONBESSEMER, 51^ PER 
CENT, AT LOWER LAKE PORTS.i 



Month. 


1913 


1914 


1915 


1916 


1917 


1918 




S3. 40 
3.40 
3.40 
3.40 
3.40 
3.40 
3.40 
3.40 
3.40 
3.40 
3.40 
3.40 


$3.40 
3.40 
3.40 
3.40 

2.85 
2.85 
2.85 
2.85 
2.85 
2.85 
2.85 
2.85 


S2.85 
2.85 
2.85 
2.85 
2.85 
2.85 
2.80 
2.80 
2.80 
2.80 
2.80 
2.80 


$3.55 
3.55 
3.55 
3.55 
3.55 
3.55 
3.55 
3.55 
3.55 
3.55 
3.55 
5.05 


$5.05 
5.05 
5.05 
5.05 
5.05 
5.05 
5.05 
5.05 
5.05 

2 5.05 
5.05 
5.05 


$5.05 




5.05 




5.05 




5.05 


May 


5.05 




5.05 


July 


5.05 




5.50 




5.50 




5.75 




5.75 




5.75 







MARKET PRICES, AT WHOLESALE, OF CONNELLSVILLE COKE, FURNACE, PROMPT 
SHIPMENT, F. O. B. 0VENS.3 



January... 
February. 

March 

April 

May. 

June 

July 

August 

September 
October . . . 
November 
December. 



$3.85 


$1.88 


$1.55 


$3.14 


$9.44 


2.60 


1.90 


1.55 


3.41 


10.57 


2.47 


1.92 


1.53 


3.45 


9.58 


2.20 


1.90 


1.55 


2.45 


8.00 


2.15 


1.83 


1.50 


2.34 


8.40 


2.20 


1.80 


1.50 


2.54 


11.20 


2.50 


1.75 


1.67 


2.65 


12.32 


2.50 


1.74 


1.54 


2.75 


13.42 


2.37 


1.70 


1.66 


2.94 


11.85 


2.10 


1.65 


2.18 


5.69 


2 6.00 


1.88 


1.60 


2.35 


6.91 


6.00 


1.77 


1.60 


2.85 


9.00 


6.00 



$6.00 
6.00 
6.00 
6.00 
6.00 
6.00 
6.00 
6.00 
6.00 
6.00 
6.00 
6.00 



MARKET PRICES, AT WHOLESALE, OF BASIC PIG IRON, F. O. B. MAHONING OR SHE- 
NANGO VALLEY FURNACE.4 



January... 
February . 

March 

April 

May 

June 

July 

Augast 

September 
October... 
November 
December. 



$16.41 


$12. 50 


$12.50 


$17. 81 


$30. 00 


16.30 


13.19 


12.50 


17.69 


30.00 


16.11 


13.00 


12.50 


18.20 


32.25 


15.87 


13.00 


12.50 


18.13 


38.75 


15.15 


13.00 


12.50 


18.00 


41.60 


14.50 


13.00 


12.59 


18.00 


48.75 


14.37 


13.00 


12.74 


18.00 


52.50 


14.06 


13.00 


14.06 


18.00 


51.20 


14.00 


13.00 


14.75 


18.31 


42.75 


13.90 


12.81 


15.00 


19.88 


2 33. 00 


13.09 


12.48 


15.75 


25.10 


33.00 


12.71 


12.50 


17.50 


30.00 


33.00 



$33.00 
33.00 
33.00 
33.00 
33.00 
33.00 
33.00 
33.00 
33.00 
33.00 
33.00 
33.00 



1 Quotations represent prices per ton and were taken on first of each month from the Iron Trade Re^aew. 

2 Fixed price. 

3 Metal Statistics , published by the American Metal Market and Daily Iron and Steel Report, for 1919, 
p. 37. Prices are quoted per net ton. 

i Prices are per gross ton and were taken from the Iron Age, Jan. 2, 1919, p. 18. 



264 HISTORY OF PRICES DURING THE WAR. 

MARKET PRICES, AT WHOLESALE, OF STEEL BARS, PITTSBURGH.i 



Month. 


1913 


1914 


1915 


1916 


1917 


1918 




$1.40 
1.40 
1.40 
1.40 
1.40 
1.40 
1.40 
1.40 
1.40 
1.39 
1.30 
1.22 


SI. 20 
1.22 
1.20 
1.15 
1.14 
1.12 
1.12 
1.18 
1.19 
1.15 
1.11 
1.05 


$1.10 
1.10 
1.15 
1.20 
1.20 
1.20 
1.27 
1.30 
1.35 
1.43 
1.63 
1.75 


$1.87 
2.06 
2.36 
2.50 
2.50 
2.50 
2.50 
2.56 
2.60 
2.62 
2.76 
2.93 


$3.00 
3.00 
3.27 
3.39 
3.64 
4.00 
4.50 
4.50 
3.88 

= 2.90 
2.90 
2.90 


$2.90 




2.90 


March. .'. „ 


2.90 
2.90 


Mav 


2.90 


June 


2.90 


Julv 


2.90 


August 


2.90 


September 


2.90 


October 


2.90 


November 


2.90 


December 


2.78 







MARKET PRICES, AT WHOLESALE, OF STRUCTURAL SHAPES (BEAMS AND CHAN- 
NELS) 3-INCH TO 15-INCH, PITTSBURGH.I 



January... 
February.. 

March 

April 

May 

June 

Julv 

August 

September 
October... 
November. 
December. 



$1.50 


$1.20 


$1.10 


$1.87 


$3.11 


1.45 


1.25 


1.10 


2.06 


3.25 


1.45 


1.21 


1.15 


2.36 


3.52 


1.45 


1.18 


1.20 


2.50 


3.70 


1.45 


1.15 


1.20 


2.50 


4.00 


1.45 


1.12 


1.20 


2.50 


4.25 


1.45 


1.12 


1.25 


2.50 


4.50 


1.45 


1.18 


1.30 


2.54 


4.50 


1.40 


1.20 


1.33 


2.60 


4.06 


1.39 


1.16 


1.44 


2. 63 


2 3.00 


1.34 


1.11 


1.63 


2.86 


3.00 


1.24 


1.05 


1.75 


3.03 


3.00 



$3.00 
3.00 
3.00 
3.00 
3.00 
3.00 
3.00 
3.00 
3.00 
3.00 
3.00 
2.88 



MARKET PRICES, AT WHOLESALE, OF STEEL PLATES, TANK, PITTSBURGH.i 



January.. . 
Febniar".. 
March..:.. 

April 

.May 

June 

July 

August 

September 
October... 
November. 
Decem.ber. 



$1.50 


$1.20 


$1.10 


SI. 90 


$3.61 


1.45 


1.21 


1.10 


2.16 


3.75 


1.45 


1.18 


1.15 


2.53 


4.33 


1.45 


1.15 


1.20 


2.75 


4.50 


1.45 


1.14 


1.17 


2.83 


4.50 


1.45 


1.10 


1.15 


2.90 


7.10 


1.45 


1.11 


1.22 


2.90 


9.00 


1.44 


1.18 


1.26 


2.94 


8.96 


1.40 


1.19 


1.33 


3.00 


7.05 


1.36 


1.14 


1.42 


3.07 


2 3.25 


1.29 


1.09 


1.63 


3.33 


3.25 


1.20 


1.05 


1.75 


3.53 


3.25 



$3.25 
3.25 
3.25 
3.25 
3.25 
3.25 
3.25 
3.25 
3.25 
3.25 
3.25 
3.10 



1 Quotations rapresent prices per hundredweight and were taken from Metal Statistics for 1919. 

2 Fixed price. 

Semifmished-product prices iticed October 11^ 1917. — The next of 
the three great initial steps in the fixing of iron and steel prices, 
following the fixing of raw-material prices on September 24, came 
scarcel}^ three weeks later when prices were fixed on the inter- 
mediate products (blooms, billets, slabs, sheet bars, wire rods, shell 
bars, and skelp) on October 11, 1917. 

There need be no restatement of the method by which the Govern- 
ment and industry arrived at the prices fixed on these semifinished 
products, since the approach was not unlike that made to the former 
price fixing of raw materials. It should be said, however, that 
meantime the old iron and steel committees, formerly represent- 
ing the industry in the Council of National Defense, went out of 



G0VEE2^MENT CONTROL OVER PRICES. 



265 



existence and the American Iron and Steel Institute became tlie 
formal and authoritative spokesman of the industry to the Gov- 
ernment. The steel manufacturers, thus formed into committees 
under the American Iron and Steel Institute for the purpose of fur- 
nishing information to the War Industries Board, had no con- 
nection, advisory or otherwise, with the awarding of any con- 
tracts.^ These newly formed institute committees and the Gov- 
ernment, immediately after the fixing of prices on iron ore, coke, 
pig iron, plates, shapes, and bars in September, began conferring 
among themselves and with each other to determine prices on semi- 
finished products in line with those just announced on raw materials. 
They came finally to an agreement, and the War Industries Board 
submitted the newly determined prices to the President. 

The President approved the prices fixed on these more highly man- 
ufactured steel products on October 11, and announced the following 
as maximum prices effective immediately but subject to revision Janu- 
ary 1, 1918 : 



Comraoditv. 



Basis. 



Price. 



Blooms and billets, 4 by 4 inches and 
larger. 

Billets, under 4 by 4 inches 

Slabs 

Sheet bars 

Vv'ire rods 

Shell bars: 

3 to 5 inches 

Over 5 to 8 inches. 

Over 8 to 10 inches 

Over 10 inches 

Skelp: 

Grooved 

Universal 

Sheared 



Pittsburgh-Youngstown . 



do 

do 

do 

Pittsburgh. 



.do. 
do. 
.do. 
.do. 

.do. 
.do. 
.do. 



S47.50 per gross ton. 

$51 per gross ton. 
$oO per gross ton. 
S51 per gross ton. 
$57 per gross ton. 



$3.25 per 100 pounds. 
$3.50 per 100 povmds. 
$3.75 per 100 nounds. 
$4 per 100 pounds. 



$2.90 per 100 pounds. 
$3.15 per 100 pounds. 
$3.25 per 100 pounds. 



The President announced that he fixed these maximum prices on 
the assurance of the steel industrj^ that they would equitably adjust 
the relations of the steel interests to each other, and assist to give 
the country a maximum of production. 

Bessemer steel billets, at Pittsburgh, which were selling at $19 
per gross ton at the close of 1914, sold as high as $100 in July, 1917, 
and were fixed at $47.50 in October.^ Bessemer sheet bars, at Pitts- 
burgh, which were selling at $20 when war began, rose to $105 in 
June and July of 1917, and were fixed at $51 per gross ton in Octo- 
ber.^ Bessemer wire rods, at Pittsburgh, which were selling at $24.50 
three years earlier, attained a peak of $96.25 in July, 1917, and 
were fixed at $57 per gross ton in October,* Grooved steel skelp, at 

1 lion Age, Oct. 4, 1917, p. 832. 
- Iron Age, Jan. 2, 1919, p. 18. 
« Metal Statistics for 1919, p. 91. 
*Iron Age, Jan. 2, 1919, p. 20. 



266 HISTORY OF PRICES DURING THE WAR. 

Pittsburgh, which was selling at $1.15 in. July, 1914, rose to $6 in 
July, 1917, and was fixed at $2.90 per hundred- pounds in October,^ 

F inished-product prices f.xed Novemher 5, 1917. — The last of the 
initial three steps in price fixing within the iron and steel group 
came on November 5, 1917, when the President approved an agree- 
ment between the War Industries Board and the steel industry, fix- 
ing prices on certain finished products (sheets, pipe, cold-rolled steel, 
V scrap, wire, and tin plate). The President fixed these maximum 
prices at that time, subject to revision January 1, 1918. It is of par- 
ticular interest that he also announced that the iron and steel manu- 
facturers had agreed " promptly to adjust the maximum prices of all 
iron and steel products other than those on which prices have been 
agreed upon to the same general standard as those which have been 
announced. It is expected that this will be done promptly and con- 
sistently in line with the basic, intermediate, and finished products, 
for which definite maximum prices have been established." ^ The 
Government had thus brought under its control the basic raw ma- 
terials, semifinished products, and finished products of the iron and 
steel industry. 

The basic finished-product prices which were announced November 
5 were as follows: 

Sneets : pounds. 

No. 28 black sheets f. o. b. Pittsburgh $5. 00 

No. 10 blue annealed sheets f. o. b Pittsburgh 4. 25 

No. 28 galvanized sheets f. o. b. Pittsburgh 6. 25 

The above prices to apply to both Bessemer and open-hearth grades. 
Pipe : On f -inch to S-inch black steel pipe, discount 52 and 5 and 2J per cent 
f. o. b. Pittsburgh. 

Cold-rolled steel : Seventeen per cent discount from March 15, 1915, list f. o. b. 
Pittsburgh. 

Per gross 
Scrap (f. o. b. consuming point) : . ton. 

No. 1 heavy melting $30.00 

Cast-iron borings and machine-shop turnings 20. 00 

No. 1 railroad wrought 35. 00 

Wire, plain wire f. o. b. Pittsburgh, per 100 pounds 3. 25 

Tin plate, coke base, Bessemer, and open hearth f. o. b. Pittsburgh, per 

100-pound box 7. 75 

Black sheets. No. 28 gauge, f. o. b. mill at Pittsburgh, which were 
selling for $1.80 when war began, sold for $8 during July, August, 
and September, of 1917, and were fixed at $5 per hundred pounds in 
November.^ Galvanized sheets, No. 28 gauge, f. o. b. mill at Pitts- 
burgh, which were selling at $2.75 when war came in Europe, rose to 
$10.60 in July, 1917, and were selling at $8.90 still in October. They 

1 Metal Statistics for 1919, p. 115. 

2 Official Bulletin, Nov. 6, 1917. 
'Metal Statistics for 1919, p. 131. 



GOVERNMENT CONTROL OVER PRICES. 267 

were fixed at $6.25 per hundred pounds in November.^ Blue an- 
nealed sheets, No. 10 gauge, at Pittsburgh, which were selling at 
$1.35 at the beginning of war, rose to $8.25 in July, 1917, and were 
fixed at $4.25 per hundred pounds in November.^ Heavy melting 
steel scrap, at Pittsburgh, rose from $11.75 when war broke out to 
$38.76 in July, 1917, and was fixed at $30 per gross ton in November.^ 
The average price of plain wire, at Pittsburgh, for 1914 was $1.40, 
for 1917 $3.95, and the price fixed in November, 1917, was $3.25 per 
hundred pounds.* Tin plates, at Pittsburgh, were selling at $3.20 
the last of 1914, and rose as high as $7.50 in March, 1917. They 
were fixed at $7.75 per hundred-pound box in November, 1917 — the 
highest price quoted in 18 years, if ever.^ 

The determination of differentials ivprni basic 'prices. — It must be 
borne in mind for emphasis that the President, upon the joint 
recommendation of the War Industries Board and the iron and steel 
industry, approved simply the basic raw material prices (iron ore, 
coke, pig iron, steel bars, shapes, and plates) on September 24; cer- < 

tain basic semifinished-product prices (blooms, billets, slabs, sheet 
bars, wire rods, shell bars, and skelp) on October 11; and certain 
finished products (sheets, pipe, cold rolled steel, scrap, wire, and tin- 
plate) on November 5, 1917. These prices were meant simply to 
afford a basis for other related controls, and the President went so 
far, in his statement of the latter date, as to instruct the industry to 
bring the prices of all iron and steel products into a line with the 
above announced basic prices. The Government , ther efore, left quite 
JoJh£jniiiistry-ih.ai)urden of determining the thousands of differen- 
-tials. figured upon the Government fixed basic prices.^ 

Ubid., p. 133. 

2 Ibid., p. 127. 

3 Ibid., p. 159. 
*Ibid., p. 103. 
5 Ibid., p. 141. 

^ The full list of differentials figured under the various basic pricesi announced by the 
Government, and as published by the American Iron and Steel Institute of 61 Broadway, 
New York, consumes 150 pages of detailed schedules of " Maximum Prices on Iron and ^ 
Steel Products" (issued Nov. 15, 1918), and shows control over alloy steel castings U-X^ 
anchors ; angles, heavy ; angles, light ; angle splice bars ; automobile sheets ; bands : 
bands, heavy, iron ; bands, light, iron ; barbed wire ; bars, angle splice ; bars, concrete 
reinforcing ; bars, forging ; bars, iron ; bars, rail steel ; bars, sheet ; bars, shell ; bars, 
steel ; basic pig iron ; beams, Bessemer ferrosillicon ; Bessemer pig iron ; beveled edge 
box iron ; billets for seamless tubes ; billets, forging ; billets, re-rolling ; billets, small ; 
black plate, tin mill ; black sheets ; blast furnace castings ; blooms, re-rolling ; blooms, 
forging; blue annealed sheets, boat spikes; boiler castings; boiler tubes; bolsters, bolts; 
bolts, railroad track; brads; bridge blocks; bulb angles; bulb beams; calks; car .-• 
and locomotive frames ; carbon tool steel ; cai- castings ; car wheels ; castings, malle- --"^ 
able ; castings, steel p-east-iron water pipe ; cement mill castings ; chain ; channels, heavy ; 
channels, light ; charcoal pig iron ; cold rolled and cold drawn steel ; cold rolled strip 
steel ; column bases ; concrete reinforcing bars ; couplers ; crane castings ; cut nails ; cut 
tacks ; electrical sheets ; engine castings ; ferrosillicon, Bessemer ; flats ; flats, cold 
rolled and cold drawn ; flats, iron ; forging bars ; forging ingots ; forging steel ; formed 
roofing sheets ; foundry pig iron ; galvanized sheets ; gears ; half ovals ; half ovals, iron ; 
half rounds ; half rounds, iron ; hexagons ; hexagons, cold rolled and cold drawn ; high 



268 HISTORY OF PRICES DURING THE WAR. 

In response to the request of the President on Xovember 5, the com- 
mittee on steel and steel products of the American Iron and Steel 
Institute, which is a private organization, studied the basic, inter- 
mediate, and finished product prices, for Avhich definite maximum 
jjrices had been established by the Government and recommended 
what it considered " fair and reasonable " differentials. It_app£ars 
tliat the promulgation of these difierentials and their enforcement 
V was left rn Jnr<vpij)Rrt. to the American Iron and^Steej^ Kitr f^^^ 

THe^oinmittee of the institute recommended these differentials to the 
industry direct, under dates of November 13, November 20, and De- 
cember 22, 1917, and January 7, 1918, asking that such prices be 
adopted as maximum prices to take effect immediately; to apply to 
the requirements of the Government, the Allies and of domestic con- 
sumers. The committee added in its recommendations to the in- 
dustry of the latter date : ^ 

That the prices of all iron and steel products, maximum prices for which 
have not been agreed to with the War Industries Board or recommended by 
the conunittee, be promptly adjusted so as to be in line M'ith the basic, inter- 
mediate, and finished products for which definite maximum prices have been 
established. The committee relies upon the patriotism and good faith of the 
iron and steel industry to accomplish this, and expresses the hope that all 
connected with the iron and steel industry will cooperate in the proper spirit 
to this end. 

All prices, differentials, and extras recommended by the American 
Iron and Steel Institute, through its committee on steel and steel 

Billlcon or silvei-y iron ; high-speed tool steel ; hoops ; horse and mule shoes ; horseshoe 
iron ; hot rolled strip steel ; ingots, forging ; iron bars ; iron ore ; iron rolls ; jaw and 
gyratory crusher castings ; light rails ; locomotive castings ; long terne sheets ; low phos- 
phorus pig iron ; malleable castings ; mine and industrial car castings ; mule shoes ; nails, 
cut ; nails, wire ; nuts ; ore, iron ; ovals ; ovals, iron ; pig iron ; pinions ; pinions, iron ; 
pinionsi, steel ; pipe, cast-iron water ; pipe, steel ; plates ; propeller wheels ; rail or step 
joint castings ; rails, light ; rails, re-rolling ; railroad track bolts ; railroad track spikes ; 
rail steel bars ; refractory and brickyard castings ; re-rolljng rails ; rivet rods ; rivets ; 
road and mining machinery castings ; rods, rivet ; rods, wire ; rolling mill castings ; rolls, 
iron ; rolls, steel ; rope, wire ; rounds ; rounds, cold rolled and cold drawn ; rounds, iron ; 
scrap, iron and steel ; screws, wood ; seamless steel tubes ; seamless tubes, billets for ; 
shapes, small ; shapes, structural ; sheets ; sheets, automobile ; sheet bars ; sheets, black ; 
sheets, blue annealed ; sheets, electrical ; sheets, formed, roofing ; sheets, galvanized ; 
sheets, long terne : sheets, painted and formed ; shell bars ; shoes, horse and mule ; shoes, 
steel ; shoe finders' goods ; silvery pig iron ; skelp ; skelp for boiler tubes ; slabs, forging ; 
slabs, re-rolling ; small billets ; small shapes ; spikes, boat ; spikes, railroad track ; splice 
joints for light rails ; spring steel ; spring steel card ; squares ; squares, cold rolled and 
cold drawn ; squares, iron ; steel bands, hoops, and strips ; steel bars ; steel, carbon tool ; 
steel castings ; steel, cold rolled and cold drawn ; steel forging ; steel, high speed tool ; 
steel, hot rolled strip; steel, pipe; steel, spring; steel tire card; steel, tool; steel works 
castings ; strip steel, cold rolled ; strip steel, hot rolled ; strip, hot rolled ; structural 
shapes ; tacks, cut : tees, heavy ; tees, light ; terneplate ; tie plates, iron ; tie plates, steel ; 
tinmill black plate ; tinplate ; tires ; tool steel ; track bolts ; tubes, boiler ; tubes, seamless 
steel; wire; wire, barbed; wire nails; wire rods; wire rope; wood screws; zees, heavy. 

'■ Maximum Prices on Iron and Steel Products, issued Nov. 15, 1918, by the American 
Iron and Steel Institute, pp. 10, 11. 



GOVERI^MENT CONTROL OVER PRICES. 269 

products, were given the same application in all policies as those 
fixed specifically by the War Industries Board or later by the price- 
fixing committee. 

Modi:fkcations of original hasic prices fixed.~li is noteworthy that 
the great bulk of basic price fixing of iron and steel during the war 
was done by the War Industries Board, before the price-fixing com- 
mittee got started in March, 1918. Of no less significance is it that 
though the subsequent changes were enormous in number, there were' 
relatively few important changes ever made in the raw material 
prices fixed September 24, the intermediate prices fixed October 11 
the finished product prices announced November 5, 1917, and the 
differentials based thereon announced soon afterwards by the Amer- 
ican Iron and Steel Institute. Those original prices generally were 
i;enewed every three months after considerable discussion between 
the Government and the industry. There were some modifications, 
iiowever, which ought to be noted. 

The price fixing committee, through the President, announced on 

] J!\ ^ft ""^"^^ *^'' P'^'' "^ basic pig iron would be reduced 
from $33 to $32 per gross ton during April, May, and June, and the 
maximum price of scrap steel reduced from $30 to $29 per gross ton 
1 he well-known meeting of March 20 between the price fixing com- 
mittee and the industry had turned, in the main, upon a considera- 
tion of the price tendency of the schedule due for revision and the 
period during which it should be in force. The proposed plan to 
pool the output of producers so that large and small manufacturers 
a Ike might secure a reasonable profit, while production was kept 
at a maximum, did not find favor.^ The price fixing committee 
gnored cost sheets showing rapidly rising figures, on the gi^ound 
«iat they were based upon abnormal conditions during January and 
February. The committee also refused to extend the new prices 
as was desirecl by the steel men, to a period of six months rather 
than three.^ It asked that no new contracts, calling for delivery 
on or after July 1, specify any price unless coupled with a clause 
making the price subject to revision by any Government agency 
Ihe price fixing committee, again on September 24, 1918, iust one 
year after the War Industries Board had originally fixed tUfprice 
set the base price of basic pig iron again at $33 f. o. b. furnace The 

standaid Bessemer iron at $35.20 f. o. b. furnace. These increased 

■Iron Age, Mar. 14, IMS, pp. TOO, 701, nnd Mar. 2,S, iftis „ .qO ' ~ 

'Quarterly Journal of Economics \u"ust iqis h,/ a p ?' J 

' Maximum Prices on Irrn anrt ^t'.li S I' I' " ' ^^^-'""d, pp. 615, 616. 
ui JTiices, on lion and Steel Products, pp. 12 and 17 



270 



HISTORY OF PRICES DURING THE WAR. 



The price fixing committee, on June 21, 1918, increased the base 
prices of Lake Superior iron ore, delivered to lower lake ports, 
45 cents per gross ton after July 1. These increased prices were 
based upon the advances in rail freight rates effective as of June 25, 
and the then prevailing lake rates.^ The committee again announced 
on September 24 that the base price of Lake Superior iron ore would 
be increased 25 cents per gross ton after October 1, provided that if 
either rail or lake rates are increased or decreased that the base 
prices would be changed accordingly. ^ 

Price control and the relative rise of 'prices and production. — A 
summary of the relative prices prevailing at certain significant dates 
is presented in the following table. The advance in prices caused 
by the entry of the United States into the war is shown by the rise 
from April, 1917, to July, 1917. In July the first announcements of 
a Government price-fixing policy were made, and the October prices 
show the reductions accomplished through price control. The aver- 
age of market prices from July 1, 1913, to June 30, 1914, is taken as 
100.3 



July, 


April, 


July, 


1915. 


1917. 


1917. 


85 


153 


153 


85 


352 


594 


96 


291 


394 


103 


344 


436 


98 


260 


424 


97 


357 


714 


92 


233 


349 


102 


337 


382 



Octobe , 
1918. 



Iron ore, Mesabi, non-Bessemer 

Coke, Connellsville, furnace 

Pig iron, basic 

Steel billets, open hearth 

Structural shapes 

Steel plates, tank 

Tin plate, domestic, coke 

Wire rods, Bessemer 



174 
291 
240 
218 
205 
258 
225 
226 



There can not readily be had an accurate statistical comparison of 
the relative rises of the prices and corresponding production of all 
groups controlled within the iron and steel industry. The most sat- 
isfactory of all the comparisons is that which can be made of the 
relative rises of the prices of basic pig iron and those of the produc- 
tion of pig iron by months from 1913 to 1918. In the calculation 
both of the relative prices and the relative production figures, the 
average price or production figure, respectively, for the prewar year 
(July 1, 1913 to June 30, 1914) was taken as a base equal to 100. 
This comparison is the more interesting because pig iron, the basic 
raw material of the industry, was fixed as early as September 24, 
1917, and during the war underwent even less violent rises than 
many other commodities of the iron and steel group. The base price 
for the prewar period, adopted as 100 in figuring the relative prices 

1 Maximum. Prices of Iron and Steel Products, p. 14. 

2 Ibid, p. 17. 

^ See " Prices of Iron, Steel, and their Products," by Walter W. Stewart (War Indus- 
tries Board Price Bulletin No. 33). 



GOVBRlirMElfrT CONTROL OVER PRICES. 



271 



of pig iron in the table following, was $13.31, and the base produc- 
tion figure for that same prewar period, also adopted as 100 in the 
table below, was 2,231,420 gross tons. 

RELATIVE PRICES OF PIG IRON, BASIC. 



Month. 



January 

February . . 

March 

April 

May 

June 

July 

August 

September . 

October 

November . 
December. . 



123 
122 
121 
119 
114 
109 
108 
106 
105 
104 



1914 



94 
94 
94 
94 
94 
95 
96 
106 
111 
113 
118 
131 



1916 



134 
133 
137 
136 
135 
135 
135 
135 
137 
149 
188 
225 



225 
225 
242 
291 
312 
366 
394 
384 
321 
248 
248 
248 



2« 
248 
248 
240 
240 
210 
240 
240 
240 
248 
248 
248 



RELATIVE PRODUCTION OF PIG IRON. 



January 

February . . 

March 

April 

May 

June 

July 

August 

September. 

October 

November . 
December. . 



125 


84 


72 


143 


141 


116 


85 


75 


138 


119 


124 


105 


92 


150 


146 


123 


102 


95 


145 


149 


126 


94 


101 


151 


153 


118 


86 


107 


144 


147 


115 


88 


115 


145 


150 


114 


89 


125 


144 


146 


112 


84 


128 


144 


140 


114 


80 


140 


157 


148 


100 


68 


136 


148 


144 


89 


68 


144 


142 


129 



108 
104 
144 
147 
154 
149 
153 
152 
153 
156 
150 
154 



Summary. — The Government undertook few price controls dur- 
ing the whole war more extensive than that which it exercised over 
the iron and steel industry. The President, after various informal 
agreements made in conference between the War Industries Board 
and the steel men, approved their recommendation to fix the prices 
of the basic raw materials (iron ore, coke, pig iron, steel bars, 
shapes, and plates) on September 24, 1917; their recommendation 
to fix the prices of intermediate products (blooms, billets, slabs, 
sheet bars, wire rods, shell bars, and skelp) on October 11, 1917; 
and those for certain finished products (sheets, pipe, cold rolled 
steel, scrap, wire, and tin plate) on November 5, 1917. He, on the 
latter date, asked the industry itself to adjust the maximum prices 
of all iron and steel products in line with the basic, intermediate, 
and finished product prices already fixed. The industry, through 
the American Iron and Steel Institute, adjusted thousands of prices, 
differentials, and extras to those bases. The most important part of 
this price fixing was done under the War Industries Board, before 
the creation of the price fixing committee. 

The index number for the whole iron and steel group in July, 
1917, when it became known that the Government probably would 
fix prices, had reached a peak unknown in iron and steel history. 



272 HISTORY OF PRICES DURING THE WAR. 

The weighted "all commodities" index number in the same month 
stood 89 per cent above its prewar level, while the iron and steel 
index number showed an advance of 270 per cent. The fall immedi- 
ately following July, and before formal control began in September, 
was due in large part to an anticipation of control and must to that 
extent be credited to the influences of Government regulation. By 
October, after prices had been fixed, the index number for iron and 
steel prices had made a straight drop back to a level 143 per cent 
above the prewar price. In November the index number for the 
group receded still further to 118 per cent above the prewar level 
where it remained without an important rise or drop until the armis- 
tice was signed. 

Copper. 

The first of the metal price controls and, as proved later, one of 
the most important, was that over electrolytic copper begun formally 
on September 21, 1917. By comparison with the iron and steel con- 
trol which followed upon its heels, it was a simple regulation. The 
Government came ultimately to fix the raw material, intermediate 
and finished product prices within the iron and steel group, involv- 
ing thousands of diiferentials and extras calculated upon basic 
prices. But throughout the whole war, speaking generally, it did 
not attempt fixation in the copper group of more than electrolytic 
copper (refined by the electrolytic process and running 99.93 per 
cent pure or upward) — ^the great basic raw material of the industry. 
The Government Avas provoked to a control over copper more by a 
concern for maximum production than from fear of a runaway 
market. While formal price fixing did not begin until later, during 
the six months after our entry into the war, the negotiations of the 
War Industries Board for Government and allied purchases bear 
upon the price-fixing problem. It is necessary to review these actions 
before pushing an inquiry into the fixing "of the first price in Sep- 
tember, 1917, and the increase of price allowed in July, 1918. 

Copper production of more concern than high prices. — This coun- 
try controls the bulk of copper in the world and, by the enormous 
allied purchases during 1916 and 1917, was made to realize that, 
if it, too, was to make war, it must maintain maximum copper pro- 
duction. Even before the United States entered the struggle, the 
European War required the lion share of copper mined in the coun- 
try. After our entry it was obvious that a normal output of copper 
would not suffice. There would be required very much more, though 
nobody knew specifically the quantity. Curiously, copper prices, 
during the phenomenal steel rise of 1917, Were falling. Yet the 
Government, though interested primarily in encouraging maximum 
copper production, presently concerned itself with price control be- 
cause it believed that a means to tlie greater end in mind. 



GOVERNMENT CONTROL OVER PRICES. 



273 



To make the situation clear, there are presented statistics showing 
the war-time changes in the prices of electrolytic copper at New 
York ; the production of refined new copper ; the stocks on hand ; the 
amount of copper exported : and the apparent domestic consumption 
of copper.^ 

ACTUAL COPPER MOVEMENTS. 



Year. 


Prices 
(electro- 
lytic 
copper). 


Production 
(total new 
supply). 


Stocks 

(beginning of 

year). 


Exports. 


Domestic 
consumption 
(apparent). 


1913 


Cents. 
15.52 
13.32 
17.47 
28.46 
29.19 
24.68 


Pounds. 
1,615,067,782 
1,533,781,394 
1,634,204,448 
2,259,387,315 
2,423,646,171 
2,450,000,000 


Pounds. 
105,497,683 

90,386,402 
173,640,501 

82,429,666 
128,000,000 
114,000,000 


Pounds. 
817,911,424 
840,080,922 
681,917,955 
784,006,486 
1,126,082,417 
735,737,200 


Pounds. 
812.268,639 


1914 


620,445,373 


1915... . -- 


1,043,497,328 


1916 


1,429,755,266 


1917 

1918 


1,316,463,754 
1,648,262,800 







RELATIVE COPPER MOVEMENTS.2 



Year. 


Prices. 


Produc- 
tion. 


Stocks. 


Exports. 


Domestic 
consump- 
tion. 


1913 ... 


100 
85 
113 
183 
188 
159 


100 
95 
101 
140 
150 
152 


100 
86 

165 
78 

121 

108 


100 
103 
83 
96 
138 
90 


100 


1914 


76 


1915 


128 


1916 ... . 


176 


1917 


102 


1918. 


203 







The later considerations in detail of a proper price to allow the 
producers for their refined copper, and the contrast in the movement 
of copper prices and steel prices fixed at the same time, require a more 
minute study of the quotations than the above yearly figures afford. 
There follows a list of monthly quotations of electrolytic copper at 
Xew York, showing prices per pound from 1913 to 1918 : ^ 

ELECTROLYTIC COPPER PRICES. 



Month. 



1913 


1914 


Cents. 


Cents. 


16.75J 


14.45 


15.27 • 


14.67 ■ 


14.92i' 


14.331- 


15. 48 ■ 


14.34 


15.63 


14. 13 


14.85 


13. 81 J 


14.57 


13.49 ' 


15.68 


12.4ir 


16.55 


12. 08J 


16.54 ■ 


11.40 


15.47 


11.74 


14.47 


12.93 



1915 



1916 



1917 



1918 



January.. . 
February . 

Marcli 

April 

May 

June 

July 

August 

September 
October- -. 
November 
December. 



Cents. 
13.71 
14.57 
14.96 
17.09 
18. 60 
19.71 
19.08 ■ 
17. 22 ' 
17.70J' 
17.86 
18.83 • 
20.35 ■ 



Cents. 
24. 10 
27.46 
27. 44 
29.31 
29. 81 
27. 49i 
25. 60 . 
27. 36i 
28.26- 
28. 64 ■ 
32. 22J-- 
33. 84' 



Cents. 
30. 26" 
35.22 
35. 74- 
32.19 
32.32 
32.57 
28.90 
27.13 
25. 45 

123.50 
23.50 
23.50 



Cents. 
23.50 
23.50 
23.50 
23. 50 
23.50 
23.50 
25.89 
26.00 
26.00 
26.00 
26.00 
25. 28* 



^ The price table was taken from Metal Statistics for 1919 ; the tables showing produc- 
tion, stocks on hand, and apparent domestic consumption from the United States Geo- 
logical Survey ; and, finally, that showing exports, from the Bureau of Foreign and Do- 
mestic Commerce. 

" Tlie relative comparisons were made upon the basis of the actual price, production, 
stock, export, and consumption figures given above, taking the 1913 figure in each case 
as equal to 100. 

^ Metal Statistics for 1919, p. 231. 

* Price fixed. 



125547°— 20- 



-18 



274 



HISTORY OF PRICES DURING THE WAR. 



Electrolytic copper, a month before this country declared war, 
attained its high price for the whole war period at nearly 36 cents per 
pound, an increase of 140 per cent over its prewar level. Then, 
however, it began to drop and continued falling until stabilization 
was brought to the market through price fixing. It is notable that 
the peak in the copper market came four months prior to that in the 
steel market, though formal price fixing took place at the same time. 

Clearly, the Government did 
not start regulating copper to 

check a runaway market.^ 

The early allied furcKases — 
The most striking feature of 
the copper situation in 1916, the 
year just preceding our entrance 
into war, was the phenomenal 
increase in production in the 
United States because of for- 
eign business placed here with 
manufacturers. The foreign 
orders were the largest ever 
known, and sales, with approxi- 
mate prices were as follows : To 
Great Britain, December, 1915, 
120,000,000 pounds, at 22 cents ; 
to France, March, 1916, 100,- 
000,000 pounds, at 27 cents ; and 
to England and France, Sep- 
tember, 1916, 448,000,000 pounds 
at 27 cents. This total of more 
than 950,000,000 pounds that 
the Allies took from the mar- 
ket, together with what Avas 
contracted for by American consumers, left the refineries bare of sup- 
plies. For the last three months after the large September sale, cop- 
per averaged 31| cents.- Domestic buyers, because of high prices, had 
allowed stocks on hand to run low, and then with the continuing ad- 
vance, hesitated to accumulate supplies. The excessive foreign buying 
though done with no little care to avoid overturning the market, 
gave a feverish and speculative market during 1916 and brought 
about an undeniable threatened world shortage of copper by the 
beginning of 1917.^ 



relative: priced or 

COPPER 

ELECTROLYTIC 




BY MONTHS 

JANUARV.lSIJ'-DECEMBER.iaa 

AVERAGE QUOTED PRICES JULY,B13™JUNEU3M-100 




240 


1£)13 1 1914 1 1913 


1916 1 1917 1 19la 


240 


^AA^ 


iMX^ 


oa. 


1^.^, ttj^u.^..^ 


\X^X^ 


220 
200 









^ 


\ 


\ 




220 
TOO- 


180 









f^ 


\ 


\ 


r-\ 


ieo 


160 
140 
120 
100 










\ 


_r 


160 
MO 
120 
100 




















A/ 








i/^A 


^, 


t 








ao 




-M 










60 




S U 1 S 3 5 i U S 1 § S S i n M * ^ « 




— 


1913 1914 1 1915 1 1916 I 1917 1 19ia 





Relative prices. — Copper, electrolytic. — By 
months, January, 1913, to December, 1918. 
(Average quoted prices, July, 1913, to 
June, 1914=100.) 



^ " The Price Fixing of Copper," by Lewis Kennedy Morse, in the Quarterly Journal of 
Economics, November, 1918. 



: GOVERFMEIOT: CONTROL OVER PRICES. 275 

It was deemed best, since heavy Government buying must continue, 
to change the policy of foreign buying in order not to excite the mar- 
ket. While manufactured products, wholly or partly finished, con- 
tinued to be purchased in record-breaking quantities and at the 
highest prices, foreign Governments thereafter, instead of taking 
specified amounts of refined copper, bought only from time to time, 
and at the best possible price, such copper as could be secured from 
the large producers.^ Fewer large sales were featured in the trade 
news. 

The allied purchase of 77fi00p00 pounds. — In August of 1917 it 
was brought officially to the attention of the War Industries Board 
that the French were in the market for 12,000 tons of copper for 
August shipment which, together with known immediate British 
needs, made a total of 60,000,000 pounds.^ It was the opinion of the 
board that the producers should be called into conference, bearing 
in mind their firm offer to the Government of copper for 25 cents 
per pound, and that a tentative price of 20 cents per pound be 
offered them for the above lot. This price, it was agreed in meeting, 
should be subject to revision upward or downward later. ^ It was 
on the following day moved that if the copper producers refused to 
enter into this agreement, the Government would proceed to 
commandeer the necessary supply.* The board, in order to meet the 
determined opposition in the industry to sales at a memorandum 
price, modified its initial figure and passed the following resolution : ^ 

That as the copper emergency required immediate action necessary to secure 
a supply for our "Government and our allies, the board endeavor to secure 
from the copper interests the needs of ourselves and our allies at a price to 
be fixed when we will see the report of the Federal Trade Commission as to 
the costs and for purposes of payment on account of deliveries, a tentative 
price of 22^ cents to be fixed with the understanding that this price shall in 
no way be taken into consideration when the final price is to be determined. 

Finally, in the middle of August, the copper interests agreed to 
deliver 77,000,000 pounds of copper to the Allies on a memorandum, 
no price to ,be paid pending the final fixing of a price*"' after an 
investigation. 

The early Governmeiit purchases. — Shortly before this country 
made its formal declaration of war, and again within three months 
afterwards, there were placed with the producers two Government 
orders for copper which affected vitally and hastened the price fix- 

'^ Statement from Mr. Lewis Kennedy Morse. 

2 On Aug. 9, 1917, tlie board considered still an additional request from the Italian 
Government for 40,000 tons of copper. 

3 War Industries Board Minute Book, Aug. 7, 1917. ' 
*Ibid., Aug. 7, 1917. 

Blbid., Aug. 8, 1917. 

« Ibid., Aug. 15 and 16, 1917. 



276 HISTORY OF PRICES DURllNG THE WAR. 

ing of copper. The two orders, embracing altogether 105,510,000 
pounds of refined copper, were placed at strangely different prices 
because of instability in the market. The price for the earlier order 
was 6.83 cents below that finally fixed in September and that for 
the later order 1.50 cents above. The fact that the Government had 
been able to negotiate a large purchase in the spring of 1917 at a 
price so favorable, gave it a lever to hold firmly for a favorable 
price in September, just as the second purchase at a higher figure in 
the summer of 1917 gave the industry a weapon in their holding out 
for a higher fixed price. Each purchase had its influence upon copper 
price fixing. 

The Government pti/rcTmse of 1^5^510^00 pounds in March^ 1917. — 
The principal copper producers of the country, it was announced 
on March 20, 1917, offered to supply the Army and Navy with 
45,510,000 pounds of copper at a price of 16.6739 cents a pound for 
delivery beginning in April and continuing quarterly for a year. 
This unusually favorable purchase, negotiated by Mr. Bernard M. 
Barucli then of the Council of National Defense, was made at a 
time when the regular market quotations were 35.74 cents per pound 
and sales were being made at 37 cents in the open market. The 
amount of that metal which was to go to the Navy was 20,000,000 
pounds and that to the Army 25,510,000 pounds.^ The purchase 
price agreed upon represented, not the price which those amounts 
might have commanded in the market, but the actual average selling 
price covering the 10-year period from 1907 to 1916, inclusive.^ 

The Government purchase of OOpOOfiOO pounds in June^ 1917. — 
Another, and larger, order for 60,000,000 pounds of copper, as an- 
nounced June 27, 1917, was placed by the Government for early 
delivery at a tentative price of 25 cents a pound. The open copper 

1 The Commercial and Financial Chronicle, Mar. 24, 1917, p. 1108. 

2 Mr. Bernard M. Baruch, after spending a week ill conference with the large produc- 
ing and smelting interests of the country, received the following letter from them on 
Mar. 24, 1917, as their written record of the agreement reached : 

" Referring to our several conversations on the subject of supplying copper for the 
Army and Navy, to the letter of the Secretary of the Navy of Mar. 16, and the tele- 
gram of the Secretary of War of Mar. 18, both addressed to you, on behalf of the prin- 
cipal producers of copper in this country, we beg to say that we will furnish the quan- 
tity named for delivery within twelve months, viz : 

" Twenty million pounds for the Navy and 25,510,000 pounds for the Army, in 
approximately equal quantities each quarter from April, 1917, to April, 1918, at a price 
of 16.6739 cents per pound, delivered in regular shapes at Atlantic seaboard points. 

" The price named is the actual average selling price obtained by the United Metals 
Selling Co., the largest seller of copper, over the period of 10 years, 1907 to 1916, in- 
clusive, and represents in our opinion the fair average price of all copper sold by 
American producers during that time. 

" We offer the copper at this price notwithstanding our costs for labor, materials, sup- 
plies, etc., vary from 30 to 75 per cent above the average during the 10-year period, be- 
cause we believe it to be our duty to furnish the requirements of the Government in 
preparing the nation for war with no profit more than we received from our regular 
production in normal times. It is understood that the price quoted above is for the 
quantity and period of delivery above named." 



GOVERNMENT CONTROL OVER PRICES. 277 

market, standing at the time at 32.57 cents per pound, was not secure, 
largely by reason of actual and threatened labor troubles. The price 
set was made tentative, subject to revision later when a Government 
price might be fixed.^ Secretary of the Navy Daniels shortly after- 
wards announced that he would agree to pay 75 per cent of the above 
set price (25 cents) , or 18.75 cents per pound, for the Government's 
order of 60,000,000 pounds, leaving 25 per cent per pound for adjust- 
ment when the cost of production shall have been determined by the 
Federal Trade Commission. The announcement of this policy, 
which was interpreted by some as an indication of what price the 
Government intended to fix, gave concern in some market quarters.^ 

The War Industries Board agreed to advance 22.50 cents and to 
leave the difference between 22.50 and 25 cents to the findings of the 
Federal Trade Commission. The indebtedness of the Government 
to producers soon ran into millions of dollars, and refineries were 
short of blister and running at from 60 per cent to 75 per cent 
capacity.' 

Meantime, our entrance into war and the increasing copper require- 
ments found the market with scarcely enough copper to meet contract 
needs, even by calling existing stocks into use, watching supplies, and 
carefully conserving every pound of copper. Every pound of copper 
had to be allotted by a careful matching of output with consumers' 
needs, and where some particular brand of copper was required by 
the Government, existing contracts were released. Such were the 
abnormal and almost panicky conditions in the fall of 1917, requiring 

^ Commercial and Financial Chronicle, .June 30, 1917, p. 2603. 

2 The Boston News Bureau, July 13, 1917, said in part: 

" At this writing it is not linown whether the copper producers will accept — without 
further parleys — the offer of Secretary Daniels to purchase 60,000,000 pounds of cop- 
per at what is equivalent of 18| cents (75 per cent of 25 cents), with adjustment later on 
of 6i cents (25 per cent of 25 cents), which is the halance of the 25-cent figure named 
by the producers. 

" Any price less than 25 cents would involve serious labor controversies, and just now 
labor is demanding more than it had already agreed to accept on the sliding scale basis — 
and has tied up the copper producing industry of Arizona, the biggest producing section 
of the country, in order to force its demands." 

The Wall Street Journal of the same date, said in part : 

" Small copper sellers have lowered prices for all deliveries. They are quoting July 
at 29i cents a pound ; August, 29 ; September, 28h ; October-November-December, 27J. 
This represents a reduction of one-half to 1 cent a pound. However, little business is 
being transacted. Inquiries are light, and leading producers show little inclination to 
quote September and last-quarter deliveries until the strike situation clears. 

" Washington's action in naming what appears to be a tentative price of 18| cents 
a pound, covering the 60,000,000-pound lot which was booked last week, leaving the re- 
maining 6J cents a pound subject to adjustment by the Federal Trade Commission, has 
not helped the copper situation. 

" It is pointed out that the miners are being paid on the basis of 30-cent copper, and 
that the average wage scale in June was $5.85. In view of unsettled labor conditions, 
prevailing high costs, and the predicted falling off both in mine and refinery output, pro- 
ducers contend that they should at least receive a flat price of 25 cents a pound." 

8 " The prices of Ferroalloys, Nonferrous and Rare Metals," by H. R. Aldrich and Jacob 
Schmuckler, W. I. B. Price Bulletin No. 34. 



278 HISTORY OF PRICES. DURING THE WAR. 

supervision and ordered control by the Government agencies in 
cooperation with the copper producers committee.^ 

Electrolytic cofper -fixed on September 21, 1917. — The story of how- 
copper came finally to be fixed at 23.50 cents on September 21, 1917, 
is not really a complete one, unless preceded by a mention of the not 
widely-known decisions reached earlier by the War Industries Board 
to fix it at a lower figure and the storm of protest made to the Gov- 
ernment by the copper interests. The original formal fixing of a 
copper price, made early in September but not announced, the meet- 
ing of the War Industries Board with the copper men immediately 
afterward to discuss in more detail the copper problem, the fixing 
of a final price the latter part of September, and the interpretation 
put upon its own action by the board are all essential parts of the 
story. 

The determination of the Government to fix the price at 22 cents. — '■ 
The War Industries Board met September 5, 1917, and, after dis- 
cussing the report upon costs of producing copper made by the 
Federal Trade Commission, reached a definite conclusion to fix 
copper at 22 cents per pound. To that end it passed the following 
formal resolution : ^ 

Upon motion duly made, seconded, and unanimously adopted, it was decided 
to recommend to the President, in accordance with his instructions to Mr. 
Baruch, that a price of 22 cents per pound f. o. b. New York be offered the 
copper producers for the United States Government requirements of copper. 
Mr. Baruch was asked to notify the President that the board is now ready to 
confer with him on this subject. 

The copper interests ask for a price of 25 cents. — The copper inter- 
ests, in order that they might be made aware of the attitude of the 
board, were called to Washington on September 11, and told that 
the board felt that 22 cents per pound f. o. b. New York for refined 
copper was a fair price and would allow the producers a reasonable 
profit. The price, they were told, would hold for a certain period 
only and could then be revised upward or downward. The board 
told the producers, too, that that price had been determined upon as 
one applicable alike to the Government and its Allies, and that 
wages to labor should remain the same nothwithstanding the sliding- 
scale agreement. 

Mr. John D. Rj^an, in person, then and by a long written memo- 
randum three days later, represented the viewpoint of the copper 
interests to the Government through the War Industries Board.^ 

^ The copper producers committee, while not responsible for fixing prices in the sense 
that the American Iron and Steel Institute was, did assume responsibility for the 
allocations. 

2 This minute was taken from the War Industries Board Minute Book, for Sept. 5, 1917. 

' See War Industries Board Minute Book for Sept. 11, 1917 : also a letter from Mr. 
John D. Ryan, representing the copper interests, addressed to the War Industries Board 
on Sept. 14, 1917. 



GOVEENMEKT CONTROL OVER PRICES. 279 

He said flatly that the copper interests could not control the price 
to the public at a point much below 25 cents, and that if the Govern- 
ment fixed 22 cents as the price, then the small high-cost producers 
would not voluntarily cooperate in selling at the fixed price. There 
would result, he contended, even more acute labor troubles should the 
then existing sliding scale of rates be disturbed. These points, after 
emphasizing the impracticability of the Government commandeering 
the numerous small high-cost mines, he dealt upon in more detail. 

Mr. Ryan and his associates, in proof of these arguments, gave evi- 
dence to show that if 22 cents per pound was finally fixed, it would 
'be impossible to obtain the cooperation of the majority of mine 
owners. The copper industry, while its bulk of business was 
highly concentrated in the hands of a few producers, embraced 
after all a large number of smaller high-cost producers whose product 
was needed in the extraordinary emergency. But he assured the 
board that if it would allow a fixed price of 25 cents per pound, 
which the industry at large was holding out for, there would be no 
difficulty in distributing the copper properly and controlling its 
prices. If the higher price was not allowed, he said, the 300,000,000 
pounds produced outside of the United States could not be con- 
trolled.^ 

Not the most salient of all the reasons advanced by the copper 
men for a higher price was the intricate bearing which they clearly 
showed to exist between labor and copper prices. There are indeed 
few raw materials of which so large a percentage of the cost of pro- 
duction goes to pay wages. It was argued that the wages of all 
men in the copper industry had been advanced 50 per cent over 
those prevailing in 1915, and that in the more important western 
mining camps the wages were determined upon a sliding scale, 
based on the price of copper.^ The labor unrest, while not so mani- 
fest in the copper industry until the summer of 1917, had become 
serious and the producers feared the consequences should the price 

lit is noteworthy that during the interim between the appearance of the copper 
men in Washington and the later memorandum from them the War Industries Board 
had virtually made up its mind to the necessity of fixing a price of 25 cents for copper. 
The secretary of the War Industries Board, on Sept. 12, 1917, addressed the following 
letter to the chairman of the raw materials committee : 

" This will confirm to you the action of the War Industries Board taicen to-day that 
the Government pay for copper for uses of the United States Government and the allied 
governments and the consuming public, 25 cents per pound f. o. b. New York, 

" It is requested that you arrange a conference with the President to advise him of 
this decision of the board." 

2 These sliding scales provide for the minimum wages of $3.50 per day of eight hours 
for miners and men employed underground, and $4.50 for mechanics, with many higher 
classifications where skilled labor is necessary ; the minimum to apply when copper sells 
below 15 cents per pound, and 25 cents additional per day to every man employed to 
be paid for each 2-cent advance in the price of copper above 15 cents. The result 
had been that for over a year wages were based on a price of copper at 27 cents and 
above, so that miners were receiving $5 to $5.25 per day, and all mechanics $6.25 to 
$6.50 per day. 



280 HISTORY OF PRICES DUEIITG THE WAR. 

for copper be set at a figure so low as to require a cut in wages or in 
the laborers' returns under the sliding-scale rule. The producers 
■would, they said, endeavor to pay employees the same wages which 
they had been receiving during the months preceding based upon a 
price of 27 cents and over, should the Government fix the price at 
not lower than 25 cents. Even with the best of fortune, the producers 
feared then that the closing of mines through strikes would cut 
short the production of copper between September and January 1. 
1918, by 140,000 tons. 

The industry made a proposal to the Government, in its contention 
for a price of 25 cents for copper, which has a peculiar war-time in- 
terest, coming early as it did before the Government had got really 
into the problem of raw-material regulation. It was submitted by 
Mr. Kyan in his long memorandum of September 14, and was out- 
lined in part as follows: 

While some of the low-cost producers will show a large profit at 25 cents, 
some of the largest and practically all of the small producers can not show 
more than the usual peace-time profit at that price, and if depletion of mines is 
considered, their profit would probably be less than in normal times at average 
prices. We believe that it would be to the interest of the Government to pay 
25 cents per pound and to take all of the production of all of the mines of the 
country at that price, retaining all the copper which is needed for this Govern- 
ment and for its allies, and selling the balance at the same price, or approxi- 
mately the same price, to the public. 

The leading copper producers finallj^, on September 14, met in 
Xew York and decided among themselves to split the difference in 
price between that set bj^ the Government at 22 cents and that asked 
by the producers at 25 cents, and accordingly^ offered their full 
cooperation if the Government would allow them a fixed price of 
23.50 cents. The record of that decision as given to the Government 
follows:^ 

The representatives of the copper producers who attended our conference on 
Tuesday and Wednesday met in New York to-day at my request, and I recom- 
mended to them as a result of my talk with members of your board, looking 
toward a compromise in the matter of price that would result in obtaining the 
full assurance of cooperation and effort on the part of the copper producers, 
which we were all certain at our conference in Washington could not be secured 
at any price less than 25 cents, that a compromise be agreed upon at 23^ 
cents per pound. With one exception those present agreed that if your com- 
mittee would unanimously recommend a price of 23^ cents * * * t^^t we 
would still be able to get the practical result that we are aiming for, that is, 
pretty nearly maximum production ; therefore I would say that if your com- 
mittee would agree to 23* cents we can pledge the copper industry almost as a 
whole to use every possible means to secure a maximum production and to 
maintain the present scale of wages, and I am satisfied we can succeed. 

1 Letter to the War Industries Board by John D. Ryan, dated Sept. 14, 1917. 



GOVERNMENT CONTROL OVER PRICES. 281 

The price -fixed at 23^ cents. — Finally, on September 21, 1917, the 
War Industries Board definitely fixed the price of refined copper, 
free on board New York, at 23| cents per pound. The regulation 
Tvas in the form of an agreement between the Government and the 
producers and, as approved by the President, was subject to revision 
after four months. The same price later was continued in effect 
until June 1, 1918.^ Under the agreement the copper producers 
pledged themselves not to reduce wages then paid; to sell their 
product to the Allies and the general public at the same price as 
that to be paid by the Government; to exert every effort to main- 
tain maximum production during the war ; and to take the necessary 
measures to prevent copper from falling into the hands of specu- 
lators.^ The new agreement on copper with the Government was 
satisfactory to the industry.^ 

Interpretation of the fixed-price policies. — The copper industry, 
though immediately pleased with the new price determined upon for 
copi^er, began wondering within a week afterwards how the scheme 
would be administered and temporary confusion was introduced into 
the market. Neither the Government nor the industry had yet ad- 

1 Meeting of the War Industries Board, Jan. 9, 1918. 

2 The official announcement by the War Industries Board, on Sept. 21, 1917, of the 
final fixing of a copper price was as follows : 

After investigation by the Federal Trade Commission as to the cost of producing 
copper, the President has approved an agreement made by the War Industries Board 
with the copper producers fixing a price of 23i cents per pound f. o. b. New York, sub- 
ject to revision after four months. Three important conditions were imposed by the 
board : First, that the producers would not reduce the wages now being paid ; second, 
that the operators would sell to the Allies and to the public copper at the same price 
paid by the Government, and take the necessary measures, under the direction of the 
War Industries Board, for the distribution of the copper to prevent it from falling into 
the hands of speculators who would increase the price to the public ; and, third, that 
the operators pledge themselves to exert every effort necessary to keep up the produc- 
tion of copper to the maximum of the past, so long as the war lasts. 

The War Industries Board felt that the maintenance of the largest production should 
be assured, and that a reduction in wages should be avoided. The stipulation that 
present wages shall not be reduced compels the maintenance of the highest wages ever 
paid in the industry, which without such stipulation would, with a reduction made in 
the price of copper, be reduced under the sliding scale so long in effect in the copper 
mines. Within this year copper has sold as high as 36 cents per pound, and the market 
price would now be higher than it is, had it not been well known for some weeks that 
the Government would fix the price. 

The principal copper producers throughout the country have evinced an admirable 
spirit, and for weeks have promptly supplied every request of the Government for cop- 
per, without waiting decision as to price, and agreeing to accept the price which the 
Board should ultimately fix. The proper departments of the Government will be asked 
to take over the mines and plants of any producers who fail to conform to the arrange- 
ment and price, if any such there should be. 

3 The Wall Street Journal of Sept. 21, 1917, said in part : " The copper trade was 
mildly surprised at the announcement that the Government's price, as well as that to 
the public and the Allies, had been fixed at 23| cents a pound. For some time past they 
had been led to believe that the price would be in the neighborhood of 22J cents a pound. 
The new figure was made known to some of the big producers earlier in the week, but 
they were pledged to secrecy, and consequently refrained from discussing the matter in 
advance of an official announcement. The consensus of opinion in the trade is that the 
new figure is satisfactory." 



282 HISTORY OF PRICES DURING THE WAR. 

justed itself to the detail of regulation or was prepared, at a 
moment's notice, to answer all price-fixing questions as they arose.^ 
The trade soon directed inquiries to the board to learn what would 
be the status of all outstanding contracts with the Allies at higher 
prices than the fixed price; whether the new announcement would 
allow that copper be traded in for delivery after January 21, at 
prices to be arranged by contract, regardless of the Government 
fixed price; whether the Government contemplated eliminating all 
trade in copper, except at the fixed price; whether the Government 
meant that other prices, than those for electrolytic copper as such, 
be fixed in line with that base price ; and whether all bona fide con- 
tracts in existence on September 21 were to stand.^ 

All outstanding contracts between producers and consumers, as 
matters stood, might, it was understood, be consummated at book 
prices. That called for the delivery of copper at a price as high 
as 27 cents a pound. Under the priority agreement, however, the 
Government had first call, and the Allies second; which, coupled 
with the existing shortage in supplies of refined copper, made it very 
difficult for American manufacturers to get copper, except to fill 
Government orders.^ 

The board, in response to inquiries regarding the status after 
January 21, 1918, ruled that all contract sales made for delivery after 
the expiration of the present fixed price should be made at a price 
subject to any revision which the board might see fit later to make. 

It was made known to the Government shortly after control of 
copper had set in, that there were a large number of outside dealers 
and brokers, other than producers, who were still trading and quot- 
ing 28.29 and 30 cents for copper. The gradual setting up of a 
control committee or selling agency, with Government sanction and 
representation, crowded off many of these dealers who had bought 
copper direct from mining companies at figures higher than the 
fixed price and who would, under the new price, be forced to sell 
at a loss. The board, however, held firmly to its belief that the 
fixed price should be made applicable to all trading in refined copper. 

The board was strongly urged, at least from one quarter, to extend 
the price fixing of copper by establishing a scale of prices based on 

1 The Wall Street Journal of Sept. 27, 1917, said in part : " A canvass of the larger 
copper producers in New York discloses great uncertainty in the copper market, not- 
withstanding price fixing by the Government for the next few months. Both producers 
and consumers are ' up in the air,' due to lack of details in connection with the carry- 
ing out of the proposed plans for handling the copper market, and this condition will 
continue until Washington furnishes more detailed advices as to what can be done and 
what should not be attempted under the new order of things. 

2 A majority of these questions were raised in a letter by Eugene Meyer, jr., dated 
Oct. 19, 1917, to Mr. Baruch and were answered the same day by the secretary of the 
War Industries Board. 

8 Commercial and Financial Chronicle, Sept. 29, 1917, p. 1264, 



GOVERNMENT CONTEOL OVER PRICES. 283 

modifications, specifications, and shapes, and particularly to issue 
a scale of prices on scrap copper. It ruled, however, to fix no other 
prices than those for electrolytic copper.^ 

Appeal of small high-cost producers for an increase. — The relative 
hardship, if any, of the fixed price of 23^ cents was borne not by the 
larger low-cost but by the small high-cost producers. Complaints 
from these more numerous and less efficient concerns, however, 
became more and more serious, since by 1918 it was estimated the 
Government was taking fully 93 per cent of the total copper supply 
for the war program. Of this amount the United States was con- 
suming about 49 per cent and the Allies 44 per cent.^ The Govern- 
ment then could not afford to ignore the interest of any branch of the 
copper industry.^ The price-fixing committee, however, after a con- 
ference with the copper interests and an examination of cost sheets, 
decided on May 22, 1918, despite the apparent disadvantage under 
which certain high-cost producers were operating, that the price of 
23^ cents be continued for at least another 75 days, until August 
15, 1918. The committee began fearing shortly afterwards, however, 
that the advance in freight rates and the possibility of an increase in 
the costs of labor might make it necessary to increase the price before 
that time.* 

Electrolytic copper increased to 26 cents on July 2, 1918. — The 
increased costs of producing copper,^ as the price-fixing committee 
feared, required that relief be given before the expiration of the 
pending agreement, on August 15. Accordingly, the committee on 
July 2 increased the price of electrolytic copper from the price of 
23| cents, which had been originally fixed by the War Industries 
Board nine months before, to 26 cents on July 2, 1918.*^ The new 

^ Oct. 25, 1917, the board allowed a differential of from 5 to 10 per cent for L. C. L. 
shipments over the 23|-cent price because of extra handling, in accordance with trade 
practices. 

2 The Prices of Ferroalloys, NonfeiTous, and Rare Metals, by H. R. Aldrich and 
Jacob Schmuckler, W. I. B, Price Bulletin No. 34. 

3 The Wall Street Journal of Apr. 30, reported that in Boston : " It is believed that at 
the meeting next month the Government will make a general advance in the price of 
copper to 24 J cents per pound, this extra cent constituting a basis for settlement be- 
tween producer and refiner that will be fair to both. 

"This, however, does not take care of the small army of high-cost producers, whose 
costs have risen in some cases to as high as 30 cents a pound, but who are operating on 
a reduced scale in order to keep their mines and equipment in good condition and not 
to demoralize their working organizations. About 15 of these companies, with an aggre- 
gate capacity of 75,000,000 pounds annually, have formed a committee and are to present 
their case at Washington next month." 

* Minutes of the price-fixing committee for June 3, 1918. 

5 The Wall Street Journal of July 3, 1918, said in part : " The biggest factors which 
apparently influenced the price-fixing committee in its decision were the 25 per cent 
freight rate increase and the advancing prices for all supplies and equipment. As pre- 
viously pointed out, the freight charge added at least 1 cent a pound to operating 
costs. Both items combined have increased costs something like 11 cents a pound 
throughout the entire industry." 

"The price-fixing committee on June 5, 1918, approved certain additional charges ou 
copper shapes. 



284 HISTOEY OF PRICES DITRING THE WAR. 

agreement was to be subject to revision again on August 15. The 
maximum GoA^ernment fixed price of 26 cents per pound for electro- 
lytic copper was continued in effect, from time to time, until the close 
of war and the lifting of copper control. 

SuTrhTnary. — Before this country undertook a formal price fixing 
of copper it had helped to negotiate a purchase of 77,000,000 pounds 
for the Allies on a memorandum agreement that the price be deter- 
mined later, and had itself purchased one order of 45,510,000 pounds 
of copper at 16f cents per pound in March, 1917, and still another 
of 60,000,000 at a tentative price of 25 cents j)er pound, which was 
later lowered. There was a considerable disagreement, when finally 
the Government came to fix a price between the Government and the 
producers whether the price should be 22 cents or 25 cents. It was, 
in point of fact, fixed at the compromise price of 23^ cents on Sep- 
tember 21, 1917. Not until July 2. 1918, was that price increased 
to 26 cents, or in any way modified. The new and higher price, 
which was necessitated by an increase in freight rates and costs of 
production, continued in effect until the lifting of copper control 
after the war. 

Copper price fixing, undertaken not to peg prices and to prevent 
their rising to higher points so much as to assure stable and adequate 
production, vras one of the earliest and most important of the war- 
time controls. For all of that, it was one of the simplest. Not 
throughout the whole war period did the Government undertake to 
exercise widespread price fixing over other than electrolytic copper, 
the great basic raw material of the industry. Such a simple con- 
trol, however, was peculiarly possible in the case of copper, since the 
Government itself took virtually the Avhole output and was really 
fixing a price for its own purchases. 

Aluminum. 

The aluminum industry in the United States is concentrated in 
the hands of a single producer, and the price situation during the 
war presented no problems especially difficult. The greater part of 
the metal consumed in this country is bought under long-time con- 
tracts, and although the spot market was often beyond control during 
the war the contract quotations never exceeded reasonable bounds. 
It was not until the middle of 1915 that the aluminum demands of 
the Allied Governments, both for industrial uses and the production 
of " ammonal," ^ were felt in the United States. When these de- 
mands did appear they upset the spot market, and aluminum prices 

^ " Ammonal," which is a mixture of aluminum dust and ammonium nitrate, was used in 
tremendous quantities by the allied Governments in the manufacture of munitions. 



GOVERNMENT CONTROL OVER PRICES. S85 

started on an upward course which was equalled during war time by 
few commodities.^ 

When the United States entered the war, aluminum was selling 
on the open market at about 60 cents, while contract prices ranged 
around 38 cents. It was ievident that our war needs would be very 
large and almost immediately steps were taken toward providing for 
our necessary requirements. Indeed, it was but 19 days after the 
memorable April 6, 1917, when the general munitions board received 
a letter from the president of the Aluminum Co. of America, in 
which he offered to provide the United States Government with ap- 
proximately 2,000,000 pounds of ingots at 27^ cents a pound, a price 
about 10 cents lower than the current contract figure and less than 
one-half of the open-market quotation. This offer was accepted, 
and later extended to cover 8,000,000 pounds to be delivered not 
later than August of that year. When the time came for the renewal 
of this contract in September, however, the Aluminum Co. of 
America appears to have been doubtful whether 27^ cents was a just 
price. Price-fixing talk had already begun to circulate in the trade, 
and it was believed by those interested that some definite govern- 
mental action would soon follow.- 

Accordingly, in September, 1917, the Aluminum Co. of America 
agreed with the War Industries Board " to accept direct and indi- 
rect Government orders at the prevailing contract price" (38 cents) 
and to refund to the Government any difference which existed be- 
tween this contract price and any " fixed price " which might be de- 
cided upon at a later clate.^ 

Meanwhile, the Federal Trade Commission had been asked to look 
into the cost records of the Aluminum Co. of America preparatory 
to the adoption of a definite fixed price on aluminum ingots, and its 
products. These data were first received by the War Industries 
Board in early 1918, and on February 28, the War Industries Board 

^ January, 1915, found prices at 19.08 cents or slightly below the prewar average. By 
April aluminum was selling for 18.88 cents on the open market, a figure which was lower 
than the contract price. In May the extraordinary rise began and. quotations for that 
month were around 22 cents. The following month saw aluminum selling for 30 cents, 
while before the year came to an end the open-market price was quoted at 57.73 cents. 
Thus, a rise of over 190 per cent was experienced within a single year. This rise con- 
tinued in a more moderate degree through 1916, the highest point being in November, 
when aluminum sold for 65.12 cents. It has been said " that many concerns took down 
their aluminum transmission lines during 1915 and 1916 and replaced them by copper 
wire in order to take advantage of the abnormal market conditions ; for with copper at 17 
and 18 cents and aluminum at over 50 cents it was possible to make a change with 
a good profit. See War Industries Board Price Bulletin No. 34, " Ferroalloys, Non- 
ferrous, and Rare Metals." 

" This was especially evident in view of the growing demands of the military forces. It 
is estimated that the war requirements of the United States called for approximately 63 
per cent of the aluminum supply of the country and those of the Allies about 20 per cent. 
This made a total of over 80 per cent of our supply which was devoted to war needs. 

2 It was apparently presumed that any fixed price which might be later adopted would 
be lower than the current contract price. 



286 HISTORY OF PRICES DURING THE WAR. 

recommended a maximum price of 32 cents per pound for aluminum 
ingots f. o. b. plants of the Aluminum Co. of America.^ This price 
was approved by the President on March 2, and was made applicable 
to all governmental and civilian purchases up to June 1, 1918. 

On May 9, the question of extending aluminum prices after June 1 
was brought before the price fixing committee. It appears that the 
producers in order to supply the increasing war needs had been com- 
pelled to enlarge their plants, and they felt that the large cost of 
such additions warranted an addition of 3 cents per pound to the 
price soon to expire. A compromise was made, however, at 33 cents, 
or an increase of 1 cent over the old price. On August 20, it was 
agreed to continue the 33-cent price until March 1, 1919, when it 
expired by limitation. 

Lead. 

Expectation that the Government, after the declaration of war, 
would enter the market for large amounts of lead gave further stimu- 
lus to a market which had been already inflated by strikes, traffic 
congestion, and large European demand. On July 1, 1917, lead was 
quoted at 11.17 cents per pound, the highest market price on record. 
This price, relatively about 80 per cent higher than the market quota- 
tion for the preceding January, represented a rise of 160 per cent 
above the average price for the 12 months preceding the outbreak 
of war. In April, 1917, lead was not over plentiful and domestic con- 
sumers, fearing an even greater stringency after the United States 
began to purchase her necessary supplies, started to buy large stocks 
for accumulation. The General Munitions Board in late May, 1917, 
considered at some length the advisability of commandeering suffi- 
cient lead for Army and Navy requirements.^ Although the Govern- 
ment needs at that time were relatively small,^ it was believed that 
in the coming months lead requirements would grow. On June 18, 
1917, the General Munitions Board approved an order for 8,000 tons 
for July delivery, and 25,000 tons for delivery during August, 
September, and October at 8 cents per pound.^ 

1 This price was to apply to purchases in lots of 50 tons or more of ingot of 98-97 per 
cent grade. The same differentials which had formerly been in force were to be continued 
for the sundry other grades and products. 

2 See minutes of the General Munitions Board, May 23, 1917. 

3 An announcement made in May in an attempt to reorganize the lead market which had 
gotten out of control was to the effect " that the May and June Government requirements 
would not exceed 2,500 tons." See " Price of Ferro Alloys, Nonferrous, and Rare Metals," 
War Industries Board Price Bulletin No. 34, by H. R. Aldrich and Jacob Schmuckler. 

*This price it will be noted was. 3.67 cents lower than the current market price. It 
appears that the raw materials committee experienced some difficulty at first in getting 
its supplies at this figure, and in early July the question as to whether they would secure 
sufficient lead to meet requirements was a matter of deep concern. They reported to the 
General Munitions Board on July 12, 1917, that the lead committee had written to some 
1,100 lead miners relative to the 8,000 tons of lead which they had agreed to deliver at 
8 cents, and that only 40 replies had been received. 



GOVERN^MENT CONTROL OVER PRICES. 287 

This price though considerably lower than the open market price 
was not to prove as advantageous as it first appeared, for a temporary 
over-production of lead soon broke the market. Even in July, lead 
prices began to fall back toward their level of previous months, while 
August and September witnessed price declines which finally brought 
market quotations for lead in early October to 6.TI cents. This 
price, which was 1.39 cents lower than the Government agreed 
price, made it evident to the purchasing authorities that they were 
contending against a very unstable market and that further action 
would have to be taken. The first solution considered was a system 
of price fixing. A suggestion to that effect was made to the War 
Industries Board on October 24, 1917, but the lack of sufficient 
cost data upon lead made that method inexpedient and other means 
for regulating lead prices were sought after.^ The method of price 
regulation finally adopted was to average the prices for each month 
as they appeared in the Engineering and Mining Journal, and accept 
the figure thus arrived at as the price to be paid on Government de- 
liveries for each respective month. What really occurred, then, was 
the inauguration of a contract under which the United States Govern- 
ment agreed to purchase its supplies from the various lead producers 
at the average current monthly price. The producers on the other 
hand, agreed to supply the Government at this price with a minimum 
of 6,000 and a maximum of 12,000 tons of lead each month. 

With governmental requirements determined, and the price to be 
paid for Army and Navy supplies made relatively the same as the 
open market quotations, it was believed that the element of specula- 
tion would disappear and a more stable market restored. But the 
freight congestion of early 1918 upset all calculations, and with a 
scarcity of lead bullion at the eastern refineries resulting from an 
inability to get shipments through from the Middle Western mines, 
spot market prices started upward. Moreover, the direct and in- 
direct war demands for lead began to increase,^ while a strike tied 
up the output of the country's second largest producer during the 
greater part of March ^nd April. 

The rise which had started early in the year continued and by 
June it was feared that a recurrence of the market upheaval of the 
preceding year might come. On June 4, 1918, a lead committee 

1 It was, moreover, the belief of the War Industries Board that price fixing was unneces- 
sary, since there was a large supply of lead in the market and consequently little proba- 
bility of prices rising back to the inflated levels of the summer months. 

2 The total direct allotments of lead to the United States Government from July, 1917, 
to November, 1918, amounted to 150.400 tons. Compared to the total production of the 
country this shows a direct war consumption of about 20 per cent. A considerable 
amount, however, was consumed by the Government in the indirect purchase of manufac- 
tured articles, and it is estimated that by the middle of 1918 upwards of 60 per cent of 
the domestic lead production was going into war consumption. 



288 HISTORY OF PRICES DURING THE WAR. 

made up of various members of the trade was appointed at the 
request of the War Industries Board. To this committee was 
intrusted the distribution of domestic lead, subject to the supervision 
of the War Industries Board and to them also was virtuallj^ left 
the oversigfht of market prices. The industrj'', moreover, was warned 
to keep prices below excessive levels, and only sufficiently high to 
produce a supply adequate to meet Government needs. On June 14, 
the lead producers committee agreed to sell no pig lead at a price 
exceeding 7.75 cents per pound f. o. b. St. Louis or 8.05 cents New 
York City ; Avhile the Engineering and Mining Journal consented to 
consider no sales made at a higher figure in computing its monthly 
average price at St. Louis. 

In this way the market price of lead was virtually fixed to all 
consumers, and although no formal action was taken by the price 
fixing committee lead prices remained unchanged from July 1, to 
the signing of the armistice.^ 

Zinc. 

The zinc industry in 1915 experienced a market situation quite 
similar to that w^iich characterized aluminum, and from all available 
evidence it must be concluded that the same forces can be held ac- 
countable for both upheavals. In both instances it was the large de- 
mand for export purposes which caused the rise in prices. So 
extraordinary were the requirements of the munitions makers for 
zinc that regular zinc consumers, such as galvanizers who were ac- 
customed to purchase on contract at market prices, were virtually 
forced in many cases to shut downi their plants.^ The demands of the 
American Army took the form of sheet zinc, which was used chiefly 
in the manufacture of boxes for packing explosives. In early July, 
1917, the committee on raw materials of the general munitions boards ^ 
arranged with the producers for delivery of 10,000,000 pounds of 
zinc at 12^ cents per pound.^ The market price at this time was 19 
cents, and it is evident, therefore, that a considerable saving had been 
realized. Several later purchases were made at prices varying from 
12 to 13^ cents, but it was not until early in 1918 that any definite 

1 Thp final agreement entered into by the Government relative to the determining of the 
price of lead by average monthly prices at St. Louis, expired on Nov. 30, 1918. 

2 The price of spelter rose from 4.97 cents in December, 1914, to 22.14 cents in June, 
1915, an increase of approximately 350 per cent in six months. This price rise had a far- 
reaching effect upon production within the industry and the first half of 1915 witnessed 
the erection of many new smelters as well as the reopening of many coal-burning plants 
which had been closed. 

' A zinc committee, composed of leading representatives of the industry, was appointed 
In April, 1917, by the raw materials section of the Council of National Defense. The ac- 
tivities of this committee were advisory in the procurement of supplies and the determina- 
tion of fair prices to be paid by the Government. 

* It is interesting! to note at this point that the Navy several days previous had pur- 
chased an amount of zinc at 15 cents. 



GOVERNMENT CONTROL OVER PRICES. 289 

form of price fixing was adopted. , In November, 1917, to be sure, 
the President had asked the War Industries Board to fix the price of 
zinc to the public and the Government, even though the military re-, 
quirements were only a small per cent of the total production. But 
the lack of cost data was here, as in the case of lead, the deterrent 
factor and the matter was laid aside until further information rela- 
tive to costs could be collected by the Federal Trade Commission. In 
January, 1918, the War Industries Board finally took the zinc situa- 
tion in hand, and after conferring with the members of the industry 
arrived at a price which they considered fair, both to producers and 
consumers. This price, based on various cost data, was placed at 12 
cents for grade " A " zinc f. o. b. East St. Louis, subject to the usual 
trade discounts. It was to remain in force for four months and was 
to become effective as soon as approved by the President. The price 
of zinc sheets, of which 80 per cent was being consumed for direct 
and indirect war purposes was also fixed at this time, the figure 
adopted being 15.6 cents at plant or 16 cents delivered.^ Similarly, 
zinc slab prices were also pegged at 14.6 cents at plant. By Ma}^ the 
market price of Grade "A" had fallen to 10 and 11 cents, and the ques- 
tion arose as to whether a downward revision should be undertaken 
by the price fixing committee. The various governmental authori- 
ties, however, did not believe that such a policy should be adopted, 
for they felt that a high maximum price should be maintained so 
as to keep in operation many of the high cost mines whose product 
was required by the Army. The 12 cent price was therefore con- 
tinued until September 1. This figure was also later adopted, in 
spite of a request for a higher price by the producers, for the three 
months ending January 1, 1919. 

Nickel. 

The World War appears to have had relatively little effect upon 
the price of nickel and, indeed, it may be said that there were at no 
time any extraordinary circumstances which demanded price inter- 
ference by the Government. As in the case of aluminum, nickel pro- 

1 This price was 2.83 cents lower than the current market quotations. It should be 
added here that not only did the individual producers agree to the above prices, but they 
also pledged themselves to fulfill certain conditions in respect to the manner in which 
they would conduct their business. Thus, the following agreement was attested to by the 
producers : 

It is agreed both by the producers of grade " A " and of plate and sheet zinc that — 

1. They will not reduce the wages now being paid. 

2. They will sell to the Allies, to the Government, and to the public at the same price. 

3. They will take the necessary measures under the direction of the War Industries 
Board for the distribution of zinc to prevent it from falling into the hands of speculators 
who might increase the price to the public. 

4. They pledge themselves to exert every effort necessary to keep up production and to 
insure an adequate supply so long as the war lasts, 

125547°— 20 19 



290 HISTORY OF PRICES DURING THE WAR. 

duction was concentrated in the hands of a single concern and this 
producer from the very outset was anxious to cooperate with the 
authorities in charge of raw materials. Thus, on August 15, the 
nickel interests arranged to supply nickel to the Government at 40 
cents per pound, a price which was 20 per cent below the current 
market quotation and slightly lower than the prewar average. The 
military demands for nickel, however, were very large, and estimates 
place the amount devoted to direct and indirect war uses as high as 
90 per cent of the total production. Despite the size of these 
demands, the supply was at no time so short as to cause any serious 
dijSiculty. Whatever shortage did exist at various intervals may 
be attributed to the limited capacity of the rolling mills. 

The price of nickel was at no time fixed and the Government 
secured its requirements under long-time agreements. The Secretary 
of the Navy on January 4, 1918, asked the War Industries Board to 
fix a price, but this body at the time did not consider such action 
advisable. On January 8, 1918, the International Nickel Co., which 
refines virtually all the nickel produced in the United States, offered 
to supply the American and allied Governments with their nickel 
requirements at 35 cents per pound for ingot nickel, 38 cents for shot 
nickel, and 40 cents for electrolytic nickel. The ingot price, it will be 
noted, was lower than the price of the previous August, and repre- 
sented a decrease of 30 per cent from the market price for January.^ 
This offer was accepted and the prices specified remained in effect for 
Government purchases until December 31. One restriction was 
added to the agreement, however, in May. It appears that the 
International Nickel Co. was having difficulty at about this time in 
filling its contracts, and the authorities in charge felt that restrictions 
should be placed upon the industry. The matter was therefore 
placed before the price fixing committee, who discussed the fixing of 
a definite price applicable to all purchases, but took no action relative 
to prices other than to approve the existing quotations for Govern- 
ment orders. One concession was exacted( from the prodlicers. 
They were compelled to agree to extend no old contracts or make any 
new future contracts which tied up their production for any period 
of time without first consulting the price-fixing committee. In this 
way control over the entire production of nickel was placed in the 
hands of the price fixing committee, and although no price was ever 
fixed or agreed to for sales to the public, the price of nickel (except- 
ing, of course, some 10 per cent which did not go into war uses) was 
kept as completely in check as was the price of any other nonferrous 
metal dealt with by the price fixing authorities. 

1 The International Nickel Co. further oflfered to supply monel nickel (two-thirds nickel 
and one-third copper), which was used in considerable quantities by the Navy, for 32 
and 38 cents per pound, depending upon the grade, the former price to be applied to 
nickel for shot-metal purposes and the latter to finished rolled rods. 



GOVERISTMENT CON^TROIi OVER PRICES. 291 

Quicksilver. 

The price of quicksilver, which in 1916 shot to almost eight times 
its average for the year preceding the outbreak of the war, had 
receded to a normal level by the time the United States severed 
relations with the Central Powers.^ The year 1917, however, wit- 
nessed relatively high prices in the quicksilver industry, and the gen- 
eral run of quotations throughout the year was almost 200 per cent 
higher than the prewar average. In spite of this fact no action was 
taken by the military authorities relative to the price of quicksilver, 
since their requirements when compared to the total production of 
the country were small. The speculative nature of the industry led 
them to believe that it was but fair to the producers to allow an extra 
margin of profit for civilian sales. But it soon became evident that 
a definite agreement ought to be made for Government purchases 
to stabilize prices and expedite the placing of contracts. The pro- 
ducers were therefore called into council, and they agreed to furnish 
the Government with quicksilver" at $105 per flask of 75 pounds, 
delivered at the Mare Island Navy Yard in California or at $105.75 
delivered at the Brooklyn Navy Yard in New York. Moreover, 
they informally pledged themselves not to allow the market price to 
go beyond $130 per flask. The importers also agreed to furnish sup- 
plies to the Government at the same figure as had been fixed for the 
domestic product.^ 

This agreement which was to expire at the end of 1918 apparently 
was considered in a very favorable light by the members of the 
quicksilver industry. This was especially so in view of the fact 
that the cessation of hostilities threatened the opening of the Ameri- 
can market to foreign producers. Accordingly, on November 20, 
they asked the price fixing committee to continue the agreed Govern- 
ment price after January 1, 1919. Conditions in the opinion of the 
committee did not, however, warrant any such action, and on De- 
cember 31 the price agreement with the quicksilver industry came 

to an end. 

. Tin. 

Although the United States is the largest consumer of tin in the 
world ; as in the case of rubber, nitrates, and several other essentials, 
it is dependent almost wholly upon foreign sources for its supply. 
The shipping situation of 1917-18 threatened our supplies of pig tin 
and as early as May, 1917, it was announced at a meeting of the Gen- 

iThe freeing of the American market from the domination of Spanish and Italian 
Imports advanced quicksilver prices to $283 per flask by February, 1916. Indeed, prices 
became so high that explosive producers found it almost impossible to fill their orders 
for foreign countries. It was not until the American contractors had induced the 
British Government to raise their embargo on quicksilver exports to the United States 
that a recession in the American market occurred. 

2 The total quantity of quicksilver taken under this agreement was equal to about 
40 per cent of the domestic and imported supply. 



292 HISTORY OF PRICES DURING THE WAR. 

eral Munitions Board that there was an actual shortage. Indeed, 
the supply of tin in the United States continued insufficient through- 
out the entire period of American belligerency, and the Food 
Administration at all times was compelled to keep under control the 
use of tin plate in the canning industry. On October 21, 1917, the 
War Industries Board, at the request of the food authorities, fixed 
the price of tin plate at $7.75 per box, a figure which was about 
one-half the current market price.^ 

Although it Avas eAadent from the A'ery beginning that a strict 
control would have to be exercised, not only OA^er the American supply 
but also over such tin as was needed by our Allies, it was not until 
the late summer of 1918 that any definite action was taken toward 
the pooling of all purchases. The machinery for such a centraliza- 
tion of purchases was an interallied tin executive set up in London 
to control and direct all purchases of pig tin for the participating 
countries. Buying agents were appointed in the A'arious producing 
countries and import licenses into the United States were gTanted 
only for such tin as was purchased through these agents. In Sep- 
tember, 1918, the American Iron and Steel Institute, at the request 
of the War Industries Board, assumed charge of the importation 
and distribution within the United States. This organization then 
was made the sole consignee for all tin imported into the United 
States and " was to receive and pay at the source of supply for all 
tin allocated to the United States by the interallied executive." Such 
tin, in turn, was to be distributed at cost only to consumers, jobbers, 
and dealers in the United States, who held purchasing licenses 
issued by the War Industries Board.^ 

In December, 1918. the War Industries Board notified the trade 
that the interallied tin executive had allocated 10,169 tons of tin 
to the United States, and that this metal would be distributed to 
those who held War Industries Board licenses at a price of 72^ cents 
a pound ex dock New York City. These prices were to remain in 
force during December, 1918, and January, 1919. Regulations were 
enacted relative to the amount which could be purchased, and the 
profits of dealers who resold to ultimate consumers were fixed at 
definite levels.^ 

The international tin-purchasing agreement was canceled on 
December 12, 1918, but limitations as to imports were retained untU 

^ See Minutes of War Industries Board, Oct. 31, 1917. 

2 The War Industries Board put the consumers of tin under a license so that whatever 
supply was available might be distributed for essential uses only. In applying for a 
license applicants had to state not only how the tin desired was to be used but also 
when and where it was to be used. 

^ Dealers who sold in lots of 5 tons or over were allowed to make sales to consumers 
or jobbers holding purchasing licenses at a maximum gross profit at 2A per cent ; while 
those who sold in lots of less than 5 tons were allowed a profit of 5 per cent. Con- 
sumers were allowed to purchase only a fixed maximum amount of tin, and this was ba.sed 
on their consumption for the first 10 months of 1918. 



GOVERNMENT CONTROL OVER PRICES. 293 

the amount allocated to the United States had been distributed. 
Indeed, the restrictions upon the importation of tin are still in force 
(July 15, 1919), although the War Trade Board has announced that 
on August 1 the distribution of the metal will once more become 
free.^ 

Platinum. 

The necessity of having a sufficient supply of platinum in the 
United States for war purposes led in July, 1917, to an order by the 
Secretary of the Treasury to the effect that all platinum which 
passed into the United States mints should be withheld from com- 
mercial uses. But this order did not lead to the accumulation of 
sufficient supplies and it was followed on February 23, 1918, by a 
Government requisition which covered the supplies and output of the 
14 largest smelting, refining, and manufacturing plants in the 
country. On May 1 a further requisition order, effective until June 
30, was issued, while on July 1, an order which covered the supplies 
of 90 per cent of the firms doing business in platinum and kindred 
metals was put into effect "for the remainder of 1918, The supplies 
thus requisitioned were collected at the United States assay office at 
New York and in the plants of the large refiners, and later allo- 
cated to consumers at the order of the War Industries Board. 

Since virtually the entire jjlatinum supply was concentrated in the 
hands of the United States Government, some arrangement was 
necessary relative to the prices to be paid to original holders of the 
requisitioned metals. The figure agreed upon which was later made 
the market price was $105 per Troy ounce for pure platinum ^ and 
this price remained in effect until December 1. 

Cotton Textiles. 

The early need for regulation. — One of the several bodies created 
as a part of the General Munitions Board to supervise the purchasing 
of the necessary war materials ^ was the committee on supplies, for- 
mally appointed in February, 1917, under the chairmanship of Mr. 
Julius Kosenwald. Among the many commodities with which this 
committee dealt were cotton and cotton fabrics, great quantities of 
which were being asked for by the various Government departments. 
Even in these early days, when there was no definite policy as to the 
size of the Army, and consequently no idea as to its prospective 
demands, the question of prices — those of cotton and cotton fabrics 

1 A complete review of the tin situation in the United Statefs during the period 191."? 
to 1918 will be found in War Industries Board Price Bulletin No. 34, " Ferroalloys, 
Nonferrous and Rare Metals," by H. R. Aldrich and Jacob Schmuckler. 

2 The price fixed for pure palladium was $135 per Troy ounce and for pure iridium 
$175 per Troy ounce. 

^ See p. 200 of the present volume. 



294 HISTORY OF PRICES DURING THE WAR. 

among others — played a significant part in the committee's delibera- 
tions. Thus, on April 7, 1917, a complaint was registered at a meeting 
of the munitions board to the effect that difficulty was being experi- 
enced with the producers of raw cotton, and that a meeting would be 
held with representatives of the industry relative to the fixing of a 
price.^ Shortly afterwards - it was — 

pointed out that cotton was costing tlie Government * * * ^ great deal 
more than necessary ; because of the fact that cotton on which bids were 
* * * being based was extremely high. * * * 

and on the same day the chairman of the munitions board asked for 
the right to discuss with the chairman of the Council of National 
Defense the subject of prices, and to state to the chairman that 
the discussion had led to serious recommendations as to limiting the 
prices of cotton.^ 

To assist the committee on supplies, both in the issuance of clear- 
ances and priorities and in the coordination of governmental re- 
quirements, a cotton goods committee, made up of members of the 
trade, was appointed in May, 1917. This body undertook to recom- 
mend to the cotton trade " fair " prices for a number of fabrics 
especially needed for the Army and Navy, and these prices served 
as a guide to government purchasing agents in placing contracts.* 
This mode of price fixing, though embryonic in form, seems to have 
been quite successful and the prices recommended by the cotton 
goods committee were accepted by influential manufacturers. Its 
activities resulted, no doubt, in considerable saving to the govern- 
ment. But evidence appears that a large part of this saving was 
realized at the expense of the purchasing public, and while those 
cotton fabrics used in quantity by the various war agencies were as 
a whole rising but slightly ^ the prices of textiles which played little 
part in military and naval consumption continued a steady upward 
trend. Thus, for example, the prices of ginghams and print cloths, 

'■ Minutes of the General Munitions Boai'd for Apr. 7, 1917. 

2 Ibid., minutes, Apr. IS, 1917. 

2 Raw cotton at tliis time was seUing for about 20 cents a pound, a price about 50 
per cent higher than the average for the 12 months preceding the outbreak of the war 
(see table of prices on p. 539), and cotton fabrics in general had reached a level approxi- 
mately 70 per cent above that of the. prewar year. The price of the chief staple cotton 
product — sheeting — had advanced 80 per cent above the 191?.— 14 average. 

* Among others, cotton duck was an important item, the price of which was fixed. The 
fair prices recommended on these fabrics are published in W. I. B. Price Bulletin No. 2-". 

^ In sevei-al cases such as duck, uniform cloth, etc., the Government price actually 
fell during the latter half of 1917 (see table below). This may be explained in part 
by the fact that most of the cotton cloths bought in the early months of the war were 
purchased in a highly competitive market in which an individual Government department 
had to meet not only the competition of the purchasing public and the Allies but also 
the competition of other Government departments. The coordination of purchases which 
followed the creation of the cotton committee undoubtedly was an important factor 
which led to the lowering of prices in the several instances when a decrease was noted. 
The fact remains, however, that in no known instance did the price of those cotton goods, 
the bulk of which was consumed by the genei-al public, decrease during the last six 
month of 1917. 



GOVERNMEISTT CONTROL OVER PRICES. 



295 



in the months July to December, advanced approximately 50 per cent 
as compared with the prewar level. In the same period, on the 
other hand, the price of denim, tremendous quantities of which were 
used by the Army and Navy, rose but 35 per cent as compared to 
the average level of 1913-14, while standard United States Army 
duck sold at a price in December, 1917, which, reduced to relative 
terms on a prewar base, was but 27 per cent higher than that of the 
preceding July.^ 



^ The appended tables depict the price situation in the cotton industry during 1917. 
The Government prices of the fabrics used in quantities by the United States Army and 
Navy remained relatively stable. The Army price of hosiery fell quite steadily during 
the last five months of 1917, while the market price for the consuming public continued 
to rise, and cotton denim prices paid by the Government were at all times lower than 
the market prices paid by the general public. 

UNIFORM CLOTH, OLIVE DRAB, USED BY ARMY. 
[Base price, $0,125 per yard.] 



January . . . 
February.. 

March 

April 

May 

June 

July 

August 

September. 



1917 



$0. 3297 
.3230 
.3121 



1918 



i.2911 
.2878 
.2893 
.2870 
.2882 
.3010 
.3114 
.3275 
.3426 



October 

November. . 
December. . 
Quarters: 

First..: 

Second . 

Third... 

Fourth. 
Year 



$0. 3154 
.3218 
.3074 



.3216 
.3149 
.3182 



1918 



0.3551 
.3410 
.3010 

.2894 
.2921 
.3272 
.3324 
.3103 



DUCK, SHELTER TENT. 
[Base price, $0.2033.] 



January . . , 
February., 

March 

April , 

May , 

June 

July 

August 

September 



$0. 2200 


SO. 3200 


.2550 


.3200 


.2550 


.3200 


.2700 


.3200 


.2850 


.3200 


.3450 


.3200 


.3450 


.3200 


.3450 


.3200 


.3450 


.4150 



October. . . 
November. 
December. 
Quarters: 

First.. 

Second 

Third.. 

Fourth 
Year 




D. 4150 
.4150 
.4150 

.3200 
.3200 
.3517 
.4150 
.3517 



GINGHAM, 26HNCH, 57 BY 50, 6.5 YARD. 
[Base price, $0.0609 per yard.] 



1913 



1915 



1916 



1917 



1918 



January 

February.. 

March 

April 

May 

June 

July 

August 

September. 

October 

November . 
December.. 
Quarters: 

First. . . 

Second. 

Third . . 

Fourth. 
Year 



).0613 
.0625 
.0625 
.0625 
.0625 
.0625 
.0625 
.0625 
.0588 
.0613 
.0613 
.0613 

.0621 
.0625 
.0613 
.0613 
.0618 



0613 
0613 
0600 
0600 
0600 
0600 
0600 
0588 
0588 
0588 
0588 
0588 

0600 
0600 
0592 
0588 
0597 



0588 
0588 
0588 
0588 
0588 
0588 
0588 
0588 
0588 
0625 
0625 

0588 
0588 
0588 
0613 
0594 



1.0650 
.0700 
.0700 
.0750 
.0750 
.0750 
.0750 
.0750 
.0750 
.0750 
.0788 
.0838 

.0683 
.0750 
.0750 
.0792 
.0744 



$0.0838 
.0838 
.0875 
.0925 
.0975 
.1025 
.1250 
.1250 
.1388 
.1388 
.1438 
.1525 

.0850 
.0975 
.1296 
.1450 
.1143 



1. 1561 
.1713 
.1713 
.1713 
.1713 
.1713 
.1713 
.1815 
.1900 
.1900 
.11900 
.1900 

.1662 
.1713 
.1809 
.1900 
.1771 



296 



HISTORY or PRICES DURING THE WAR. 



The " fair price " decision of the cotton goods committee, however, 
did not entirely solve even the price problems of the United States 
Government. Difficulty was being experienced, especially by the 
Xavy, in securing sufficient supplies at reasonable prices. This was 
e.specially true in the case of cotton canvas, where it was becoming 
impossible to secure favorable bids.^ 

Footnote continued from p. J95. 

PRINT CLOTHS, 39-INCH, 72 BY 76, 4.25 YARD. 

[Base price, $0.0648 per yard.] 



1913 


1914 


1915 


1916 


1917 


1918 


January 

February 

March 

April 

May 

June 

July 


$0. 0650 
.0637 
.0625 
.0600 
.0575 
.0.594 
.0587 
.0587 
. 0625 
.0662 
.0700 
.0675 

.0637 
.0590 
.0600 
.0079 
.0626 


SO. 0675 
.0669 
.0662 
.0662 
.0625 
.0650 
.0625 
.0625 
.0550 
.0512 
.0500 
.0500 

.0669 
. 0646 
.0600 
.0504 
.0605 


$0.0500 
.0512 
.0500 
.0531 
.0562 
.0525 
.0500 
.0506 
.0512 
.0587 
.0575 
.0575 

.0504 
.0539 
.0506 
.0.579 
.0532 


$0.0600 
.0612 
.0612 
.0662 
.0700 
.0087 
.0687 
.0712 
.0800 
.0875 
.0962 
.0975 

.0608 
.0683 
.0733 
.0937 
.0740 


$0.0925 
.0937 
.0937 
.1000 
.1050 
.1225 
.1325 
.1275 
.1250 
.1325 
.1400 
.1560 

.0933 
.1092 
.1283 
.1408 
.1179 


$0. 1487 
. 1550 
.1837 
.2150 
.2100 
.2250 
.2250 
.2100 


September 


.1987 


October. 


.1987 


November 


.1987 




.1800 


Quarters: 

First .. . 


.1625 


Second... 


.2167 


Third ... 


.2112 


Fourth 


.1925 


Year 


.1957 







DENIM USED BY ARMY, BLUE, 28-INCH, 8-OUNCE TWILL (3/1). 
[Base price, $0.1413 per yard.] 





1917 


1918 




1917 


1918 






$0. 2954 


October 


$0.2858 
.2875 
.2864 


$0. 3292 




November 


.3327 




.3500 
.3460 
.3460 
.3389 
.3351 
.3316 
.3327 


December 

Quarters: 

First 


.3313 


April 




May 


.3231 


Jitne ' 


Second 




3423 


July 


Third 


.2568 
.2866 
.2746 


.3363 


August 

September 


$0. 2363 
.2772 


Fourth 


.3323 


Year 


.3339 







DUCK, STANDARD UNITED STATES ARMY, FIRSTS, 2SJ-INCH, 8-OUNCE. 
[Base price, $0.1550 per yard.] 



1917 



January $0.2000 

February . 2000 

March .2125 

April . 2500 

May 2500 

June .2750 

July 3000 

August .3000 

September 3000 



1918 



$0. 3425 
.3425 
.3425 
.3425 
.3425 
.3425 
.3350 
.3350 
.3350 



October. . . 

November. 

December. 

Quarters: 
First. . 
Second 
Third.. 
Fourth 
Year. . . 



1917 



$0. 3000 
.3425 
.3425 

.2042 
.2583 
.3000 
.3283 
.2727 



1918 



$0. 3350 
.3425 
.3425 

.3425 
.3425 
.3350 
.3400 
.3400 



^ In some cases it was impossible to get any bids at all. 
Board, Nov. 17, 1917. 



See minutes of War Industries 



GOVERNMENT CONTROL OVER PRICES. 297 

Conditions became such, in fact, that the Navy -vras compelled to 
call upon the War Industries Board for aid, and suggested that the 
matter of fixing a price for canvas be given consideration.^ 

Accordingly, the canvas situation was taken in hand and sales of 
certain constructions were restricted to the Government. In taking- 
over the output of these cloths the price of one grade was reduced 
from 60^ cents to 46^ cents per yard, while the price of another 
which had remained unchanged during the summer and early autumn 
was increased from 30 cents to 34.25 cents per yard. But the Gov- 
ernment consumption of cottons kept growing by leaps and bounds 
and the tremendous demand was reflected in an inflated runaway 
market. By March, 1918, fabric values reached a point 146 per ceni 
above the prewar level and 52 per cent above the current level of 
commodities in general. It was soon realized by Government officials 
and the trade that the situation would have to be remedied. 

The pHce-flxing corrmiUtee amd the cotton industry. — On May 26, 
1918, seven daj^-s after the creation of the price-fixing committee, the 
cotton inclustr}^ met, at their own request, with the price-fixing com- 
mittee "for the purpose of discussing the unsatisfactory condition 
of the cotton textile market." The problem from the first was 
exceedingly complex. Unlike the situation in the iron and steel 
industry, the price of the basic raw material had not been fixed. It 
was the contention of the textile industry that the price of raw 
cotton would have to be fixed, before an equitable basis for regu- 
lating cotton-product prices could be inaugurated. They claimed 
that the market price of raw cotton was the most important of all 
the factors which determined the price of their product, and that 
with an uncontrolled market for that commodity no equitable price 
for cotton textiles could be established for any extended period of 
time. All that was needed, in their opinion, was the fixing of raw- 
cotton prices and the fixing of a differential above such prices for 
the various types of products, as in the case of iron and steel.^ 

The price-fixing committee, however, felt that raw-cotton prices 
could not be fixed. They believed, on the contrary, that the control 
of finished cloth would automatically be reflected in the price of raw 
cotton. This question of raw cotton was ever present throughout 
the meetings of the cotton industry with the price-fixing committee, 
even to the very last. In fact, it was largely because of this very 
difficulty that the fixing of cotton-fabric prices was delayed until 
more than three months after the first meeting in March. It should 
be added parenthetically that the problem of securing proper cost 

1 Paymaster McGowan. in a letter to the War Industries Board in November, 1917, 
stated : " It will be possible to control the industry and make the best distribution of 
Government orders if the prices are authoritatively fixed." 

2 Minutes of price fixing committee, May 26, 1918. 



298 HISTORY OF PRICES DURING THE WAR. 

data which could be used in determining a price also caused some 
difficulty, since neither the price-fixing committee nor the industry- 
had information sufficient for reaching reliable conclusions. Dur- 
ing meetings held in April and May the same difficulties were dis- 
cussed ^ with no apparent result, while conditions grew rapidly more 
acute.^ 

The -fixing of cotton textile prices. — Finally, on June 21, 1918, an 
agreement, based on the joint findings, was made between the com- 
mittees representing the War Industries Board and the trade, 
whereby base prices were fixed on four different classes of cotton 
goods, effective for deliveries after July 1. These prices were to 
serve as a general basis for the fixing of all staple-cloth prices, and 
a complete schedule for all fabrics, based on a margin of profits 
similar to that allowed on the four fabrics used as samples, was to 
follow. A 30-cent price basis for raw cotton was used in determin- 
ing these prices, and Army duck, sheeting, drills, and print cloths 
were used as standards. Prices agreed upon were to be net to all 
customers, both civilian and Government. 

It was realized that the prices fixed would yield a liberal profit 
for the better equipped and organized mills, but, after all, the pur- 
poses of the price fixing committee were attained. The cost of cotton 

1 The basis to be used in the determination of return upon investment was a factor 
which made the settlement of cotton-goods prices no simple task. The attitude of the 
cotton industry in this connection is well presented in. the appended resolution passed 
by two of the leading cotton manufacturers' associations at a convention held May 3, 
1918 : " Resolved further. That the prosperity of industrial America is essential to the 
financing of the war, and that any plan for price fixing or other control should rest 
upon the basis of such a return on capital invested as will continue to yield the neces- 
sary taxes and to provide funds for the purchase of the bonds required." 

2 It appears that the question of price fixing having been raised, business in the 
various lines of textiles to a large extent halted, and inquiries of all sorts were made 
as to how both old and new contracts were to be executed. It finally became necessary, 
in fact, pending the actual fixing of prices, to make assurances to the trade as to the 
policies to be followed by the price fixing committee, and on June 9 the following was 
announced : 

" In order to establish a basis for a prospective price agreement * * ♦ ^]jg jqi. 
lowing tentative plan was outlined to be operative if the pending negotiations for a 
price agreement are concluded : 

" On all bona fide sales made on or before June 8, 1918, for delivery previous to Jan. 
1. 1919, prices to remain as shown in sales. 

" On all sales made after June 8, 1918, for delivery subsequent to Sept. 30, 1918, the 
prices are to be subject to revision to accord with the prices agreed upon by the price 
fixing committee of the War Industries Board in conference with the war service com- 
mittee, etc. 

" On all sales made for delivery after Jan. 1, 1919, the prices agreed upon * * » 
are to be the prices regardless of the fact that the sales may have been made previous 
to June 8, 1918. 

" It is understood that all prices for so-called spring (1919) business Avill be subject 
to such revision. 

" The plan contemplates that manufacturers' prices on staples shall be on the samo 
basis of cost and profit to the Government and to their usual civilian outlets. It is 
further expected that manufacturers will agree to devote a uniformly large proportion 
of their productive capacity to making staples." 

The last statement proved of considerable concern to many producers in later months, 
and many manufacturers refused at times new civilian orders, fearing a sudden govern- 
mental demand. (See Textile World Journal, Sept. 2, 1918, p. 105.) 



GOVERNMENT CONTROL OVER PRICES. 299 

textiles to the Government, to be sure, was increased by a small per- 
centage, but, on the other hand, the cost to the civilian population was 
considerably lowered.^ 

The question was raised, to be sure, as to the practicability of a 
price even lower than that fixed. Indications are, however, that the 
cotton trade objected to too drastic a cut in the price of their goods, 
not only because of their own interests but also because of the effect 
upon the distributors of their products. They felt that since cotton 
fabrics go through several hands before reaching the consumer, a 
severe cut in price would affect the inventory of the holders of such 
stocks. Moreover, they felt that a price which was set too low would 
cut the production of many of the fabrics which the Government 
needed. 

It should be borne in mind that the prices fixed on certain cloths 
were arrived at in a manner different from that which characterized 
the fixing of prices for other commodities up to that time. There 
was a decided absence of cost data. Several requests had been made 
for such data, but the representatives of the industry claimed that 
the time required for their collection and compilation would be too 
long to make them available for immediate use. Moreover, they 
believed it would delay the starting up of the industry which had 
already lagged because of the uncertainty over the prices to be 
fixed. There was wanted, in reality, an emergency price to be 
changed at a later date, and this the agreed price was. Indeed, the 
price-fixing committee felt it necessary publicly to state that its 
action in the instance of cotton products was " not in accordance with 
the usual procedure " and that it was not to be expected that its 
negotiations with the industry would be continued without change. 
The prices fixed were later to be revised for sales made during the 
period October 1 to December 31, or for such other period as might 
appear desirable at the time.^ 

The working out of the differentials for the various kinds of 
fabrics was left in the hands of a committee made up of representa- 

lAn idea of the effect of the Government fixed price is gained from a comparison of 
the old and new prices of the cloths upon which prices were fixed. The market price 
of print cloth was lowered from $1.03 to $1.05 per pound to $0.78 to $0.85 per pound. 
A statement in the Textile World on June 29, 1918, is to the effect that the price of 
" Fruit of the Loom," a popular construction of print cloths, was fixed at 18J cents per 
yard, while the lowest price quoted prior to price fixing had been 30 cents. JDuck 
prices — although placed a little above the level at which the Government formerly made 
its purchases — were made 15 to 25 cents lower per pound than the prevailing civilian 
prices, while sheeting and drills also showed marked reductions. 

2 The price-fixing committee had a small amount of cost data which it had secured 
independently. Their validity at many points was denied by the trade, however. These 
figures showed a prewar profit for the cotton industry of about 15 per cent as against 
a war profit of 25 to 30 per cent. Several representatives of the cotton industry justi- 
fied such profits on the basis of the tax situation. (See minutes of price-fixing com- 
mittee, June 21, 1918.) 



300 HISTORY OF PEICES DURING THE WAR. 

tives of the trade, the Army and Navy, and the War Industries 
Board. It was the function of this committee to submit prices for 
a large number of representative fabrics based upon a return on 
the capital investment of the average cotton manufacturing plant 
equal to that allowed for the four types of cloth which had been 
selected as the basic staples.^ The idea was to compile a list of 
fabric prices so thoroughly representative that it would be com- 
paratively simple for the industry itself to fix prices of cloths vary- 
ing slightly in construction in harmony with the published prices. 

Criticism of prices to be fixed in this way Avas, of course, bound 
to occur in man}' instances. A committee of textile experts was 
therefore aj^pointed to act as arbiters in those cases where objection 
was raised against the prices at which the variants from standards 
were being sold, and the price agreed upon between this committee 
and the trade was to be made officially one of the fixed prices. The 
price-fixing committee, however, remained the court of last resort, 
and in this body lay the right to make a final decision whenever the 
trade and the committee of experts failed in reaching an agreement. 

The prices agreed upon affected only the sales by the various mills 
manufacturing cotton products. No attempt was made to fix the 
price of the middleman or retailer, since the price-fixing committee 
trusted that those members of the trade would see to it that their 
prices were regulated in accordance w^ith the prices of the producers.^ 

At later meetings with the price-fixing committee, the cotton manu- 
facturers protested as unfair the lax manner b}^ which price fixing 
was extended over the various middlemen and distributors. They 
suggested the licensing of brokers and middlemen, but were told that 
the price-fixing committee had no authority for such action. 

The policy of the price-fixing committee appears to have been con- 
sistently to deal only with the manufacturers themselves. Even early 
in September, when the wholesale dry goods trade wanted to fix a 
maximum price for the distribution of cotton fabrics, they were told 
that the matter would be left to their own care. The Cotton Con- 

1 The price-fixing committee from time to time approved prices on cotton products as 
determined by a committee of the trade and the textile experts. Announcements of 
agreed prices were made July 1, 25; Aug. 7, 9, 14, 16, 22, 30; Sept. 3, 5, 25; Oct. 17, 
28 ; Nov. 4, 8, and 9, respectively. 

2 It was felt that the request of the President that the distributors of cotton goods, 
namely, manufacturers of ready-to-wear clothes, as well as all dealers in cotton fabrics, 
regulate their profits so as to give the consumer the full benefit of the reduction in 
price (see price-fixing committee's announcement to the press, July 8) would result in a 
lowered price all along the line to the ultimate consumer. Whether such was really 
the case appears doubtful. To wit, the following extract from an editorial in the 
Textile World Journal of June 29, 1918 : " Trice fixing on cotton goods for the benefit 
of the trade and the protection of the ultimate consumer goes a long way, but unless 
the retailer, too, is curbed, it will still fall short. In a Fifth Avenue store $1.15 was 
charged for a gingham that was sold elsewhere on the avenue for .$0.50. Shortly after 
this comparison was made the first store marked its goods as a bargain a'c $0.75, 
reduced from $1.15." 



GOVERIirMENT COI<rTROL OVER PRICES. 301 

^ ertejjs' Association; indeed, limited the profit to be realized from 
converting those fabrics on which prices had been fixed by the Gov- 
ernment, but this action was quite of their own volition and without 
reference to any activities of the price-fixing committee. 

Cotton yam prices. — Among the many cotton products, the price 
of which was to be fixed by the above-mentioned committee of the 
trade and the War Industries Board, appointed for the determining 
of equitable prices, was cotton yarn. On August 14, a set of differ- 
entials based on the prices fixed on June 21 was announced to the 
trade. The prices determined were based upon the length of the 
cotton staple used in specific yarns, thereby making the price depend 
entirely on the character of the cotton employed. Such a policy 
appears to have been contrary to the general practices of the trade, 
since cotton yarns are usually sold indirectly through commission 
houses. Sellers usually have little intimate knowledge either of the 
grade or the length of the cotton employed in spinning. It is with 
the spinners that this information generally lies. Moreover, the 
cotton spinners, whose profits are the first to be affected by a change 
in raw cotton prices, were esperiencing the results of a rising raw- 
cotton price. The situation appears to have caused considerable con- 
sternation in the spinning branch of the cotton industry, and for 
many weeks the business is said to have been completely halted.^ 

The proposed price revision. — As October 1 approached, the 
question of revising cotton-goods prices arose, and the cotton trade 
began meeting once more with the price-fixing committee. But again 
the identical problems of the preceding June presented themselves. 
Thus, in early September little was accomplished toward price re- 
vision, because the same lack of cost information held up negotia- 
tions. Indeed, " the failure of a large number of cotton mills to 
submit their cost sheets" resulted in the postponing of any revision 
until November 16.^ The question of fixing raw-cotton prices arose, 
as in former days, of course, and played its part in occasioning the 
delay of a revision. Talk of governmental price fixing was rife at 
the time, and a committee had already been appointed to look into 

1 The Textile Would, in an editorial, of Aug. 17, 19i8, summed up the situation as 
follows : 

" The more the program of price fixing is developed in the textile trade the greater 
seem to be the confusion and uncertainty that arise. The latest instance of this 
character is the announcement from Washington concerning regulated prices on cotton 
yarns * * *. The yarn-selling market is in a state of chaos and unable to deter- 
mine how to proceed." 

Later, on Sept. 7, this same paper stated that — 

" The cotton-yarn trade is still worrying along in a period of adjustment to tlie 
new conditions laid down by the price regulations. * * * " 

Relative to the price of raw cotton, it said : 

" The recent sharp advances in cotton prices have again emphasized the fallacy of 
tbfi effort to fix yarn prices as long as the raw material remains unchecked." 

2 See public announcement of price-fixing committee, Sept. 26, 1918. 



302 HISTORY OF PRICES DURING THE WAR. 

the matter ; and it was thought advisable to await the results of their 
investigation before making a final decision regarding cotton-goods 
prices. 

The Federal Trade Commission at last succeeded in getting a suffi- 
cient number of firms to submit data on production costs to warrant 
further action by' the price-fixing committee, and on November 8, 
accordingly, the representatives of the trade were called in for 
further consultation. The cost records evidently convinced the 
price-fixing committee that the prices of cotton goods, even as fixed 
under the July arrangement, were too high,^ and it was their opinion 
that a lower price, especially on denims and several other types of 
cloth, should be inaugurated for the period to follow November 16. 

1 The price-fixing committee contended that in order to place other fabrics on a parity 
Avith cotton sheeting, which was used as the basis for price determination, prices should 
be fixed so as to allow a 25 per cent return on plant investment. This profit was being 
exceeded in their opinion, and as proof of this fact they submitted the following figures 
(minutes of price-fixing committee, Nov. 8, 1918) : 

THREE-YARD SHEETING COSTS. 

Investment cost : 

Fixed cost per spindle $37 

Working capital required 13 

Total investment 50 

Per pound 
Conversion cost : of sheeting. 

Raw cotton used in sheeting $0. 38 

Cost of spinning and weaving . 095 

Twenty per cent additional labor cost allowed . 020 

Selling cost . 025 

Total conversion cost . 52 

Price fixed f. o. b. mill, $0.60 per pound, leaving a profit of $0.08 per pound. The 
average spindle consumes 150 pounds of cotton per year, and, on a basis of $0.08 profit 
per pound, there results a yearly profit of $12 or 25 per cent on the capital investment 
per spindle. 

DENIM COSTS. 

Investment cost : 

Fixed cost per spindle . $55 

Working capital required 20 

Total investment 75 

Per pound 
Conversion cost : of denim. 

Raw cotton (allowing for 10 per cent shrinkage) at $0.32 per pound $0. 36 

Cost of spinning and weaving . 17 

Twenty per cent additional labor cost allowed . 035 

Selling cost . 025 

Total conversion cost . 50 

To place denim on a parity with 3-yard sheeting, i. e., the realization of a 25 per cent 
return on investment, with an estimated consumption of 250 pounds of cotton per spindle 
per year, $0.08 per pound should be added to the ascertained cost of production. This 
would net a return of $20 per spindle per year, or a return of approximately 26 per 
cent on a spindle investment of $75, and would make the selling price of denim $0.67 
per pound. The then existing price, however, was $0.80. 

The validity of these data was denied by several members of the trade, principally 
because of the omission of any allowance for investment in buildings, and the divergency 
In costs in southern mills as compared with northern mills. 



GOVERNMENT CONTROL OVER PRICES. 303 

The price of raw cotton, incidentally, had not yet been fixed, and 
ostensibly fearing a rise in price, the cotton trade objected to any 
decrease in the prevailing schedule of prices. In fact, they went to 
the extent of suggesting that the prices then in force be continued 
until January 1. And, in spite of opinion to the contrary, especially 
on the part of several members, this suggestion of the cotton trade 
was put into practical operation. The prices in force on November 
8 were continued until January 1, 1919, but not without considerable 
reservation. Indeed, for the first time the price-fixing committee 
emphasized in a public statement that the prices in force were maxima 
and that both the Government and the public were allowed to pur- 
chase as much below these prices as possible. Further, the price- 
fixing committee went so far as to disclaim responsibility for their 
fairness. 

Then came the armistice with its wake of cancellations and the 
general disorganization of the cotton industry and the question as 
to the advisability of discontinuing price control. The cessation of 
control appears to have been advocated by many, both within and 
without governmental circles, but the preponderance of opinion lay 
in the direction of its continuance. There was, for example, the 
question of the behavior of the market with the opening of the 
international trade routes, especially in view of the foreign demand 
for raw cotton, the export of which had been held in check for almost 
a year. Moreover, the possibility of complications over contracts 
made under the maximum price agreement was- another deterrent, 
and the fixed price agreement continued until January 1, when it 
automatically ceased by limitation. 

Summary. — The extraordinary inflation resulting because of the 
taking from the market by the War Department, and the Navy, of 
the major portion of available cotton textiles, threw the cotton indus- 
try virtually into disorganization by the spring and early summer 
of 1918. The market had become dangerously inflated, to the extent, 
indeed that the Government was compelled to commandeer prac- 
tically all its textile supplies in order that it might secure them at 
fair prices. The consequent result, of course, was the unwillingness 
of the industry to sell to the Government, and in early summer 
price fixing was inaugurated. 

The absence of cost data, and the question of raw-cotton prices, 
were considerable factors which made difficult an equitable method of 
price fixing, and even at the very end of the period of price agree- 
ments, there remained obstacles of considerable moment. 

Whether the results attained were as beneficial as they might have 
been under a system of strict limitation of profits to the prewar 
level, it is not with the scope of this study to determine. The 



304 



HISTORY OF PRICES DURING THE WAR. 



prices of cotton manufactures, in spite of price fixing, remained 
at points varying from 64 to 87 per cent above the level of com- 
modities in general during the latter half of 1918, while raw cotton, 
which was uncontrolled, advanced at no time during this period 
more than 61 per cent above the general price level. That the price 
situation was considerably alleviated by the fixing of cotton prod- 
ucts prices, however, can not be 
denied, and not only did the 
price of several individual types 
of fabrics decrease, but, as evi- 
denced by the accompanying 
chart, the price level for the 
entire group of cotton manu- 
factures fell appreciably. 

Cotton Lintees. 

Even in November, 1916, five 
months before the United States 
declared w^ar, the price of cot- 
ton linters had reached insecure 
heights. The allied demands 
for explosives were fast taking 
the available supply and the 
year 1916 closed with the price 
of munition linters at 7.75 cents 
per pound, or 278 per cent above 
its prewar level of 2.5 cents.^ 
With the American entrance 
into the war, the acuteness of 
the situation was considerably 
emphasized. 

The requirements for muni- 
tions purposes increased the de- 
mand for linters to a very con- 
siderable degree, and ways w^ere sought for increasing production 
to an extent commensurate with this demand. One means of enlarg- 
ing the output was the closer cutting at the oil mills, thereby taking 
a larger proportion of the linters from the seed. This, of course, 
lessened the quality of the linters, but the low^ grades were found 
just as satisfactory for munition making as the higher. 

The oil mills then, in 1915, began to cut the cotton seed much 
closer than had been customary, and increased the output of linters 

^ See " Prices of Cotton and Cotton Products," by James H. Rogers (War Industries 
Board Price Bulletin No. 23), for a complete series of cotton linter prices from January, 
1913, to December, 1918. 




Weighted index number of wholesale 
rnices. — Short staple cotton, upland 
middling, New Yoi-k ; Short staple cotton 
yarns, average of five series ; Short staple 
cotton manufactures (except yarns p. 
average of 19 series. — By months, Janu- 
ary. 1913, to December, 1918. (Average 
quoted prices, July, 1913, to June, 
1914=100.) 



GOVERNMENT CONTROL OVER PRICES. 



305 



per ton of cotton for the year 1915-16 approximately 50 per cent 
above that of the preceding j^ear.^ The increased output per ton 
of cotton was reflected in the available supply of cotton linters and 
the crop year 1916-17 witnessed a production of 1,331,000 bales, 
which meant a 100 per cent growth in output when compared with 
the year immediately preceding the outbreak of the World War.^ 

Even this extraordinary increase in the available supply, how- 
ever, neither stabilized the price level of cotton linters nor met the 
ever-growing needs for munitions purposes. Thus, in the crop year 
1915-16, despite the fact that the quality of our linter output had 
been reduced by increasing the quantity cut from tiie seed to 106 
pounds per ton of cotton, as contrasted with 71 pounds in the pre- 
ceding year, the average price rose to 5.9 cents per pound as against 
1.9 cents per pounds for the crop year 1914-15. In 1916-17, with a 
linter cut increased to 149 pounds, the average price increased to 
6.8 cents.^ 



I'The effect of close cutting upon the output of linters per ton of cotton is made more 
evident from the following table taken from bulletin on " Cotton and Cotton Products." 



Year. 


Average 
pounds of 
linters cut 

per ton. 


1912-13 


64 
68 
71 
106 
149 
133 


1913-14 


1914-15 


1915-16 


1916-17 


1917-18 





, 2In the appended table are given the figures for the production of cottonlinters from 1912 to 1918 as com- 
piled by the United States Bureau of Census. The effect of close cutting, especially upon the supply of 
cottonlinters available for munitions, is most significant. 

Production of cotton linters in the United States. 



Crop years. 


Bales of 
500 pounds. 


1912-13 . 


610, 000 
639,000 
857, 000 
931,000 
1,331,000 
1,126,000 


1913-14 


1914-15... 


1915-16 


1916-17 


1917-lS. 





'The price oflinters from 1912 to 1917 as presentedin Bulletin 30, follows: 



Crop years. 


Weighted 
average 
price per 
pound. 


1912-13 


Cents. 
2.6 
2.3 
1.5 
5.9 
6.8 


1913-14 


1914-15 


1915-16 


• 1916-17 





125547°— 20- 



-20 



306 HISTORY OF PRICES DURING THE WAR. 

The entrance of the Uniteci States into the war witnessed a short- 
age of cotton linters, in spite of the doubling of our production in 
five years. Indeed, the first duty which faced the cotton and cotton 
linters section of the War Industries Board which was organized 
on April 4, 1918, was the investigation of the cotton-linter situation 
and the determination of the seriousness of the cotton-linter shortage. 

Accordingly, the entire field of cotton linter production was sur- 
veyed, and the prospects of an acute shortage of supplies made clear. 
The investigation indicated that the average annual production of 
linters in the five years preceding 1918 was less than one-half of the 
prospective requirements for 1919.^ While there was no shortage 
of linters at the moment, the approach of a shortage seemed inevit- 
able since the Government was at the point of completing a num- 
ber of new powder plants which would soon double the linter re- 
quirements. Moreover, it was found that there were being produced 
some 10 to 12 grades of linters, and that a large part of our output 
was going into the manufacture of mattresses, felts, etc. 

Government control of the linter crop. — The immediate need, then, 
was the stimulation of linter output, and with this in view, cotton- 
seed crushers were required to increase the cut of linters. After 
May 2, 1918, at the order of the War Industries Board the oil mills 
were required to " cut clean mill run linters known as munition type " 
exclusively. Moreover, crushers were compelled to cut a minimum of 
145 pounds of linters per ton of seed crushed. And for the period 
May 2, 1918, to July 31, 1919, these linters were to be sold to no one 
other than the United States Government, which agreed to take over 
the supply produced from the 1918-19 crop at a price of $4,67 per 
hundredweight f . o. b. points of production.- 

This, of course, meant that the many industries which normally 
used cotton linters would be deprived of their supply. But it 
appears that they underwent no hardship, for the War Industries 
Board had thoroughly surveyed the situation and had found that 
there was available a sufficiently large supply of cotton mill waste, 
hull fiber, and wood pulp which could well be used as a substitute 
for cotton linters in the normal linter- consuming plant. 

Tlie Gottmx linter 'pool. — When the supply of cotton linters had 
been brought luider control and the price stabilized, there still re- 

1 Final report of cotton and cotton linters section. War Industries Board, 1918. 

2 This price, 0.058 cents lower than the price of August, 1917, the last month for which 
authoritative price quotations can be secured, was ratified by the price fixing committee 
and made effective May 2, 1918. 

Several months later, on July 8, 1918, the price fixing committee set a maximum 
price of $6.33 per liundredvveight for the bleaching of linters. This price, however, in 
view of the large bleaching capacity of the country and the ever-present competition, 
appears never to have been effective. Indeed, it is believed that contract prices were 
appreciably lower than the maximum allowed. The fixed price expired by limitation on 
Oct. 31, 1918. 



GOVERNMENT CONTROL OVER PRICES. 307 

mained the problem of its distribution. There was not only the 
need of linters for our own consumption, but also the constant 
demands of the allied governments which were largely dependent 
upon us. An organization made up of representatives of the Allied 
Governments to supervise distribution was therefore created, and 
" The Cotton Linter Pool " came into being.^ 

This body, the guiding spirit of which was the Ordnance Depart- 
ment of the United States Army, provided for the securing of linters 
at uniform prices for the various members and had as its purchasing 
agent the Du Pont American Industries (Inc.), to whom was allowed 
26 cents for each bale of linters purchased for the " Pool." ^ It appears 
that ample supplies of linters were obtained during the summer and 
autumn of 1918. With the signing of the armistice, however, the 
Government needs automatically ceased. But there still remained 
the obligation of continuing the purchase of linters. The fulfill- 
ment of this responsibility was placed in the hands of the Ordnance 
Department. 

Restrictions as to the cutting of linters were no longer necessary, 
and crushers were not required to cut the minimum of 145 pounds of 
linters per ton of seed as had been decreed on May 2. Crushers im- 
mediately began, therefore, to resume cutting the longer linters 
which could be used in the manufacture of mattresses and like com- 
modities, and for which they could secure a higher return. 

Among the tasks facing the Ordnance Department was the dispo- 
sition of linters on hand which had cost approximately $20,000,000, 
and attempts to dispose of this surplus resulted in the War Depart- 
ment receiving bids for small quantities for which a price averag- 
ing less than 2 cents per pound was offered. Finally, on May 24, 
1919, the War Department announced the sale of 700,000 bales of 
cotton linters for approximately $15,000,000, one of the largest single 
transactions in cotton fiber ever consummated in the history of the 
cotton industry. 

lAmong the participants in this pool were the United States Government, represented by 
the Ordnance Department of the Army, the Canadian, French, British, Italian, and Belgian 
Governments, manufacturers of explosives having United States or Allied Government 
contracts for powder or guncotton, and " manufacturers of absorbent cotton or other sup- 
plies, using cotton linters, having United States or Allied Government or Red Cross 
contracts." 

2 The final report of the cotton and cotton linters section of the War Industries Board 
enumerates in part the functions of the linter pool and the system of division of powers, 
as follows : 

The United States Ordnance Department had jurisdiction over (1) the production and 
stimulation of linter production; (2) requisitioning or commandeering stocks; (3) all 
financing, either as to production or purchases; and (4) disputes arising between pur- 
chasing agency and producers. 

The cotton and cotton linters section of the War Industries Board had jurisdiction over 
(1) allocations of supply; (2) storaging and warehousing; (3) rules pertaining to linter 
manufacture; and (4) reports and records of stocks, production, requirements, etc. 

The expenses of the pool were prorated among the members. 



308 HISTORY OF PRICES DURING THE WAR. 

The mattress Unter pool. — Altlioiiiih virtually the entire supply 
of linters went into the manufacture of explosives, there apparently 
remained an appreciable povernmental and Eed Cross demand for 
linters for mattresses for hospital uses. The production of linters 
for such purposes had been prohibited on May 2, 1918, but there 
still remained a supply of mattress linters which had been produced 
prior to that date. In order to meet the war demands for these 
linters, therefore, the " Mattress Linter Pool " was formed and as in 
the case of munition linters, the Du Pont American Industries 
(Inc.), was appointed purchasing agent "with instructions to buy 
all mattress linters available from production prior to May 2, 1918." ^ 
Pains were taken to insure the obtaining of the greatest supply pos- 
sible, and regulations were drawn up which prohibited " the use or 
sale of mattress linters by or to any individual, firm, or organization, 
other than the Mattress Linter Pool." This, of course, made such 
supplies as were existent of little or no immediate value to the 
holders thereof and naturally the result was a desire to sell to the 
only permissible customer. Provisions, however, were necessary as 
to the price of linters under this arrangement. Accordingly, a basic 
price on three sample types of linters was determined by agreement 
and the Du Pont Co. Avas instructed to buy at the figure fixed for all 
supplies voluntarily offered.^ 

It is estimated that about 75 per cent of the mattress linters in 
existence were purchased by the Mattress Pool.-^ 

On the day following the signing of the armistice all restrictions 
relative to the use of mattress linters were removed. It was neces- 
sary, howeA'er, to give the industry aii opportunity to get its breath 
after so sudden a change, and provision was made to continue the 
buying of mattress linters until November 23, from anybody who 
wished to sell.* An arrangement Avas. also made whereby those 
mattress manufacturers who had voluntarily sold their linters at the 
agreed prices might buy back at the same figure the supplies turned 
over to the Government. 

1 Report of cotton and cotton linters section, ibid. 

- Three grades of linters, designated as " A." " B.'" and " C," were used as samples and 
a figure of 10 cents, 7 cents, and 5.5 cents f. o. b. points of location, respectively, was 
agreed upon as the price to be paid. All linters below grade " C " were to be considered 
munition linters and were to sell at $4.67 per hundredweight (see p. 703). 

° Report of cotton and cotton linters section, ibid. 

There were many holders of mattress linters who were unwilling to sell their supplie.-^ 
at the agreed prices, iind in such cases the Ordnance Department was to exercise its com- 
mandeering powers. This method of securing supplies gave the owner opportunity to 
establish the actual value of the commodity. 

^ Later the Ordnance Department, in order to protect the producers of mattress linters, 
agreed to take over any surplus of mattress linters up to 150,000 bales which might be 
CD hand on July 1, 1919, at a price of 8 cents, 7.5 cents, and 5 cents for the three grades 
" A," " B," and " C," respectively, 



GOVBEi*rME:N^T co:m'trol oyer prices. 



309 



A glance at the acconipami.ng chart will give an idea of the sta- 
bilizing eflrects of governmental action upon the price of cotton lin- 
ters. Its price level appears to be subject to violent fluctuations even 
in peace times and at no time during the entire six-year jK-riod, 1 913 
to 1918, did munition linter 
prices remain unchanged for 
more than a few months at a 
time. Moreover, so far as 
available statistics show, dur- 
ing no month from September, 
1915, to May, 1918— the month 
of governmental price fixing — 
was the price of linters as low 
as that fixed by the TTar Indus- 
tries Board. 

Wool. 

The large consumption of 
wool in the United States has 
made it necessary for the 
American woolen industry to 
be at all times dependent in 
large part upon foreign im- 
ports. Indeed, the propor- 
tion of domestic wool which 
in the prewar years went into 
the manufacture of woolens 
and worsteds never amounted 
to more than two-thirds of our 
total consumption, while in 
many instances it comprised 
slightly more than one-half. 
With the stimulation of the 
industry in 1915, brought 
about by the allied demand for 
woolen products, the propor- 
tion of our total consumjDtion 
supplied by domestic raw wools 
fell off until, before the year 
ended, our imports played a more important part in our woolen 
industry than did the home clip. The foreign wools used in the 
United States in 1916 amounted to 534,828,022 pounds as against 
288.490,000 pounds of domestic wools — a ratio of 2 to 1. 









1913 


1916 


1917 


1915 






l-l-^ 


5 § K 1 


1 ^ ^ 


1 S tj 


















1 


11 > ' ^ 












- '■ 












\ 










1 


1 \ 


t 










- 









MO 






- 




. 




sea 


REUkTlVC PRICEJ OF 








; 






COTTCMUNTLF« 








5 




ao 












3!ADC Cl,aT 130-175 LBIPERTW 

BV MONTHS 

0ANUAirCa5-"DECQ^lERiaK 

/iv-EEACE QUOTED PR1CE5 

JULY,iai"ajLXl<lM-100 








' 




260 








i\ 


5 














1 


KO 




1£)13 ] 1014 




1 i E 1 M S 


































lOO 














loo 


160 
140 
120 






i 








160 
140 
IZO 


ri i ! ! 




1 








^ri'i, 














IQO 












100 


eo 




» 








BO 


60 




V 










60 


*o 


mIuJmIii 
S 1 ? S 


"$i'i"%"fti" 


ntr 


,,^„^„,„ 


L^.^ 


40 




1£»3 1 1914 1 1913 1 1916 


1917 


19ia 


„ 



Relative prices. — Cotton linters, grade D, 
cut 130 — 173 pounds per ton. — By months, 
January, 1913, to December, 1918. (Aver- 
age quoted prices, July, 1913, to June, 
1914=100.) 



310 HISTORY OF PRICES DURING THE WAR. 

I The acute shipping situation of 1917 and the shutting off of sup- 
plies from Australia/ which had been our most important source of 
raw wool in the two preceding years, cut the imports for 1917 down 
to a little more than 372,000,000 pounds. The consumption for the 
year likewise fell, and the industry in 1917 used 164,000,000 pounds 
less wool than in 1916. But the large requirements of the Army soon 
increased the demand again, and the first half of 1918 witnessed a 
consumption equal to two-thirds of that of the previous year, and 
almost as large as the total for the year preceding the outbreak of 
the European War. Although the imports were fairly large during 
the first six months of 1918, they were not commensurate with the 
demands. The result, then, was a decrease in stocks which on June 
30, 1918, amounted to 494,000,000 pounds of wool, or 91,000,000 
pounds less than at the same date in 1917. 

It is apparent that under such conditions the prices of wool could 
not remain immune from manipulation. Indeed, shortly after the 
declaration of war they began to rise so that by the end of 1914 they 
were 20 per cent above their prewar leA^el. Then came the demands 
of the various allied powers for woolen goods, especially for military 
purposes, and 1915 and 1916 witnessed an extraordinary rise. At the 
end of the latter year raw wool sold for just twice its 1913-14 price.^ 
Then came the cutting off of the Australian supply,^ and the Ameri- 
can entrance into the war. 

The American declaration of war had a stimulating effect upon the 
woolen trade. Before the year 1917 was half over prices rose to a 
point 225 per cent above the peace-time average. Dealers bought far 
into the future and speculation was rampant. 

The approach to regulation. — Many meniDers of the woolen in- 
dustry, however, foresaw the disorganization which followed the 

1 During- 1915 and 1916 Australia furnished approximately 25 per cent of the wool im- 
ported into the United States. In November, 1916, the British Government purchased the 
Australian production of wool for the period of the war and one year thereafter. This, of 
course, had an important effect upon the receipts during 1917 and imports from Australia 
for that year fell to 7,000,000 pounds, as against 115,000,000 pounds in the preceding year. 
Arrangements which were later made with the British Government increased the 1918 re- 
ceipts from Australia a considerable degree. 

2 Ohio three-eighths blood, unwashed wool, sold in December, 1916, for 49 cents a pound, 
as compared with 38J cents at the beginning of the year. The average price for the 12 
months preceding the outbreak of the war had been $0.2369. Similarly, territory combing, 
one-half blood, sold at the end of 1916 for .$1,003 per pound, as against 73.8 cents iu 
January and .$0.5228 in the prewar year. Imported wools, also, felt the effects of the war 
needs for cloth, although the rise in their price was not quite equal to that of the domes- 
tic product. 

3 The cutting off of the Australian supply, which had been mentioned above, may be said 
to have had a greater effect upon the price of raw wool than any other single factor other 
than the military needs of our Army. Not only did the Bi-itish purchase of the Australian 
clip actually cut down our potential supply, but these wools were especially desirable for 
American manufacture because of their fine quality. Wools of similar quality could not 
be duplicated in any other foreign market, and the psychological effect of this loss upon the 
trade was of great consequence. During the four months following the taking over of the 
Australian supply by Great Britain, domestic wool prices rose 40 per cent, as compared to 
the prewar basis. 



GOVERNMENT CONTROL OVER PRICES. 



311 



American entrance into the war. Indeed, on April 10, 1917, fovir 
days after the declaration of war, the textile alliance notified the 
general munitions board that there would not be enough cloth in 
the countrj^ to meet both the 



RELATtVE PiSICEaOF" 

RAVWOOL 

— DOMESTIC 

.«..,... IMPOPTED 

GOOD VICTORIA 

■ BRITISH MoRKErr 



£ R ACE CUOTE D PD ICES JUCy. 1013 "^A^JEpi-t-iOO 




10I7 



^llA. 



554 



requirements of the Army and 
Navy and civilian needs.^ It is 
probable, however, that the 
general munitions board did 
not realize the significance of 
the warning, and the matter 
was turned over to its com- 
mittee on supplies " with the 
understanding that if necessary 
the board would suggest to the 
Council of National Defense 
that it arrange with the British 
Government to remove the em- 
bargo " then existing on wool. 
There followed an offer on the 
part of the various brokers in 
the important markets to turn 
over to the Government such 
stocks of wool as they had on 
hand at a price equal to that in 
effect on April 2,^ Although 
several members of the board 
urged acceptance of the offer, 
ignorance of the military re- 
quirements and the fear that 
governmental action would fur- 
ther disturb an already unstable 
market led to its rejection.'^ Moreover, it was felt that the acceptance 
of the offer and the resultant low price to the military authori- 
ties would result in raising the price of other wools to manufacturers. 
The War Department apparently was not fearful, and believed that 
its requirements could be met.* 

1 Minutes of tlie~ general munitions board, Apr. 10, 1917. 

2 Mr. J. Rosenwald, who headed the committee in charge of wool supplies, when asked 
to report the result of his conference with the wool dealers, informed the general muni- 
tions board that " The brokers in Boston, Philadelphia, and Chicago had agreed to hold 
such wool as they (then) had on hand for the use of the Government, and that a price 
equal to that in effect on April 2 for raw wool had been decided upon." (Cf. Minutes of 
general munitions board, Apr. 11, 1917.) 

3 Minutes, loc. cit. 

* The following extract from the minutes of the meeting of the general munitions board 
on April 13, 1917, sums up the point of view of the military authorities on the question of 
wool : " Col. Hodgson reported that * * * had advised him that orders had been placed 
for articles requiring wool, so that there was no necessity for holding the wool recently 
offered by woolen brokers. Col. Hodgson further stated that the feeling at the Quarter- 
master's Department seemed to be that there was no apprehension as to wool at this 
time." 



Relative prices. — Raw wool, domestic, im- 
ported ; and Good Victoria British mar- 
ket. — By months, January, 1913, to De- 
cember, 1918. (Average quoted prices July 
1913, to June, 1914=100.) 



312 HISTOEY or PEICES DURING THE WAR. 

It had apparently also been the belief of the Quartermaster De- 
partment that it could obtain a better price at a later date, but in- 
stead the TTOol market continued upward. Finalh^, in July it be- 
came evident to those in charge of supplies that it would be advis- 
able for the Government to accumulate a stock of raw wool, and a 
committee was appointed under the committee on supplies of the 
Council of National Defense to buy wool for the Quartermaster 
Corps. When this committee came on the market it found condi- 
tions quite the reverse from what had been expected. Wool prices 
had gone up in spite of the Government's refusal to accept the offer 
made by the trade in the preceding April, and the prices of July 
30, relative to the prewar basis, were over 100 per cent higher than 
those of April 2.^ 

The abnormal speculation in woolens virtually came to an end in 
the summer of 1917, and relatively little happened to the price of 
raw wool during the succeeding fall and winter. By October, how- 
ever, the Quartermaster General, as well as the committee on wool 
supply, began to doubt the sufficiency of the existing wool supply 
and the advisability of letting the wool market follow its own un- 
regulated course. Indeed, in late October, the chairman of the com- 
mittee on wool supply advised the War Industries Board that some 
sort of governmental action ought to be taken in order to control 
the situation.^ This was followed, also, by a letter from the Quar- 
termaster General in which the'possibility of the Government's pur- 
chasing the entire wool clip of the country was suggested.^ It was 
the opinion of the board, however, that such action was inadvis- 
able and so the Quartermaster General was informed.* 

Here, once more, the fact that the authorities concerned with wool 
did not know the full Army needs was a controlling factor. In their 
judgment, supplies were adequate, and. to substantiate their belief 
they made the statement that the bulk of the manufacturers had 
covered their wool requirements for all Government contracts calling 
for deliveries up to June, 1918. After that date, in their judgment, 

1 This situation evidently was disappointing to the purchasing authorities and they 
hought only a relatively small amount of wool. It was not known by the Government pur- 
chasers either what the size of our Army was to he or what its needs would amount to. 
Accordingly, they purchased but little in the domestic market and began negotiating with 
Great Britain for the purchase of Australian wools, which, if obtainable, would have been 
available at a price much lower than that of the American product. This was probably 
viewed as an initial step in breaking the domestic price, but since this wool, which was 
finally purchased in October, did not arrive before the spring of 1918, when the price of 
wool had been already fixed by the price-fixing committee, the purchase was never effec- 
tive in lowering the American price level. 

2 Minutes of War Industries Board, Oct. 11, 1917. 

3 Minutes of War Industries Board, Nov. 1.5, 1917. 

* In late November a third suggestion relative to the control of wool was made, this 
time by the committee on price control of the Philadelphia Wool and Textile Associa- 
tion. This body advocated the fixing of a maximum price for raw wool, but their proposal, 
like the others, did not receive any Indorsement. 



GOVEENMElSrT CONTROL. OVER PRICES. 313 

the new domestic clip and imports from foreign countries would 
provide a sufficient supply.^ 

The adoption of a regulative folwy.- — By early 1918 the need for a 
more positive program became clear. The Army authorities, through 
the use of the War Trade Board import restrictions, had already se- 
cured an option on all foreign wools entering the United States.^ 
A census of existing stocks, nevertheless, showed that something 
more than the control of the imported varieties would be necessary 
if the Army requirements of about 125,000,000 pounds of scoured 
wool were to be met;^ Evidence of shortage had already been pre- 
sented in the fact that the Army was compelled to use shoddy. 
Accordingly, on April 5, 1918, the War Department requested the 
Boston Wool Trade to grant to the Government an option over 
the existing stocks of raw wool. The trade agreed, and promised 
also to buy no more new wool from the growers until otherwise 
notified by the authorities. The effect of this action was soon 
reflected in the attitude of the wool growers whose markets had 
been automatically cut off. It appears that they had not been in- 
formed of the instructions to the wool dealers regarding the cessa- 
tion of purchases and it was their impression that the dealers had 
stopped buying because of the fear of governmental price fi.xing.* 
They at once made inquiries of the War Industries Board as to the 
jDolicy to be pursued by that body, but evidently they received no 
definite assurance as to just what was to be done. The growers, it 
seems, feared that the price of their product would be fixed at a price 

1 Just what the attitude of the War Industries Board toward the wool situation was, 
is well presented by the following extracts from a memorandum sent to the Quarter- 
master General on Nov. 15. Among other things, it said : 

"We do not feel the urgency at this time of taking on these duties (taking over of 
the wool clip) for the following reasons: (1) The pui-chasing of wool in the grease 
requires very expert knowledge. It would be necessary to engage a staff of these buyers 
before we could intelligently purchase such a large and varied assortment of wool as the 
United States grows. (2) The bulk of the manufacturers have covered their requirements 
on the Government contracts they have undertaken. (3) The latest figures, dated, Sept. 
30, 1917, show unsold wool in Boston equal to 130,000,000 pounds. To this we can add 
the 70,000,000 pounds of Australian wool and about 10,000,000 pounds of East India 
wool released by the British Government to us for Government requirements. * * * 
AYe can figure on .at least 200,000,000 pounds from South America in the next few 
months. The items will bring the total to over 400,000,000 pounds available. By May 
and June the new wool clip of the United States will be coming on the market. This 
represents another 270,000,000 or 280,000,000 pounds. 

" We may feel" after the first of next year that it is necessary to take some action on 
the purchase of a part of the new clip, but for the present, owing to reasons advanced 
above, we feel that it is better to let the matter rest as it is." 

" On Dec. 15, 1917, the War Trade Board had ruled that after tliat date all imported 
wools would be subject to Government option at a price equal to 5 per cent less than 
the July 30, 1917, price in Boston. 

s A census of wool stocks made in early 1918 by the War Department disclosed a supply 
in the hands of dealers of less than 35,000,000 pounds, scoured basis. 

*A statement made by the representatives! of the National Wool Growers' Association 
at the first meeting of the price-fixing committee and the wool growers was to the effect 
that the dealer.s in the West would not buy wool because they feared that the Government 
would fix the price of wool at a figure lower than the current market figure. 



314 HISTORY OF PRICES DURING THE WAR. 

relatively lower than that then prevailing, and thought it desirablo 
that any such move be preceded by action on their part. They there- 
fore asked for an opportunity to appear before the price-fixing com- 
nnttee, and April 19, 1918, they offered their entire clip to the Gov- 
ernment at the current market price.^ In the event that the price- 
fixing committee was unwilling to buy the clip, it was the opinion of 
the wool growers that the entire situation should be left free to the 
unregulated forces of the market. Moreover, they believed that the 
governmental authorities ought to make a public statement to that 
effect. In other words, the wool growers wanted the price fixing 
committee publicly to commit itself to the policy of leaving the 
American wool clip untouched. But this the price-fixing committee 
refused to do, remarking in the course of its refusal that they had 
no authority to bind the Government to any policy.^ 

Negotiations with the wool growers were about to end when the 
representative of the wool section of the War Industries Board made 
the statement that the military forces would require the whole do- 
mestic clip, and suggested that the Government buy it.^ Immedi- 
ately the situation was changed, and from that moment it was quite 
evident that the United States Government was about to take over 
the 1918 clip. 

With the question of the disposal of the wool clip settled, it re- 
mained to fix a price at which the Government would take wool over. 
The growers insisted upon the current market price, which, as has 
already been said, was three times higher than the 1912-1914 level. 
The price-fixing committee refused this request, and reference was 
made to the British purchase price, which was but 75 per cent above 
the prewar average, to substantiate their refusal.* In their opinion 
the price of July 30, 1917, was a fair price for raw wool, especially in 
view of the fact that the Government had been purchasing imported 
wool at that figure during the preceding four months. They con- 
tended, furthermore, that the April, 1918, price was not a " fair 

1 This offor was made, however, only with the provision that the Governmeut buy the 
entire clip, which was estimated to be about 300,000,000 pounds. The market price 
incidentally was at the time about three times the prewar average. In the course of the 
discussion between the growers' representatives and the members of the price-fixing com- 
mittee it was brought out that the price asked for the clip varied from 45 to 80 cents a 
pound, depending on grades, whereas formerly similar wools sold from 5 to 20 cents. 

- See Minutes of price fixing committee, Apr. 19, 1918. 

» Mr. Elliot said : " Gentlemen, the Government needs will require all of the clip, so 
why should we not buy it? " 

* It is interesting to note, in this connection, the growers' contention that the them, 
cui'rent high prices were necessary to keep production at the high level required by war 
needs. And this theory of stimulating production, according to several members, also 
guided the price-fixing committee in determining upon what price should be fixed for a 
given commodity (see p. 242). In the instance of wool, however, the price-fixing commit- 
tee seems to have laid aside this theory, as is shown by the following statement of the 
chairman : " The old theory that the high price stimulates production is an error. One 
side is when a man gets a certain amount, his steam power gets down a little lower. He 
doesn't work as many days. la other words, it isn't exact science that the higher price 
increases production." 



GOVEKE-MENT COITTROL OVER PRICES. 315 

market price," since it was not established under normal conditions, 
whereas the July, 1917, figure was one which was arrived at in a 
market where Government demands played little or no part.^ 

The wool growers, however, claimed that the offer of the Govern- 
ment did not allow for the high costs of producing wool and refused 
to accept the suggested price. The dealers from the various large 
wool markets had by this time also taken up their case with the 
price fixing committee, and they, too, objected to the July 30, 1917, 
price, since it allowed for no profit. But refusal to accept the 
proffered price was in vain, for both the growers and dealers were 
told that there were but two alternatives — first, the July 30, 1917, 
price; or second, the commandeering of the entire wool supply and 
the determination of a price by Board of Appraisers of the War 
Department.^ The former alternative was accepted and on April 23 
the Government agreed to take over the raw wool then in the hands 
of dealers atl a net price equal to that of July 30, 1917;^ while an 
agreement was made with the growers whereby the Government was 
given a prior right to acquire all of the 1918 wool clip or " any por- 
tion thereof that it might require."* The remainder was to be sub- 
ject to allocation for civilian purposes under the direction of the 
War Industries Board. 

To the War Department was assigned the task of handling the 
wool supply, although the machinery for purchasing and evaluating 
was formed by the price fixing committee, acting in conjunction with 
the growers and dealers. All parties desired that as little change 
as possible be made in the organization of the woolen industry. The 
final plans, therefore, provided for the use of the customary channels 
of distribution. The growers were to consign their wool to dealers ^ 

1 The legal department of the War Industries Board had interpreted " a market price as 
one established under certain normal conditions." A market with large Governmont 
demands was not, in their opinion, normal. 

2 The plan presented to the wool dealers by the chairman of the price-fixing committee 
was rather comprehensive. It was his idea that (1) the Government should commandeer 
the clip and fix the price to be paid, (2) the wool dealers should continue operating as 
usual and receive a fair compensation for their services, (3) the wool dealers should sell 
to manufacturers only under instructions from the War Industries Board, (4) the manu- 
facturers should be licensed, and (.5) if necessary, standard clothes should be manu- 
factured at a price which would be fixed down through the wholesaler and retailer. 

3 For such wool as the dealers might have on hand at the time, which could be shown 
to have cost more than the July 30, 1917, price, the Government agreed to pay an amount 
equal to the original cost plus .5 per cent. 

* A series of prices as of July 30, 1917, was drawn up and used as a basis of payment 
for raw wool. These prices varied from $1.07 per pound, scoured basis, for common and 
braid, eastern and territory wools, to $1.85 for fine delaine (Ohio) wool. 

5 Dealers were forbidden to buy wool directly. They could only accept consignments 
which after being graded were valued by the Government valuation committee. This com- 
mittee was made up of representatives of the growers, dealers, and manufacturers. 
Manufacturers were also forbidden to purchase wool except in the designated distributing 
centers, and then only with the permission and consent of the Government. Those mills 
working on Government orders, however, which were located in wool-growing sections 
not near the centers of distribution, were given permits through the Wool Division of 
the War Industries Board to buy certain amounts of wool in their immediate neighborhood. 



316 HISTOEY OF PRICES DURING THE WAR. 

at the July 30, 1917, price minus the cost of transportation to Boston 
and the compensation to the dealer,^ and the dealer in turn was to 
forward such consignments to the United States Government. The 
juofits allowed to dealers were definitely fixed, and varied from 1| 
cents for each pound of wool handled for country dealers to 5 per 
cent on the season's business for dealers in distributing centers. 

The effect of wool control. — By the summer of 1918, the War 
Department controlled the entire supply of raw wool with the ex- 
ception of that which was in the hands of manufacturers prior to 
April 5. Soon afterwards approximately half of the active combs, 
cards, spindles, and wide looms of the country were engaged on 
Government work. This number increased month by month until 
November, while stocks of privately owned wool progressively di- 
minished. In October provision was made for taking over the 1919 
clip. More and more persistent demands were made by manufac- 
turers that wool be allocated for private orders, but virtually all 
i-equests were refused and definite word was given out that no 
civilian allocations would be made before April 1, 1919. At the 
time of the armistice, the War Department had accumulated a supply 
of raw wool sufficient for six months at the war-time rate of con- 
sumption." 

These large stocks, together with the uncertainty as to the future 
price level, were leading to a serious depression in the woolen indus- 
try, when at the end of the j^ear the War Department determined 
to dispose of their stocks through a series of auctions. On January 
15, 1919, it was announced that the minimum price acceptable at 
these sales would be on a parity with the British civil issue price.^ 
But even this policy on the part of the War Department did not 
stimulate the woolen industry, and the first four months of 1919 
Avitnessecl widespread mill idleness. By April, the period of read- 
justment had been bridged over and buying at Government auction 
had been quite spirited. Indeed, by June 1, 1919, 270,000,000 pounds 
of wool had been disposed of by the War Department, and the prices 
paid for the better grades virtually equaled the war level. 

Hides, Skins, and Leather. 

Unlike the prices of cottons, woolens, and other forms of clothing, 
the price of leather, and the raw materials from which leather is 

1 The necessity of concentrating the avooI supply near the centers of consumption 
led to the restricting of distribution to only approved dealers. Approved dealers were 
those authorized by the War Industries Board to handle wool. 

- On Nov. 23, 1918, the statistical branch, General Staff, War Department, reported 
stocks of 233,867,685 pounds of wool on hand. The total purchases to that date had 
been 421,373,609 pounds, thus making a total of 187,.50.'5,924 pounds which had been 
sold to manufacturers. There were yet to he delivered on prior purchases 222,000,000 
pounds of wool, which made a total of 455,807,685 pounds to be disposed of. 

5 For comparison with United States buying prices, see War Industries Board Price 
Bulletin No. 24, " Prices of Wool and Wool Products," by K. Snodgrass. 



GO^^R^N-MENT CONTROL OVER PRICES. 



317 



made, when compared to the general price level, remained relatively 
stable during the period of the World War. Indeed, it was only in 
late 1916, imder the influence of heavy allied buying, that any per- 
ceptible rise in leather prices over those of commodities in general 
occurred, and this rise was short lived.^ During 1917 and 1918 the 
index number of leather, based 
upon the 1913-14 average, re- 
mained virtually unchanged and 
at no time did it approach 
within 15 per cent of the price 
level of " all commodities." The 
remarkable stabilization of 
leather prices that came in De- 
cember, 1916, in the United 
States, was. the result, curiously, 
of British price fixing. British 
control, indeed, which came rela- 
tively early, appears to have had 
a greater influence upon the 
American leather market than 
our own price fixing of the sum- 
mer of 1918. 

Leather prices as . a whole were 
at a relatively low level, when 
the price-fixing committee under- 
took to fix prices in April, 1918. 
In the previous month, a price 
agreement had been made by the 
War Industries Board with the 
distributors of sheepskins rela- 
tive to the price to be paid by the 
United States Army for jerkin leather,- but this was nothing more 
than a long-time contract applicable only to Army orders. It was 
fear of the effect of several expected events in the leather market 
apon prices, rather than current high prices, which led to the fixing 
of hide and skin prices in the spring of 1918. 

There wera four factors in particular that seemed to threaten 
instability in the leather market. First, the needs of our growing 
Army had prompted the Quartermaster Corps to contemplate plac- 
ing enormous orders.^ This, it was expected, would lead to compe- 

1 The rise experienced in late 1916, appears to liave been halted abruptly at the time 
that the British orders controlling the importation, and fixing of prices for raw hides 
and skins, went into effect. 

= See p. 729. 

" In April, 1918, the United States Army placed contracts with American manufacturers 
for 5,604,008 pairs of shoes, valued at $40,446,531. 





WOCMTCD INDEX N0MBCC3 OP PRICES Cr 

— HIDES AND 5KlN5,LEAmER AND 
LCATOffi MANUFACTURES 
— -ALLCOMMODrrO" 

BY MON-mS 
^ANUAnv.KXS -^ DCCCMBER,13ia 
AVERAGE QyCfTED REJCE3 JUKt'.lSia'VUNCaW^OO 






19li 


1914 1913 


loie 


1«7 


loia 




* ^ ? 


l^^: 


? M = 


SS fe 


i g \ 


■ ? H 


VD 
Z20 
SCO 
ISO 

leo 
uo 
120 
100 


a* 














200 

uo 

160 
140 
120 
190 












^y 










r^ 


yJ 








i 


4^ 


./^ 










/ 










/ 








L ^ 


^^ 


y 






SO 




V^'^ 










ao 














r^ n" 


nTii'i i 1 E 


•TiT 


"rh'T 


i a q. 




1<)13 


1914 1 1913 


isie 1 1917 1 isia 





Weighted index numbers of prices. — 
Hides and skins, leather and leather 
manufactures, and "All commodities." — 
By months, January, 1913, to December, 
1918. (Average quoted prices, July, 
1913, to June, 1914=100.) 



318 HISTORY or PRICES DURING THE WAR. 

titioii for hides and skins in the open market and force prices out of 
control. Secondly, these large Army orders had to be extended over 
a series of months and their size necessitated deliveries over rela- 
tively long periods. The tanners, then, would need to make pur- 
chases of hides extending over long periods. The fixing of the price 
of hides and skins, in the opinion of the Army purchasing authori- 
ties, v^^ould lead to greater regularity in the supplying of require- 
ments by eliminating the tanner's risks. Moreover, this stabilization 
of the price of raw materials, it was hoped, would lead to a more 
steady market price for finished leather products. Thirdly, the Brit- 
ish Government was at this time about to enter the i^merican market 
for a considerable quantity of leather. The British purchasing com- 
mission had already informed the War Industries Board that it was 
about to purchase $35,000,000 in value of leather, and it was evident 
to the authorities that any bid of this size would play havoc with 
the prices of hides and skins. Finally, there was the shipping situ- 
ation. The United States has at all times been a large importer of 
foreign hides and skins. Our receipts for the fiscal years ending 
June 30, 1917, and 1918 amounted to about 700,000,000 and 432,000,- 
000 pounds, respectively. The shortage of shipping, however, ne- 
cessitated the cutting off, as far as possible, of dispensable imports 
and the United States Shipping Board was about to recommend a 
three-month embargo on the importation of all hides, skins, leather, 
and manufactures, excepting such cattle hides as were fit for Army 
use.^ This action, it was believed, would bring chaos to the leather 
market, and result in erratic rises unless some steps were taken 
immediately. 

Cattle hides. — The price fixing committee, with these points in 
mind, met on April 26, 1918, with representatives of producers, im- 
porters, and distributors of hides and skins to fix prices for their 
products. A schedule was presented by a committee representing the 
industry, in which the price fixing committee was asked to fix a 
maximum price for hides and skins equal to the average market 
level for the period April 1 to 24. This average was approximately 
10 per cent higher than the current market quotation, and the price 
fixing committee objected on the ground that its acceptance would 

1 The final report of the hide, leather, and leather goods division of the War Industries 
Board (December, 1918) states: 

" In cooperation with the Shipping Board for the releasing of tonnage, and with the 
Food Administration, restrictions on imports were agreed to which deprived the industry 
of about 10,000,000 hides and kips and about 90,000,000 goat and sheep skins, the 
tonnage allowed for leather raw stock being confined entirely to requirements for war 
necessities. 

" The final restrictions which practically limited importations of raw stocks to certain 
heavy hides from South America, to hides coming by rail, and to hides coming as back 
haul from Europe, went into effect June 15." 



GOVERNMENT CONTROL OVER PRICES. 319 

mean raising the existing price, and this they said was contrary to 
their policy. The live stock producers also took issue with these 
suggested prices ; not, however, on the ground of its fairness. It was 
their contention that price fixing in any form, was unnecessary and 
that in their opinion no emergency existed which warranted any 
Governmental interference.^ 

The price-fixing committee overruled the objections of the live- 
stock producers and on April 30, 1918, fixed maximum prices for all 
the stocks of domestic hides and skins in hand at that date; for the 
domestic take-off for the months of May, June, and July; and for 
all imported hides and skins shipped from ports of origin to and 
including July 31, 1918.2 

The practicability of these fixed prices was doubted by members 
of the leather industry when the time for revisions approached. On 
July 19, 1918, 12 days prior to the expiration of these prices, the 
industry was called together in order that action might be taken 
relative to their continuation or revision. Complaints were made 
by some against the agreed prices, and indeed, it was contended that 
the price-fixing committee had put an artificial price upon hides and 
skins. It appears that the better grades of hides were being taken 
by the Government at the maximum price, thereby keeping their 
value up to the figure agreed upon in April, while the cheaper grades, 
for which there was little demand, never reached the fixed maximum. 
The price-fixing committee recognized the logic of this contention 
and suggested that the price for the following three months be low- 
ered. But at this point the packers and the live-stock producers 
objected on the ground that the changing of hide prices at that par- 
ticular time would inject an element of doubt into the cattle market 
and check the stocking up with feeder stock then in progress. 

The price-fixing committee, however, held to its belief, and after 
the appointment of a body made up of members of the trade and 
the price-fixing committee to draw up a price schedule, fixed a 



1 See mdnutes of the price fixing committee, June 26, 1918. 

2 Two sets of prices were actually fixed — one to apply to stocks and take-off up to 
and including Apr. 30, 1918, and the other for the May, June, and July take-off. Hides 
from heavy native steers, No. 1, were used as the base price in both cases and differentials 
applied for other types. A price of 29 cents per pound was adopted for the stocks and 
take-off to Apr. 30, while 33 cents was the price fixed for the May, June, and July 
product. These prices were about 10 per cent higher than the prevailing market prices. 
As above stated, the price-fixing committee at first objected to this increase of current 
prices ; and in approving of the prices fixed the committee explained its action by 
stating that the reason for their adoption was the desire to keep the good will of the 
industry. The hide and skin interests had also suggested a 10 per cent increase on im- 
ported hides, but this was not accepted. Indeed the price-fixing committee through the 
instrument of the import license system, fixed the maximum price of foreign hides and skins 
similar to those produced in the United States at the same figure that was agreed upon 
for the domestic product. The complete schedule adopted will be found on pp. 729-752. 



320 HISTORY OF PEICES DURING THE WAR. 

maximum price of 30 cents ^ for No. 1 native steer hides to be effec- 
tive for three months ending November 1, 1918.' 

As the end of 1918 aj^proached provision was made for the further 
revision of hide and skin prices, and on October 23 a new schedule 
Avas presented to the trade for the months of November, December, 
and January. This schedule provided for a still further decrease in 
prices. The figure for November and December was 1 cent less than 
the existing maximum price, and that for January was 2 cents lower. 
This apparent decrease may be explained by the fact that the hides 
secured from the winter take-off are usually of lower quality than 
those from the take-off of other months. It was really proposed to 
continue the fall prices minus a differential to allow for the poorer 
quality. Here again, however, the packers protested," this time on 
the ground that the differential applied would be reflected in the price 
of meat. " AYith the price of hides fixed," they said, " meat would 
bear the brunt of the fluctuations in the live-stock market." But the 
prices suggested by the price-fixing committee again were adopted, 
and 29 cents was made the price for the November-December take- 
off of No. 1 native heavy steer hides. In spite of the cessation of 
hostilities the January price of 28 cents also went into effect on the 
first of that month, but on January 31, 1918, maximum prices of 
hides expired by limitation. 

Sheepskins. — The extraordinary demand for leather jerkins for the 
use of our fighting forces had sent the price of sheepskins to a level 
250 per cent above its prewar average. Since the needs of the Army 
were sufficiently large to absorb virtually the entire domestic output * 
it was thought advisable to make some arrangement whereby the 
governmental authorities might secure an option upon the necessary 
supply at a fixed price. Accordingly, on March 20, 1918, the chair- 
man of the War Industries Board called the various packers and 
Avool pullers to Washington. As a result of this meeting an agree- 
ment was reached whereby the wool pullers promised to give to the 
tanners of jerkin leather an option on all picked sheepskins at a 
maximum price of 14 cents per square foot, while the tanners in turn 
agreed to dress these skins for the United States Government at a 
fee of 4 cents per square foot. In other words, the Army authorities 

1 This price, it will be noted, was 3 cents lower than the maximum fixed for the pre- 
ceding months. 

- Differentials hased upon this 30-ceut price were lated fixed by the hides and leather 
section of the War Industries Board. It should be added also that the trade recom- 
mended that all dealers and buyers of hides and skins be licensed, but in this the price- 
fixing committee refused to concur, since they saw no especial benefit to be derived 
therefrom. 

= See minutes of the price-fixing committee, Oct. 28, 1918. 

* The estimated production of pelts of the type used in making leather jerkins was 
1,000,000 per year. Of these the Army took an average of 75,000 per month, or 900,000 
per year. 



GOVERNMENT CONTEOL OVER PRICES. 321 

really contracted to take over all pelts at a fixed price for the x^eriod 
ending June 7, 1918. 

The renewal of this contract at expiration Avas not considered 
desirable, and it was thought advisable rather to include sheep pelts 
with other hides and skins under a system of fixed prices applicable 
both to governmental and civilian purchasers. The matter was there- 
fore presented before the price- fixing committee, together with a list of 
prices which had been prepared by the industry and approved by the 
chief of the hide and leather section of the War Industries Board, 
and on June 7 a series of maximum prices ranging from 8 to 18 
cents per pound was fixed for the various grades of sheepskins^ 
for the period ending August 1, 1918. These prices were later ex- 
tended for the months August, September, and October, and on 
October 30, after being slightly changed so as to allow for the 
poorer grade of pelts which came into the market during the winter 
months, they were further adopted as maxima for November, De- 
. cember, and January, 

Tanned leather. — It was evident from the beginning that price 
fixing in the leather industry would have to be extended to its 
various fabricated products. Indeed, in April, when maximum 
prices for hides were first adopted, the price-fixing committee publicly 
stated that as a matter of policy it would meet with the tanners ^ 
" with a view to establishing fair and equitable prices on leather, 
and would endeavor to see that leather products would reach the 
consumer at fair and equitable prices." 

But the fixing of leather prices was soon found to be a more 
difficult task than that of determining a price for raw hides. Hides 
are but a by-product of the packing house, and animals are Irilled 
primarily for their meat and not for their hides. The cost of produc- 
ing a hide, therefore, plays but a minor and indirect part in de- 
termining its market price. But with leather certain costs had to be 
determined, since the selling price is in large part determined not 
only by the cost of the raw hides plus the cost of manufacture but 
also by other incidental costs. There is involved, too, the profit 
of the tanner. The Federal Trade Commission, accordingly, was 
asked to investigate the cost of manufacturing various kinds of 
leather. 

Harness leather : The first case of price fixing in the tanned 
leatlier industry occurred in June, 1918, and was made applicable 
to the variety used in the manufacture of harness. The informal 

"■The schedule of prices as adopted is to be found on p. 738. 

2 xn tlie case of harness leather, the Army price, which had been fixed by informal 
agreement in January, 1918, may be considered as an early attempt to fix the price of 
tanned leather. But here, also, as with the agreement pertaining to sheep skins for 
Army jerkins mentioned above, what really existed was a long-time contract, little differ- 
ent from any other commercial agreement extending over a fixed pei'iod. 

125547°— 20 21 



322 HISTORY OF PRICES DURING THE WAR. 

price agreement entered into by the Army and the producers of 
harness leather was about to expire, and the establishment of a defi- 
nite maximum price for all purchasers was considered preferable 
to the extension of the Army option. The Federal Trade Commis- 
sion, moreover, had collected sufficient cost data to warrant the 
fixing of a fair maximum price for all consumers. On June 25, 
therefore, the price-fixing committee in agreement with the pro- 
ducers fixed the maximum price for all weights of black harness 
leather " going either to the Government or into civilian outlets, to 
be effective until November 1, 1918, at 70 cents ^ j)er pound for grade 
A." This price was subsequently extended to December, at which 
date it was allowed to lapse. 

Sole and belting leather: It was not until the middle of July, 
1918, that the question of sole-leather prices was taken under consid- 
eration by the price-fixing committee, and even then, because of lack 
of sufficient cost data, no definite action was taken. The chief of the 
hide and leather section of the War Industries Board had recom- 
mended the regulation of the tanners' profits as the only effective 
method of fixing the price of sole leather. Since this was a radical 
departure from the former policies of the price-fixing committee,- 
the matter was laid aside for further investigation. Shortly after- 
wards a committee representing the tanning industry submitted a 
report on the cost of tanning sole leather and suggested that 13.5 
cents per pound be used as the tanning cost basis in determining 
maximum prices. This figure they claimed netted them a return of 
10 per cent, and since they averaged but one turnover per ^^ear on 
their investment, an allowance of 13.5 cents for tanning would make 
their profits equal to 10 per cent per annum. Although the cost data 
of the Federal Trade Commission showed 12 cents as a fair average 
figure for tanning costs, the price schedule of the tanners was ac- 
cepted as the basis on which prices were fixed, and on August 8, 1918, 
maximum prices on belting and sole leather were announced by the 
price-fixing committee.^ These prices were to become effective im- 
mediately and were to continue until November 9. On October 28, 
at the request of the tanning industry, they were extended to De- 
cember 8. The need for their further continuation having been 
removed by the signing of the armistice in November, maximum 
prices of sole and belting leather were not renewed after their 
expiration on the latter date. 

^ This price was substantially the same as had prevailed on the open mai'ket during 
the preceding half year. Other prices were fixed for the different varieties of harness 
leather, and these too showed virtually no change from the current market quotations. 

2 The policy of determining a fixed price on the basis of return upon the investment in 
a given industry, although untried during the early months of the regime of the price- 
fixing committee, was later applied very frequently. Such was esi>ecially true in the 
case of cotton fabrics and chemicals (see pp. 298 and 338). 

^ A complete schedule of sole and belting leather prices will be found on p. 750. 



GOVEEITMENT CONTROL OVER PRICES. 323 

Upper leather: With the prices of hides and skins, harness, sole, 
and belting leather fixed, there still remained the task of determining 
maximmn prices for upper leather. The lack of sufficient cost data 
and the proposed inauguration of a system of price fixing for shoes 
delayed the adoption of a fixed price schedule for upper leather, 
however, and it was only within 10 days of the signing of the armis- 
tice that any definite action was undertaken. Before the prices 
adopted had been announced, hostilities had ceased, and on November 
22, 1918, the price-fixing committee notified the trade that there was 
no longer any necessity for putting the agreed prices into effect.^ 

jSwmmari/.—ThQ control of prices in the hide and leather industry 
began with the control undertaken by the British Government, which 
was first instituted in December, 1916. This was followed by cen- 
tral allied purchasing upon the part of all the allied Governments 
even before the United States entered the war, and was afterwards 
continued by central allied purchasing and allotment. Under the 
British control of importation and the British allotment of hides 
and skins and leather to war industries prices were established 
first upon the raw hides and skins, soon after upon leather, and to 
a considerable extent upon leather manufactures. The control of 
hides and skins prices was complete, the control of leather prices 
extensive, and the control of leather manufactures extended to shoes, 
both Army and civilian, and all other items of leather manufacture 
which entered into British and other Army contracts. 

The American control of these commodities followed in general 
outline the methods already laid down by the control exercised 
under the British Government. It differed mainly in that the neces- 
sity for control was not so materially apparent in America, and that 
the control over leather and the manufactures of leather never ex- 
tended far beyond the field of Government purchases. 

Indeed, at the signing of the armistice price fixing had not ad- 
vanced beyond raw hides and skins and several intermediate products, 
such as sole, belting, and harness leather,^ and even the maximum 

1 The prices adopted were based on a 6 per cent return on the investment of the tan- 
ners and had been submitted to the price-flxing committee by the hide and leather section 
of the War Industries Board. The trade, however, objected at first to the limitation of 
their profits to 6 per cent and contended that because of the risks entailed due to unex- 
pected changes in style, etc., they were entitled to at least 8 per cent. This return, in tbe 
opinion of the price-fixing committee, was much too large, for the cost data submitted 
by the Federal Trade Commission showed a turnover of 21 times per year ; and on such 
a basis a return of 8 per cent meant an annual profit of 20 per cent. The figure finally 
agreed upon (which never was put into effect) was based on a. 6 per cent return. 

2 Had the war continued, an elaborate system of price fixing extending not only down 
through the various fabricated products, but also to the ultimate consumers, might have 
been put into effect. The plans of the War Industries Board provided for the elimination 
of all unnecessary styles and the establishment of a system of price classification for each 
grade of shoes. Provision was also made for a system of manufacturers' serial numbers, 
which would have enabled purchasers to ascertain both the name of the manufacturer of 
any shoe and the price at which such shoe ought to retail. 



324 



HISTORY OF PRICES DURING THE WAR. 



prices applied to these were never, in many instances, reached on 
the open market.^ 

Manila Fibers and Hemp. 

The extraordinary needs of the United States Navy and the 
United States Shipping Board for rope and cordage of all varieties, 
made significant the rise in the price of manila hemp during 1917 
and 1918. The United States Government by the middle of 1918 
was consuming virtually all the manila ro|)e manufactured in the 
United States, and as our demands increased, speculation grew. 
Indeed, our entrance into the war stimulated speculation within the 
trade to such an extent that by June, 1917, manila hemp was selling 
for 24 cents per pound, or approximately 207 per cent above the 
1913-14 level. The price continued to rise through the second half 
of 1917 and in January, 1918, reached $0.285G. 

It was evident that this condition could not be allowed to con- 
tinue, especially in view of the growing demands of our new mer- 
chant fleet, and in late March, 1918, the War Trade Board undertook 
to regulate the price of manila hemp. It relied upon its power of 
controlling exports from the possessions of the United States as 
the machinery for enforcing the prices adopted. Manila hemp was, 
therefore, placed on the restricted list, and after March 31, 1918, 
no shipments from the Philippines, either to the United States or 
other countries, were allowed without permits or licenses from the 
War Trade Board. With the exports of manila hemp subject to 
license requirement, it was relatively simple to add conditions to be 
met before an export license could be secured. One condition stipu- 
lated was that " persons desiring to ship hemp or manila fiber from 
the Philippine Islands, whether to the United States or elsewhere 
[had to] show to the satisfaction of the War Trade Board or its 
representative, bj^ affidavit or otherwise, that the hemp or manila 

1 This was especially true of hides and skins, as shown in the following table: 

Fixed and quoted prices of cattle hides. 

[Averages.] 





Packer. 


Country. 


Imported. 




Fixed 
price. 


Quoted 
price. 


Per 

cent 

quoted 

to 
fixed. 


Fixed 
price. 


Quoted 
price. 


Per 

cent 
quoted 

to 
fixed. 


Fixed 
price. 


Quoted 
price. 


Per 

cent 

quoted 

to 
fixed. 


1918. 
April 


$0.2412 
.2912 

.2688 
. 2.588 


$0.2123 
.2837 

.2688 
.2588 


88 
97 

100 
100 


$0.1867 
.2317 

.2133 
.2108 


$0.15.50 

.1855 

.2096 
.2079 


84 
77 

98 
99 


$0.3300 
.3300 

.3270 
.3270 


$0.3198 
.3299 

.3263 
.3250 


97 




100 


August, September, and Oc- 


100 


November and December 


99 



GOVERjSTMElSrT COE'TROL OVER PRICES. 325 

fiber covered by the application for a shipping permit or export 
license" had been bought at a certain price in accordance with a 
schedule prepared by the War Trade Board.^ Moreover, in order 
that the price of fibers might be controlled after they were landed in 
the United States, a further condition was added requiring the con- 
signment of all such shipments to the Textile Alliance for the ac- 
count of whomsoever the shipper might designate.^ 

The price fixed for the standard grade of hemp was 17 cents per 
pound f. o. b. Manila, or about 25 cents at New York. This price, 
though slightly lower than the current market fi^ire, was admittedly 
high. It was made high, however, in order not too seriously to 
prejudice the interests of the many importers, manufacturers, and 
producers by a " precipitous price adjustment."^ It was to remain 
in effect for four months. As the end of that period approached, 
the War Trade Board asked the price fixing committee to take over 
the regulation of manila fiber and hemp.* A lower price than that 
fixed in March was recommended, and on Jul}^ 24, 1918, the price 
fixing committee fixed a price of 14 cents per pound for grade 
" I Current " manila fiber f . o. b. Manila. This price was temporary, 
however, since there had not been time to secure sufficient basic in- 
formation from the trade. It was to be effective until August 31, 
before which time further details relative to an appropriate price 
could be secured from the Governor General of the Philippines and 
the various consumers. 

Neither the fixing of the price of these fibers nor the figure 
adopted appear to have pleased the native growers, for immedi- 
ately complaints were heard. Both the Philippine Legislature and 
the agricultural interests asked for the removal of price control, and 
to their requests was added that of the Governor General. Accord- 
ingly, when the time for the expiration of the fixed fiber prices ap- 
proached, the price fixing committee decided not to renew them, and 
on August 31 manila fiber and hemp prices expired by limitation. 

Burlap. 

The abnormally high price of burlap resulting from the flagrant 
speculation which took place in 1917 and 1918 in India, the United 
Kingdom, and the United States, led, in the fall of 1918, to an order 

^ This schedule, which used as a base the price of grade " I Current " manila hemp, is 
published on p. 705 of this volume. Prices were fixed for the various types of fiber both 
at Manila and at New York, 

2 Exception was made, however, in the case of shipments to the United States Govern- 
ment. The Textile Alliance In turn released such shipments to the iiltimate consignee 
only upon receipt of a guaranty that all regulations governing trading in hemp in the 
United States would be abided by. 

= See minutes of price-fixing committee, July 24, 1918. 

* The Philippine Islands being a possession of the United States, it was felt that the 
price-fixing committee had authority to fix prices there. 



326 



HISTORY OF PRICES DURING THE WAE. 



of the "War Trade Board which prohibited the private importation 
of all burlap unless under order of the War Industries Board. Action 
was also taken relative to the lowering of the price of burlap; and 
the members of the trade, anticipating that prices would be decreased 
as a result of negotiations entered into between the Governments of 
the United States and Great Britain, entered into a voluntary agree- 
ment with the War Industries Board whereby the price of 40-inch, 

8-ounce burlap was fixed at 
Pacific ports at 13.6.^ Burlap- 
bag prices were also fixed on 
the above basis f. o. b. factory 
plus the cost of manufacture 
and a margin of 5 per cent. 
This agreement applied to all 
contracts entered into prior to 
October 4, 1918, and expired 
shortly after the signing of the 
armistice. 



WHC mro MDOi I«M5CTB or PBCES Of 

— LUMBER 


ALL connoDiTO" 




LUMBEO.EW QUAI?rcBO, 

•au. coMMca-r ko"by Nut-iBro». 190 •• .9.8 

AV-^RACE QUOTED PRICES JlJCi" i9i3,-JUNE Ol*- lOO 




uo 


i£ni 


1914 


1913 


1916 


1917 


1910 


MO 


LuX 


mXr 


444^ 


M^ 


4Xv 


MX 


(20 














220 














f 




les 










/V 




lao 


ItO 








/ 


' 1 


f 


160 










i 
J 


/ 














y»>* 








100 


-«v,.^Ss;:^ 




,/ 


/] 






lOD 




*>«/'^~-^ 


-7 








60 


















1 ? g 5 M R p 3 S 5 S S h : 


iU' 


i ft^ 




1 1 


i9ia 1 1914 f 1013 r loie 


1917 


i9ia 





Lumber. 

Southern yelloio pine. — Tho 
demand for over a billion feet 
of lumber for the construction 
of cantonments confronted us 
immediately after the outbreak 
of war. Although the ultimate 
supply of structural timber in 
the United States was far in 
excess of the Government re- 
quirements, the prompt de- 
livery of so large an order 
threatened to put an unusual 
pressure on the lumber mills 
and to send prices quickly upward. The brunt of this heavy order 
was to fall on the southern yellow-pine mills, for the southern 
pine was not only the leading construction timber in times of peace, 
but the location of the pine forests near the many cantonments in tho 
South and West gave it the preference over the distant Douglas fir 
of the Pacific coast and over the scanty stands of hemlock and east- 
ern spruce. The first step in the creation of our war machine there- 
fore depended upon the southern pineries, and the first great prob- 
lem of price fixing arose in connection with that species of lumber. 
The Government was forced to commence the work of regulating 



Weighted index Bumbers of prices?. — L/um- 
ber ; and "All commodities." — By quarters, 
1913 to 1918. (Average quoted prices, 
July, 1913, to June, 1914=100.) 



1 Other prices which were fixed for various weights of burlap at the different ports will 
be found on page 679. 



GOVEEISTMENT CONTROL OVER PRICES. 327 

lumber prices by the very necessities of the hour — ^the securing of the 
raw materials for our training camps without delay. It was evi- 
dent that if the individual contractors each attempted to secure the 
lumber needed for each cantonment in the open market through the 
medium of the various middlemen and wholesalers, lumber prices 
would shoot upward mider the stimulus of this exceptional demand. 
The rise in prices, however, would have been the lesser evil. The 
lumber industry is intensely competitive and the thousands of mills 
would have bid strenuouslj^ against each other to secure the Gov- 
ernment business with the result that the cantonment orders would 
have gravitated to the largest mills, or to the mills offering the great- 
est price concessions, thus giving some mills more orders than they 
could fill immediately while other mills had no Government business 
at all. Thus the necessity of price fixing grew out of the need of 
apportioning orders between all the lumber mills in accordance with 
their productive capacity and their proximity to the cantonment 
sites. 

As a basis of price fixing nothing short of pooling of the entire 
southern yellow pine industry was necessary, and the committee on 
lumber appointed by Mr. Baruch in April, 1917, to act under the 
Eaw Materials Division of the Council of National Defense in- 
stinctively recognized this fact. The lumber committee at once 
called representatives of the southern pine mills to Washington, 
and at the instigation of the lumber committee these private lumber 
men went home to form emergency lumber bureaus that would have 
power to represent each branch of the southern pine industry. 
These southern pine associations were quickly organized and men 
empowered to represent the southern pine industry almost immedi- 
ately began to hold conferences with the lumber committee in re- 
gard to the establishment of a uniform price of yellow pine lumber 
for Government cantonment requirements. Finally, on June 13, 
1917, the average price of $20 a thousand board feet for canton- 
ment stock, which was equivalent to $23.20 for the run of the mill, 
was set by voluntary agreement between the Government and the 
lumber men. This price was not based on a study of costs, but, 
inasmuch as the price allowed was higher than the market price of 
$17 a thousand which prevailed earlier in the year, it was believed 
by representatives of the Federal Tra<le Commission to allow a fair 
margin to cover the increasing costs of producing lumber. By 
dealing directly with the industry itself the Government did away 
entirely with the interposition of middlemen and thus saved the 
wholesalers' profit. 

Under the informal price agreement 52,000 carloads of southern 
yellow pine or over a billion feet of lumber were delivered between 
June 16 and September 15, 1917. By apportioning orders through 



328 HISTORY OF PRICES DUEIjSTG THE "WAR. 

the emergency pine bureaus to the individual mills on the basis of 
their productive capacity and proximity to each cantonment all the 
the mills quickly turned out the quotas assigned to them, and by 
fixing the same price for all the mills none were tempted to secure 
more than their share of orders by cutting prices. A voluntary 
reduction of from 50 cents to $1 a thousand board feet in the price 
of southern pine was made on September 11, but there was no 
further price fixing until the appointment of the price-fixing com- 
mittee of the War Industries Board in March, 1918. 

The effect of the control of the prices of southern yellow pine was 
communicated to the prices of other woods, such as Douglas fir and 
hemlock, which are normally used for the same purposes and which 
follow the lead of southern yellow pine under normal market con- 
ditions. Thus the direct agreement as to the prices of southern pine 
indirectly brought these other woods under the influence of the price- 
fixing power long before their prices were formally fixed. 

During the interval between the informal price agreement in June, 

1917, and the first action of the price-fixing committee in March, 

1918, prices to the general public which were not covered by the 
agreement vrere steadily increasing as a result of the increasing costs 
of producing lumber until in May, 1918, they ranged from $5 to $7 
a thousand higher than the prices paid by the Government. This 
disparity in prices as well as the rising costs prompted the new price- 
fixing committee of the War Industries Board on June 15, 1918, to 
fix a new price for southern 3TII0W pine of $28 a thousand board 
feet, applicable to both Government and civilian purchases, which 
represented an increase of $4.80 over the price first set. The new 
price was based on a cost investigation by the Federal Trade Com- 
mission and was lower than the price contended for b}'^ the lumber- 
men, who claimed that the value of stumpage should be computed at 
its present market value instead of at its original cost. 

Xo further increase in the prices of southern yellow pine was 
allowed by the price-fixing committee despite the fact that the 
constantly increasing cost of producing lumber made the prices that 
went into effect on June 15, 1918, less and less profitable. The ques- 
tion as to advancing the prices of yellow pine was discussed when 
the time limit — September 15 — of tlie fixed prices was reached, but 
the same prices were ordered to be continued in effect until December 
23. The reason for this rigid policy was to be found in the desire 
of the Government to curtail the production of lumber, after the 
peak of Government demand had been satisfied. By the latter part 
of 1918 normal building operations had fallen to a very low ebb, 
and there was a surplus of ordinary building materials on the 
market. Consequently there was no necessity for stimulating pro- 
duction by offering higher prices; on the contrary it was necessary 



GOArEEXMEjSTT C0:N'TR0L OVER PRICES. 329 

to release part of the labor and capital employed in the building 
industries by curtailing the production of such material. One means 
of curtailing production was to keep prices fixed below the cost of 
production of some of the marginal mills, and thereby to cause their 
withdrawal from production. 

Other softiuoods.— The price control of southern yellow pine was 
the dominating feature of the Government price fixing of lumber. 
While the price of southern yellow pine can not be regarded as the 
base price for all other softwoods, the prices of other woods were 
nevertheless closely related to the prices of that major species. North 
Carolina pine is but a trade name for a species of southern yellow pine 
and its fixed price conformed closely to that of the other yellow pines. 
The price of Douglas fir, first fixed on March 19, 1918, was set lower 
than that of yellow pine, ranging from $10 a thousand for No. 3 to 
$19 a thousand for No. 1. The difference in the fixed prices of yellow 
pine and Douglas fir corresponds to the differences in the two indus- 
tries. Douglas fir occurs in dense stands on the Pacific coast where 
its supply is great — 760 billion feet— and its demand relatively small 
in the locality where it is produced; southern pine has reached its 
crest and is waning in supply while the demand for it from the 
nearby centers of population in the South, East, and Middle West is 
constantly increasing. Douglas fir competes on even terms with 
southern pine in the markets of the Middle West, but in order to at- 
tain that parity it must pay the heavy freight charges on the long 
haul from the Pacific coast and consequently its price on the Pacific 
coast is lower than that of pine in the Gulf States. The cost of pro- 
ducing Douglas fir is also lower than that of southern pine because 
Douglas fir is cut by large mills that operate in tremendous stands 
of timber, while southern pine is cut by smaller mills with higher 
costs. A further reason for the relative cheapness of Douglas fir as 
compared with southern pine during the war is to be found in the high 
prices paid for special grades of Douglas fir for ships and airplanes, 
which entailed the production of a large " side-cut " which could be 
used for construction purposes. While the actual price of Douglas 
fir was thus lower than that of southern pine, however, its relative 
increase in price over the prewar level was even greater than that 
of its rival. 

The prices of Pennsylvania hemlock, first fixed on May 9, 1918, 
conformed closely to that of southern pine because it was used for 
the same general purpose of construction. Eastern spruce, which is 
used for building to some extent, was given a considerably higher 
fixed price than southern pine. Spruce is a preferred wood for 
many purposes, notably for paper pulp, and its price as a building 
material must be high enough to equal its value in these alternative 
uses. The car shortage during 1918 shut out southern pine from the 



330 HISTORY OF PRICES DURIiv^G THE WAR. 

Xew York market, and spruce could consequent!}" be sold for general 
building purposes at a much liiglier price than that fixed for pine. 
Western spruce was in great demand for the wings and beams of 
airplanes, but the quality required for this important purpose was so 
high that only about 10 per cent of the total production met the 
tests. Since there was but small demand for the " side-cut •' it was 
necessary for the Government to pay for the airplane stock at a rate 
that would make the cutting of the wood profitable, even although 
little was received for the " side-cut." In this case, the Government 
stimulated the production by paying a relatively high f>rice, but this 
was an exception to the general rule. 

Earrdwoods. — ^The number of species of hardwoods is so great, 
the conditions of production between the various species and even 
between the same species in different States are so diverse and the 
special uses which give each of these species a special market are 
so varied in normal times that there is no consistent price structure 
between the hardwoods as there is in the case of softwoods under 
the leadership of Southern yellow pine. The Government had urg- 
ent need of certain grades of some hardwoods for specialized war 
purposes, and it bought practically the entire supply of these choice 
grades. Walnut for gimstocks and airplanes was the premiere wood 
of the war, justly called the "Liberty tree"; mahogany for airplane 
propellers was an important supplement to walnut; locust for tree- 
nails was an essential for wooden ships, while ash and hickory for 
handles and vehicles, oak for airplane propellers and artillery wheels, 
and birch for airplane ply-wood all did their bit in the military 
program. The Government did .not fix the price for any of these 
woods, but since it established a fixed schedule for its own pur- 
chases, and «ince it was practically the sole purchaser in the case of 
walnut, locust, and mahogany, its action virtually amounted to price- 
fixing. The prices paid by the Government for these special grades 
were relatively high in order to cover the entire cost of production, 
including that of the lower grades of wood for which there was no 
immediate market and in order to stimulate" the production of vital 
war material to the maximum. The market prices of the lower 
grades of the war woods, and the market prices of woods not 
used in the war — in sharp contrast to the prices of walnut, mahogany, 
and locust — were low. The prices of hardwoods in general did not 
rise as rapidly as the softwoods or as the prices of all commodities. 
The demand for furniture and for other wood products had dwindled 
to a very low ebb during the war, and hardwood logs that were cut 
as a by-product of other logging operations were constantly sold 
at relatively low prices. In view of the peculiar differences that exist 
between hardwood and softwood markets, however, the difference 



GOVERNMENT CONTROL OVER PRICES. • 331 

in the prices of softwoods and hardwoods can not be attributed to 
the fact that the prices of most, of the softwoods were j&xed whilo 
the prices of the hardwoods were luicontrolled. 

Building Materials. 

Prices of the basic building materials were fixed during the war, 
but the scope and effect of price control varied considerably with the 
different building materials. The price of the lumber that was used 
for constructing cantonments, ships, and aeroplanes to the extent 
of 20 per cent of the total annual production was controlled by the 
Government from the beginning to the end of the war for most of 
the important kinds of lumbers and for both Government and pri- 
vate purchases. The price of the Portland cement that was an 
important material for a great variety of construction work from 
Government buildings to fortifications and even ships was fixed for 
Government purchases at the important producing centers. The 
price of structural steel, in common with all other kinds of that vital 
war material, was fixed in all markets by the Government. The 
prices of other building materials such as common brick, hollow 
building tile, sand, gravel, and crushed stone were controlled only 
in localities where there was a large volume of Government con- 
struction work. This last-named group of building materials was in 
heavy demand only in the congested district of the East, and the 
price control there exercised in behalf of 'Government purchases had 
only an influence upon local prices. The prices of 33 building ma- 
terials that consisted of partly manufactured products of the basic 
building materials such as metal lath, metal-corner beds, etc., were 
not directly controlled at all. 

Price fixing in the field of building materials had certain distin- 
guishing characteristics in spite of the wide dissimilarity in the com- 
modities composing this group. These attributes of price control in 
construction materials may be noted under four main heads. The 
last head is not peculiar to building materials. 

1. The prices of building materials were not fixed at a level that 
would stimulate production but rather at a level that would actually 
curtail the output of materials for construction. Since the volume of 
private building in 1918 had dwindled to 20 per cent of its normal 
physical magnitude and since the combined construction program of 
all the Government departments was not over 25 per cent of the 
nation's normal building operations there was no necessity for in- 
creasing the production of the raw materials for building. In fact 
private building was regarded as nonessential during the war, and 
every effort was made by fuel curtailments, refusal to grant priorities 
for cars, etc., to discourage normal building. The result of these 
Govermnent restrictions combined with the high prices of building 



332 ' HISTORY OF PRICES DURING THE WAR. 

materials was to reduce the demand for new building faster than the 
manufacturers of building materials could curtail production. The 
Government consequently had no diificulty in securing sufficient sup- 
l^lies of the common building materials, because the plant capacity 
for producing these was far in excess of the reduced demand. In 
fixing prices the policy was accordingly adopted of allowing the pro- 
ducers of building materials such a price as would yield them only a 
normal return on their investment. "V^T^iere the normal return on the 
investment was low on account of keen competition — as it usually was 
in the building materials industries — only a low return on the invest- 
ment was allowed. Thus the prices fixed on common brick allowed an 
average net return of only 3.76 per cent, and the cement prices 
yielded 6 per cent on the investment. It also happened that lumber 
X^rices fixed on the cost of production of March, 1918, were not in- 
creased later in spite of advancing labor and materials costs. The 
Government thus held down the prices of building materials because 
the production w^as in excess of all essential war needs, and it was 
desirable in the interests of war conservation to enforce a price so 
low that it would actually close down the marginal plants. The effect 
of this low-price policy is shown by the fact that the average price of 
lumber and the average price of cement increased only 73 per cent 
between 1913 and the end of 1918 as contrasted with 102 per cent for 
all commodities. 

There were a few exceptions to the policy stated in the foregoing 
paragraph. Structural steel shared the high prices allowed to stimu- 
late steel production, but nevertheless the use of structural steel was 
curtailed wherever possible so that its rise in price was due entirely to 
its relation to other steel and not to a demand for it for building. 
The prices paid by the Government for certain rather scarce woods 
such as walnut, mahogany, locust, etc., were purposely made high in 
order to stimulate their production. 

2. Price fixing in the building industries had for one of its main 
objects the stabilizing of the industries. Industries producing build- 
ing materials were accustomed to compete most strenously within 
their own ranks and with each other. Southern pine lumber com- 
batted Douglas fir lumber, hemlock, and spruce; North Carolina 
pine competed with Georgia and Alabama pine; the small mill 
competed with the larger in the same territory ; while all the lumber 
mills fought cement and brick. This price competition while en- 
tirely satisfactory to the consumer in times of peace was unsatis- 
factory to the Government in times of war, because it meant irregu- 
larity of production, delay in placing orders and competition be- 
tween Government departments. The Government always preferred 
to deal with one central body representing the whole trade that 
could guarantee large deliveries and allocate the orders fairly be- 



GOVEEJSTMElSrT CO]SrTEOL OVER PRICES. 333 

tween its members. Only by fixkig a stable _price for the tntire in- 
dustry would the temptation for rival mills to secure business by 
cutting prices be entirely avoided. The paramount necessity was 
to secure unity of action among the trade to win the war and to 
avoid the wastes and delay of competitive strife. 

The result of the price-fixing policy was thus to solidify industries. 
Every important building-material group patched up their internal 
differences for the time being and 'appointed a war-service com- 
mittee to represent the entire trade. This war-time concentration 
will leave lasting impressions. The rise of the National Lumber 
Manufacturers' Association, the formation of an association of brick 
manufacturers can be directly traced to the war. Price stabilization 
inevitably fosters the industrial combination that is necessary to sus- 
tain a stable price. In this respect price fixing of building materials 
was no different from price fixing in any other field. 

3. Notwithstanding the tendency toward a uniform price policy, 
the fixed prices of building materials varied more from one locality 
to another than almost any other group of commodities. While the 
prices of lumber and steel were fixed at single base points, the prices 
of sand, gra\^el, and crushed stone were fixed differently in each lo- 
cality, fixed cement prices varied at 40 different producing points, 
and common brick prices varied in the 16 zones in which Government 
purchases were made. These variations are to be attributed to .the 
fact that brick, cement, sand, gravel, and crushed stone are produced 
near the locality where they are consumed, being too cheap in propor- 
tion to their bulk to be transported far. Consequently the market 
for these bulky articles is a local one and the price is determined by 
the local cost of production and the local demand. In fixing prices 
each producing center accordingly had to be separately considered. 
This was especially true of brick, sand, and gravel. While cement 
prices differed considerably, there was still a common price structure 
with fixed differentials. 

4. A common result of price fixing is standardization. It is essen- 
tial in fixing a uniform price that the grade and quality upon which 
the price is fixed does not vary, for otherwise the value received will 
vary in spite of the fixed price. If the goods are not already stand- 
ardized, they must be reduced to uniform types before the prices can 
be fixed. Basic raw materials are usually standardized and lumber, 
steel, and cement were already gauged by certain definite mechanical 
tests. The sizes and quality of common brick, however, varied 
greatly and one of the causes of variation in brick prices was the 
difference in size and quality. The act of fixing the prices of com- 
mon brick stimulated a movement toward standardization and this 
may be one of the lasting results of fixing the price of bricks. 



334 HISTORY OF PRICES DURING THE WAR. 

Portland cem£nt. — Portland cement ranked next in importance to 
lumber as a war building material. Its use in armories, barracks, 
gun placements, trench linings, bomb-proof shelter, incinerators, 
munition factory buildings, warehouses, barges, and reinforced con- 
crete ships gave cement prominence in the war program as early as 
April, 1917, and the congestion of Government orders at certain 
points along the Atlantic seaboard threatened to cause local short- 
ages of cement and sharj) rise?; in cement prices in the districts of 
heavy Government demand. The production of cement for the 
country as a whole was ample for the increased requirements of war 
even without drawing upon the excess productive capacity of the 
cement mills. In fact the declining consumption of cement that 
resulted from the curtailment of normal building operations had 
more than offset the new orders from the Government. Since Port- 
land cement is a bulky commodity, however, it is not profitable to 
ship it far from the mill, and since the limestone and coal that are 
the chief materials used in its manufacture are widely distributed 
throughout, the United States, conditions have been favorable for 
the establishment of cement mills in nearly every State. Each cement 
mill thus enjoys a local monopoly, the radius of which is determined 
by its cost of production and by the proximity of other mills. The 
cement mills of the South which possess an abundant supply of a 
linaestone almost ideal for cement making, joined to a cheap supply 
of coal, can produce cheaper and send their product farther than the 
mills near New York Cit}", which possess fewer advantages in re- 
spect to raw materials. Nevertheless the proximity to the great 
centers of population enables the mills in New York and the Lehigh 
district in Pennsylvania to offset the advantage of the southern mills 
and allows them to hold the markets in the big cities against their 
southern rivals. Thus the cement industry is split up into many 
local markets which are connected by a series of price differentials, 
but which nevertheless enjoy a large measure of independence. It 
is therefore possible for local shortages of cement to exist in some 
communities, notwithstanding the existence of an oversupply in 
other communities, and this is particularly true when the tremendous 
concentration of war goods pouring towards the Atlantic seaboard 
strained the normal means of transportation and put an embargo on 
bulky goods. To secure an adequate supply of cement for the Gov- 
ernment it was therefore necessary to allocate the supply and to fix 
the prices at the points of congestion. 

The Portland cement industry had a large degree of cohesion be- 
fore the war for the purpose of pushing the sale of cement in com- 
petition with lumber, brick, and stone, although the price competition 
between the various cement mills had bordered on the cut-throat va- 
riety. This organization nevertheless facilitated the quick appoint- 



GOVEEIsrMElSrT COIsTTEOL OVEE PEICES. 335 

ment of a " cooperative committee on cement " under the Council of 
National Defense on April 21, 1917. This committee, composed of 
representatives of the industry and of the Government at once began 
to act as a clearing house for assembling trade information prepara- 
tory to advising the coimiiittee on raw materials of the Council of 
National Defense as to available supplies and prices of cement. 
While this committee was acting, many purchases of cement were 
made by the Army and the Navy at no definite price, but with the 
understanding that a fair price was to be fixed later. On December 
18, 1917, the first committee was dissolved and a war service com- 
mittee on Portland cement was organized. No prices were fixed, 
however, until the price-fixing committee in April and May, 1918, 
after an investigation of costs by the Federal Trade Commission 
fixed prices for the Army and Navy purchases for the six-months' 
period ending December 31, 1917, the four-month period ending 
April 30, 1918, and the four-month period ending August 31, 1918. 
Later on, August 23, 1918, the price-fixing committee established 
prices for the four months ending December 31, 1918. The prices 
set for 1917 applied only to Army and Navy purchases and they 
became effective when accepted by the industry and the purchasing 
departments. This first price list, which has a retroactive effect, 
covered 30 different producing points, and the prices varied from 
$1.30 a barrel in Texas to $1.90 a barrel in California. The second 
price list applying to all Government purchases for the first four 
months of 1918 was the same as the first. The third set of fixed 
prices for the four months ending August 31, 1918, marked an ad- 
vance of as high as 45 cents a barrel for the low-cost mills, dropped 
prices on some of the high-cost mills in the Pacific coast States, 
and reduced the maximum variation in cement prices to 35 cents a 
barrel and the average variation to about 20 cents a barrel. The 
fourth price list for the four months ending December 31 was virtu- 
ally the same as the third price list, except that the prices did not 
include bin inspection and a reduction of 3 cents a barrel was made 
for the value of that service. 

The chief results of the price fixing of cement were to prevent a 
rise in price at a few congested points along the Atlantic seaboard 
and to facilitate the prompt delivery of cement on Government or- 
ders by eliminating price cutting with its attendant waste, confusion, 
and irregular production. The main current of cement prices 
throughout the country as a whole was not substantially affected. 
Only 11,813,076 barrels of cement were allocated at this fixed price 
during 1917 and 1918 out of a total production of 92,814,202 barrels 
in 1917 and 71,632,000 barrels in 1918. 

The price of Portland cement to the general public was never 
fixed, and this ranged about 30 cents a barrel higher than the price 



336 HISTOEY OF PRICES DURING THE WAK. 

fixed to the Government. Price fixing leveled up market prices 
to some extent thereby giving the low-cost mills large profits, while 
limiting the marginal mills to a low return. The concentration of 
production at the largest mills equipped with the most modern 
machinery would have enabled the Government to have fixed ce- 
ment prices at a lower level, but the pooling necessary to bring this 
about involved too many practical administrative difficulties to jus- 
tify the adoption of this policy. The prices fixed in 191Y yielded 
the cement industry as a whole 12 per cent on its investment, and 
of course individual mills reaped a much higher rate, but subse- 
quent price fixing reduced this margin to 6 per cent merely by 
maintaining the status quo in the face of advancing costs. The 
general supply of cement was so ample, as compared with needs, 
that the Fuel Administration on April 13, 1918, reduced the fuel 
allotment of the cement mills to 75 per cent of normal on the theory 
that part of the fuel used in the cement industry could be better 
employed in other war industries. There was consequently no oc- 
casion for stimulating cement production by high prices, and the 
lowering of the margin of profit for the purpose of curtailing pro- 
duction was entirely justified. Cement prices rose in the open 
market less than any other basic building material during the war, 
and the reason for price fixing in the field of cement is to be found 
in the desire of the Government to prevent the stimulation of prices 
which its own large demand would normally have caused in certain 
congested building areas. 

Conmnon 'brick. — The markets for conunon brick are confined to 
points near the localities where brick is made, and consequently 
questions of supply and prices vary in the different localities. The 
demand for common brick for both Government and civilian use 
during the war declined to probably one-fourth of normal, or to 
ti greater extent than was the case of other building materials except 
stone. A shortage developed, however, in a few of the large eastern 
cities in the congested building districts, and prices for brick were 
there established on all Government orders. The price of common 
brick in New York, Philadelphia, Baltimore, and Washington was 
the first to be formulated ; the other ]3rices were not announced until 
after the armistice, but they had a retroactive effect and applied to 
all purchases made at tentative prices. Prices fixed by the Govern- 
ment for light-burned common brick varied from $9 a thousand 
brick in Chicago to $15.50 a thousand brick in Philadelphia. These 
differences were, in some instances, due to variation in the size and 
quality of the brick, but in most cases they were due to differences 
in the local market. Thus the supply of brick in New York average 
a price of $9.50 per thousand, which was originally fixed for the 
period ending October 31, 1918, for the accumulated stock left over 



GOVERi:>J"MElSrT CONTEOL, OVER PRICES. 837 

from 1917, which had been produced on the lower 1017 level of cost. 
The Philadelphia brick of the same general type was fixed at $6 
per thousand higher in price because the Philadelphia brick was 
produced during 1918 when labor was high, due to the competition 
of the shipyards. The Philadelphia brick was also larger in size 
and of somewhat better quality than the New York brick, but this 
does not fully account for the difference. It is probable also that a 
larger marginal profit was allowed the Philadelphia brick producers 
than to the New York brick men; for the price-fixing committee in 
general adopted the policy of fixing prices so that producers would 
receive their prewar level of profit. The profits of the New York 
brick makers were very low before the war because of the keen com- 
petition of the brick men along the Pludson Eiver. The price-fixing 
committee allowed the brick men, as a whole, only 3.76 per cent on 
their investment. The effect of Government price fixing on brick 
was to enable the Government to purchase brick at slightly below 
the market price during the latter part of 1918 in the congested dis- 
tricts of New York and Philadelphia. Common brick prices rose 
very rapidl}'' in the open market during the latter part of 1918. The 
price fixed for Government purchases, while about equal to the mar- 
ket prices when originally fixed, were considerably below the market 
by the end of the year. Thus in New York, where the price fixed for 
Governm^ent purchases on light-burned brick was $9.50 per thousand 
beginning July 1, 1918, which was subsequently raised to $10.50 per 
thousand beginning November 1, the market price rose from $12.50 
in July to $18 in December. 

Government price fixing exerted a definite influen:e only in the big 
eastern cities. Only 108,312,229 brick were allocated at Government 
fixed prices out of a total production of 5,864,909,000 in 1917, and 
about 2^ billion in 1918. The amount of Government purchases were 
thus small in comparison to the total common brick output, and as 
brick sold to the public were delivered at market prices. Government 
price fixing had no appreciable effect on the average prices of brick 
throughout the country. 

Price fixing, even in the case of brick, however, had a tendency to- 
bring out some degr^ of combination within the industry. An asso- 
ciation of common brick manufacturers was formed on July 26, 1918, 
which comprised manufacturers producing about 1| billion brick 
annually, or about 20 per cent of the normal production. An influ- 
ence also was exerted in favor of standardization of brick in the 
different localities; this, too, is an evidence of concentration, but on 
the whole the brick industry still remained highly competitive and 
disorganized. A nation-wide control over prices was therefore less 
eft'ective than in the case of cement, but since brick was of rather 
125547 °~20 22 



338 HISTORY OF PRICES DURllSTG THE WAR. 

slight import auco, liowever. iii the vvtir program this price control was 
also less necessary here than elsewhere. 

Hollow hviJding tlh. — Hollow building tile is also a local product 
whose use greatly diminished during the war. Prices were, notwith- 
standing, fixed at the principal producing points for the 176,703 tons 
of hollow building tile used by the Government. Prices were first 
fixed for the period ending July 1, 1918, and they were later ad- 
vanced to cover Government purchases made from July 1, 1918, to 
the period ending December 31, 1918, 

Gypsum icall hoard and plaster hoar-d. — The Government require- 
ments for gypsmu wall board and plaster board during the war were 
100 per cent over the capacity of the plants, and it was necessarj- to 
take over the entire output of these materials for Government use 
and to authorize plant extensions. It also became necessary to 
allocate orders for Government requirements, and pending the estab- 
lishment of a fixed price the orders were allocated at tentative prices. 
On February 27, 1919, the price-fixing committee established maxi- 
mum f. o. b. mill prices for wall board for two firms at Chicago and 
for tv.o fii'ms at Los Angeles, and maximum f . o. b. mill prices for 
plaster board at Chicago. New York, Buffalo, Hampton, Va., Passaic, 
X. J., Fort Dodge, Iowa, and East Newark, N. J. Since the total 
production of wall board and plaster board compri^d only 10 per 
cent of the total value of gypsum products, price fixing of these two 
products had no pronounced effect on the price of raw gypsum. 
Allocations to the amount of 52,121,060 square feet of wall board and 
plaster board and to the value of $956,323 were made at the fixed 
prices. 

Srnid, gravely and- crushed stone. — Sand, gravel, and crushed stone 
are consumed near the localities where they are produced. During 
the war there was an acute shortage of these materials in the con- 
gested district of the East, and it became necessary to fix the price 
and allocate orders in the Philadelphia, New York, Baltimore, Wash- 
ington, and Norfolk districts. A total of 2,949,879 tons of sand, 
gravel, and crushed stone, valued at $3,009,573, was allocated at the 
•fixed prices. The exact prices fixed on each order in each district are 
shown in the appendix. • 

Chemicals. 

Nitrate of soda. — Before the war virtually all of our nitrate im- 
ports were devoted to the production of fertilizers, and our needs in 
1913 equaled more than 625,000 tons. With the outbreak of the 
European War and the placing of munition orders with American 
manufacturers, our requirements for nitrates increased considerably, 
and by 1916 our imports of nitrate of soda had grown to 1,218,423 
pounds, an increase of almost 100 per cent. The Chilean market, of 



GOVEEIvrMEl^T COISTTROL OVER PRICES. 339 

course, felt the effects of the stimulated demand following the 
declaration of hostilities, and the price of nitrate of soda rose con- 
siderably,^ It was not until after the United States entered the war, 
however, when the War Department had begun actively to compete 
in the Chilean market against both American private buyers and the 
representatives of the allied Governments, that prices really soared. 
In September, 1917, accordingly, nitrate prices v^^ere more than twice 
the average for 1913-14. 

The imx^ortance of nitrates to the war program, however, made 
essential the elimination of any haphazard competitive system of 
purchasing. Accordingly, in October, 1917, the Allied Governments 
began negotiating with the Chilean producers in the hope of securing 
an adequate supply of nitrates at a price more reasonable than was 
then being paid. These negotiations were consummated on Decem- 
ber 10, 1917, and resulted in the Allied Governments securing a vir- 
tual monopoly over the output of Chilean nitrates. A nitrate execu- 
tive was appointed by the Allies with headquarters in London, and 
all purchases of nitrate of soda in Chile for the various belligerents 
were concentrated in his hands. It was only through this nitrate 
executive that the various Governments could secure supplies by allo- 
cations made only on the basis of minimum requirements." 

Prior to the American entry into the war virtually all of the 
nitrate of soda brought into the United States was imported by 
four firms who controlled to a large degree the American sales of 
this commodity'. The machinery for nitrate distribution, then, was 
highly concentrated, and it was but logical that so far as possible it 
should be kept intact. Accordingly, it was arranged by the War 
Industries Board that these importing firms purchase the total 
amount of nitrate of soda allocated to the United States by the 
nitrate executive, and continue its distribution as in normal 
times. It was necessary from the beginning, however, to distinguish 
between the two types of American demand. First, there were the 
military needs which the importers agreed to supply at actual cost ^ 
plus a nominal expense fee. And, second, there were the requirements 
of the fertilizer manufacturers and of other civilian nitrate users. 



1 Nitrate of soda sold for $3.60 per hundredweight in February, 1916, an increase of 
50 per cent over its prev/ar average. 

^ The estimated minimum requirements for the United States for the year 1918 were 
as follows : 

Tons. 

For munitions 1, 100, 000 

For chemicals 215, 000 

For commercial explosives 185, 000 

For fertilizers and the Department of Agriculture 300, 000 

Total ^ 1, 800,000 

« The cost of the nitrate deilivered was to he aa average price based upon the receipts 
for each month. 



840 HISTORY OF PRICES DURING THE WAR. 

To these consumers the importers were to distribute only such 
amounts of nitrate as were allocated by the War Industries Board,^J 
and for their services they were paid a commission of 2^ per cent 
over the cost of their product landed in the United States. The 
War Industries Board, on tlie other hand, stipulated that they would 
allow no concerns other tlian the four v.diich entered into this agree- 
ment to import any nitrates into this country. In order that an 
equal price might result for all buyers the Shipping Board estab- 
lished a uniform shipping rate from Chile to the United States. 
Furthermore, the War Industries Board made arrangements for the 
shipping of the necessary coal, fuel, oil, etc., required for the manu- 
facture of nitrate of soda, and in this way a steady output was as- 
.surcd, while at the same time any manipulation of prices by Chilean 
speculators under the claim of ostensible high costs was eliminated. 

The first deliveries under this pool arrangement Avere made in Jan- 
uary, 1918. It soon becanie apparent that the control over the 
vrhole nitrate situation in the United States would require some 
supervising body, for the supervision of distribution, the fixing 
of pool prices and the clearance of all contracts covering the imports 
and sales of the approved importers were matters too vital to the 
war program to be left unregulated. For this purpose the nitrate 
commission of the United States, a body made up of representa- 
tives of the four approved nitrate importers and a representative 
of the War Industries Board, was created. Their main function, 
however, soon developed into the control of nitrate prices. The 
nitrate executive at London, determined each month an average pool 
price and on the basis of this figure the average monthly price in 
Chile for the United States purchasers, was computed. Consider- 
able difference, of course, still existed between this Chilean price 
and the price of nitrates delivered in the United States; for there 
were many charges such as hauling, freight, insurance, exchange, 
and the like, which had to be added. And it was the determination 
of this final landed price that formed the greater part of the task 
set before the nitrate commission." 

From the point of view of its primary purpose the plan of nitrate 
control was successful as is evidenced by the fact that during the 

' The amount of nitrates to he purchased for distribution to civilian consumers was 
limited however, to an amount equal to their total imports for the calendar year 1913. 
From this amount were deducted such stocks as had been purchased in 1017 and which 
had not been shipped from Chile prior to the beginning of lOlS. 

-This landed pool price varied from $4.10 per 100 pounds in May to $4.r)u in December. 
For the first four months of lOlS no definite pool price was determined and tentative 
figures of $4.25 and .?4.3.'5 per 100 pounds were used for billing purposes. It should be 
stati d that these prices were not exact and wore based on the figures available from 
bills and vouchers. Tentative monthly prices were usually made and when all necessary 
liguies became available, the nitrate commission arranged for actual prices and saw 
to it that the importers made adjustments with their customers on the basis of these 
fir.al prices. 



GOVEEN'MEIsrT CONTHOL O^HilR PEICES, 341 

entire period of the war all needed nitrate was secured.^ That the 
price was strictly controlled at the lowest possible minimum seems 
also beyond doubt. 

Heavy cwids. — Sulphuric acid: Arrangements were made by the 
Army and Navy with the manufacturers of heavy acids late in 1917 
relative to the prices to be paid by the United States Government 
for acid supplies.^ There was no instance of price fixing, strictly 
speaking, in the acid industry until the sunmier of 1918. The agreed 
prices of late 1917, w^hich applied to the governmental purchases of 
HoSO^ were contract prices only and may be considered in a measure 
similar to any other long-time commercial contract. 

It appears, however, that there was some doubt in the minds of 
the Government authorities as to the advantages derived from the 
agreed sulphuric acid price, and in early 1918 they instructed the 
Federa.1 Trade Commission to look into the cost of producing acid 
in this country. The result of this investigation shovred a great di- 
vergence in costs between the several types of producing plants, and 
it was apparent that no price could be fixed which would limit the 
returns to all producers within the same bounds. There were, for 
example, the high-cost chamber-process producers, upon whom the 
Governnient was dependent for 1,000,000 tons of sulphuric acid in 
1918. Secondly, there were those manufacturers who obtained their 
sulphur as a by-product from the smelting of zinc and copper ores. 
And finally there were the low-priced producers who used the mod- 
ern contact process to produce their sulphuric acid. The large varia- 
tion in the costs of these three types of producers, upon all of whom 
the Government was dependent for its supplies, made it e\ddent that 
a price which would give the chamber-process manufacturers a mod- 
erate profit would result in an abnormally high return to the con- 
tact producers. The solution first considered was a series of indi- 
vidual prices to be applied to the products of plants in accordance 
with the process used in the manufacture of sulphuric acid, but this 
finally was deemed impracticable. The possibility of commandeer- 
ing was considered and dismissed because of difficulties involved, and 
the fact that the military needs were hardly large enough to war- 

^ Mr. B. M. Barnch, chairman of the War Industries Board, in a statement puh- 
lished in the Federal Trade Information Service of Dec. 24, 1918, says that there was no 
halting at any time during the war in the manufacture of war materials which depended 
upon nitrates. 

-As a result of the negotiations entered into between the military authorities and 
the manufacturers of sulphuric acid, the price of sulphuric acid to the Government was 
fixed for the first and second quarters of 1918 as follows : 

Per ton. 

00° B $18 

66° B 30 

20° oleum 35 

These prices did not apply to purchases made by subcontractors for explosive con- 
tracts for the United States or its Allies. 



342 HISTORY OF PRICES DURING THE WAR. 

rant such action. JNIoreover, it Avas quite evident that the total 
needs of the country necessitated the stiiunhition of the productive 
capacity of the country in every possible way, and this meant the 
establishment of " fair and full prices," pix)vision for heavy plant 
depreciation and the obtaining of the fullest possible output from 
the highest cost producers/ 

Accordingly, a system of price fixing was decided upon Avhich 
allowed a uniform price to all consumers, governmental and civilian 
alike. It was believed that the excess-profits tax would lead to a 
leveling in the returns of various producers. 

On June 26, 1918, the acid producers met with the price-fixing 
committee to help determine upon a fixed price for their products. 
The negotiations resulted in the fixing of the price of 60° B. sul- 
phuric acid at the same figure which the Army and Nav;^'' were 
paying for their supply, namely, $18 per ton.- This price was con- 
siderably lower than the current market price and meant a reduc- 
tion of $7 per ton to the civilian consumer. With this price as a 
basis, the price for 66° B. was fixed at $28 per ton, a decrease of $2 
from the former Government contract price.^ Similarly, the price 
of 20 per cent oleum, a highly concentrated form of sulphuric acid, 
was fixed at $32 per ton, which was $3 less than the agreed price of 
late 1917. These prices were to remain in effect for 90 days, with 
the United States Government having first call upon the entire out- 
put of the country or any part thereof which it required. 

Even these prices, however, do not appear to have been as low 
as the cost of producing sulphuric acid seems to have warranted, 
and by the end of the summer of 1918 the chemical section of the 
War Industries Board asked for the further lowering of the agreed 
prices. These prices were to expire at the end of September, and 
on the 26th of that month the producers of sulphuric acid appeared 
before the price-fixing committee to ask for a continuation of the 
June 26th price. The price-fixing committee, on the recommenda- 
tion of the chemical section, refused this request and recommended 
instead a series of prices which ranged from $2 to $4 lower than 

^ The problems which faced thp chemical section of the War .Industries Board when 
they attempted to determine upon the method of acid price fixing to be adopted, are 
fully described in the final rei>orti? of the acids and heavy chemicals section of the War 
Industries Board, lOlD. 

2 This price was supposed to yield a fair profit to the high-cost producers; i. e., mami- 
facturer-; who us'-d the chamber process, 

2 This price was $7 a ton lower than the figure currently quoted on the market, 
and when compared to the spot quotations of two months previous meant a decrease of 
$17 per ton. The price for 66° B. acid was determined by adding to the price of th'» 
60° acid a differential which covered both the large percentage of acidity in the higher 
strength acid and the cost of concentration. 



GOVER]SrMENT CONTROL OVER PRICES. 343 

those then prevailing. There was no longer the fear of losing the out- 
put of the high-cost producers. It was the opinion of those in charge 
of the military requirements that the extra supply secured for muni- 
tions by the curtailment of many nonessential industries and the 
output of the numerous new Government plants would be more than 
sujfficient to offset any such loss. Moreover, the figures of the Fed- 
eral Trade Commission showed that the cost of producing 66° B, 
Sulphuric acid during the first six months of 1^18 ha d varied froin $1^ 
to $16 per ton/ while the pidc.a.J.x©dr^wa«-$S^f>©i'-4©Bv Indeed, the 
chemicaT section had recommended that in default of a lower price 
on sulphuric acid, " serious consideration should be given to the 
advisability of commandeering the output of the contact acid plants " 
before the end of the year." 

The suggested price of the price-fixing committee was finally 
accepted by the acid industry, and $16 was agreed upon as the jjrice 
of a ton of 60° B. sulphuric acid for the last quarter of 1918."' 

Nitric acid : Shortly after the determination of a Government price 
for sulphuric acid in the latter part of 1917, an agreement was reached 
with the producers of nitric acid, whereby they obligated themselves 
to supply the militarj^ and naval needs for 42° B. nitric acid at 7^ 
cents per pound. Toward the middle of 1918, however, the Ordnance 
Department began to experience difficulty in placing new orders at 
the agreed price. An investigation was therefore made into the costs 
of the concerns which were furnishing nitric acid supplies, and it 
was found that the approximate cost of manufacturing a pound of 

^ The increasing costs of materials, labor, fuel, and transportation increased this cost 
considerably during the latter half of 1918. The prices recommended by the price-fixing 
committee, however, made a liberal allowance for this increase, for it was their desire 
to fix a price which would permit the acid manufacturers to use domestic pyrites, which 
meant a higher production cost than would have been the case had brimstone been used. 
Both raw materials were selling at almost equal prices, but most of the American plants 
were equipped for the use of brimstone rather than pyrites. The shipping shortage had 
virtually cut off the supply of Spanish pyrites, which had previously been the common 
raw material used in producing sulphuric acid, and various plants turned to the use of 
domestic brimstone. This led to a sudden growth in the consumption of the latter, and 
soon the demand threatened to exceed the possible production. Indeed, the reserve stocks 
were drawn upon and a serious depletion v/as threatened. 

2 Note memorandum from Mr. A. K. Brunker, chief of the acids and heavy chemicals 
section of the War Industries Board, to Mr. L. L. Summers, chief of the chemicals 
division. 

^A price of $25 per ton was fixed for 66° acid and $28 for 20 per cent oleum. In 
this connection it is interesting to note that had the war continued a vast economy in 
the factory cost of producing acids would have been obtained by the Government through 
the use of its new plants, which could have turned out 100 per cent Hr>S0.i at $15 per 
ton, while the fixed price for 20 per cent oleum' (104| per cent H,SO^)was $28 f. o. b. 
makers' works, or about $30 per ton laid down at consumers' works. The saving, there- 
fore, would have been approximately 50 per cent. This figure, however, does not take 
into consideration the cost of the Government plant, and thereby eliminates a large over- 
head charge. (Cf. memorandum by Mr. John M. Goetchius in the files of the War In- 
dustries Board.) 



344 HISTCrA' OF TKICES DUrJXG THE AVAR. 

nitric acid was 7.14 cents.' This meant, then, that the average profit" 
realized on the agreed T^ cents price was but 0.36 cent. 

It was immediately apparent that the price of nitric acid to the 
Ciovermnent would have to be raised, and on July 26 the question 
Avas brought before the price fixing committee. It was necessary 
first to fix the price of sulphuric acid, however, since the price of 
nitric acid is in large part dependent upon the latter. On the basis 
of the sulphuric acid price of $28 per ton ^ for 66° B., the price of 
42° nitric acid was fixed at 8 cents per pound for all consumers, 
ciA'ilian and Governmental, effective July 1, 1918, for the third quar- 
ter of the 3'ear. This price was continued, by agreement through the 
last quarter of 1918, and expired hy limitation on December 31. 

Con duel an. — With the cessation of hostilities came the end of the 
Governmental need for acids. The immediate fear of the trade Avas 
the potential competition of the newly completed GoA^ernment plants. 
]\IorcoA'er, there at as the danger of a sudden fall in acid prices in con- 
sequence of the cancellation of contracts and the desire to get rid of 
surplus stocks. Accordingly, the War Industries Board Avas asked 
to continue its supervision of the acid industry and to relieve the 
trade of " a share of its burden in adjusting inventories and heavy 
Avarring stocks." The trade also asked for the continuation of price 
fixing, at least through the first quarter of 1919. The ]3rice-fixing 
( ommittee did not feel that conditions warranted anj^ such action, 
and on December 3, 1918, they voted to discontinue the agreed prices 
of heavy acids after December 30, 1918. 

/Sulphur and 'pyrites. — Prior to 1917 approximately 60 per cent of 
the sulphuric acid consumed in the United States was made from 
Spanish ores. The shipping shortage of 1918, however, made neces- 
sary the curtailment of our pyrites receipts, and in March the War 
Trade Board issued an order restricting Spanish pyrites importa- 
tions to 125,000 tons for the six months following April 15. This 
amount, which was less than enough to filh our requirements, Avas 
distributed by the committee on foreign pyrites of the Chemical 
Alliance (Inc.), to the five importers who formerly controlled the 

1 The cost of prodiicing 05 poimds of nitric acid, as givon in the report of the chemical 
section of the War Industries Board, was as follows : 
Kaw materials : 

Nitrate of soda •$-!. 2."> 

Sulphuric acid 1. 'Jo 

Total cost of raw materials 5. 60 

Fair average manufacturing cost, including overhead 1. 18 

Total cost of 95 pounds G. 78 

Cost of 1 pound of nitric acid .0714 

= On the basis of 100 pounds of ILSO^ being required to produce 95 pounds of HNO3, 
It appears from the above cost figures that )t;27 rather than $28 (the fixed price June 
26) was used as the cost of a ton of H2SO4. 



G0VBR1^ME1n"T COITTEOL OVER PRICES. 345 

r greater part of our foreign receipts, in proportion to the tonnage 
: imported by each in 1917. 

The cutting off of our sulphur supplies had a considerable effect 
' upon the American brimstone industry, and the demand for the 
domestic product grew by leaps and bounds. The large demand 
for sulphur supplies and the essential part which sulphuric acid 
played in the war program, led to a more or less strict control over 
the brimstone industry during the spring and early summer by the 
War Industries Board. 

There are in the United States two companies which produce 99 
per cent of all the sulphur entering* into domestic consumption, and 
the output of both was put under allocation by the War Industries 
Board. It appears, however, that one of these companies did not 
cooperate as actively and as wholeheartedly as was desired by the 
chemical section of the War Industries Board. The chemical au- 
thorities in Washington offered a resolution, therefore, which was 
passed by the War Industries Board and approved by tlie President 
on July 2, 1918, authorizing the virtual commandeering of the sul- 
phur-producing industry. The chief of the sulphur and pyrites sec- 
tion was appointed to represent the War Industries Board in con- 
trolling the production and distribution of sulphur materials, and 
he, together with a committee of the Chemical Alliance, adminis- 
tered the industry during the remainder of the war period. 

In the fall of 1917 the fertilizer committee of the Chemical 
Alliance had arranged for a price of $22 per long ton f . o. b. mines, 
for governmental purchases of sulphur, and this policy?' continued 
through the first half of 1918. The same price was maintained after 
the War Industries Board took control of the sulphur industry in 
July. Although there was at no time adopted any complete system 
of sulphur price agreements which applied to all purchasers, the 
control of supplies and the allocation thereof by the War Industries 
Board to essential consumers only, had the effect of a fixed price. 

Wood cliemicals. — It can hardly be said that wood chemicals were 
subject to price fixing in the accepted sense of the term, for the price 
agreements which were made relative to the products of wood dis- 
tillation applied in most instances only to sales to the United States 
Government and to the Allies. Yet the fact that prices were fixed 
to the military consumers had an important effect upon market 
prices in general, and for that reason the situation in the industry 
is worthy of consideration. 

A number of chemicals which are both the direct and indirect prod- 
ucts of wood distillation were vitally connected with our military 



346 HISTORY OF PEICES DUEIXG THE WAR. 

program of 1917-18,^ and it Avas thouglit necessary from the very 
beginning to avoid any possible dissipation of the stoclcs in the hands 
of distillers. Wood chemicals were therefore placed under requisi- 
tion by an order of the Secretary of War on December 24, 1917, and 
from that date until December 14, 1918, the distribution of the entire 
American production of acetate of lime, acetone, ketone, and wood 
alcohol — the output of some 100 concerns — was administered by the 
wood chemical section of the War Industries Board.^ 

It was necessary', however, to make some agreement upon prices to 
be paid these distillers, and before the year 1917 came to a close the 
prices of all the important direct products of wood distillation to 
the United States Government and to the Allies werefixed.^ The 
prices thus fixed were in most instances lower than the current 
market quotations, and since the supplies taken under control were 
allocated mainly to producers of more highly fabricated chemicals, 
the authorities in charge saw to it that the benefits secured from this 
lower price were likewise figured for the finished products, which, 
after all, were the most needed for the military program. 

Acetic acid: Large quantities of acetic acid were required by the 
Army authorities. The price of acetic acid current in early 1918 
was based on a 6-cent cost for acetate of lime, which in December, 
1917, had been lowered by the Government authorities to 4 cents per 

1 This Tvas especially true of certain of the wood distillates upon which the Signal 
Corps was dependent for the manufacture of cellulose, acetate, etc. 

2 The original commandeering order extended only to July 1, 1918. It was later ex- 
tended for six months following July, the National Wood Chemical Association having 
agreed that the terms and conditions covering the original commandeering order would 
be a satisfactory basis for the second half of the year. 

^ The prices for the various products were fixed f. o. h. shipping point as follows : 

Acetate of lime (cents per pound) 4 

Crude wood alcohol (cents per gallon) 50 

95 per cent wood alcohol (cents per gallon) 79 

97 per cent wood alcohol (cents per gallon) 82 

Pure methyl alcohol (cents per gallon) 86 

Metliyl acetone (cents per gallon) - 86 

Denaturing grade alcohol (cents per gallon) 79 

Ethyl methyl ketone (cents per pound) 25* 

These prices continued in effect as long as the industry was under the control of the 
Government authorities. Due to demands for higher wages and due to the increases in 
freight rates, in the summer of 1918, the National Wood Chemical Association asked for 
a higher price for acetate of lime and crude alcohol. This request was presented to the 
price-fixing committee to be acted upon, but that body in turn passed it on to the Federal 
Trade Commission so that an investigation of costs might be made. No report on the 
situation had been received up to the time of removing of control in December, and 
hoace no action was ever taken by the price-fixing committee relative to increasing the 
price. 

The price fixed for refined wood alcohol did not, as was the case with the other wood 
chemicals taken over, go into effect immediately after requisitioning the industry; for 
there were on band Dec. 31, 1917, large stocks of alcohol which had been refined from 
crude bought at the November and December market price of 90 cents per gallon. It was 
deemed advisable out of justice to the trade, that such ^ipplies be disposed of on the 
basis of 00 cent crude alcohol, and that the new prlce^mentioned above go into offect when 
the old stocks had been absorbed. 



GOVEEIirMEJSrT C017TE0L OVEE PRICES. 347 

pound. Accordingly, on February 13, 1918, the cliemical section of 
tlie War Industries Board arranged to have the price of acetic acid 
lowered so as to be equitable with the 4-cent basis for acetate of lime ; 
and after investigating the costs of producing acid, fixed the price of 
100 per cent commercial acetic acid at 15f cents per pound. Al- 
though this price was almost 10 cents lower than the current quota- 
tions, it allowed for a fair margin of profit since it had been found 
that the average cost of production varied from 11,44: cents to 14.50 
cents. There were on hand on February 1, however, large stocks of 
acetic acid produced from acetate of lime which had been purchased 
on the old price basis, and justice to the producers demanded that 
some provision be made for their disposal. An exception was there- 
fore made in the case of these supi^lies, and producers were allowed 
to dispose of them on a basis of 6-cent acetate of lime. 

Likewise, provision was made for the price of glacial acetic acid 
on the basis of the new price of acetate of lime and 19 cents was 
fixed as the figure at which this commodity was to be delivered, 
naked at plant, on Government purchases. Here, also, the fixed 
price was considerably lower than the current market price of from. 
31 to 40 cents. Indeed, glacial acid had always held a fictitious 
price in the trade, since the entire production was virtually under 
the control of three manufacturers. The 19 cent price represented 
a profit of 15 per cent under an economical process of manufacture/ 
and yet it appears that the manufacturers were dissatisfied, with it. 
They felt that they were entitled to 25 cents a pound for their 
product. The chemical section of the War Industries Board refused 
this request and the producei*s were asked to accept the 19 cent price 
or submit detailed cost of production figures to substantiate the 
validity of their claim. The glacial acetic acid producers then ac- 
cepted 19 cents for their product as manufactured from materials 
on which the Government price had been fixed. 

Methyl acetate: The early part of 1918 witnessed a shortage of 
this chemical and it appeared that there would be difficulty in se- 
curing Army requirements. Moreover, there was at first little hope 
of increasing the supply, since the entire production was in the hands 
of a single concern. Finally, however, other firms were interested in 
the situation and agreed to undertake production at 21 cents per 
pound. This figure was based on the fixed price of methyl alcohol 
and acetate of lime and was adopted as the price for all Government 
orders. 

Formaldehyde: The production of formaldehyde in early 1918 
was in the control of five concerns. A detailed investigation of their 
costs of production showed that they were manufacturing fonnalde- 

1 Compare memorandum from L. L. Summers to the War Industries Board, Feb. 10. 1018. 



348 HISTOKY OF PRICES DURING THE WAR. 

hycle at a cost of 12} to 13;i conts.^ The market price at times was 
aronnd 22 cents per pound, Avliile prices as high as 30 and 35 cents 
had been quoted. It was apparent that the situation warranted a 
revision of prices, and on February 12, at a meeting with the for- 
maldehyde manufacturers, a price of 15^ cents per pound was fixed 
for formaldehyde f. o. b. shipping point, naked. This price, how- 
ever, was based on 86 cents pure method alcohol, Avhich was the 
figure fixed for Government-controlled supplies. There were in the 
hands of the manufacturers large stocks which had been produced 
from alcohol that had cost $1.25, the old market price. An oppor- 
tunity to dispose of these stocks at the old prices was therefore given 
to the producers of formaldehyde, and not until June 12, 1917, did 
the agreed price of 15i cents really become effective.^ 

Toluol. — In prewar times toluol played relatively a sinall part in 
the chemical consumption of the United States. Indeed, it was 
merely a by-product of coal-tar distillation, the production of which 
was little developed. The American consumption prior to 1914 
^ras approximately 500,000 gallons annually. Toluol prices varied 
from 19 to 30 cents. The outbreak of the European war, however, 
with the consequent demand for explosives revolutionized the pro- 
cliietion of toluol, and overnight, as it were, this chemical assumed a 
position of utmost importance. The war had not yet entered its 
tenth month vvdien the price of toluol jumped from 25 cents to $2.50 
per gallon, and on the first anniversary of the declaration of hostili- 
ties, market quotations were in the vicinity of $3.50. At the end of 
1915 the peak of this runaway market was reached when toluol was 
quoted at $4.50 This price continued through May, 1916, It was 
inevitable that such prices should lead to the development of facilities 
for the greater production of toluol, and by the middle of 1916 many 
new plants were reaching completion. The new potential supply 
led to a " softening " of the market and June witnessed a fall in 
prices, while the addition of still further productive facilities finally 
brought toluol prices down to $1.50 per gallon in Novemxber. 

It was at this point that the United States Ordnance Department 
entered the market after our declaration of war in 1917, and the price 
of $1.50 was agi^eed upon with the producers for our military sup- 
plies. However, it became evident that this price would not itself 
lead to the acquiring of a supply sufficiently large to meet all the 
necessary demands. Accordingly, the Ordnance Department set out 
to stimulate production, and, by placing large contracts, advancing 

1 These costs were based on the Government fixed price of raw materials. 

2 This 15i-cent price for formaldeliyde was one of the few instances where the price 
of a requisitioned commodity was distinctly fixed for the United States Government, the 
AUies and the consuming public alike. I'sually such fixed prices were made applicable to 
the United States Government and the Allies only. 



GOVERN MEjSTT COISTTROL OVER PRICES. 349 

funds for the construction of private and Government plants, it 
increased our productive facilities so that our output for 1918 reached 
13,553,860 gallons. This amount represented an increase of almost 
3,000 per cent over the prewar average. 

A large part of this growth in production was achieved, however, 
only after the toluol industry had been commandeered in Februa ry, 
1918, when there began a distribution of all toluol produced in the 
United States by a committee of representatives of the Army, Navy, 
and War Industries Board. The price paid for the toluol so com- 
mandeered was the agreed figure of $1.50 per gallon. On July 18, 
1918, the price-fixing committee approved this price as applicable to 
all sales of toluol, civilian as well as military, and no shipments were 
allowed from any plant at a price in excess of $1.50 per gallon in 
tank cars and $1.55 per gallon in drums. 

In November, 1918, the control over the toluol industry was re- 
linquished. Immediately the market crashed, and December, 1918, 
witnessed sales of toluol at 25 cents a gallon, a price 83-J per cent 
lower than the quotations for the preceding month. 

Alkalies. — The prices of alkalies were in all cases fixed for Govern- 
ment purchases only and, with the possible exception of liquid 
chlorine, the nonmilitary use of which was virtually eliminated from 
June to November, 1918,^ the prices so fixed were considerably lower 
than those on the open market. Virtually all agreements as to the 
price of the alkalies were made in early 1918 and continued through 
the year until November 25. Several agreed prices, however, such as 
those of carbon tetrachloride and caustic soda, remained effective 
until the end of the year. 

^A brief summary of the prices fixed on the various alkalies, such as bleaching- powder, 
carbon tetrachloride, caustic soda, liquid chlorine, and soda ash will be found on p. 805. 



6. THE WAR TRADE BOARD. 

The War Trade Board, charged with the responsibility for de- 
terminino; what commodities should be exported or imported, exer- 
cised less direct price control than any otlipr war board.^ It 
obviously had no concern with the great bulk of staples that were 
bought and sold for war uses within the country. The board, to be 
sure, had practically absolute power to permit or refuse licenses to 
export goods or import them, and sometimes used that weapon when 
requested to enforce price regulations upon exporters and importers. 
But the business of controlling the amounts of exports and imports 
was in itself a, big one, and the War Trade Board usually left to 
other boards the setting of prices. That procedure seemed to it 
wise, in part because the War Industries Board, the Food Admin- 
istration, and the Fuel Administration were all regulating prices, 
but more especially because the tonnage and the enemy-trade prob- 
lem, rather than price factors, were the primary basis for determin- 
ing what goods to export or import. 

(i) THE CREATION OF THE WAR TRADE BOARD, 

The passing in turn of the espionage act and the trading-with- 
the-enemy act gave the President wide powers over exports, imports, 
and enemy trade. The President, in full appreciation of the serious 
need for a control over all foreign trade, created the War Trade 
Board through an Executive order of October 12, 191T, and charged 
it with a responsibility for administering the controls authorized 
by these two laws. The new War Trade Board, by that order, super- 
seded the earlier Exports iLdministrative Board and the former 
Exports Coimcil became the War Trade Council.- There was thus 
set up the final machinery for a control over all war trade. It is 
worthy of note at this point that the presidential proclamation of 

^ A fuller account of the activities of- the War Trade Board should be had from its 
own forthcoming offlrial liistovy. 

2 The Wax Trade Board, made up of representatives from various importaut Government 
bureaus, hnd the following membership at the signing of the armistice : Vance McCor- 
mick, chairman, and representative of the Secretary of State ; Thomas L. Chadbourne. 
jr., counselor, and representative of the Secretary of State; Albert Strauss, representa- 
tive of the Secretary of the Treasury : Alonzo E. Taylor, representative of the Secretary 
of Agriculture; Clarence M. Woolley, re[)resentative of the Secretary of Commerce; 
Beaver White, representative of the Food Administration ; and Edwin P. Gay, representa- 
tive of the United States Shipping Board. 

350 



GOVEENMEKT COITTEOL. OVEE, PEICES. 351 

November 28, 1917, vitally enlarged the scope of War Trade Board 
duties by increasing the list of commodities requiring license for 
export, and by the initial making of a similar list for imports. 

The turning of this country from a neutral into an ally involved 
the laying down of very definite policies with respect to our foreign 
trade. It meant especially the conserving of our own supplies for 
our war machinery and that of our Allies, the cutting off of all 
direct or indirect trade with the enemy, and the conservation of 
tonnage for war-making uses. The working out of these general 
policies by the War Trade Board gave rise to four primary functions, 
around which virtually the whole work of the board turned: The 
commercial isolation of the enemy, the financial isolation of the 
enemy, the obtaining of essential supplies and controlling prices, 
and the conservation of ocean tonnage.^ 



(2) ALL EXPORTS AND IMPORTS BROUGHT UNDER LICENSE 

CONTROL. 

The actions of the War Trade Board concern price control only 
so far as they pertain to the exercise of regulation over prices, direct 
enough to lay hands upono The extension of control over exports 
and imports ushered in important influences upon prices. The 
control of exports, begun relatively early, and later that of imports 
were extended item by item until the two famous proclamations of 
February 14, 1918, brought under license control all exports and 

imports.^ 

The Controi. Over Exports. 

It is conceivable that the restraint upon the exportation of certain 
commodities that was imposed by the requirement of licenses for 
exports sometimes had a more vital indirect effect upon the pric© 
level than the corresponding restraint of imports. The effect pre- 
sumably would be most felt in the prices of those goods which were 
not only brought under license control, but were actually denied 
exportation and thrown as a consequence into the home market. In 
a general way the actual holding of commodities from foreign sale, 
in so far as it increases the supply at home, would tend to lower or 

iThis division of functions was selected by Henry F. Walradt and B. D. Madgett as 
the basis for their history of the War Trade Board. 

* The War Trade Board issued at the same time a statement in which it said in part : 
" The promulgation of these two proclamations did not mean an embargo on exports or 
a prohibition of imports, but placed in the hands of the President the power to regulate, 
which he will exercise through the War Trade Board and the Treasury Department. 
This power will be exercised with the single pui*pose of winning the war, and every effort 
will be made to avoid unnecessary interference with our foreign trade and to impose upon 
our exporters and importers no restrictions except those involved in the accomplish- 
ment of definite and necessary objects." 



352 HISTORY CF PRICES DURIjSTG THE Y7AR. 

stabilize market prices. But there is no measure of the effect of 
these export rulings that is accurate or even approximate.^ 

The Conservation List. 

The commodities for which the War Trade Board required licenses 
prior to their exportation were said to have been put upon the con- 
servation list. This conservation list, which began with a very few 
important raw materials on July 9, 1917, was extended from time 
to time until the whole lot of exports were entered upon it by Febru- 
ary 14, 1918,- and by the signing of the armistice it contained nine 
hundred odd commodities.^ These commodities, which contained 
rejiresentatives virtually from our whole range of production, were 
ail actually restricted from export trade under license control. 

The Control Over Imports. 

The control over imports, whether cf ]nore or less influence upon 
the price level, afforded more opportunity for price regulation. The 
War Trade Board, which was not a price-regulating body and which 
interfered with prices only when pressed to it by other bodies, was 
seldom under necessity for stipulating prices for exports, since the 
regulation of domestic commodities vv^as exercised by the War In- 
dustries Board, the Food Administration, and the Fuel Administra- 
tion. But frequently these very bodies found themselves under pe- 
culiar administrative difficulties in the price control of foreign goods 
imported into the country, and appealed to the War Trade Board 
to stipulate stabilization as a condition of their entrance into Ameri- 
can markets. 

The Restricted List. 

This inquiry does not go into the ramifications of import control, 
except as prompted by odd instances where the War Trade Board 
stipulated price regulation as a condition" for the granting of an 
import license. The board, in order to interfere as little as possible 
Avith business as constituted, administered these import controls 
largely through trade organizations. The latter, in cooperation with 
the War Trade Board, acted as consignees of various import com- 
modities to keep themselves informed for the benefit of the board 

1 The following instance of an exercise of price control, in connection witli the export 
license power, is perhaps more interesting than widely significant. 

On and after July 20, 1918, no license will be issued authorizing the exportation of 
gold jeweli*y, gold watches, gold plate, or other manufactures of gold unless evidence 
satisfactory to the War Trade Board is submitted showing that the f. o. b. selling price 
of the articles to be exported is not less than thi-ee times the value of the fine gold 
contained in such articles. 

-The proclamation of Feb. 14, 1918, became efEective Feb. 16. 

' Consult the Export Conseiwation List issued by the War Trade Board, efEective Oct. 
15, 1918, and that efFectivc Dec. 6, 1918. 



• GOVEEIJMENT CONTROL OVER PRICES. 353 

as to the use and disposition^ of the import commodities, and the 
observance by the importers of any guaranty or agreement given 
in connection therewith; to prevent hoarding and speculation, and 
to keep full and complete records of the commodities and their dis- 
tribution^. The extension of import control was made by the plac- 
ing gradually of certain commodities upon the so-called restricted 
list. That list, the initial issue of which appeared November 28j 
1917, was made to include all imports by February 14, 1918, and 
thus contained more than 140 classes of commodities by the signing 
of the armistice. 

(3) THE EXERCISE OF PRICE CONTROL BY USES OF THE LICENSING 

POWER. 

There lay in the very restriction of exports and imports, even 
where a direct price control was not exercised specifically, a potent 
though not measurable influence upon prices. The War Trade Board 
exercised infinitely more export and import restrictions than the 
few in which it avowed a direct interest in the, price factor. But 
in the main an enormous restriction upon export trade in particular 
goods for any reason would tend to stabilize domestic prices, and a 
corresponding restriction upon imports would tend to disturb the 
prices of available stocks. The great body of export-conservatioiT 
rulings, it would be supposed, worked for lower, and that of import- 
restriction rulings for higher prices. But this very considerable in- 
direct influence which the War Trade Board rulings must have had 
upon prices, important though it be, leads too far into speculation 
for its adequate analysis in a record of fact. 

Quite apart from any indirect effects upon prices which may have 
resulted from export or import restrictions as such, there were sev- 
eral steps taken by the War Trade Board to control prices. Those 
instances came in the form of conditions which the board set up as 
prerequisite to the issuing of licenses for the importation of a few 
of the commodities appearing on the restricted list. Even those 
exceptional cases, however, were seldom highly developed controls 
such as were issued and administered by the price-fixing boards. 
They were, for the most part, blanket provisions simply looking to 
the stabilization of the prices for imported goods in the domestic 
markets. The War Trade Board, at requests from other war boards, ' 
undertook to provide in part for the stabilization of certain prices 
(asbestos, pig tin, chloride of tin, tin ore, wool, pickled skins, varnish 
gums, sugar, castor oil, castor beans, hides and skins, leather, tanned 
skins, silk noils, silk-noil yarns, garnetted stock and silk waste, 

1 Rules and regulations, War Trade Board, No. 2, May, 1918, p. 64. 
125547°— 20 ^23 



354 HISTORY OF PRICES DURING THE WAR, 

iiianila fiber, crude rubber, coffee, Xew Zealand fiber, copra, tin, 
burlap, burlap bags, and jute), either by requiring tlie importer tp 
give a guaranty, an option, both a guaranty and an option, per- 
mitting importation of substitutes, restriction of certain imports 
that would compete with domestic stocks, oii by imposing an em- 
bargo.^ 

/^One method by which the War Trade Board took precaution that 
goods coming in under authority of its licenses should not be hoarded 
for speculation, was to require a guaranty from the importer that he 
sell his goods not above the maximum set by any war board. Appli- 
cants for sugar or wheat-flour licenses were required to guarantee 
not to sell their sugar or flour to any party at any price without first 
securing the approval of the Food Administration. The board, by a 
I'esolution of August 2^ 1218, declared that no licenses to import 
pickled skins would be issued unless the applicant agreed not to sell 
the skins at a price in excess of the prices established by the price- 
fixing committee. Importers of asbestos, pig tin, chloride of tin, 
and tin ore were required to guarantee that they would use these 
imports '' for our own manufacturing use and not for hoarding or 
speculative purposes." A ruling passed late in September. 1918, 
limiting the amount of varnish gum to be imported, stipulated that 
the amounts allowed to enter should be allocated and the price con- 
trolled Ijv the War Industries Board. Still another and earlier 
ruling, May 27, restricted the amount of asphalt allowed to enter and 
required the importers to guarantee to sell at a price to be deter- 
mined by the War Industries Board. 

/ The mosj: common requirement which the War Trade Board im- 
posed as a condition for the granting of an import license, designed 
purely to regulate prices, was the agreement of the importer to give 
\the Government an option upon the imported goods. The sugar 
guaranty, indeed, early in December, 1917. had contained an option 
clause by which the importer promised to sell his sugar, if so re- 
quested, to the international sugar committee at such price as it 
might prescribe. The well-known early wool option was made on 
December 15, 1917, and required all importers of foreign wool to 
give the Government, as a condition of their license, an option to 
purchase all or anj^ of the wool covered by his import license, at a 
price equivalent to 5 per cent less than the market price prevailing 
July 30, 1917.- This option was to hold 10 days after the entry of 
the wool at the customhouse, but' the Government was given the right 
to purchase at that price so long as any part of the shipment remained 

^ Mr. Henry F. Walradt, after studying carefully the minutes and otlier records of the 
War Trade Board, worked out the above classification of controls over prices. 

- A full statement of the resulations governing this important wool option may be 
found in the War Trade Board Journal of Jan. 8, 1918, p. 6. 



GO\'ER]S"MEXT COXTBOL, OYEK PKICES. 355 

unsold. It became soon necessary, in order to expedite the adminis- 
tration of the wool option, to enforce it through the mediimi of the 
Textile Alliance. The importer then was required to indorse his bill 
of lading to this private organization, as a condition of the license.^ 

Similar options, granting the Government the right to purchase 
the goods at a given price, were required as a condition of the licenses 
allowing the importation of castor oil, castor beans, hides and skins, 
leather, tanned skins, leather manufactures, platinum, mdium. pal- 
ladium, quebracho extract, silk noils, garnetted stock, and silk waste. 

The price control that was exercised over crude rubber combined 
the guaranty and option feature in a unique way. The Rubber Asso- 
ciation of America, to whom the War Trade Board officially asked all 
importers to indorse their bills of lading, was required not to release 
any shipment of rubber until each applicant had signed an option 
allowing the Government to purchase- the stock imported at a certain 
price, and also a guaranty that, should the Government not take 
advantage of the option, the importer would not sell the imported 
rubber at a price higher than that provided by the option.- 

The diverse ways by which the War Trade Board exercised its 
licensing power to control prices was strikingly illustrated by its 
resolution of May 23, 1918, that no licenses should be granted for the 
importation of coffee which was carried at a freight rate greater 
than that established by the United States Shipping Board.-^ 

There is on record one case where the TTar Trade Board assisted 
a Government board to hold down the prices of domestic goods by 

^ Mr. Henry F. Walradt, in summai-r of tbe results of this wool option for tbe official 
history record of the War Trade Board says : 

'• This policy of obtaining options on wool imports saved the United States over 
$33,000,000. The fact that the wool importers were required to give this option made 
it unprofitable for them to buy foreign wooi at the prices which were prevailing at the 
close of the year 1917 ; consequently the foreign growers were forced to lower their 
prices. From Dec. 1-5, 1917. when the option agreement was put into force, until 
Mar. 1, 191S, the average price of imported wool of the grades the United States 
Goremment was buying, fell from about 66 cents to somewhat less than 3S cents a 
pound, a drop of about 8J cents per pound. Purchases made after Dec. 15. 1917, did 
not begin to arrive in this country in quantity until February, 191S. From Feb. 1, 
1918, until Dec. 31, 1918, there were 40-5.624,700 pounds of woo! imported into the 
United States. If it is assumed that 84 cents was saved on each pound, the total amount 
saved by this policy was S8S,464.038.'" 

2 One of the most iuteresring in:ftances of price control throughout the war is that 
set forth by the War Trade Board pertaining to crude rubber, in a letter to the Rub- 
ber Association of America on Apr. 30, 1918. That letter was published in full in 
the War Trade Board Journal for June, 1918, p. 17. 

2 The purpose of this ruling was to aid in enforcement of the rates; which had 
been established on Xov. 21,' 1917, by the chartering committee of the Shipping Board. 
It appeared that these rates were being disregarded. In fact at the time this ruling 
was passed the coffee en route to the United States was being transported at ratea 
which caused the total freight charges to be hundreds of thousands of dollars in. 
excess of the lawful amount. The profiteering in freight rates on coffee had caused 
an unstable condition in the cofEee market, and a wide variation in the cost of coffee 
to different buyers. Accordingly, all licenses for the importation of coffee were held 
up until the importers presented a sworn statement that the rare of freight paid for 
the transportation of the coffee was not in excess of the rate established by the Ship- 
ping Board. (Eeport of the War Trade Board.) 



356 HISTORY OF PFJCES DUEHSTG THE WAR. 

allowing the unrestricted entrance of a substitute. The Food Admin- 
istration attempted during the war to prevent rises in the price of cot- 
tonseed oil on domestic markets. Copra, which is used to manufac- 
ture coconut oil, has a vital relation to the prices of cottonseed oil.' 
The War Trade Board, in order to assist in the stabilization of cotton-^ 
seed oil prices, lifted its restrictions upon the importation of copra 
on July 12, 1918. 

There has been, since the signing of the armistice and contrary to' 
the prevailing policies previous, occasion to sustain the prices of cer- 
tain materials which were stimulated in production during the war? 
The War Trade Board, in one conspicuous instance, attempted to 
sustain a domestic price by restricting the importation of competing 
goods. A considerable importation of pig tin took place during the 
war at high prices for the meeting of Government orders. That 
source of demand was cut suddenly short by the cessation of hostili- 
ties, and pig tin prices began to break. The War Trade Board, in 
order to protect from loss buyers who in good faith had bought 
large stocks for the Government, left standing its restriction upon 
the importation of pig tin.^ 

One of the more serious of the problems confronting the Food 
Administration and the War Industries Board during the fall of 
1918 was the rise in burlap and burlap bags. The Government had 
imiDortant uses for these materials as trench bags and packing cases. 
The high prices for bags frequently made necessary the shipment of 
potatoes and wheat in bulk and cargo for overseas in wooden cases. 
The British Government controlled its own purchase prices for bur- 

^ Mr. Walradt makes the following summary of the action of the War Trade Board 
with respect to pig tin after the signing of the armistice : 

" In order to protect the buyers who had bought at high prices from the impending 
loss, the War Trade Board maintained the restriction upon the importation of pig 
tin which it had placed by a resolution passed on Oct, 4, 1918. This resolution re- 
voked all outstanding licenses for the importation of pig tin, tin ore, and tin. concen- 
trates, and any chemical extracted therefrom to be shipped after Oct. 20, 1918. The 
resolution also provided that henceforth no licenses were to be issued for the importa- 
tion of these commodities excepting for shipments consigned to the United States 
Steel Products Co. On Nov. 1 this resolution was modified to permit the importation 
of these commodities excepting pig tin, provided the bills of lading were indorsed to 
the American Iron and Steel Institute. Pig tin bought Sept. 30, however, could 
still be imported only by the United States Steel Products Co. The original resolution 
had been passed at the request of the inter-allied tin executive in London to effect an. 
equitable distribution of pig tin. With the signing of the armistice the value of this 
i-esolution changed. The United States Steel Products Co. alone was able to import 
pig tin and this company already had more pig tin than it could sell without loss. The 
market price for tin outside of the United States had broken and if pig iron could have 
been imported freely, the stocks of pig tin already in the United States would have 
fallen greatly in value. As it was, the fact that tin ore was permitted to enter gave 
the smelters an opportunity to import the ore, smelt it, and put the pig tin on the mar- 
ket at a few cents below the price at which pig tin was being held by the United States 
Steel Products Co. This practice caused the War Trade Board, on Jan. 30, 1919, 
to pass a resolution whereby no import licenses were to be issued for any metal con- 
taining more than 20 per cent of tin. This measure is in harmony with the at- 
tempt which was being made to keep up the price of pig tin to prevent large losses to 
those Importers who previous to the cessation of hostilities had purchased large stocks 
of pig tin for Government purposes," 



" ■-■ GOVERNMENT CONTROL OVER PRICES. 357 

lap at Calcutta, the primary market, but took no effective hand to 
prevent the Calcutta merchants from exacting enormous prices from 
American importers. The War Trade Board accordingly, on October 
'4-, 1918, passed a resolution prohibiting the licensing of the importa- 
tion of burlap, burlap bags, or jute without the approval of the Food 
Administration and the War Industries Board. This virtual em- 
bargo broke the speculation of Calcutta, it would seem, for the base 
price at that market dropped from 16.17 cents per pound on October 
2 to 9.79 cents on December 28, 1918. 

Rubber. 

The United States in the early years of the World War was de- 
pendent in large part upon the various warring countries or their 
colonies for many essential raw materials. One of the most important 
of these was rubber, a considerable portion of which came from the 
English and Dutch possessions in the Far East. 

The British embargo of IQIJ^. — ^When war first broke out in 
August, 1914, tires were the only important rubber products which 
were made contraband. In the following month the British Gov- 
ernment added crude rubber to the list of contraband and decreed 
that rubber could be exported only to certain ports of Europe, 
namely, those of France, Belgium, Eussia, Spain, and Portugal.^ In 
October the French Government followed suit and declared rubber 
absolute contraband. But Great Britain, late in October, issued an 
order forbidding shipments from those plantations in the Far East 
which were under her control to any port other than London, thereby 
making virtually all plantation rubber contraband. Even this latter 
decree, however, did not seem to bring the desired results, and finally 
during the last days of October, 1914, the British Government forbade 
all exports of crude rubber from any English port.^ 

As a result of these restrictions, rubber prices soared, and it was 
said that the cost of the embargo to the industry was $250,000 a 
day.^ After several advances to the British Government the embargo 
was partially lifted, and in January, 1915, shipments of rubber to the 
United States were again permitted, but not without restriction. 
First, no rubber was shipped direct to any American consumer. It 
was consigned directly to the British consul general in New York, 
and he alone had authority to release it. Secondly, every American 
buyer before securing the release of any rubber was compelled to 

1 The reason for these actions on the part of Great Britain is given in the following 
extract taken from the India Rubber World for Nov. 1, 1914 : 

" It was given out that the requirements of the allied armies would be sufficient to 
absorb practically the whole plantation production for the next six months. It was 
stated that the British and French military authorities would need a new equipment 
of tires for the quarter million motor transport vehicles then being used in the war, 
and that there would be great demand for waterproof ground sheets for the troops, 
for rubber boots, to be used in digging trenches, for all kinds of surgical appliances, 

- India Rubber World, January, 1915. 



B58 HISTORY OF PRICES DURING THE WAR. 

guarantee that lie would not reexport except under specified restric- 
tions and would not use it in trading witli the enemy. This rule 
not only applied to the particular rubber which he wanted to have 
released, but to all the rubber, crude or manufactured, which he had 
on hand or might dispose of during the war. 

This was the state of affairs as regards the rubber importer at the 
entrance of the United States into the conflict. Eubber had been com- 
ing into the country in tremendous quantities during 1916, and 1917 
presaged the largest imports in our history.^ 

The licensing of viibher imports. — On November 28, 1917, rubber 
was put on the restricted list hj presidential proclamation and all 
imports were forbidden except under license. Thus the control of 
American imports was shifted from the British consul general at 
Xew York to the War Trade Board. The Eubber Association of 
America was virtually appointed the agent of the United States 
Government and undertook to collect information relative to the 
rubber industry for the War Trade Board ; to act as consignee for 
rubber shipped to the United States; to release rubber to importers 
under instructions from the War Trade Board; to obtain from im- 
porters and manufacturers guarantees that they would not sell any 
rubber, directly or indirectly, to any country at war with the United 
States, or to any person, unless satisfied that thefe was no intention 
of exporting without an export license; to keep informed for the 
benefit of the War Trade Board as to the use and disposition of 
the imported rubber; and to keep full records of all importations of 
rubber. No restrictions were placed on the amount of rubber that 
could be imported, and throughout the first few months of the year 
large quantities of rubber came into the country. 

But large imports of rubber meant large amounts of shipping- 
space and long hauls, since the greater portion of our rubber sup- 
plies come from the Far East and Brazil. 

The restriction of rubber imports and price fixing. — The military 
requirements of the country demanded a conservation of tonnage, 
however, and on May 7, 1918, after conference with representatives of 
the War Industries Board, the United States Shipping Board, and 
the rubber industry, the War Trade Board restricted the quantity 
of rubber to be licensed for import during the three-month period, 
May. June, and July, to 25,000 long tons. This was at the rate of 
100,000 tons per year, or about two-thirds of the 1917 importation 
of 157, 000 tons.- It was naturalW expected that this cutting off of 

1 Indeed, our rubljer imports; for 1917 proved to be over 167,000 tons, as against 
115,000 tons, in 1916 and 103,000 tons in 1915. See War Industries Board Bulletiu, 
" Prices of Rubber and Rubber Products," by Isador Lubiu. 

2 Subsequently, the War Ti-ade Board virtually increased the amount to be licensed 
, for import to 28,000 long tons (green basis) per quarter by ruling that the Brazilian 

imports should be allocated on a dry basis which allowed approximately 12 per cent 
for water content, 



GO\'ER]SrME]SrT COKTEOL OVER PRICES. 359 

an appreciable part of our supply ttouIcI start rubber prices up- 
ward, and, indeed, a speculative market did develop as soon as 
word was received that the restriction of the importation of rubber 
was contemplated.^ 

As a preliminary step therefore to the restrictions of rubber im- 
ports, the War Trade Board inaugurated an option system whereby 
it regulated rubber prices from the time of import until passing into 
the hands of the manufacturer. A maximum price, based on quota- 
tions current in the trade when restrictions were first considered, was 
fixed for the various tj^pes of crude rubber, and the possibilities of 
profiteering and speculation were limited. These prices, fixed on 
May 1, c. i. f . New York were as follows : 

Cents per 
pound. = 

Para Upriver Fine 68 

Plantation : 

First Latex Crepe 63 

Smoked sheets (standard) 62 

All importers before securing an import license were compelled to 
give to the United States Government an option on " all or any part 
of the crude rubber "' covered by the license, as well as on all other 
crude rubber at that time or thereafter covered or controlled hv the 
applicant until sold and delivered to a manufacturer,^ 

In the event of the exercise of this option the prices to be paid by 
the Government were to be those mentioned above. 

The results of the emhargo. — It appears that this fixing of rubber 
prices was an unnecessary expedient, however, since the curtailment 
of imports had little effect upon the rubber supply of the country. 
For, first, the stocks on hand on April 1, were the largest in the 
history of the industry,* and, second, our imports during May, June, 
and July were much larger than the specified 25,000 tons. The pre- 
liminary negotiations leac]Jng to the cutting of imports had been 
held in April, and the anticipation b}"' the trade of some form of re- 
strictions stimulated buying. Large contracts were therefore entered 
into for the immediate shipment of rubber to the United States in 
order that stocks might be accumulated before the expected restric- 
tions went into effect. The restrictions of May 8 did not apply to 
shipments which had left foreign ports prior to that date, and sii\ce 
the time required for transporting rubber from primary markets to 

1 Compare chart of crude rubber prices in " Prices of Rubber and Rubber Products," 
as above. 

2 These prices were supplemented on May 14 by maximum prices for otlier grades 
of crude rubber ; while on May 29, June 13, July 2, and July 6, respectively, still further 
additions were made. Applicants for import licenses had to guarantee that they would 
not sell rubber covered by their license to or for any person at a price higher than thft 
fixed prices. 

2 Compare letter from the War Trade Board to the Rubber Association of America oa 
Apr. 30, 1918, in the War Trade Board Journal of June, 1918. 

* Compare statement by Bertram G. Work, chairman of the War Service Committee 
of the rubber industry in the India Rubber World, June, 1918. 



360 HISTORY OF rrJCES DUrJXG THE WAB. 

• 

tlie United States was considerable tlie actnal imports during the 
second quarter of 1918 were mncli greater than the specified 25,000 
tons. Indeed, 65,000 tons of rubber entered American ports during 
May, June, and July. 

Finally, the curtailment of the American receipts was immediately 
felt in the primary markets, where already the decreased consump- 
tion of other nations had had its effects. The further elimination of 
means of disposal naturally led to keen competition among the hold- 
ers of the existing large stocks and prices tended to fall even below 
the existing low level. 

The result then was that allocated Upriver Para rubber sold in 
September for 58 cents per pound and Plantation First Latex Crepe 
sold for 37 cent's per pound ^ as compared with the fixed maxima 
respectively of 68 cents and 63 cents. On December 12, restrictions 
as to the amount of rubber to be licensed for import from overseas 
were withdrawn as were also the maximum price and allocation 
features of the import regulations. 

Silk. 

The second presidential proclamation on imports, issued Febru- 
ary 14, 1918, included silk among the commodities for which import 
licenses were to be required. 

In order to discourage imports for speculative purposes, the War 
Trade Board, on September 3, 1918, revoked all outstanding licenses 
for the importation of silk noils, silk noil yarn, gamettecl stock, 
silk waste, spun silk, and pierced cocoons for shipment after Sep- 
tember 10. The United States Government was to have an option 
to purchase all silk of the above varieties for which import licenses 
were issued after September 3, at a price 2 per cent above the 
cost at the foreign ports of shipment, including all charges except 
prepaid freight and prepaid insurance. 

1 This variation in the price of the two types of rubber is to be explained bj' changes 
which were made in the import program in August and September. The War Trade 
Board had at first failed to make allowance for the large amount of water in Brazilian 
rubber and the high price of this type of rubber resulted in the American consumer 
giving preference to rubber from the Far East, and imports from Brazil decreased 
steadily from June to August. The former factor was eliminated about a month 
after import restrictions became effective, and in order to further stimulate the im- 
portation of Brazilian rubber the War Trade Board ruled in early August that during 
the months of August and September rubber importers should replace 50 per cent of the 
rubber utilized in Government contracts by Brazilian rubber. The result of these pro- 
visions for stimulating imports became apparent in September, and imports from Brazil 
increased 54 per cent over the month of August. The results attained, however, were 
not up to expectations, and on Sept. 26, the ruling relative to the use of Brazilian 
rubber was supplanted by an order of the War Trade Board requiring that at least 
one-fourth of the total amount of imports authorized should be licensed from South 
and Central America. With the production of the Plantations over six times as large 
as that of South America, these regTiIations led to a heavy oversupply of the Planta- 
tion variety of rubber and keener bidding at Plantation markets for the right to ship 
to American ports. It should be atldod also that the maintenance of relatively normal 
values by Brazilian rubber was in part to be accounted for by the stabilizing control 
over its price by the Bank of Brazil, 



7. THE WAR DEPARTMENT. 

The War Department expended $14,244,061,000 from the declara- 
tion of war in this comitry to April 30, 1919, and was given a hand in 
the general price-fixing- program by reason of its interest in Army 
purchases.^ The large purchases which the War Department began 
making soon after April 6, 1917, indeed, and the erratic behavior of 
the market, were among the main causes for the control over raw- 
material prices by the Government. 

The quantity of goods required to feed and clothe the Armj^ was 
great enough vitally to affect market quotations. The statistics 
branch of the General Staff has estimated the total purchase by the 
Army for 'Subsistence from April 2, 1917, to May 3, 1919, as $1,093, 
636,623.^ The total Army purchases for clothing from the beginning 
of war to May 31, 1919 amounted to $1,212,066,018. and those for 
equipage to $254,721,400. There follows an itemized list of the 
clothing commodities purchased by the War Department from 
the beginning of war to May 31, 1919, and the unit price for each 
commodity, as given by the statistics branch of the General Staff. 
A similarly itemized list for the equipage purchased follows. 

SUBSISTENCE SHIPPED TO AMEEICAN EXPEDITIONAKY FORCES APE. 1, 1917, TO 

DEC. 1, 1918. 



Item. 



Quantity 

(pounds unless 

otherwise 

specified). 



Unit 
price. 



Total cost. 



Bacon 

Beef, frozen 

Beef, tinned , 

Flour 

Tobacco 

Cigarettes, each 

Reserve rations, each . . . 

Sugar 

Cigars, each 

Butter and substitutes. 

Tomatoes 

Beans, baked 

Jam 

Coffee 

Milk, evaporated 



147, 

250, 

140, 

542, 

27, 

2, 439, 

15, 

106. 

160', 

16, 

100, 

54, 

26, 

39, 

42, 



956, 223 
584, 692 
843, 476 
874, 797 
449, 645 
260, 097 
623,150 
169,345 
ISO, 225 
200, 799 
081,789 
731,786 
029, 028 
185,167 
922, 743 



.44 

.23 

.32 

.05 

.67 

.006 

.76 

.07 

.05 

.40 

.06 

.10 

.19 

.12 

.11 



S65, 722, 154 

58, 536, 584 

45,717,792 

28, 500, 927 

18, 407, 732 

15,123,412 

11,875,594 

7,888,382 

7, 768, 741 

6,433,337 

G, 024, 924 

5,226.886 

4, 877; 840 

4, 729, 650 

4,498,303 



1 See " The War with Germany," prepared under the direction of Col. I;(>onai'd P. 
Ayers, of the statistics branch of the General Staff, for an itemization of these ex- 
penditures. 

- There is not available an itemized list of the commodities that made up this total 
expenditure for foods, and their unit costs. There follows, however, a table showing 
the individual commodities shipped to the American Expeditionary Forces from Apr. 1, 
1917, to Dec. 1, 1918, as reported by the statistics branch of the General Staff, and 
the unit price of each. Later figures given out by the Staff, which do not have the 
advantage of carrying unit costs, show that the total expenditures for overseas sub- 
sistence from the beginning of war to May 1, 1919, was .$616,134,000. 

361 



362 



HISTORY OF PRICES DURING THE WAR. 



SUBSISTENCE SHIPPED TO AMERICAN EXPEDITIONARY FORCES APR. 1, 1917, TO 

DEC. 1, 1918— Coutinued. 



Item. 



Fish, salmon 

Beans, dry 

Vegetables, dehydrated . 
Lard and substitutes. . . 

Syrup, gallons 

Hard hread 



Candy. 

Eice 

Prunos. 



Fruit, evaporated. 

Corumeal 

Pickles, gallons... 
Ham 



Corn,, sweet 

Emergency ratiotis, each. 

Vinegar, gallons 

Oatmeal. 



Peas, green 

Peaches, canned. 
Hominy . 



Beans, striiiijless. 
Salt 

Pears, canned.. . 
Apples, canned.. 
Cheese. 



Pineapples, canned. 
Apricots, canned . . . 
Cnerries, canned 



Quantity 

(pounds unles 

otherwise 

specified). 



Total. 



961,801 
646, 677 
971,935 
781,228 
171,808 
978, 830 
895, 053 
466, 547 
748, 931 
976,848 
074,687 
333,210 
772,917 
639, 786 
765,400 
319,877 
661,732 
689, 425 
415, 182 
826, 269 
148, 759 
707,276 
150, 120 
831,096 
314, 203 
899, 258 
863,415 
423,444 



Unit 
price. 



.14 

.11 

.30 

.25 

.59 

.13 

.28 

.08 

.10 

.13 

.05 

.47 

.34 

.06 

.53 

.28 

.06 

.06 

.11 

.09 

.06 

.009 

.10 

.06 

.28 

.09 

.09 

.12 



Total cost. 



4, 408, 960 

4,297,700 

3,924,010 

3,861,666 

3, 654, 945 

3,614,865 

2,191,667 

2, 029, 684 

1,630,014 

1,191,228 

736, 221 

625,809 

610,238 

431,648 

401,835 

367, 586 

2%, 020 

262, 60S 

255, 043 

155, 963 

127, 207 

120,624 

117,542 

117, 007 

87, 191 

82.012 

78,743 

51,703 



327,059,997 



CLOTHING PURCHASED BY THE ARMY DURING THE WAR. 



BreechQs and trousers, wool. 

Breeches, cotton 

Boots, rubber 

Belts, waist , 

Caps, overseas 

Coats, cotton 

Coats, denim 

Coats, wool , 

Drawers, summer , 

Drawers, winter , 

Hats^ service 

Leggins, canvas. „ , 

Overcoats 

Shirts, flannel 

Shoos,fleld 

Shoes, marching 

Stockings, cotton 

Stockings, vvool, heavy 

Stocldngs, wool, light 1 

Trousers^ denim 

Undershu'ts, summer 

Undershirts, winter 

Puttees : 

Raincoats 

Hats, denim 

Jerkins 

Mackinaws 

Gloves, leather 

Gloves, canton flannel, Ip. . . 

Mittens, canton flannel 

Mittens, leather 

Gloves, wool 

Gloves, jersey knit 

Oilskin coats 

Oilskin trousers 

Oilskin hats 



Total. 



Purchased. 



Unit 
price. 



Approximate 
value. 



21,768, 

14,154, 

2,96-1, 

10,867, 

5,741, 

8, 872, 

10,942, 

13,870, 

41,089, 

42,468, 

8,220, 

12,494, 

8,315, 

26,547, 

18,769, 

11,847, 

20,210, 

58,712, 

61,243, 

11,561, 

48, 110, 

36,931, 

16,771, 

8,481, 

6,235, 

2, 236, 

635, 

7,254, 

2,632, 

5,007, 

9,357, 

17,283, 

9,927, 

873, 

868, 

1,220, 



220 
000 
932 
000 
012 
000 
000 
000 

000 ! 

360 I 
000 

ono 

000 
817 
648 
000 
000 
000 
000 
505 
000 
000 
000 
000 
000 
000 
000 
000 
000 
000 
000 
000 
000 
000 
000 
000 



S6.70 

1.69 

5.08 

.23 

-88 



1.96 

1.55 

9.79 

.50 

2.00 

2.00 

.92 

12.17 

3.50 

7.45 

4.65 

.16 

.55 

.35 

1.55 

.60 

2.00 

2.20 

5.21 

.24 

7.50 

14.00 

1.07 

.48 

.46 

1.16 

.65 

.25 

2.52 

2.58 



5145,847,074 

23,920,260 

15,061,854 

2,499,410 

5,052,090 

17,389,120 

16,960,100 

135,787,300 

20,544,500 

84,936,720 

16,440,000 

11,494,480 

101,193,550 

92,917,3.59 

139,833,878 

55,088,550 

3,233,600 

32,291,600 

21,435,050 

17,920,333 

28,866,000 

73,862,000 

36,896,200 

41,186,010 

1,490,400 

16,770,000 

8,890,000 

7,761,780 

1,263,360 

2,303,220 

10,854,120 

11,233,950 

2,481,7.50 

2,199,960 

2,239,440 

915,000 



1,212,066,018 



GGVEKNMElSrT COKTEaL OVER PEICES. 363 

EQUIPAGE PURCHASED BY THE ARMY DURING THE WAR. 



Barracks bags 

Bedsocks 

Blankets, com 

■ Blankets, 3 pounds . . . 
Blankets, 4 pounds . . . 
Tents, hospital, drop. . 
Tents, hospital, ward. 

Tents, pyramidal 

Tents, shelter, halves. 

Tents, storage 

Tents, wall, large 

Tents, wall, small 

Latrine screeen 

PauUns, large 

Paulins, extra large. . . 
PauUns, small . . . .' 



Purchased. 



,982,000 
,581,000 



,167,000 

,106,000 

8,090 

21,142 

500,311 

,499,437 

21,10S 

71,705 

76,178 

64,114 

145,420 

12,511 

13,647 



Unit 
price. 



$0.85 

1.10 

6.00 

6.. 50 

8.00 

92.18 

227.19 

70.73 

2.62 

136. 11 

80.08 

43.71 

18.73 

72.69 



22.65 



Approximate 

value. 



$7,634,700 
10,539,100 



92,085,500 

56,848,000 

745,736 

4,803,251 

38,391,165 

19,648,525 

2,873,010 

5,742,136 

3,329,740 

1,200,855 

10, 570, 580 



309,104 



Total. 



254,721,400 



There follows a summary of the value of overseas shipments of 
quartermaster material in the main from April 6, 1917, to December 
1, 1918, as compiled by the statistics branch of the General Staff. 

Orerseas shipments. 

Clothing, equipage, etc., sliipped with troop.s $326,000,000 

Subsistence .. 327, 059, 997 

Clothing 269, 451, 890 

Forage 21 ,106, 138 

Remount $15, 219, 87S 

Fuel 12, 608, 353 

General supplies 11, 807, 118 

Horse-drawn vehicles 7, 247, 522 

Harness___ 4, 957, 993 

(i) THE ARMY REPRESENTED ON THE PRICE-FIXING COMMITTEE. 

Virtually every instance of price fixing that had been undertaken 
by the War Industries Board prior to March, 1918, had its incep- 
tion in the fact of large Government purchases which needed pro- 
tection against unstable markets. It was not surprising, therefore, 
that when the price-fixing committee was created there should have 
been appointed to it a representative of the Army, despite the fact that 
the President in his letter had not so provided.^ It was the duty of 
the representative of the War Department to present to the com- 
mittee always the Army point of view, and to carry back to the Army 
that of the committee. 



1 The first representative of the Army upon the price-fixing committee was Brig. 
Gen. Palmer E. Pierce, but Lieut. Col. R. H. Montgomery served in that capacity from 
May 29, 1918 (S. O. 126), until the committee resigned. 



364 HISTOEY OF PRICES DUEII^G THE WAR. 

(2) THE PRICE-FIXING SECTION. 

As time went on it became necessary for the Army to determine 
fair prices for its own purchases upon commodities that had not 
been fixed by the price-fixing committee. It frequently had occa- 
sion, for example, to determine differentials from the base prices set 
by the price-fixing committee and less important base prices. A new 
order was accordinglj" issued by the War Department September 4, 
1918 (S. C. No. 88), creating a price-fixing section within the Army, 
whose chief was to be the representative of the Army on the price- 
fixing committee, and with the following duties : 

To conduct inquiries as to fair prices and departure from such prices, to 
advise agencies of the War Department in reUition thereto, and to represent 
the War Department on the price-fixing committee of the War Industries 
Board. 

(3) COMMANDEERING AND REQUISITIONING. 

It was not always possible satisfactorily to secure commodity re- 
quirements from the market at prices set by the price-fixing commit- 
tee or the price-fixing section, and the Army resorted frequently to 
the practice of commandeering and requisitioning. The comman- 
deer orders were compulsory orders to manufacture certain products, 
and the requisition orders were those taking over properties or stocks 
for use by the Government.^ 

A considerable confusion arose late in 1917 and early in 1918 by 
reason of the decentralization of seizure orders, and on March 22, 
1918 (General Orders, No. 27) a commandeering section was estab- 
lished to bring uniformity of procedure in the requisitioning and 
commandeering of property. There had been 161 different requisi- 
tions issued by the several bureaus of the War Department prior to 
the establishment of the commandeering section. Another 341 requi- 
sitions, affecting 2,501 persons or companies, were issued after the 
creation of the section. There had been 370 compulsory orders is- 
sued prior to the establishment of the commandeering section. An- 
other 626 compulsory orders, affecting 732 persons or companies, 
were issued after the creation of the section. The commandeering 
section, in its report following the signing of the armistice, esti- 
mated that the approximate value of all property requisitioned and 
secured under compulsory order was $141,687,000.^ 

1 Tlie main authority for commandeering was had from section 120 of the national 
defense act (H. R. 12766, Public No. 85), approved June 3, 1916; and that for requisi- 
tioning section 10 of the food and fuel control- act (H. R. 4961, Public No. 41), approved 
Aug. 10, 1917. 

- There follows a summary and itemized list of properties taken for military purposes 
hy requisitioning or compulsory orders, during the war : 

1. Real property, improved and unimproved, title taken $15, 697, 000 

2. Personal property 125,990,000 

Total, title taken 141,687,000 



goyeejstmejstt control, over prices. 365 

(4) the board of appraisers. 

Tlie duty of determining compensation for properties requisitioned 
or commandeered was placed upon the board of appraisers, estab- 
lished by General Orders, No. 30, on April 1, 1918. The board, as 
then constituted, was composed of Lieut. Col. John S. Dean and 
Lieut. Col. E. LL Montgomery, and was given the following duties: 

To determine, by appropriate methods, just compensation of all properties of 
whatever kind, real, personal, and mixed, for the seasons of occupancy of any 
property, first, which shall hereafter during the existing emergency be ordered 
i-equisitioned, commandeered, or otherwise formally taken over according to 
law, through, by, or by direction of, the Secretary of War for the direct and 
special use of the armies ; or, second, which has heretofore, during the present 
emergency, been directly taken over and the determination, of just compensa- 
tions for which has not been concluded, or is not under consideration by the 
•special board. 

To determine all elements of valuation, in all useful or necessary phases of 
such valuation, included as items of cost in any contract in which such ele- 
ments affect the rights and obligations of the Government and which shall 

3. Real property (improved and imiinproved, including plants and trans- 

portatiou facilities) use and occupation taken (value per annum) 3,146,000 

4. Personal property (vessels), use and occupation taken (value per 

annum) _ 126, 047, 000 

Total, use and occupation taken (value per annum) 129,193,000 

The more important of the commodities that were taken through requisitioning or 
compulsory orders by the War Department, found by segregating the items classified 
under personal property, follow in order of their values. 

1. Cotton goods, silks, gauze, etc .^56 Qgg 70Q 

2. Toluol 17' 211; 600 

3. Wood chemicals 16,092,200 

4. Platinum g j^rj 200 

5. Subsistence supplies q §54' ^qq 

6. Machine guns and ammunition 5 720 500 

7. Caustic soda 2^ 899^ 300 

8. Nitrate of soda 2 598* 700 

9. Spruce ___111 1, 124,' 300 

10. Carbon tetrachloride 1 hq jqO 

11. Machine tools . 975 200 

12. Folding steel hospital beds 750,000 

13. Bleach powder ^qq qqq 

14. Building materials : 551 ' 800 

15. Machinery • 289! 900 

16. Thermometers : 284 900 

17. Typewriter ribbon cloth 269* 900 

IS. Acetj'lene cylindersi 260,400 

19. Phenol _ 1_ 25o! 700 

20. Tin 227,900 

21. Locomotive cranes 203 200 

22. Chestnut extract 189* 900 

23. steel wire ' 169,' 200 

24. Sulphate of ammonia 124 700 

25. Boilers , JJ II5' qqo 

26. Leather gloves 71,700 

27. Brass ^ 66,100 

28. Sulphuric acid ' g4 qqq 

29. Dimethylaniline 33 qqq 

30. Tapioca flour 29' 400 

31. Miscellaneous . 26 200 



366 HISTORY OF PRICES DURING THE WAR. 

hereafter during the present emergency be entered into by the bureau of the 
War Department, or any official of any such bureau whenever the contract itself 
shall not provide for and require a dilferent method of determination; and 
likewise to determine sucli elements included in any such contract hereinbefore 
entered into during the present emergency where such determination is not 
otherwise provided for <>r required, or has not been concluded, or is not the 
subject of consideration by the special board. 

The board of apjn-aisers, between April 1, 1918, and November 
22, 1918, was presented with 1M7 different requisition comptilsory 
orders and clearances for the determination of a just value. 



8. THE NAVY DEPARTMENT. 

The Navy Department had no more authority than the War De- 
partment for fixing the prices of commodities to the public. It, by 
virtue of the enormous purchases for its own supplies, was repre- 
sented on the price-fixing committee and the commodity aections of 
the War Industries Board. The purchasing of supplies for the 
Navy was concentrated on the Bureau of Supplies and Accounts, 
which undertook frequently to determine " fair and reasonable " 
prices.^ 

(i) COMMODITIES PURCHASED BY THE NAVY. 

The bulk of purchases made by the Navy during the war, like 
those made by the Army, was a considerable factor in prompting the 
price-fixing committee and the War Industries Board to extend con- 
trol over certain commodities. The Navy purchased a quantity of 
nonferrous metals amounting in value to $71,218,289 ; steel and iron 
valued at $91,846,654 ; woolens and equipment valued at $96,400,000 ; 
lumber valued at $5,918,822; provisions (obtained through alloca- 
tion) valued at $7,427,260; and chemicals and explosives valued 
at $100,827,611. - 

There follows a summary of the volume of purchases made by the 
Navy of the more important commodities, as recorded in the annual 
report of the Paymaster General for 1918 : 

NONFERROUS METALS. 



Commoditv. 



Quantity. 



A'aluo 



Copper 

Lead 

Tin 

Antimony. 

Monel metal 

Steel wire rope.. 

Nickel 

Zinc 

Aluminum 

Portland cement 
Copper products 
Brass products. . 



150,031,522 poimds 
24,833,000 pounds., 
1,850,500 pounds... 

222,008 pounds 

1,263,404 pounds... 
85,105,281 pounds.. 

219,900 pounds 

46,810,483 pounds.. 
597,229 pounds . . . . 
1,151,098 barrels... 
7,695,998 pounds... 
28,527,258 pounds.. 



S35, 

1, 

1, 



7, 
5, 
1, 

2 6, 



257,407.67 
800, 392. 50 
184,320.00 

28, 632. 41 
514,837.13 
750, 884. 36 ■ 

83, 560. 00 
997,251.96 
197, 085. 56 
980, 403. 24 
623, 502. 95 
798,010.00 



71,218,289.78 



1 An excellent account of the price and purchase work of the Navy during the war 
to the summer of 1918, is given in the Annual Report of the Paymaster General of 
the Navy for the fiscal year 1918. 

2 Ex-copper furnished by Government ; value, including copper furnished by Government, 
$10,695.60. 

367 



368 



HISTORY OF PRICES DURIKG THE WAR. 
STEEL AND IRON. 



Commodity. 



Steel 

Forgtngs and ingots . 
jVnchori- 



Chain iro'n 

Castings 

rig iron 

Rails 

Mine anchors 

Extender mechanisms 

Tinplato 

Pipe. 



Iron ore 

Tubing 

Railroad equipment... 

Macliine tools 

Chain 

,^mor plate 

Bolls, nuts, and rivets 

Hand tools 

Miscellaneous 

Fittings 

Alloy steel 
Tool steel 



Quantity. 



517,82S,n00 pounds. 
50,943,104 pounds.. 



10,000,000 pounds. 
5,960,000 poimds.. 
68,264,000 poimds. 
26,280,00Opounds. 

40,000 

60,000 

194,768 pounds... 



201,600 pounds. 
7,730,514 feet... 



25,985,300 pounds. 
2,430,000 pounds.. 
32,643,450 pounds. 



Value. 




S20, 790, 

16,417, 

1,294, 

562, 

628, 

1,012, 

633, 

2,080, 

155, 

46, 

1, 188, 

1,699, 
2,037, 
17, 570, 
2,600, 

483, 
2,131, 

359, 
9,635, 

930, 
8,090, 
1,500, 



356. 98 
288.00 
667.00 
500.00 
020. 00 
018.00 
000.00 
000. 00 
000. 00 
517. 00 
322. 67 
6S7. 70 
328. 00 
742.00 
468. 33 
060. 00 
600. 00 
504.00 
966.00 
028.00 
681.00 
000. 00 
000.00 



91,846,654.68 



WOOLENS AND EQUIPMENT. 



Overcoating 

Uniform cloth 

Flannels (billiard cloth, scarlet cloth, etc) 

Blankets 

Bunting 

Australian, doniestic, and South American wool 
(grease). 

Denim 

Drill 

Canvas and duclc 

Cotton check lining 

Surgical gauze 

Leggings 

Mattress ticking 

Nainsook 

Muslin - 

Pillow cases - - 

Sheets 

Sheeting 

Pajamas 

Towels 

Toweling 

Cotton waste 

Handkerchiefs 

Twine 

Thread 

Do 

Underwear 

Socles 

Do 

Do 

Jerseys 

Watch caps 

Shoes 

Rubber boots and arctics 

Do 

Neckerchiefs 

Ribbon 

Grommets, buttons, and other accessories 

Mattresses and cots 

Burlap, hemp, and kapok 

Netting, braid, tape, etc 



l,60n,O0G yards... 
7,000,000 yards.. 
2,063,000 yards.. 
735, 000 yards.... 
4,285,000 yards.. 
12,000,000 yards. 



14,800,000 yards 

29,630,000 vards 

10,000,000 yards 

1,850,000 vards 

975,000 yards 

865, 000 pairs 

2,647,000 yards -•- 

1,736,000 yards 

800,000 yards 

140,000." 

230,000 

1,500,000 yards ' 

46,000 paii-s 

270,000 

2,900,000 vards 

7,200,000 pounds 

3,850,000 

865,000 pounds 

1,000,000 spools . . .• 

320,000 cones 

2,,335,000 suits 

423,000 pairs (heavy) 

1,940,000 pairs (merino) 

2,500,000 pairs (cotton) 

475,000 

555,000 

885,000 pairs 

150,000 pairs (arctics) 

315,000 pairs (boots) 

708,000 

500,000 yards 

150,000 gross (grommets) 

260,000 gross (buttons) 

(770,000 (brushes and whisks) . 

flOO.OOO mattresses 

\20,000cots 

(300,000 vards (burlap) 

■^290,000 pounds (hemp) , 

(400,000 pounds (kapok) 

150,000 yards (netting) 

750,000 yards (braid) 

15,000 spools (tape) 



:) 



$0,000,000.00 
22,000,000.00 
5,000,000.00 
5,500,000.00 
1,500,000.00 
7,500,000.00 

4,000,000.00 

7,000,000.00 

8,000,000.00 

$500,000.00 

800,000.00 

900,000.00 

900,000.00 

350,000.00 

150,000.00 

1,000,000.00 

75,000.00 

1,000,000.00 

900,000.00 

250,000.00 

$450,000.00 

800,000.00 

6, 000, 000. 00 

1, 500, 000. 00 

2, 000, 000. 00 

500,000.00 

4, 000, 000. 00 

1,500,000.00 

850, 000. 00 
75, 000. 00 

1,000,000.00 
800, 000. 00 



300,000.00 



96,400,000.00 



GOVERNMENT CONTROL, OVER PRICES. 

LUMBER. 



369 



Commodity. 



Quantity. 



Value. 



Yellow pine 

Douglas fir , 

Nortli Carolina pitoe 

Oalc 

Spruce 

White pine 

Cypress 

Ash 

Yellow- pine decking 

Redwood 

White cedar 

Poplar 

Hemlock 

Beech, birch, and maple 

Mahogany 

Port Orford cedar 

Maple. .- 

Basswood 

Sugar pine 

Sitka pine 

Wahiut 

Iiaurel 

Hickory 

Cherry 

Lignum vitte 

Crossties 

Piling 

Juniper poles 

Douglas fir spars 

Spruce poles 



76,586,917 feet. . 
22,972,5Gafeet . . 
12,683,796 feet.. 
10, 410, 066 feet.. 
9, 368, 500 feet... 
6,828,000feet.-. 
3,522,950 feet... 
l,797,000feet.-. 
1,432,000 feet... 
l,059,000feet.-. 
l,056,000feet.-, 
1.016,000 feet... 

826,000 feet 

445 ,000 feet 

362,800 feet 

245,000 feet 

112,000 feet 

90,000feet 

75,000 feet 

65,000 feet 

27,000 feet 

23,500 feet 

15,500 feet 

l,000feet 

213,000 pounds . 

57,366 pieces 

12,400 pieces 

3,500 pieces 

1,495 pieces 

1,425 pieces 



SI, 838, 
528, 
380, 
884, 
374, 
546, 
264, 
197, 
143, 

100, 

81. 
19, 
31, 
90, 
24, 
8; 

6; 

4, 

3, 

4, 
2, 
2, 

10, 

71, 

173, 

21, 

44, 



086.01 
369. 28 
513.88 
855. 61 
740.00 
240. 00 
221.25 
670.00 
200.00 
655.00 
320.00 
280.00 
824.00 
150.00 
700. OC 
500.00 
960.00 
300.00 
500.00 
250.00 
050. 00 
115.00 
325. 00 
140. 00 
650.00 
707. 50 
600. 00 
500.00 
850.00 
855. 00 



5,918,822.633 



PROVISIONS (OBTAINED THROUGH ALLOCATION). 



Item. 



Quantity. 



Approximate 
value. 



Apples, evaporated. 

Apples, tinned 

Apricots, tinned 

Beans, lima, dried. . 

Beans, navy 

Beans, string 

Catsup 

Corn, tinned 

Peaches, evaporated 

Peaches, tinned 

Pears, tinned 

Prunes 

Pumpkin 

Salmon 

Sauerkraut 

Tomatoes 

Peas 



1,208,000 pounds.. 
2,000,000 pounds.. 
2,660,000 poimds.. 
3,462,000 pounds.. 
15,000,000 pounds. 
3,978,000 pounds.. 
619,000 gallons.... 
6,630,000 pounds. 
728, 000 pounds... 
4,066,000 pounds. 
2, 885,000 pounds. 
2,800,000 pounds.. 
1,678,000 pounds. 
2,850,000 pounds.. 
2,782,000 pounds.. 
13, 100,000 pounds 
6,000,000 pounds.. 



127, 
230, 
415, 
1, 762, 
358, 
519, 
552, 

72, 
361, 
262, 
553, 

67, 
415, 
163, 
900, 
500, 



120. 00 
600.00 
500.00 
440.00 
500.00 
900.00 
000.00 
500, 00 
800.00 
400. 00 
850.00 
650.00 
800.00 
700. 00 
500. 00 
000. 00 
000.00 



7,427,260.00 



CHEMICALS AND EXPLOSIVES. 



Commodity. 



Quantity. 



Value. 



Petroleum ... 

Turpentine 

Linoleum 

Shellac 

Garnetlae 

Varnish 

Paint drier 

Lubricating oil 

Kerosene oil 

Sperm oil 

Linseed oil (boiled and raw). 

Lard 

Costor oil 

Miscellaneous paints 

Coke 



217,749 gallons 

33,600 gallons 

182,464 square yards. 

9,000 pounds 

987 bags 

213,505 gallons 

408,576 gallons 

3,402,981 gallons 

444,182 gallons 

31, 400 gallons 

201.626 gallons 

57,050 gallons 

79,740 gallons 



13,294 tons. 



■559 

20 

212 

5 

69 

151 

123 

1,227 

88, 

53 

228 

53 

160 

300, 

105 



,928.00 
,477.00 
324. 00 
130. 00 
700.00 
819. 70 
663.00 
072. 00 
201. oO 
668.00 
743. 00 
387.00 
340.00 
000.00 
881.00 



125547°— 20- 



-24 



370 



HISTORY OF PRICES DURING THE WAR. 
CHEMICALS AND EXl'LOSIVES— ConliiiULCl. 



Commodity. 



EXPLOSIVES (including RAW MATERIALS AHD 
FREIGHT AVIIEN FURNISHED BY NA^'Y). 

TNT, grade '-A" 

TNT, grade " B " 

TNX. 



Smokeless powder 

Black powder 

Ammonium picralc 

Picric acid 

Tetryl 

Chemicals for gas shells (estimated ). 
Priming caps 



CHEMICALS. 

Acetone 

Aluminum sulphate 

Ammonia, anhydrous 

Ammonia, aqua 

Ammonia, chloride 

Amonium phospliatc 

Barium chlorate 

Borax 

Calcium^ carbide 

Calcium cliloride 

Calcium magnesium chloride 

Calcium phosphide 

Carbon tetra-chloride 

Cartridge bag cloth 

Diphenylamine 

Dope, acetate 

Dope, nitrate 

E thyl chloride 

Ethyl chloride drums 

Gas,' cai'bon dioxide 

Gas, hydrogen .- . . . 

Gas, oiygcn 

Glue, dry 

Glue, liquid 

Glue, marme 

Glycerine 

Iron, reduced 

Magnesium carbonate 

Nitrating cotton 

PhenyleiBcLoninic acid 

Platinum and iridium 

Potassium permanganate 

SalicyUc acid 

Soda ash 

Sodium benzoate 

Sodium carbonate 

Sodium chlorate 

Sodium cyanide 

Sodium fluoride 

Sodium silicate 

Soap, cleaning and polishing 

Soap, laundry 

Soap, salt water 

Soap, toilet 

Soap, washing powder 

Silver nitrate 

Zinc dust 

Lead for painting purposes 

Zinc oxide 

Alcohol 

Mercury 

Sodium nitrate (for Indianhead) . 

Acids: 

Carbolic 

Hydrochloric 

Hydrofluoric 

Nitric 

Oxalic 

Sulphuric- 
Fuming 

66° Baum<5 

66° Baum6 

60° Baum6 

Carbon electrodes 

Caustic soda 

Caustic soda (concentrated lye).. 

Ferroalloys 

Sulphur 



Quantity. 



10,527,000 pounds. 
72,012,000 pounds. 
30,000,000 pounds. 
59,800,000 pounds. 
1,151,750 pounds.. 
4,550,000 pounds.. 

20,000 pounds 

20,000 pounds 



18,100,000 caps. 



14,100 pounds 

40.000 poimds 

305,000 pounds 

34,000 pounds 

506,800 pounds 

40,000 pounds 

11,000 pounds 

41,800 pounds 

762,000 pounds 

17,000 pounds 

162,000 pounds 

5,750 pounds 

410,000 pounds 

1,070,000 square yards. 

50,000 pounds 

12,000 gahons 

13,000 gallons 

24,000 pounds 

400 poimds 

150,000 pounds 

1,440,000 cubic feet 

2,815,000 cubic feet 

6,500 pounds 

1,150 gallons 

606,000 gallons 

32,600 gallons 

600 pounds 

75,000 pounds 

4,200,000 pounds 

10,000 ounces 

1,417.30 ounces 

775 pounds 

1,500 pounds 

538 tons 

500 pounds 

42,250 pounds 

92,000 pounds 

11,300 pounds 

11, 200 pounds 

127,000 pounds 

32,800 cakes 

1,706,500 pounds 

7,890,000 pounds.- 

35,000 pounds 

2,182,500 pounds 

12,136 ounces 

35,700 pounds 

3,330,100 pounds 

6,565,993 poimds 

505,660 gallons 

33,993 flasks 

10,000 long tons 



250,000 poiuids. 
205,800 poimds. 
117,200 pounds. 
55,658 potuids.. 
200 pounds 



35,100 tons 

1,156,780 poimds. 

28,900 tons 

17, 200 tons 

800 electrodes. . . 

6,325 tons 

580,000 pounds.. 



5,001.41 tons. 



Value. 



$5,633, 

29,033, 

13,280, 

32,068, 

298, 

2,90-t, 

12, 

18, 

327, 

391, 



86, 

2, 

57, 

6, 

1, 

4, 

28, 

1, 

7, 

6, 

45, 

744, 

30, 

56, 

27, 

22, 

16, 

5, 

22, 

29, 

21, 

2, 

850, 

20S' 



364 
U 

149: 
2: 
2: 
16: 
2: 
2 

16: 
3: 
1: 
5: 
1: 

156: 

483: 

11: 

144: 

3: 

3 
322 
729: 
333 

,569: 
8OO: 



500.00 
250. 00 
400. 00 
892. 70 
664. 50 
000.00 
500.00 
000.00 
000. 00 
756. 00 

499. 50 
720.00 
748. 20 
720. 00 
020. 70 
000.00 
980. 00 
319. 50 
745. 00 
331.07 
452. 00 
365. 00 
100.00 
800. 00 
000.00 
212.87 
210. 00 
080.00 
,000.00 
000.00 
460. 00 
898. 30 
678.00 
650. 90 
594. 00 
, 807. 00 
540. 00 
, 125. 00 
,980.00 
, 500. 00 
, 868. 00 
, 573. 75 
, 373. 00 
, 593. 31 
,000.00 
, 345. 50 
, 560. 00 
,004.00 
, 904. 00 
,167.50 
927. 00 
,543.75 
, 6-16. 00 
,129.30 
,774.75 
, 827. 24 
,213.00 
,579.00 
, 433. 00 
, 695. 00 
, 892. 00 
, 000. 00 



97, 500. 00 
0,159.00 

13,177.50 

8, 857. 77 

97.50 

1,660,700.00 

19, 076. 00 

804,160.00 

311, 400. 00 

53,520.00 

507, 750. 00 

41,797.00 

1,587,891.00 

152, 635. 25 



100,827,611.32 



GOVEENMENT CONTBOL OVER PRICES. 371 

(2) REPRESENTATION OF THE NAVY UPON THE PRICE-FIXING 

COMMITTEE. 

The Navy was represented on the prke-fixing committee by Pay- 
master John M. Hancock, whose relation to it was liite that of the 
Army representative on the same committee. It should be added 
that the task of making Navy purchases was expedited by the forma- 
tion of commodity sections within the Navy, whose chiefs were 
members of and participated in the deliberations of the commodity 
sections of the War Industries Board. 

(3) COMMANDEERING. 

In peace-times Navy purchases were made in the open market, 
but during the war resort was freqnently had to commandeering 
and mandatory orders.^ The scope of the newly created naval 
board of commandeering was extended on February 1, 1918, "to 
act as a clearing house to supply all the Navy with information at 
hand, giving consideration to quantities, material, prices, suitability 
for Navy use, and other data relative to the stores produced." The 
work of the board consisted in making inventories of goods of in- 
terest to the Navy stored in warehouses and held by banks and for- 
warding agents for export. 

The Paymaster General gives the following account of the pro- 
cedure followed by the Navy in taking tin at a time when the market 
was rising: 

In the fall of 1917, 27,000 pounds of tin were urgently needed. Tlie tin 
market was jumping out of bounds. Several dealers were called upon without 
result. Tlie collector of customs at the port of New York was called by long 
distance telephone. He advised that a ship was in with a cargo of 250 tons 
consigned to three companies. The 13 tons required by the Navy were appor- 
tioned among those thi-ee companies and the tin paid for at 64 cents per pound, 
the approximate value before the market began to rise. With this beginning, 
arrangements were gradually made to restrain all tin warehoused in New 
York found to meet Navy specifications. Through the commandant at New 
York, approximately 2,00Q tons were placed under seal. This action prompted a 
dealer to place at the Navy's disposal 700 tons additional, which was con- 
tracted for at 64 cents per pound, the market price at that time being 80 
cents per pound. 

Provisions were secured for the Navy generally by allocation or 
competition. But in January, 1918, it became necessary to obtain 
some Kotinashi (white) and Kintoki (kidney) beans by a joint 

1 The principal statutes relating to price control, and authorizing commandeering and 
■mandatory orders for use by the Navy were the Naval appropriation act, Public No. 479 
of Mar. 4, 1911, and succeeding years ; naval appropriation act. Mar. 4, 1917, naval en- 
gineering fund (Public, No. 391, 64th Cong.) ; the urgent deficiency act of June 15, 
1917; the food and fuel act. Public No. 4, 65th Cong., of Aug. 10, 1917; and the 
naval appropriation act, July 1, 1918 (Public No, 182, 65tTi Cong.). ^ 



372 HISTOKY OF PRICES DURING THE WAR. 

Ami}'' and Navy commancleer, whereby 42,000,000 pounds of beans 
Avere secured in California. This notable instance of commandeer- 
ing, one of the first large cases of food seizure in our history, was the 
more interesting since the Navy saved to itself middlemen's profits 
by commandeering the cargo by a radio message before the ships 
reached port. 

Another interesting instance of control was that exercised by the 
Navy over the prices of canvas, which is described in the annual re- 
port of the Paymaster General as follows: 

Unusually heavy demands for certain numbers and weights of canvas and 
d\ick in the fall of 1917 made it necessary for the Navy to go into the market 
rather heavily. In view of the abnormally high prices prevailing in the com- 
mercial market, manufacturers were apparently unwilling to bid. The War In- 
dustries Board was requested to provide the Navy with information as to the 
mills from which the Navy could expect deliveries within a reasonably short 
time. When this complete list M^as received, mandatory orders were issued 
with a provisional price set at the figure which appeared just on the basis of 
all available data in the hands of the Navy. The receipt of these orders at 
this provisional price appeared to occasion some concern in the industry and 
drew forth replies to the effect that the material could not be supplied. The 
Navy referred these claims of inability to supply to the subcommittee of the 
War Industries Board. This committee had stated, at the time of furnishing 
the Navy with the information used, that the capacity of every available loom 
was known to it. The protest then became one as to price, the industry claim- 
ing that the material could be supplied but that the Navy's price was entirely 
unreasonable. To this statement the Navy replied with the request for facts 
and cost figures substantiating the claims for a higher price, assuring the manu- 
facturers of a fair profit over and above manufacturing cost. Owing to non- 
receipt of the requested figures, the case lapsed. Subsequently the war service 
committee of the cotton industry accepted for the trade a price practically 
identical with the provisional price set by the Navy. Not only did this action 
save money directly for the Navy, but it also served as an anchor for Army and 
civilian pui'cliases, since the canvas mills were obviously unable to explain any 
material discrepancy to other buyers over and above the price at which the 
Navy was obtaining canvas. 

A situation similar to that of canvas arose with regard to denim. 
Wlien the manufacturer asked 40 cents a yard for his material, the 
Navy served an order for the quantity needed at about 34 cents — a 
difference of over $120,000 from his quotation. The manufacturer 
finally admitted the justice of the Navy price and requested a trans- 
fer from a Navy order to a voluntary contract. 

(4) THE SUPPLY OF RAW MATERIALS TO CONTRACTORS BY THE 

NAVY. 

One of the unique and effective methods by which the Navy as- 
sured itself of the completion of contracts at reasonable rates was 
its practice of supplying raw materials to its contracting manufac- 
turers. The Navy, for example, bought 3,000,000 pounds of wool in 



GOVERNMENT CONTROL OVER PRICES. 373 

July, 1917, and offered that wool to its cloth contractors at a reason- 
able price. The contractors thus were in a position to ignore ex- 
orbitant quotations made by private wool dealers, and to buy of the 
Government. The Navy's holdings generally prevented the price on 
contractors' options from exceeding the price set by the Navy on its 
own supply. 

In a like manner the Navy arranged for a purchase of about 
25,000 bales of Australian wool from the British Government. 
Since the trade did not know generally how small an amount the 
Navy had, and the consequent ease with which it could be exhausted, 
there was given to contractors an effective weapon for making 
private purchases at reasonable figures. It was estimated that the 
direct saving brought about by this wool purchase amounted to 
$1,500,000. 

The success of the Navy with its original small wool purchase 
became the basis for joint action by the war agencies in importing 
foreign wools and in taking over the entire domestic clip.^ 

(5) DETERMINATION OF " FAIR AND JUST " PRICES. 

When the commodity specialists within the Navy found that 
prices quoted by bids received in the regular openings were unjust, 
those bids were rejected and a Navy mandatory order issued. The 
work later followed of determining a " just " price for the materials 
taken by seizure. 

In the determination of a '' just " price the Navy made extensive 
uses of cost data supplied by the contractor, the Federal Trade Com- 
mission, or opinions expressed by the commodity sections of the 
War Industries Board. A Navy accounting officer was also ordered 
to the plant to report on the cost of manufacture. The Navy 
worked out with remarkable precision the factors that would be 
allowed as costs, and endeavored to standardize them. 

1 Annual report of the Paymaster General for 1918. 



g. THE FEDERAL TRADE COMMISSION. 

In the field of public price control during the war the Federal 
Trade Commission has performed primarily an advisory function 
by collecting and interpreting for the price-fixing agencies data on 
costs of production. In the case of news-print paper, however, the 
activities of the commission have extended somewhat further and 
have taken the form of administrative control over prices. 

The regulation of the prices of news-print paper differs materially 
from the instances of war-time price fixing, in that the need for 
regulation appeared and the preliminary steps in tlie control were 
taken considerably before the entry of this country into the war. 
On April 24, 1916, the United States Senate, impelled by the receipt 
of numerous complaints from publishers, adopted the following 
resolution : 

That the Trade Coiuniissiou is hereby requested to inquire into the increase 
of the price of print paper duiing the last year, and ascertain whether or not 
the newspapers of the United States are being subjected to unfair practices 
in the sale of print paper.^ 

Upon the passage of this resolution the Federal Trade Commission 
undertook an investigation into the prices and distribution of news- 
print paper. Finally, after a series of conferences between the 
manufacturers, publishers, and the commission, at a conference on 
January 26, 1917, it was suggested that the Federal Trade Commis- 
sion should " arbitrate the question of wdiat was a fair and reasonable 
price for the sale of news-print paper." - This the commission agreed 
to do, and on March 4, 1917, the prices upon which it had determined 
were announced and were accepted by a number of the news-print 
paper manufacturers of this country and of Canada. 

After this agreement was adopted a Federal grand jury for the 
southern district of New York found indictments against four of 
the signatories to the agreement for violation of the Sherman anti- 
trust law\ These signatories, accordingly, withdrew from the agree- 
ment, which soon collapsed. On November 26, 1917, a new agree- 
ment was made between Thomas W. Gregory, Attorney General of 
the United States, as trustee, and certain persons and corporations 
engaged in the manufacture and sale of news-print paper. It was 

1 S. Res. 177, 64tb Cong., 1st sess., adopted Apr. 24, 1016. 

- Report of the Federal Trade Commission on the news-piiut paper industry, June 13, 
1917. 

374 



GOVERNMENT CONTROL OVER PRICES. 375 

provided in the agreement that the Federal Trade Commission 
should fix the maximum prices and terms of sale of the output of the 
news-print paper of the 10 signatory companies sold to purchasers 
in the United States for the duration of the war and three months 
thereafter. 

The findings and award of the Federal Trade Commission, con- 
cerning prices and terms of contract and sale of news-print paper, 
were announced on June 18, 1918. The manufacturers of news-print 
paper, parties to the agreement, considered the price-awards too low 
and appealed for a review to the United States circuit court. The 
decision of this court, rendered September 25, 1918, in the main sup- 
ported the contentions of the manufacturers and ordered a substan- 
tial increase in the original price awards of the commission. The 
detailed awards and price schedules are reprinted in the second part 
of this study, which contains the rules and regulations affecting 
prices adopted by various governmental agencies. 



10. THE DEPARTMENT OF AGRICULTURE. 

Distinct lines of service for the Food Administration and the 
Department of Ag:ricnltnre were clearly drawn at the outset in order 
that neither should intrude upon the field of the other. The De- 
partment of Agriculture undertook the stimulation and supervision 
of the production of foodstuffs, and the Food Administration that of 
providing for distribution. It was intended, of course, that many 
rules of the Food Administration should work for a vital increase 
of production. But measures which related to the producer in the 
main were administered strictly by the Department of Agriculture. 

Little occasion arose for direct administrative action on the part 
of the Department of Agriculture which might be ascribed to the 
emergency conditions arising from the war. The only approach to 
regulation which can be considered as coming within the scope of 
the food law and which related to prices took place in connection 
with fertilizers and farm equipment. 

(i) THE CONTROL OF FARM EQUIPMENT. 

The food supply of the world is peculiarly dependent upon the 
adequate production of farm equipment, and it was necessary to 
stimulate production of farm implements without too greatly in- 
creasing their prices to the producer. 

Farm implements were caught in the current of rising prices 
because of the rising cost of raw materials and labor, and by the 
latter part of 1917 their prices were climbing at an extraordinary 
rate.^ 

The American farmers became disturbed and complained that 
prices were unduly high. Moreover, there were many difficulties 
encountered in securing certain farm machinery. The needs of the 
hour, however, were too acute to allow any disorganization or delay 
in the production of foodstuffs, and it became apparent that govern- 



1 The folio-wing index of farm implement prices, based on the average price of 1911, 
•which is made e<jual to 100, shows the price situation in the farm implement industry 
during 1917 and early 1918 : 




1911 


1912 


1913 


1914 


1915 


1916 


1917 


1918 




100 
100 


100 
100 


96 
100 


101 
100 


100 
101 


102 
119 


126 
131 


ITO 


















Data from Bullotin 847, United States Food Administration, statistical division, infor- 
mation service. 

3TG 



GOVER]!^MENT COISTTROL OVER PRICES. 377 

mental regulation of the industry would be necessary to alleviate 
the situation.^ 

- Accordingly, under the license provision of the Food Administra- 
tion, the President required all importers, manufacturers, stores, 
and distributors ^ of " tools, utensils, implements, machinery, and 
certain other farm equipment to secure Federal licenses not later 
than June 20, 1918," and the execution of the provisions and regula- 
tions thereunder were placed in the hands of the Secretary of AgTi- 
culture. 

Under the regulations promulgated for the industry all records 
and property of licensees were subject to examination by rex^resenta- 
tives of the Secretary of Agriculture. Resales within the trade were 
specifically prohibited to prevent any increase in the price of the 
product resulting from unnecessary sales. 

Beyond this requirement no direct regulation of prices was put 
into effect. The Department of Agriculture, however, had the power 
to prevent unfair " commissions, profits, or practices." and ruled 
that— 

A licensee shall not buy, contract for, sell, store, or otherwise handle or deal 
in any farm equipment for the purpose of unreasonably increasing the price or 
restricting the supply of any such commodity, or of monopolizing, or attempting 
to monopolize, either locally or generally, any such commodity. 

This regulation gave indirect supervision over the prices of all 
farm implements. 

Agricultural agents were asked to report to Washington the prices 
that the increased costs of freight, labor, and raw materials had 
to June, 1918, and price lists were secured from the licensees in order 
to check prices in each branch of the industry. ^ The hoarding 'of 

^ The difficulties of the situation had early reached Congress, and on May 13, 1918, 
under Senate Resolution No. 223, the Federal Trade Commission was directed to in- 
vestigate and report to the Senate the cause or causes of the high prices of agricul- 
tural implements and machinery. The investigation at the present date, June 15, 1919, 
has not been completed. 

2 Retailers whose gross annual sales were less than $100,000 were exempted from the 
license requirements. 

=> It is of interest to note that while the Food Administration paid no attention to 
replacement value in determining selling price, the Department of Agriculture left the 
question as to whether replacement value would he considered in figuring costs entirely 
to the individual licensee. The attitude of the Department of Agriculture in this 
connection is well presented in the following public statement made in the midsummpr 
of 1918 : 

The prices of farm equipment are more or less seasonal, but if the price should 
rise or fall during the season, then, to be consistent, a person who wishes to sell on 
the basis of replacement values would he obliged to sell at a loss if the price fell. 
Equipment carried over from one season to another— that is, the residual from a pre- 
vious season's reasonable supply— should be considered In the same manner. There- 
tore, if persons have sold at replacement values, they must continue to do so when a 
drop in prices comes, and carry the same amount of stock as in the beginning throu^-b- 
cut the period of the high prices in order not to profiteer. 

" In short, it will not be considered profiteering if farm equipment is sold on the 
ba-.!s of replacement prices, provided the goods sold are replaced at once at replace- 
ment prices and this practice is continued during the period of high prices caused by 
the war." " ■^ 



378 



HISTOEY OF PEICES DURING THE WAR. 



agricultural imiDlements was declared illegal, and " the holding, con- 
tracting, or arranging for a quantity of equipment in excess of rea- 
sonable requirements" was con- 



VEBBTEOiNXx NUMtcicxr Piaco or 

— FERTIUZERS 
-2^L .COMMODITIES 



n 



J, li| . lit ,, ^ , ilUi? .. f , fe , Hn PX.0 



TiS I tOiA I lgl3 1910 1 1917 I l9lO 



tcflrw:^^^ 



TTT 




r^"^"ii"f"l"^"& f"i"l"^ 



Tg 5 irg E 



1917 i lOia I 



sidered evidence of hoarding. 

In the autumn of 1918 the 
farm-implement manufacturers 
wished to increase their prices. 
It was the contention of the 
manufacturers that the in- 
creased cost of freight, labor, 
and raw materials had increased 
their costs about 10 per cent, 
and that they should be allowed 
to increase their selling prices 
to a commensurate degree.^ 

The Federal Trade Commis- 
sion, which was making a cost 
investigation in the implement 
industr3% had not yet secured 
sufficient data to justify any 
action on the part of the De- 
partment of Agriculture, and 
it was not thought advisable 
to make any definite decision. 
The profits of the preceding- 
year, however, had, in the opin- 
ion of the Department of Agri- 
culture, been " well above the 
prewar average,"- and this, taken in consideration with the general 
conditions of the industry, led the authorities to believe that a rise 

1 In a letter of Oct. 22, 1919, from the farm-implements committee representing the 
industry to the Department of Agriculture, in which permission for the increase in price 
was asked, the following facts were emphasized : 

1. The advance in freight rates over the preceding spring cost the industry approxi- 
mately $7,500,000. 

2. Labor costs had increased from 20 to 40 per cent,, or approximately $15,000,000, 
thereby making a total increased cost of $22,500,000, " which would be 7-1 per cent on 
§300,000,000 sales volume." 

3. Malleal^les and other items entering into the construction of farm implements had 
also gone up in price. 

The committee asked the Department of Agriculture to rule " on the question of the 
average amount of advance in selling price " that would be sanctioned, and added 
that the general view of the industry appeared to be that conditions justified an average 
advance of approximately 10 per cent. 

2 The Department of Agriculture apparently doubted several of the contentions of the 
industry as is evidenced in the following extract from a letter on Oct. 28, 1918, iu 
reply to the request that they be allowed to increase prices : 

" It would be of great assistance if you could give the information upon which the 
extra cost of the industry of seven and a half million dollars" as based for freight ad- 
vances, so we could have some detatils for this huge figure. The same applies to labor 
advances. The figures 20 to 40 per cent seem to me too high, as I have seen no figures 
to justify such a rise all round." 



Weighted index numbers of prices. — Fer- 
tilizers and " All commodities." — By 
months, January, 1913, to December, 19 18. 
(Average quoted prices, July, 1913, to 
June, 1914=100.) 



goveejstmejstt control over prices. 379 

of prices would be unjustified. And the price lists of early 1918 
were continued through 1918 without any change. 

(2) FERTILIZERS, 

No attempt was made by the Department of Agriculture to exer- 
cise direct control over the prices of fertilizers, although the im- 
porters and manufacturers and distributors had been licensed under 
the presidential proclamation of February 25, 1918. " The activities 
of the department, indeed, consisted mainly in helping the industry 
to secure cars and fuel during periods of stringency. 

The iDrice of fertilizers was, however, i^robably affected by the 
work of the department in distributing nitrate of soda to farmers 
throughout the country. In the year 1918, 75,000 short tons were 
sold at a price of $75.50 per ton. The 1919 demands approximated 
150,000 tons, the selling price of which averaged $81.^ 

iThe present tendency of fertilizer prices is shown in reports received by the De- 
partment of Agriculture which indicate that the fall of 1919 will witness a drop of about 
30 per cent in the price of mixed fertilizers in various southern States. 



II. THE BASIS FOR DETERMINING A FIXED PRICE. 

The student who turns through the several chapters that have 
gone before, and seeks there a sharp analysis of the policies that lay 
at the bottom of each control, will be disappointed. The Con- 
gress or the President formulated no general rule of price fixing, 
upon which each control agency might put its finger, beyond their 
hope that prices would remain near enough the cost of production 
to yield only " reasonable profits." The various war-time agencies, 
therefore, each went its own way always with the approval of the 
President, and each set up its peculiar system of control. 

The price-control boards generally were given cost data through 
the Federal Trade Commission, and this fact did give them a some- 
what common approach in their bases for determining upon a fixed 
price. But not during the whole war were the boards in working 
agreement upon what should constitute the costs allowable for pro- 
duction, or the " reasonable profit " allowable above those costs once 
they had been determined. They were at equal loss in the beginning, 
once each had satisfied its own mind what to allow as a "reasonable 
profit," whether to grant that " reasonable profit " to each producer 
above his. own individual cost of production, or make it applicable 
without scruples to low-cost and high-cost producers alike. The 
Food Administration generally chose the more flexible control, made 
possible by wide uses of profit margins for" application by each 
individual. The price-fixing boards, strictly speaking, however, 
came to adopt a single rather than a variable price, fixed somewhere 
above the " bulk line " of production. 

(i) THE OBJECTS OF THE PRICE FIXERS. 

It is important to bear in mind at the outset that the immediate 
objects at stake with the various control boards were not always 
identical. The War Industries Board and price-fixing committee, 
for instance, gave emphasis to the stabilization of prices pertaining 
especially to Government purchases, while the Food Administra- 
tion and Fuel Administration emphasized the protection of the pub- 
lic. The main object of all price-control boards at Washington, 
however, was to stimulate and maintain a maximum of production" 
and it was to this problem they all gave attention in some manner. 

The Food Administration and the Fuel Administration did not, 
of course, await the announced intention of the Government to pur- 
chase a particular commodity before adopting some form of con- 
trol if public necessity required. There were in point of fact close 
380 



GOVERISTMEI^T CONTROL, OVER PRICES! 381 

and direct relations between Government orders and the regulations 
of foods and fuels, through food supplies going to the Army and 
Navy and the supply of fuel for war manufactures. But the War 
Industries Board, and later the price-fixing committee, took as their 
main concern the prices of commodities which were needed in great 
quantity by the Government. The origin of every regulation by the 
price-fixing committee lay in the circumstance that the Government 
purchases were on a great scale and threatened to disturb market 
prices.^ The main object of the price-fixing committee was the 
stimulation of production, and it was that factor rather than the de- 
sire for a low price alone which influenced them in determining upon 
various fixed prices. They did not, it should be emphasized, work 
always upon the theory that the highest price would assure an ulti- 
mate maximum production when wage or other problems compli- 
cated particular situations.^ They strove to fix their maximum 
prices at points high enough to encourage production adequate to 
meet the war program, but no higher. 

(2) THE METHODS OF CONTROL. 

So many kinds of control affecting prices were exercised during 
the war that an arbitrary line can scarcely be drawn separating 
price from other controls. The method of this inquiry has been to 
count as affecting prices those controls exercised over requirements, 
clearances, allocations, conservation, and priorities, but to study 
them only in a general way. The main business of this study after 
all has been an analysis of the controls dealing directly and strictly 
with prices. These controls include the setting of minimum and 
maximum prices known commonly as " fixed " prices, the setting of 
maximum margins of profit, or the fixing of special prices for Gov- 
ernment purchase solely. The latter prices pertaining to Govern- 
ment purchases might in another sense be classed under options or 
outright purchases, and involve a study of the commandeering and 
requisitioning orders. These kinds of price control were exercised 
by different boards in diverse ways, determined usually by the powers 
at their command. 

The conspicuous instance of a minimum price set during the war 
was that made by the Congress on August 10, 1917, when it fixed a 
minimum price of $2 per bushel for wheat. The whole body of 
regulations administered by various boards, with but three excep- 
tions, were designed to hold prices down and might be called either 
" maximum prices " or " maximum margins of profit." There fol- 
lows a word in explanation of the method by which each board 
chose one or the other of these kinds of control. 

^ Price-fixing r.s Seen ty a Trice-fixer, by F. W. Taussig, formerly of the price-fixing 
committee. 

^ Lieut. Col. Robert H. Montgomery, formerly of the price-fixing committee. 



382 HISTORY OF PRICES DUEIlsTG THE WAR. 

Tlie War Industries Board, and the price-fixing committee after 
March 14, 1918, concerned themselves solely with setting ]3egs beyond 
which prices might not rise but below which the law of supply and 
demand theoretically was given free play. But in fact the paucity 
of real power given to the board and the committee made them bar- 
gain virtually with the trade until an agreement was reached. Their 
control might more properly, therefore, be called " agreed-upon 
maximum prices " between the Government and the industry. 

The Food Administration, while sometimes virtually fixing j)rices 
b}' effective roimdabout methods, did not in the main utilize the 
fixed-price method of control exercised by other boards and seemed 
almost to boast that it had no legal power to fix prices. Their atti- 
tude was the more significant, furthermore, because apparently it 
represented a real conversion to some definite policy of control. The 
point of departure was, it would seem, one of policy rather than 
power, since the Food Administration was granted more liberal 
powers to control prices by Congress than were the War Industries 
Board or the price-fixing committee. The Food Administration 
control was more nebulous than any other control at Washington, 
and from many angles more flexible as applied to widely used 
staples. It consisted in the setting of maximum margins of profit, 
determined generally upon the reasonable prewar profit announced 
in circular form, with the intention that each individual affected 
should apply the approved margins in his own business. 

The Fuel Administration, with a firmer legal authority to do so 
than any other price-control organ at Washington, fixed prices in a 
stricter sense than any other board. The War Trade Board exer- 
cised its control over prices by its power to stipulate the conditions 
upon which import and export licenses would be granted. The 
Army and Navj^, interested only in their own purchases, worked out 
schemes whereby Grovernment prices were determined and enforced 
by their power of commandeering or requisitioning. 

(3) THE DATA USED IN FIXING A PRICE. 

The most useful data, which the war boards sought to have on 
hand before beginning the determination of a fixed price, were sched- 
ules of the costs of production. The Federal Trade Commission, 
with its hundreds of accountants busy over the country, supplied 
cost figures especially for the War Industries Board, the price-fixing 
committee, and the Fuel Administration.^ The various interpreta- 

1 The Federal Trade Commission during the war made confidential cost studies -upon 
the following : Bituminous coal ; anthracite ; coal, jobbing ; coal, retailing ; coal, 
docking ; crude petroleum ; fuel oil ; kerosene ; gasoline ; lubricating oil ; aviation gaso- 
line ; castor oil ; iron ore ; coke ; charcoal ; pig iron ; ingots ; blooms ; slabs ; billets ; 
rails ^ shapes; plates; bars; sheet bars; sheets; rods; wire; tin plate; wii-e rope; 
steel rounds ; forged billets ; nickel and carbon steel bars ; steel slugs ; Davis wheels ; 
cast-iron pipe ; high-speed tool steel ; steel castings ; malleable-iron castings ; fuses 



- GOVEENMEISTT CONTEOL OVER PEICES. 383 

tions put upon different cost data in the determination of the point 
above which to allow a " reasonable profit " are considered later. 

In addition to material relating to costs of production there was 
made available to various control agencies at Washington through 
the price section of the War Industries Board a comprehensive set 
of quotations of commodities at wholesale. These prices were espe- 
cially useful where cost data were not available and where it was 
desired to know how far above co,sts speculation in the market had 
carried prices. It was not possible, except where confidential re- 
ports were available or volunteered, to report contract jDrices, 
although in the case of several of the most important commodities 
dealt with the bulk of sales was made under contract. For a great 
many of the transactions current quotations were of little significance 
because of outstanding contracts. Old contract prices were of par- 
ticular importance in the consideration of control over crude iron, 
steel, copper, and sulphuric acid. 

(4) THE PROBLEM OF THE LOW-COST AND THE HIGH-COST 

PRODUCERS. 

It was obvious from the outset that producers would not strive to 
turn out their maximum of production unless assured of a price high 
enough above their costs of production to yield them a reasonable 
profit. But as soon as an investigation into the cost of producing 
any commodity began, wide differences appeared between the costs 
incurred by the several producers. That problem remained through- 
out the war one of the most intricate of those confronting price-fixing 
boards. 

and torpedoes ; locomotives ; locomotive cranes ; farm machinery ; farm machinery, re- 
tailing ; sisal twine; automatic sprinklers; automatic sprinklers, installing; clinical 
thermometers ; copper ; nickel ; lead ; manganese ore ; aluminum ore ; aluminum ingots ; 

' aluminum products ; zinc ; zinc sheets ; zinc plates ; zinc concentrates, reducing ; monel 
metal ; quicksilver ; brass and copper sheets ; brass seamless tubes ; brass rods ; insulated 
copper wire ; sand and gravel ; crushed stone : riprap stone ; asbestos fiber ; asbestos prod- 
ucts ; cement ; common brick ; sand, lime, brick ; lire brick ; hollow building tile ; gypsum 
wall board ; gypsum plaster board ; fiber wall board ; yellow-pine timbers ; yellow-pine lum- 
ber ; spruce lumber ; Douglas fir ; hemlock lumiber ; mahogany lumber ; logs ; logging ; 
locust treenails ; windows and doors ; birch logging ; rosin ; lumber, retailing ; boxes 
and barrels; wood pulp; sulphile pulp; newsprint paper; book paper; ^envelopes; 
stationery ; chip board ; container board ; acetone ; acetate of lime ; alcohol ; sulphur ; 
sulphuric acid ; caustic soda ; chloride of lime ; soda ash ; bicarbonate of soda ; wash- 
ing soda ; liqxiid chlorine ; calcium chloride ; hydrochloric acid ; glycerin ; pintsch gas ; 
cottonseed crushing ; cotton ginning ; cotton, compressing ; cotton linters ; cotton 
yarn ; cotton duck ; shelter tent duck ; tape and webbing ; sheetings ; denims ; gauze ; 
towels; wool, wholesaling; woolens, wholesaling; rags, wholesaling; kersey lined 
breeches ; sheepskins, importing ; hides, wholesaling ; sole leather ; black harness leather ; 
calf upper leather ; kip upper leather ; side upper leather ; boots and shoes ; boots and 
shoes, retailing; slaughtering ; meat and by-products; lard rendering; lard substitutes; 
milk ; grain, wholesaling ; flour ; flour, jobbing ; bread ; canned vegetables ; canned 

. fruits ; canned meat ; canned fish ; canned milk ; canned condiments ; dried fruits ; 
smoking tobacco ; chewing tobacco ; cigarettes ; oil tanker transportation ; towing ; shipr 
building, accounting. 



384 



HISTORY OF PRICES DURING THE WAR. 



Less difficulty would have been encountered in finding a single unit 
cost of production for each commodity c-ontrolled, perhaps, had the 
■whole of each commodity been produced, by one company. It was 
relatively simple to represent the cost of producing a pound of 
nickel or of aluminum in this country because the output of each was 
virtually controlled by a single concern. But the cost of producing 
a ton of pig iron varied from $18.14 to $45.72 in September, 1918, 
according to figures collected by the Federal Trade Commission. 
The cost of producing a ton of beehive coke' varied, in like manner 
with different producers, from $2.93 to $11.45. The cost of produc- 
ing a ton of anthracite coal within the Pennsylvania district varied 
from $2.64 per ton to $7.06. An excellent example in the diversity 
of unit costs is brought out by the Federal Trade Commission report 
upon the costs of producing rosin, which show a variation in the per 
cent of margin on investment running for different companies from 
10.7 per cent to 275.1 per cent.^ The price-fixing committee gave 
considerable thought to this problem, and endeavored carefully to 
determine whether it Avould be better to fix upon a set margin of 
profit above cost and thus fix a different price for each producer, or 
select a point somewhere between and make that single fixed price 
applicable alike to the low-cost and high-cost producer. 

There did not appear during the whole war a more intelligent in- 
quiry into the problem provoked by a difference in cost between pro- 
ducers than that initiated by Mr. Eobert S. Brookings as chairman 
of the price-fixing committee. Mr. Brookings, early in September 

1 Federal Trade Commission figures, covering first 10 or 11 months of 191S: 

ROSIN 
[Production margin, based on average sales value.] a 



Company. 



Barrels 

produced, 

280.O 



Sales 
value 

produc- 
tion (per 

barrel). 



Cost of 
produc- 
tion and 
market- 
ing ex- 
pense(per 
barrel) 



(per bar- 
rel). 



Invest- 
ment 
(per 

barrel). 



Per cent 
of mar- 
gin on 

invest- 
ment. 



No. 16.. 
No. 2 c.- 
No.3 <•.. 
No. 4 6.. 
No. 5 c.. 
No. 6f.. 
No. 7 c. 
No. 8*.. 
No. 9 c.. 
No. 10 6. 
No. 116. 
No. 12 6. 



Average. 



SIO. 69 
9.17 
9.31 
10.83 
8.67 
9.86 
10.23 
10.91 
10.12 
11.31 
11.26 
10.62 



SIO. 087 
8. 0S4 
7.269 
8.549 
6.297 
6.240 
6.181 
5.727 
4.538 
6.183 
4.910 
3.922 



•UO. 603 
1.086 
2.041 
2.281 
2. 373 
3.620 
4.049 
5.183 
5.582 
6.127 
6. 350 
6.698 



.13.445 

d 10. 723 

3.090 

7.775 

d 12. 870 

3.120 

d 12. 894 

2.198 

4.812 

4.125 

2.732 

2. 434 



10.25 



6.415 



3.833 



5.926 



17.2 
10.7 
50.5 
29.5 
18.1 
115.3 
31.4 
235.8 
116.5 
148.4 
232.0 
275.1 



85.8 



a Companies range in order of margin per ca??, from bw to high. 

6 Eleven-month periodj. 

c Ten-month periods. 

p Heavy investment due to output being less than the still's capacity. 



GOVERNMEI^rT CONTROL OVER PRICES. 385 

of 1918, asked various leading economists familiar Tvitli tlie price 
problems at Washington, and the members of the price-fixing com- 
mittee, to present memoranda upon the respective advantages of 
fixing a variable and a single price. These opinions, made by men 
peculiarly qualified by war-time experience to judge the practical as 
well as the theoretical aspects, are worthy of analysis. There follow 
the memoranda given by Dr. F. W. Taussig, member of the price- 
fixing committee and chairman of the United States Tariff Commis- 
sion ; Lieut. Col. Eobert H. Montgomery, representative of the War 
Department upon the price-fixing committee; Mr. Wesley C. Mitchell, 
chief of the price section of the War Industries Board ; Mr. William 
B. Golver, member of the price-fixing committee and chairman of 
the Federal Trade Commission; Mr. W. F. Gephart, of the United 
States Food Administration ; Mr. H, M. Channing, chief of the legal 
section of the War Industries Board; and, finally, Mr. Eobert S. 
Brookings, chairman of the price-fixing committee. 

1. Dr. F. W. Taussig, chairman of the United States Tariff Com- 
mission and member of the price-fixing committee, wrote the follow- 
ing memorandum on the question of " Uniform or varying prices " : 

(1) If differences in cost of production between different producers were — 

(a) Clearly ascertainable. 

(6) Due solely to differences in the natural resources utilized by them, it 
would not be impracticable to purchase from them at prices based on their 
differing costs. 

As a matter of fact, neither of these conditions is ever present. In the 
first place, costs are not clearly ascertainable. They vary from month to 
month, from year to year. We get figures from cost accountants which are 
v/orked out to the last cent, but which, as a matter of fact, contain arbitrary 
and debatable elements. Any endeavor to pay to each producer according to 
his costs would lead to perpetual wrangling, perpetual requests for changes 
and modifications. In the second place, differences in cost are by no means due 
solely to differences in natural resources. They arise very largely from differ- 
ences in skill, energy, efficiency. To pay a low price to a producer who has 
brought down his costs through slvill and ability is to penalize the most effective 
form of human effort. 

. (2) Sale at varying prices is in any case not practicable. If the Govern- 
ment fixes a price, it must be a price uniform for all producers. Were this 
not the case, there v/ould be constant squabbling and intriguing for favored 
position. 

(3) The main problem is that of purchase, and I am unable to see the 
practicabilit3', as conditions of production stand to-day, of carrying out a policy 
of purchase at' varying prices. The only possible way of carrying it out would 
be for the Government to take over all the establishments and try to run 
them. Quite apart from the constitutional questions involved (as regards the 
fair price which the Government must pay for each plant) the actual adminis- 
tration and running of an enormous variety of plants would be a hopeless task. 

(4) The only feasible plan in price fixing is that of establishing a uniform 
price, which should ordinarily be paid for the whole of the output. 

The uniform price which the Government thus must fix is not ne^essjirily the 
cost of production price. It need not be either an average cost of production 
125547°— 20 25 



386 HISTORY OF PEICES DUEIISTG THE WAR. 

price or a marginal or " bulk line '' cost. The Governuieut luight be expected 
umler ordinary conditions to pay tlie market price that would obtain in the 
absence of regulation, irrespective of cost. Under conditions of war stress and 
war exigency, however, the Government must pay for an essential commodity 
that price which Avlll maintain and, if possible, stimulate the volume of i^ro- 
duction. Such a stimulating price is not far from the marginal or " bulk 
line" cost. 

There ^\■ilI always be sporadic producers having very high costs, higher than 
the " bulk line," who may be disregarded. It is conceivable that in extreme 
need for a particular commodity the Government will make some special bar- 
gain with the small nximber of high-cost producers. But sucli transjictions are 
extremely dubious and are to be avoided except in the extremest urgency. As 
regards them, it must be made out tliat the very high cost of the producers is 
not due to slackness or inefficiency on their part but to poor natural resources, 
and that the payment is indispensable for the maintenance of a supply abso- 
lutely needed. 

2. Lieut. Col. E. H. Montgomery, representative of tlie War De- 
partment on the price-fixing committee, submitted the following 
memorandum on the " Fallacy of attempting to pay a different price 
for the same thing as applied to a basic connnoclity and an entire 
industry " : 

(1) I strongly object to any arrangement which will result in paying one 
producer of a standard, article or commodity a higher price than is paid to 
another producer of the same thing, for the following reasons : 

Any plan which purports to limit the profit of each producer — 

(a) Ignores the sound, economic, differential to which the low-cost etScient 
producer is entitled ; 

{h) It is in effect a return to, rather than a departure from, the cost-plus 
system. The War Department's present policy in this respect is to avoid cost- 
plus contracts whenever possible; 

(c) Penalizes the low-cost producer by placing him on an equality (as to 
profits) with the high-cost producer. Such a penalty is in direct violation of 
existing intelligent business methods; 

(d) Places a premium on the high-cost producer, who is the one to be 
penalized, and actually encourages a continuance of inefficient, extravagant, 
wasteful management ; 

(e) Purportedly gives the Government an opportimity to buy at a low price 
from the low-cost producer, without any guaranty, however, that the low- 
cost producers will continue to be low cost. "With a penalty on low cost and 
a premium on high cost, is It not reasonable to predict that the low-cost man 
will inevitably increase his costs — fraudently or because he makes as much 
money on high costs as on low costs, and can pay as much as he likes for sup- 
plies, labor, etc.? 

jXf^ Can not bo effectively administered, because it is expected that the 
machinery of control will include a system of reports and inspection emanat- 
ing from hundreds of producers, who have every interest to overstate their 
costs. The available supply of skilled accountants in this country is exhausted. 
The present demand from legitimate sources greatly exceeds the supply. My 
familiarity with this matter leadsjine to object to setting up a system of control 
which is not operatively possible ; ] 

(f/) Presupposes that fair maximum prices can not be fixed. This is a 
familiar argument and is of academic interest only and can not control our 



GOVEE,NME]SrT COISTTROL OVER PRICES. 387 

action, because every business man tliinks that his problems are more complex 
than those obtaining to other businesses. As they can not all be right, the argu- 
ment falls through of its own weight. 

(2) I am strongly in favor of limiting the profits of all contractors who sell 
to the Government to a reasonable return on capital invested. Over a year 
ago the war committee of the American Institute of Accountants, of which I 
am a member, unanimously adopted a recommendation to this effect, but we 
could not secure its adoption. We are now forced to lis a price which will 
apply to the Government and public alike. When dealing with an entire indus- 
try the elements underlying public price fixing are not comparable with the 
ability of the Government to supervise individual contractors. I think the 
individual contractor can be regulated, although we have a big uncompleted 
job on our hands in this respect. 

I do not think we can regulate the costs and methods of 100 per cent of any 
industry. I do not think that we can fix fair maximum prices on representative 
grades, etc., and regulate such prices. 

The differences between regulating costs and processes (which are secret) 
and regulating prices (which are public) are, in my opinion, vital and con- 
trolling. 

(3) As the War Department representative on the price-fixing committee, I 
expect to maintain the position that a policy of fixed profit per unit, without 
limitation on costs and extending to an entire industry, is unwise and con- 
trary to the best interests of the Government and the industry affected alike. 
That a failure to encourage and reward the low-cost efficient producer would 
be a step backward which the War Department will not stand for, because 
without recognition he will cease to exist. 

3. Wesley C. Mitchell, chief of the price section of the War Indus- 
tries Board, submitted the following memorandum relative to " One 
Price for Each Commodity versus a Graded Scale of Prices.'' 

MVEBSITY OF PRICES PREVAILING UNDER NORMAL PEACE-TIME CONDITIONS. 

On any given day each of the great staples is sold at several or many different 
prices. 

(1) Varying grades, of course, command different prices. 

(2) So, too, do large lots and small lots of a given grade. 

(3) There are differentials betv/een different markets. 

(4) Original producers, local buyers, manufacturers, commission houses, 
wholesalers, retail dealers, etc., in turn charge higher prices than they paid. 

(5) There is often a wide difference between current market quotations and 
contract prices. 

(6) Cash prices are usually lower than prices which involve waiting for 
payment. 

(7) Even the same class of dealers selling the same grade of the same 
article in the same amounts in the, same market on the same day do not all 
receive the same price. This last proposition is particularly important during 
a period of extraordinary changes, such as we had in 1916 and the first half of 
1917. 

These diversities are standardized rather than abolished by a single-price 
policy. 

The adoption of a single-price policy does not mean the abolition of the 
above-listed differences. It usually means that all business men of a given 
class (for example, all copper miners or all shoe manufacturers) rei6eive prices 



388 HISTORY or prices during the war. 

that vary in standard ways from a single base price. Differentials for grades, 
markets, time of payment, size of purchases, etc., may be more or less stand- 
ardized, but they are not eliminated. Further, the base prices are usually 
merely maxima, and anyone can charjre less if he chooses. 

Aside from the fact that tlie base price is fixed by Government instead of by 
contract, the chief changes from peace-time conditions are probably that — 

(1) Day to day fluctuations are reduced, if not eliminated; 

(2) There is less difference between the bargains struck in a given market 
on a given day ; and 

(3) Current market quotations and contract prices (under new contracts at 
least) keep closer together. 

A graded scale of prices would be more of a departure from peace-time con- 
ditions than a single-price policy. For it would mean giving to different pro- 
ducers prices w'hich vary by margins, not based on differences recognized in 
ordinary business, but on some other ground, particularly differences of cost. 
In ordinary business, the fact that a man produces at liigher cost than another 
does not enable him to get a higher price. The crux of the practical problem 
is whether public policy requires tlie price-fixing committee to introduce into the 
business system a revolutionary change by making differences of cost a reason 
for corresponding differences of prices. 

Circumstances ichich may justify prices graded according to costs. — In some 
cases it may be necessary to stimulate production to the utmost and to restrict 
ordinary civilian consumption. The most effective means to that end is a 
single base price so higli that all productive capacity will be iised, and so high 
that economy must be practiced in consumption. Of course, that plan gives 
low-cost producers extraordinary profits — an objection that is only partially 
met by the excess-profits tax, since this tax always leaves part of the extraor- 
dinary gains to the fortunate enterprise. 

In other cases, it may be necessary to stimulate production, but not to re- 
press civilian consumption. Indeed, one chief aim of regulation may be to 
keep down costs to the consumer. The high single price would accomplish the 
first end but obstruct the second. A graded scale of prices, however, might be 
arranged to call out the bulk of the low-cost production at a moderate rate, 
and also to get a certain amount of high-cost production at a different figure. 
But how can consumers get the benefit of the moderate price, and at the same 
time let the high-cost producers have a remunerative market? I see no way 
except to arrange a Government-buying monopoly, that would take over the 
wholQ product, at different prices, then average the costs, and sell at a figure 
which would just coA^er the outlay plus administrative expenses. Such a course 
may be feasible in the case of a few great staples, like sugar, but it is scarcely 
feasible as a general policy applicable to commodities at large. 

Effect of the txco' systems upon efficiency. — A graded scale of prices, if car- 
ried out in full detail, is practically a "cost-plus" system of Government pur- 
chases. That system has been tried out and (displaced because it gives an in- 
centive to wasteful and inefficient management. 

The single-price policy, on the contrary, is' like the ordinary competitive-price 
system in stimulating efficiency, at least in those cases where the price-fixing 
committee is not compelled to set their price very high. A moderate price will 
often enable three-quarters or more of the product to be turned out at profits 
ranging from the liberal to the moderate, put perhaps 10 per cent more of the 
producers on their mettle to break even, and put the remaining 15 per cent of 
least efficient producers out of business — to the advantage of the community. 



GOVER^STMEISTT CONTROL OVER PRICES. 389 

Conclusion. — (1) A single-price policy, allowing differentials for quality, trans- 
portation, size of transaction, terms, credit, and margins between manufac- 
turers, wholesalers, and retailers makes less of a departure from normal busi- 
ness conditions than a graded scale of prices based on differences of cost would 
make. 

(2) The latter policy, however, may be desirable in the case of a few prime 
requisites where there is the double need of stimulating production to the ut- 
most and keeping down cost to the consumer. To achieve both these results, 
however, is scarcely possible without setting up a Government monopoly for 
buying the total output and distributing it at a uniform price. 

(3) In the great majority of cases, the single-price policy is to be preferred, 
because of its simplicity — a great point in view of the administrative perplexi- 
ties which the price-fixing committee confronts. 

(4) Finally, the single-price system is more favorable to industrial efficiency 
than the graded price system — at least, when the price taken is not very high in 
the scale of costs. Excess profits taxes will turn part of the large gains of low- 
cost producers into the Public Treasury. 

Summary. — (1) A single-price policy allowing differentials for quality, trans- 
portation, size of transaction, terms of credit, and margins between the manu- 
facturer, wholesaler, and retailer makes less change from normal business 
conditions than a graded scale of prices based on dilTerences of cost would 
make. 

(2) A scale of prices graded according to costs, however, may be pre- 
ferable in the case of a few prime requisites, when it is necessary both to 
stimulate production to the utmost and to keep down costs to the consumer. 

To achieve both of these ends, however, it seems necessary to supplement 
price fixing by creating a government buying monopoly to take over the entire 
output, average the costs, and distribute the goods at a uniform price. 

(3) The single-price policy requires no such elaborate machinery and is 
therefore far simpler to administer, to explain, and to defend. 

(4) Excess profits taxes partially remove the objection that the single- 
price policy gives government favors to the low-cost producers. On the 
other hand, the graded scale of prices carried out to its logical conclusion 
is practically equivalent to the " cost-plus " system, which has been aban- 
doned on government contracts because it offers an incentive to wasteful and 
inefficient management. 

4. Mr. William B. Colver, chfiirnian of the Federal Trade Com- 
mission and member of the price-fixing committee, wrote the follow- 
ing memorandnm on the question of "A single price as opposed to a 
pooling with varying prices " : 

I beg to submit for your consideration some observations as to price fixing 
and the theory of the single price as opposed to a pooling with various prices. 
It would seem that price fixing has two and only two purposes — 

(1) To insure adeqiaate production; and 

(2) To guard against a price structure which shall be so high as to be un- 
healthy. 

In applying the single-price theory, it is held to be necessary, in order to in- 
sure the required production, to fix a price high enough to make profitable the 
operation of marginal, high-cost producers. It follows that in meeting the first 
requirement, namely, the insurance of adequate production, we defeat the sec- 
ond purpose, namely, the avoidance of an unduly high price structure. 

I raise the question now whether or not, in the light of experience, the single- 
price theory, as put into practice, has been successful. '' 



390 HISTOEY OF PRICES DUKIKG THE WAR. 

Some difficulties that liavo followed this practice may be enumerated as 
follows : 

First. A maximum price becomes u minimum price, and few will voluntarily 
sell under the maximum price even though low-cost producers mit^ht well 
afford to do so. Not only lias this practice been appi'oved but it has been aided 
and abetted by a declaration that the Government itself will not accept volun- 
tary offers of commodities at prices lower than fixed prices. This would 
seem to be a complete inversion of the second purpose of price fixing. 

Second. The single price, lest it shut off the needed production, must be 
high enough to give profit to the highest cost producer that it is desii^ed to con- 
tiniie in business. 

Third. The consequent price is far above the price indicated by the average 
cost of production. 

Fourth. The cost of living and the cost of secondary manufacture is made 
unnecessarily high and the mounting prices become a vicious circle constantly 
spiraling upward. 

Fifth. Such single price, while producing excessive profits for low-cost con- 
cerns, does not necessarily stimulate production but actually acts as a check 
on production. (This will be attempted to be shown in detail hereafter.) 

Sixth. The single price tends, in the case of low-cost producers, to encourage 
wastefulness and extravagance and to check rathei' than to stimulate pro- 
duction. 

It is heM that high prices stimulate production and are purge<.l by the 
application of drastic excess-profit taxes. Let us examine this. 

Assuming that highei'- prices do stimulate production {though under the 
jircumstances here under considei-ation this does not seem beyond dispute), 
increased production, under ordinary circumstances, invariably makes for 
lower cost and hence, under fixed price, to greater profit. The higher the 
prices the sooner the excess-profit point is arrived at, and as production con- 
tinues the more rapidly the successive stages of surtax are arrived at. The 
higher the tax the lower the net profit becomes, and the inducement is not 
only not to increase production but rather to curtail it in order to avoid get- 
ting into the class of maximum tax. To illustrate this we might take a single 
basic commodity — for example, coal — and any rule that would apply to coal 
would apply equally to iron ore and lumber, and other basic commodities and 
their products. 

Taking the case of coal, suppose a given mine produces a million tons of 
coal per year in normal or peace times, and earned an average of 10 cents per 
ton net profit. Its net profit per million tons of coal would then be $100,000. 

Suppose in war times, under regulation, and with excess-profit tax operating, 
this mine produced its million tons, was allowed 20 per cent net operating 
profit, and by so doing arrived at 30 per cent excess-profit tax rate. It wo'ald 
then earn $200,000 net operating profit, pay $60,000 excess-pi-ofit tax, and keep 
$140,000 as divisible profit. 

Suppose the production of this mine were doubled and the resulting profit 
(capital investment remaining the same) caused it to go to an 80 per cent 
excess-profit tax rate. It would earn on the second million tons (the stimu- 
lated production) a gross profit of $200,000, on which its excess-profit tax 
would be $160,000, and the divisible profit (the only real profit) remaining 
would be but $40,000. Clearly, in the absence of any other consideration, the 
mine would earn $40,000, leaving the second million tons of coal in the ground 
until the return of peace, wlien it could be mined at the peace-time rate of 
profit (10 cents) with the resulting divisible profit of $100,000. 



GOVERNMENT CONTROL OVER PRICES. 391 

I dissent wholly and entirely from the tlieory that excess-profit taxes justify 
unreasonable price structures and purge unreasonable profits. Not a penny of 
excess-profit tax has been or will be paid to the Government that has not first 
been collected with many other pennies from the people of the country, either 
as consumers or as taxpajers. Since the Government itself is by far the 
largest of all buyers at fixed prices, it seems to be absurd to take an excess 
dollar out of the Treasury in. order to get 34 cents of it back by way of 
excess-profit taxes. The net result of such a transaction is merely creating 
the necessity of raising an otherwise umiecessary 66 cents by some other 
means of taxation or by bond sale. In the main, it is not industry which 
ultimately pays excess-profit taxes, but the consumer, and only a small part of 
the excess which the consixmer pays reaches the Treasviry in the form of taxes. 
The whole excess-profit tax theory is an attempt to lift oneself by his boot- 
straps, and there is lost from 20 to SO per cent of the energy employed in the 
process. 

A referendum taken hj the National Chamber of Commerce was practically 
unanimous in favor of taking no excess profit during the war. Taking this as 
a representative judgment of the business world, it would seem that the per- 
plexing problem of dealing with excess profits would be solved by having no 
excess profits with which to deal. 

To talie the referendum of the National Chamber of Commerce at its face 
value and apply it would probably draw forth some hoarse cries. As a group, 
men are patriotic ; as individuals, they will pay as small a tax as can be calcu- 
lated and will secure as high prices and as great profits as can be extracted. 
High excess-profit taxes themselves have a bad effect on business men. They 
nourish a feeling that the Government is wasteful, and, as a result, tax evasions 
do not carry any particular feeling of guilt. V^^hen tax evasion takes the form 
of padded and increased costs, of lavish expenditures made for the sole purpose 
of reducing the rate of profit, the result must be detrimental to the maximum 
production at maximum efficiency. The business organization is softened by 
bad practice and by unbusinesslike methods, and while it holds to such un- 
healthy practices it can not maintain the higliest degree of efficiency. 

The purchasing power of our money and credit as well as that of our allies 
would be restored by a lowered price structure i tax dollars would each buy 
more nearly a hundred cents' worth of goods; the Government would need to 
collect fewer dollars in taxes and sell fewer bonds; and the public, relieved 
of profiteering (I do not use the word "profiteering" invidiously, at this time), 
would be able to produce the required tax money and bond money since their 
buying power, which is not absorbed by the mere expense of keeping alive, 
would )>e left free in large proportion to be dedicated to the service of the 
Nation. If the infiated. price structure were brought back to an approximation 
of normal, and if 100-cent dollars were substituted for the 40-cent dollars we 
are now using, many of the problems which perplex and much of the rising 
discontent would be disposed of. The single-price fixed so high as to make 
profitable the high-cost marginal producer has, as I have said, a vicious effect 
on business itself. Tlie reflex shows itself in tax evasions and, worst of all, 
in inviting and encouraging wasteful and extravagant business operations. 

When a business reaches the point that its excess-profit tax will operate to 
take away a considerable part of its earnings, it inevitably is tempted (and in 
many cases the temptation has proven in-esistible) to spend extraordinary sums 
in unnecessary expenditures. These take the form of advertising looking to 
the building up of present or future good will, or repairs and betterments not 
presently needed or made with an eye to the future and in anticipation of a 
return to peace-time basis. Further, expenditures are lavishly made by big con- 



392 HISTORY OF PRICES DURING THE WAR. 

oerus out of rapidly accunmlating surpluses ^vhi^,'h are in the nature of strategic 
advances upon other weaker competitors and which, upon a I'eturn to peace- 
time basis, will tend to result in a permanent elimination of weaker competitors 
and the rapid extension of monopolistic conditions. These expenditures are 
made on the theory that out of every dollar so spent, the Government itself 
contributes anywhere from 20 to 80 cents of the cost. 

The whole purpose of price fixing and of tax legislation is not to raise 
revenue but to win the war. That is the single aim of all these activities. Any 
device which interferes with that aim is conceived in error. 

Having gotten this rather long preamble behind us, let us now consider what 
may be done with respect to iron and steel. 

In the first place, the Steel Corporation, through its control of a large part of 
the railroad transportation at the head of the Lakes, w^as able to levy a toll on 
the bulk of the iron ore produced in the country. Just as in the case of anthra- 
cite coal, in which a plan was worked out where the profit in anthracite coal 
lay in many cases not in mining it but in its transportation to maxivct, so in the 
case of iron ore, the mining of the ore itself was often relatively unprofitable 
while the transportation of the ore by rail was made to yield enormous profit. 
The anthracite railroads owned a great many of the anthracite mines ; they 
often mined practically at a loss, transporting the coal at an enormous profit, 
and competitors were compelled to mine at the lowest possible margin and all 
the natural profits were absorbed by the transportation companies as freight. 

The railroads of the country, aside from the Government itself, are the 
greatest consumers of iron and steel products. The Railroad Administration 
now has in its control the ore-carrying roads of the Northwest. If the iron ore 
were carried to market at a price which would represent just about the cost of 
the service, the resulting total railroad revenue for the w^hole country would 
show a very slight decrease, but If this loss in freight revenue and consequent 
saving in cost of ore at furnace were carried on through the iron and steel price 
structure, the railroads would undoubtedly get back several times over, by 
reason of lowered cost of materials, such shrinkage in freight earnings. 

This would apply also, perhaps, to a readjustment of freight rates with 
respect to coke, and possibly for coal also, at least in certain cases, for example, 
such rates as apply to Bethlehem on ore, coal, and coke. Bethlehem might be 
niade a fairly low-cost production, instead of which. Bethlehem now puts the 
entire steel industry out of harmony and is the chief disturbing factor in our 
problem. Rather than permit Bethlehem to upset the whole steel industry, it 
jjiight well be operated on Government account and so be removed from the 
equation. 

As we see the enormous spreads in the various production costs of pig iron, 
find as v.'e see these spreads grov/ as the fabrication of the material is carried 
forward, it seems apparent that if some device could be found whereby opera- 
tions could be started at one or more points from a level, the problem would be 
simplified. 

The main objection to a variety ^f buying prices and a composite selling 
price is that it penalizes efliciency and bonuses inefficiency. But the excess 
profit tax does this very thing, frankly and unashamedly. That is what the 
excess profit tax, taken together with high prices, is — penalty for efficiency 
and by contrast a subsidy for inefficiency. 

Suppose we were seeking for a real stabilization ; let us take iron and steel 
as our example. If at vital points equitable levels could be arrived at, we 
could have a fair basis from w'hich, particularly in an effort to stimulate pro- 
(luction, to keep prices relatively normal, to directly reward efficiency and by 
contrast to penalize inefficiency. 



GOVERISTMEXT COK-TROL OVER PRICES. 393 

Suppose in iron and steel all the iron ore were taken over by tlie Govern- 
ment at varying prices to be determined by adding to a reasonable cost of 
production a just and reasonable prbfit. The iron ore from the various ore- 
producing fields purcliased at varying prices would be pooled and result in 
a composite price for each consuming field, so that, so far as the ore price is 
concerned, all furnaces would start on an equality. There would remain the 
'diifferential of transportation, and absolute equality could be secured by de- 
livering ore to the various furnaces at a uniform price which would include 
transportation. In other Avords, pool not only the ore price but the trans- 
portation charge. Now Ave would have all furnaces in a given field starting 
on an equality as to their ore. 

Similarly let the Government buy all the coke at varying prices and dis- 
tribute it at a composite price which would absorb freight differentials. 

"Now we come to the calculation of the profit per ton. There should be an 
agreed upon per-ton profit, but this should be used only as a basis, because, 
as we shall see, equity vv^ould require certain differentials not difficult to 
calculate. 

First : Equity as between producers requires consideration of the amount 
of the investment and of its character. For instance, it is often found that 
a low-furnace cost has only been obtained by the expense of a high investment 
per ton of output, wliile frequently a high-furnace cost may be coupled with 
a low investment. It is obvious that the application of a uniform unit profit 
without reasonable consideration and scrutiny of investment will be inequitable. 

This calculation of unit profit based on investment would also run with 
respect to the ore mines and coke ovens, and the same theory might well be 
carried on through the more advanced stages of the fabrication. Data suf- 
ficient for giving consideration to varying per-ton investments are not so 
difficult to arrive at as would appear. Book costs of investment less depre- 
ciation is presumably shown in more or less satisfactory form on the books 
of practically every company. Most of them also have the revaluation as 
of 1913 permitted under the internal revenue law. These give bases of 
comparison between companies and reveal the cases of high investment per 
unit of outpxit, so that such cases may be easily isolated and intensively 
studied. Before going into a discussion of the mechanism of a pooling device, 
I wish to suggest some devices for encouraging volume and economy of pro- 
duction. These may be set down as follows : 

After determining a tentative cost price by considering monthly production 
costs and adding a unit profit as modified by the legitimate unit investment 
and then adding a small charge to take care of the operation of the pool : 

First. Make a further profit addition based upon a showing of decreased 
operating costs. For example, if cost is reduced a dollar per unit, allow 50 
cents to go to additional profit and 50 cents to lowering price. 

Second. Similarly penalize unwarranted increases in cost by deducting them 
from allowed profit. The deduction could be continued to a point of ex- 
tinguishing the profit if the production can be dispensed with or can not be 
secured by transfer of labor, material, and cars to lower-cost operations. 

Third. Allow an increase in profit as a return for supernoi'mal production ; 
allowance to be generous but apply only to the tonnage that is above normal 
production. 

Fourth. Allow a substantial wage bonus to labor in return for continuous 
working. 

The fourth point would best be elaborated a bit. Suppose a laborer re- 
ceived 50 cents an hour ; after he had Avorked 15 consecutive working days, 



394 HISTORY OF PRICES DURING THE WAR. 

sot his wages at 55 cents per hour for so long thereafter as he continues to 
work without interruption. Voluntary loss of time would return liim to the 
50-cent wage, where he would remain until he had again worked 15 consecutive 
days. Holiday work might well be counted as double time (as two days for 
each holiday) in earning a place in the bonus class. In case of involuntary 
idleness, forced by lack of material, car shortage, accident, or any other cause 
beyond the workman's control, such idle days should not be held to demote 
him from the bonus class. 

Now for the pooling plan : 

Tlie pool organization would make use of all existing agencies of production 
and distribution. There need be no resulting dislocation of trade. 

Transactions would be exactly as now ; orders taking the same course ex- 
cept when, as now, through priority orders or for ton-mile or other trans- 
portation or economic reasons, the pool manager might otherwise direct. Tlie 
ore or the coke or the pig iron would be billed out in the name of the Govern- 
ment pool, to the immediate purchaser at the pool price, and at the same mo- 
ment the mine or oven or furnace would bill the Government pool for the same 
quantity and quality at the price fixed for that particular mine, oven, or 
furnace. The pool would settle monthly with each mine, oven, or furnace 
for all material shipped. There would be added to the price paid the pro- 
ducer such small margin as would care for the expenses and hazard of the 
pool. A surprisingly small initial working capital would be required and it 
would be in the nature of a revolving fund, augmented by any net profits which 
might accrue to the pool as time passed. Tlie pool (the Government) would 
have ownership of the material only for the Instant of time when the title 
passed from the producer through the pool to the immediate purchaser, but 
that instant of ownership would be absolute ownership. 

I am saying that the single-price theory has failed in practice. We have 
seen unduly high prices raised and raised again on the representation of fear 
of future increase in costs, and, as industries are interrelated and buy and sell 
fTom and to each other, and as we raise one because it anticipates an increase 
in cost, and i-aise others on tlie same anticipation, these raises, reacting, tend 
to justify the darkest feai"S. In other words, business concerns are busy 
skinning each other and the public and the Government is paying for the hide 
that is removed. With respect to iron and steel, all these considerations seem 
to argue that a number of changes in policy might well be adopted at this time. 

First. Reduce the rail freight rate on iron ore to a figure which would repre- 
sent the cost of the service and a fair average transportation profit ; also ct)n- 
trol lake freight rates. 

Second. Have the Government buy all iron ore and distribute it to econom- 
ically efficient furnaces at a composite price which shall likewise absorb trans- 
portation charges. 

Third. Treat coke the same as iron ore by pooling it and distributing it at a 
uniform price, absorbing transportation charges. 

Fourth. Buy all pig iron through the Government pool and distribute it at a 
uniform price, absorbing freight differentials. 

Fifth. From this point seek to establish no other composite price through 
pooling except in such cases as where the Government buys practically the 
total output, as in the case of rails, ship material, munitions, etc. In such 
cases apply the pooling system and distribute the surplus to the public at a 
composite price. 

Sixth. Secure stimulated production by generously increasing the profit on all 
tonnage produced above the norma«l production as shown by recent experience, 
and similarly reward efficiency and lowering of costs, as set forth above. 



GOVERNMEITT COKTEOL OVER PRICES. 395 

Looking forward to the post-war contest for world markets, a present and 
determined effort to return to normal would seem to be prudent. 

5. Mr. W. F. Gephart, Federal food administrator in Missouri, 
wrote the following memorandum on the " Governmental Policy of 
Fixing One versus Several Prices on a Single Commodity : " 

It is assumed in the statement which follows : First, that there are several 
competitors producing tlie commodity with different costs of production ; 
second, that in the system of taxation there is an excess profits tax or income 
tax of a character Avhich will enable the Government, if it so desires, to reduce 
the larger profits of those producers who are able to produce well under the 
single-fixed price. The following reasons may be urged in favor of a single- 
fixed price : 

1. It is in harmony with the present organization of industry, one of whose 
chief characteristics is competition. This is true because the primary justi- 
fications of the competitive system is that a premium is placed on most efficient 
production. The inefiicient man is, in time, compelled because 'of his high 
costs to go out of business in favor of the more eflicient, and the public securo>i 
the benefit of loA^'-cost production. Yet, under a single-price system, the price 
must necessarily be fixed at the particular time, at or near the cost of produc- 
tion of that producer who has tlie highest costs, because his productioa is 
necessary in order to secure the desired supply or quantity. At the same 
time, the more efficient producers are encouraged by their liberal margins of 
profit to increase their output. There is thus an opportunity for the Govern- 
ment to do one of two things, or to do, in part, both of tv^'o things : First, the 
Government may take all or a large part of whatever is excess pi^ofit; or it 
may, when the production capacity of the uiore efficient plants has increased, 
readjust its one fixed price on a lower level, thus securing for society the 
advantage of a lower price and maintaining all the beneficial efforts of a 
normal competitive condition. 

It may be urged tliat the more efficient producers under the above condi- 
tions Villi not increase their output and thus make possible the elimination of 
the less efficient, but such a result does not occur in actual business. It may 
also be urged that the less eflicient should not be put out of business, but this 
is what actually occurs in normal times, and in addition, by tlie intervention 
of the Government in stabilizing the price on the basis of this less efficient 
producer, the Government protects him for a period, thus giving him every 
opportunity to improve his business and reduce costs. In addition, there Is 
under the present industrial organization and legal system no vested right of 
any producer to remain in business, especially if he can not render society a 
service in fair costs of production. 

2. The single-price system is much less complex and more easily administered. 
It is a very difficult and often an impossible task to determine production costs 
for the many different producers Of a commodity. No two costs v/ould be the 
same, and in an industry where there are many different producers, it would 
take many months to arrive at approximate costs. Then again changes in 
costs, which at the present time are marked, would require frequent and ciiui- 
plete readjustment of the price schedule-s for the different producers. Again, 
the rjaultiple or several-price system wonld result in a static condition in the 
industry. Every one would continue as a producer, whetlier or not his costs 
would entitle him to remain. 

3. A multiple or sereral-price policy might have inequitable re-sults on war tax- 
ation. This is true because these various prices would be fixed so that no 



396 HISTORY OF PRICES DURING THE WAR. 

excess margin of profit would be left to the rroducers. That is to say, the Public 
Treasiiry would receive little or no tax from this particular source to be expended 
in whatever form of public expenditure it desired ; the consumers of this par- 
ticular commodity, under a varying-price system might escape their just share 
of taxes. Under a single-price system the higher prices which they may pay for 
the product goes in larger part into the Public Treasury in the form of taxes. 

4. Under a several-price system large opportunity is given for comparisons 
which is likely vo embarrass the Government. One producer thinks another is 
allowed an mifair margin. Another complains that his costs are increasing and 
desires a larger margin. No one of tlie producers has any great Inducement to 
I'educe costs under the static conditions of several prices. 

5. Whether or not the numerous prices would be constitutional is primarily a 
fjuestion for the courts, but in any event there is in such a policy a large 
elenient of inequality. It is taking as a permanent measuring unit for the in- 
dustry the least efficient and penalizing the more efficient. However important 
it is in these war times to stabilize certain prices for certain essential products 
this should not be undertaken at the expense of stabilizing industrial organiza- 
tion. No policy of price fixing can be successful except as it is established for 
short periods. Adjustments must be made and therefore a multiple-price 
system makes such adjustments much more difficult, even assuming that the 
the original system be successfullj' established. 

6. On the basis of my experience as a Food Administrator in fixing food prices 
through the interpretation of fair prices, it seems fairly clear that any system 
of fixed prices must be simple and most easily administered if it is to have 
a large measure of success ; second, that spreads in prices or different prices 
always tend in* their actual workings to encourage the perpetuation of high 
prices. In our work we quote only one price on each commodity of the same 
grade. 

6. Mr. H. M. Clianning, chief of the legal section of the War In- 
dustries Board, wrote the following memorandnm on "General 
Price Fixation on Cost Basis:" 

We have been asked for an expression of opinion on the following problem. 
In determining a general price for certain staple commodities such, for example, 
as copper or steel, it is apt to appear that there is quite a wide range between 
the costs of the principal producers. It may, nevertheless, be essential to 
maintain the production of the higher-cost concerns, and also at the same time 
may be thought desirable to avoid paying inordinately large profits to the low- 
cost members of the industry. It has been suggested, and the idea strongly 
attracts many people, that prices for certain products be determined upon the 
basis of individual cost, allowing substantially the same profits to all whose 
production is requisite. 

BY AGREEMENT. 

The price-fixing committee operates either by means of agreement or in an 
advisory capacity to the purchasing departments. The committee can, witli 
considerable freedom, enter into agreement with producers to adopt any basis 
of price fixation which may be acquiesced in by substantially all of them. It 
is not perfectly clear that the low-cost producer who has refused to agree to 
sell his product at cost plus a fixed profit could not make a fairly plausible 
claim that an arrangement of this character, entered into between the other pro- 
ducers and the price-fixing committee (acting in concert with intending pur- 
chasers), would constitute an unreasonable restraint of trade. We incline, 



GOVERNMENT CONTEOL OVER PRICES. 897 

however, to the opinion that siich an arrangement would be upheld by the 
courts as a reasonable restraint. 

Failing agreement the Government would, of necessity, resort to its affirma- 
tive powers. These powers would be (a) to requisition existing goods; (6) 
to commandeer future production ; (c) to take over and operate the plants them- 
selves. 

(a) kequisition of existing goods. 

We have in a previous memorandum to you expressed the opinion that the 
measure of just compensation for existing property requisitioned would be the 
fair market value of such property, subject to certain qualifications which we 
believe would exist in the absence of a fair market. It would follow that the 
individual cost plus a profit probably would not be the measure adopted by the 
courts to determine compensation for such propei'ty. 

(E) COMPrLSORY ORDERS FOR Ft'TfRE FRODtTCTION, 

With relation to compulsory orders for production of ordinary staple com- 
modities, such as copper or standard steel plates, as we construe the statutes, 
there is contemplated a taking of the finished commodity rather than an 
order for involtmtai-y performance of service (national defense act of June 3, 
1D16, sec. 120 ; naval appropriation act of July 1, 1918, p. 18. The language used 
in the statutes, and tlie clearer constitutionality whicli would result from the 
first construction, tend to bring us to our conclusions, although there might 
be commandeer orders issued which would approach very closely orders for 
the performance of services. Under our views compulsory orders require the 
delivery of a finished product, and the measure of just compensation would be 
substantially the same as for existing property requisitioned — the fair value of 
the product. 

We should qualify this statement by the opinion, earlier expressed to your 
committee, that the highest cost producer could not be compelled to work at 
an absolute loss. The burden would probably rest upon him to establish that 
what would be fair value and just compensation for the rest of the industry 
would not be just compensation to him. In time of shortage it may be neces- 
sary to compel many such producers to operate and to pay them in excess of 
the actual value of their product. 

Of course, some differentials based on local conditions might properly be 
made. Market values in one part of the country often vary from those in 
other parts of the country, and the same considerations which affect market 
values might properly be taken into account in the determination of just com- 
pensation or in price fixation. 

Although a good deal of argument can be made on the other side of the 
question, we are unable to. advise the price-fixing committee that under com- 
pulsory orders, dissatisfied producers would not be able ultimately to recover 
through the courts compensation based upon fair market value or its equiva- 
lent. 

(C) TAKING 0^■ER PLANTS. 

Under certain conditions the Government has the power to take over plants. 
Where the Government does take over and operate a plant the compensation is 
not based at all either upon market value of the product or upon the cost of 
production, but is established as just compensation for use of the plant, which, 
in turn, is arrived at through the medium of market value of plant appurte- 
nances. '^ 



398 HISTOEY OF PRICES DURHsTG THE WAE. 

co:scrA-.sioNs. 

In conclusion we would say that although in some industries it mi^ht be 
possible to obtain the required volume of production upon a cost basis without 
creating litigation, it appears to us, from a legal standpoint, highly desirable 
to avoid the difliculties which are apt to attend the cost basis of price deter- 
mination, and to adhere, so fur as practicable, to the flat-price basis. 

7. Mr. Robert S. Brookings, cliairman of the price-fixing com- 
mittee, wrote tiie following memorandum on the question of fixing 
" One Price or Several Prices :" 

Referring to the discussion of one price or several prices and to avoid 
losing ourselves in a maze of abstract argument, suppose we simply investi- 
gate the steel situation to-day with the view of ascertaining whether or not any 
change in price or method is necessary or desirable. 

First. Have we any evidence under the present one-price system of any 
failure in efficiency ? 

I have never heard of any. On the contrary, the steel producers seem to have 
shown remarkable efficiency, and we hear only of shortage in coking cotri, 
transportation, and blast furnace capacity, which the steel companies seem 
to be making every possible effort to improve. 

Second. Are the prices of steel, as fixed at present, abnormally liigh, as 
reflected in the profits of the lowest-cost producer? 

Careful computation .would indicate that, at present market prices, the 
Steel Corporation will receive this year gross profits of about $420,000,000, 
of which the new excess profits and income taxes will absorb ,$247,.3(X),000, 
leaving $172,500,000 or about nine per cent, on their investment of $1,887, 
000,000. Of this sum, the Steel Corporation say they should set aside 
$36,000,000, or 2 per cent on their investment to take care of depreciation and 
replacement which the Federal Government will not permit them to deduct in 
figuring their excess profits taxes. 

While the Steel Corporation's costs are lower than those of the six or 
seven other companies which with it produce over 80 per cent of the steel, 
a careful comparison of the net results of their year's business indicates 
that they all shov/ as large a return on their investment as the Steel Cor- 
poration, which is, of course,, accounted for by the ratio of their production 
to capital. 

It is also shown that the so-called number three or small companies special- 
ize largely in steel refinements and that their " return on investment, as 
reported to us last year, was larger than the Steel Corporation';^. 

We, therefore, find all steel companies practically on the same footing. 
It is then simply a question of whether or not the net returns on investment 
of 8 or 10 per cent in the steel industry are unreasonable as compared with 
other investment securities, taking into consideration the risks of manu- 
facturing. 

Third. Conceding as an abstract argument, however, that prices should not 
be made with any regard to the securing of excess profits taxes, and that the 
economic national health is best preserved by a low range of prices, inasmuch as 
the Government has formulated its revenue program for this year based upon 
large receipts from excess profits, would it be wise at the present time to 
propose any system of price fixing which would wipe out all excess profits? 
Or, in other words, even if the steel manufactui-ers were willing to practi- 
cally -reduce the price of steel so as to wipe out the excess profits — which I 
am sure they are not — should w^e encourage such a proposition? 



GOVEEaSTMENT CONTROL OVER PRICES. 399 

Referring to the detailed cost slieets presented )3y tlie Federal Trade Com- 
mission, I would bi'iefly call attention to the following points : 

They have not yet finished their report on cost of ore-, which they exjiect to 
have ready in a day or two. Their costs of coke, both beehive and by-product, 
for the month of June, as compared with the month of April (which we used 
at our May meeting) show practically no change. 

Referring to the pig-iron reports for the same months, the costs would also 
appear to be about the same. A study of the figures submitted to you will 
show that, as a matter of fact, the steel companies producing four-fifths of the 
entire steel product produce their own coke and pig iron, and have conse- 
quently little or no interest in the prices we may fix on raw material or semi- 
finished products. 

This reduces the interest in these items practically to the merchant pig- 
iron companies. You will notice from the report of these companies that they 
produce only about 200,000 tons of basic pig per month (and practically no 
Bessemer), which basic pig must necessarily go to the so-called No. 3 or 
smaller companies, which produce such refinements as to make the ouestion of 
a dollar or two per ton on pig a not very vital matter. 

The balance of the merchants' companies' production (say 300,000 tons per 
month) is foundry pig, which finds its market in products over which we have 
exercised little or no control in prices. 

It would seem therefore that our entire steel price-fixing problem is reduced 
to a question of whether or not there are any differentials in cost which the 
present range of prices makes burdensome to any important producers ; and 
I have failed to find any evidence of this, except in the case of the Bethlehem 
Co.; and we have no means of knowing whether, in tiie last analysis, it is 
burdensome to them until the Federal Trade Commission makes a special 
report on their costs and their Government contracts for shipbuilding and 
ordnance, with a view to ascertaining the facts. Notwithstanding Bethlehem's 
high costs, they seem to have made good profits last year, and I am told they 
are doing very well at the present time. 

P. S.— It is quite probable that a few small merchant producers of basic 
pig and a larger proportion of producers of foundry pig will show that August 
costs will leave them no profit at present prices. So that we may have to 
consider an advance in pig iron, which would not affect- steel prices, or else 
require the big integrated companies to absorb this production at a price which 
will maintain production. 

(S) PRICES FIXED ABOVE THE "BULK LINE" OF PRODUCTION. 

The theoretical arguments urged before the price-fixing co2nmittee 
in favor of allowing each producer a set margin of profit above his 
individual cost of production soon gave way to the practical diffi- 
culties involved. The committee came to believe that any theory of 
determining fixed prices, akin to the cost-plus rule, made for en- 
couragement to the less efficient high-cost producers. There seemed 
no disposition to countenance a practice that would give the high- 
cost producer precisely the same war-time guarantee that accrued 
to the low-cost producer, since there was not at hand the enormous 
administrative machinery necessary to enforce a variable price. The 



400 



HISTOKY OF PRICES DURING THE WAR. 



price-fixing committee an<l the Fuel Administration lliereupon de- 
termined to throw overboard the niceties of the variable price, and 
to fix a flat price somewhere above the '" bulk line " of production. 
The term " bulk line " of production, as it came into use during the 
war, meant the indispensable amount of any commodity that the war 
program required should be produced, and the " bulk line " of cost 
meant the unit cost to produce the last unit lot of that requirement 
by the marginal producer. It was the cost of production at the hands 
of this marginal or bulk line person usually which formed the basis 
for the price fixed. An arrangement of the costs of Beehive coke, for 
example, shows that there was a gradual shading in the cost of pro- 
duction, from $2,93 per ton by the lowest-cost producers to $11.45 
per ton by the highest-cost producers. But it was found that these 



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AT WHICH DIFFEDEnT TORTiOMS OF THE OUTDUT. 

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PeOCEr-ITASC or TME. TOTAL OUTDUTPOODUCEO AT COST SHOWN BY VEETTICAL SCALE 



Costs at which different portions of the output of coke, beehive, were produced in 

September, 1918. 

highest-cost producers had a capacity to supply only the last 10 jper 
cent of maximum production, and that virtually 90 per cent of the 
possible output of the country would be sustained by fixing the price 
at $6 per ton. It was the unwritten rule both of the price-fixing com- 
mittee and the Fuel Administration to fix a price high enough to 
assure the output of about 85 or 90 per cent of the absolute maximum 
production of the country. 

It is of especial interest to study by way of example, the several 
production costs, which follow in table or chart form as reported by 
the Federal Trade Commission or the Tariff Commission, and the 
prevailing fixed prices for the same months. The Government fixed 
price of $32 per ton for basic pig iron in September, 1918, clearly was 
high enough to bring out over 90 per cent of the possible production. 



GOVBRNMElirT CONTROL OVER PRICES. 



401 



The base price of $73 per gross ton for forging ingots (open hearth) 
was apparently high enough to draw out virtually the whole^ pro- 
duction. Structural shapes were fixed at a point to encourage' over 
90 per cent of the production, and so, too, were plates. 



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COSTS 

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d ; 


it .C 


-osl 


S_£ 


ho 


^ 


^J 


ver 


ti.C4 


a s 


COl« 









Costs at which difEerent portions of the output of pig iton, basic, were produced in 

September, 191S. 

The two cost lines for Douglas fir lumber in Washington and 
Oregon show how the cost curve for October, 1918, ran above that of 
the spring previous. The previous maximum price of $26 per thou- 
sand was left unchanged, however, because the same output was no 
longer needed.^ 



1 Data given by F. ^W. Taussig. 



125547°— 20 26 



402 



HISTORY OF PRICES DURING THE WAR. 



The earlier fixed price for the 1917-18 crop of beet sugar of $147 
per ton at Nctv York, was found to afford adequate return for the 



Costs 

at which different portions of the output 

of 

DOUGLAS FIR 

were produced 

Ths lower line iar Mor.S ond ftpril. t9IJ, thi upper for October, 1910 



.s.^— 




so, •% 



Percer.Tags of Ictal output producesi at vario'/s costs. 



Costs at which diliorent portions of the output of Douglas fir were produced iu March, 

April, and October. 1918. 

production only of about 82 per cent of the crop.^ The Food Admin- 
istration, therefore, after an investigation into the costs of producing 
pugar beets, found it necessary later to hicrea^e the price to $176.40 



D 

1: 

L.. 

§ : 
1": 


COSTS 
at which different portions of Mie output 

be:e:t°5ugar , 

Were pTOduced 

137 '- IStS / 


o 

" 1 






J 


-'^ 


^^ ■ 






Tons produced af various costs 











Costs at which different portiAis of the output of beet sugar were produced in 1917-18. 

per ton in order to cover costs for about 90 per cent of the forth- 
coming crop. 



1 The 1917-18 crop of beet sugar was about 848,800 tons. 



GOVERNMENT CONTROL OVER PRICES. 



403 



UNITED 


STATES FUEL ADMINISTRATION 














NO 


10 
























— ..- 




ALL BrruMINOLIS DISTRICTS CMARTED 

alis.&sept;o7 
























■ 


FEOERai. TraDK COMMISSION 


I 


























, 






















i 


: 




„=^,.„.,,=™,™ „„^^Tsr' 
























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f\ 






























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A 




















: 








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■ 


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'-T..-.^ 


















--^ 
































: 


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r 




, 






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s?ij?; 


UTOA-NCE p'.aS^' 






















i 
























• 




„ „ . „a 



Average adjusted costs, bulk lines, and prices originally fixed for all bituminous coal 
districts charted during August and September, 1917, 37,857,000 tonnage, average of 
August and September, 1917. 



UNITED' 


STATE 


:s Fu 


:L AI^MINIS 


5TRATION 












No 


8S 


Ccai of PrWuction Afj\1vmcite Coal in 


























-' 




























- 


FcoERj-i Trade CoMMt3SJ0N 


























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- 




- 




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.„ 


^ 








































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"- 










































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- 








































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'": 


•" 








































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K 




































1 



Graphic chart showing cost of production of anthracite coal in Pennsylvania anthra- 
cite region during the period— December, 1917, to May, 1918 ; reported cost, adjusted 
cost, tons reported by 83 operators, 33,039,655 ; tons, montnlv average ' renorted 
5,506,609. ^ ^ V teu, 



404 HISTORY OF PRICES DURING THE WAR. 



jj? 



COSTS FOUND BY THE FEDERAL TRADE COMMISSION FOR SEPTEMBER, 1918. 

BEEHIVE COKE. 

[Government price $6 per net ton.] 

Production cost 
per gro.ss ton. 

Companies producing up to 60 per cent of total $2. 93-$4. 44 

Companies producing over 00 to 70 per cent of total 4.44- 4.99 

Companies producing over 70 to 80 per cent of total 4.99- 5.44 

Companies producing over 80 to 90 per cent of total 5.44- 6.47 

Companies producing over 90 to 100 per cent of total 6. 47-11. 45 

PIG IRON (basic). 

[Government price $32 per ton.] 

Companies producing up to 60 per cent of total $18. 14-$22. 06 

Companies producing over 60 to 70 per cent of total 22. 06- 24. 32 

Companies producing over 70 to 80 per cent of total 24. 32- 25. 41 

Companies producing over 80 to 90 per cent of total 25.41- 27.49 

Companies producing over 90 to 100 per cent of total 27. 49- 45. 72 

INGOTS (OPEN hearth). 

[Government price $73 per ton.] 

Companies producing up to 60 per cent of total $30. 60-$33. 42 

Companies producing over 60 to 70 per cent of total _ 33. 42- 35. IG 

Companies producing ever 70 to 80 per cent of total 35. 16- 39. 77 

Companies producing over 80 to 90 per cent of total 39. 77- 41. 86 

Companies producing over 90 to 100 per cent of total 41. 86- -66. 34 

STRUCTURAL SHAPES. 

[Government price $3 per 100 pounds.] 

Companies producing up to 60 per cent of total $45. 54- 

Companies producing over 60 to 70 per cent of total 45. 54-$49. 37 

Companies producing over 70 to 80 per cent of total 49. 37- 52. 07 

Companies producing over 80 to 90 per cent of total 52, 07- 57. 69 

Companies producing over 90 to 100 per cent of total 57. 69- 76. 79 

PLATES SHEARED. 

[Government price $3.25 per 100 pounds.] 

Companies producing up to 60 per cent of total $46. 30-$56. 80 

Companies producing over 60 to 70 per cent of total 56. 80- 59. 56 

Companies producing over 70 to 80 per cent of total 59. 56-; 

Companies producing over 80 to 90 per cent of total 59.56-66.28 

Companies producing over 90 to 100 per cent of total 66. 28- 82. 25 

-MERCHANT BAR. 

[Government price $3.50 per 100 pounds.] 

Companies producing up to 60 per cent of total ." $44. 82-$48. 45 

Companies producing over 60 to 70 per cent of total 48. 45- 48. 74 

Companies producing over 70 to 80 per cent of total 48. 74- 53. 38 

Companies producing over 80 to 90 per cent of total 53. 38- 68. 98 

Companies producing over 90 to 100 per cent of total 68. 98- 87. 15 

One of the most interesting studies of the rehition of bulk line to 
the average costs and price fixed is afforded by the accompanying 
chart, representing the countiy-wide costs of producing anthracite 
and bituminous coal. The engineering committee of the Fuel Ad- 
ministration, after adjusting the reported costs, established a bulk 
line- above which the Fuel Administrator personally allowed a per- 
cent of profit and fixed the price. The latter two charts pertain- 
ing to coal prices fixed are designed, of course, to show results for 
the country as a whole and are not the specific ones used by the Fuel 



GOVERlsrMEJSrT CONTROL OVER PRICES. 



405 



Administration in setting prices. The price differentials for each 
district were actually determined by separate district charts, made 
however, in precisely the same manner as these summary/ charts. ' 

KEY TO COST CHART OF BITUMINOUS COAL. 



State and district. 



Alabama :- 

^ No. 1 

•-i No.2 

nINo.3 ...'.'.' 

^ '-I No. 4 

^Arkansas-Oklahoma 

Colorado: 

Domestic 

, Trinidad 

Lignite , 

Illinois: 

nNo.1 

VNos. 2and5 

\ ^ Nos. 3, 4, and 6 

'*' Indiana 

Iowa: 

■■! Appanoose , 

^ ^ Des Moines 

Kansas, Cherokee, and Crawford . . 
Kentucky: 

T^No. 1 , western 

>^No. 2 (Tennessee and Virginia) . 
^No. 3 (east Kentucky and east 

Tennessee) 

Missouri: 
"fNo.l 

^ "^No.2 :.:; 

Montana, Utah, and Wyoming 
North Dakota: 

' -North district 

-iSouth district , 

■*New Mexico, Raton 

Oklahoma: 

. (See Arkansas.) 

-^McAllister 

Ohio: 

No. 1. (See West Virginia No, 
\ 9.) 
7N0S. 2and7 

■^No. 3 ;; 

"^'Nos. 4 and 6 

No. 5 

^No.8 ".".■ 

Pennsylvania: 

•No. 1, central 

-> No. 2, southwest 

Tennessee. (See Kentucky.) 

" ^ Bituminous No. 1 

■'^Bituminous No. 2 

^ lyignite 

Utah. (See Montana.) 
Virginia: 
, (See Kentucky.) 
"~- Upper Clinch.'... 



Average 
tomiage, 
August- 
Septem- 
ber, 1917. 



■pper Clinch.' 

West Virginia: 
v^No. 1, Pocahontas 

* No. 2, Tug River 

-•i Nos. 3 and 4, Thacker and 
V Kenova . . . 

r^No. 5, Logan ..'. ' 

^^No. 6, New River ■■" 

"^•No. 7, Kanawha 

^ No. 9, Pomerov 

^>.No.lO. •■ 

^No. 11 , Preston 

V No. 11 , upper Potomac. 

^No. 12, Fairmont ' ■" 

No.l3includmg Pennsylvania" 

_^ ( No. 2). 

Wyoming. (See Montana.) 



380, 000 
185,000 
790, 000 
90, 000 
272, 500 

462, 000 
320, 000 
145,000 

310, 000 

417, 500 

5, 525, 000 

1, 770, 000 

140, 000 
410, 000 
475,000 

658, 000 
1,135,000 

900, 000 

240, 000 
130; 000 
950, 000 

17,000 

40, 000 

261,000 



70,000 



165,000 
591, 000 
296, 000 
360, 000 
1, 115, 000 

4, 310, 000 
7, 225, 000 



12,000 
73, 000 
SO, 000 



Per 
cent 
total. 



27, 500 

1, 625, 000 
230, 000 

285, 000 

842; 500 

1, 092, 000 

890, 000 

94, 000 
365,000 

52, 500 
595, 000 
947, 500 



1.02 
.50 

2.12 
.24 
.73 

1.24 
.86 
.39 

.83 

1.12 

14.40 

4.74 

.37 
1.10 
1.27 

1.76 
3.04 

2.41 



.35 
2.54 

.04 
.11 
.70 



.44 

1.59 

.79 

.96 

2.99 

11.87 
19.35 



.03 
.19 
.21 



4.35 
.62 

.76 

2.26 

2.93 

2.38 

.25 

.98 

.14 

1.59 

2.54 



Costs. 



Re- 
ported. 



SI. 47 
2.49 
1.87 
1.86 
2.50 

2. 04| 

1.88 

1.84i 

2. 28} 
1.86 
1. 48J 
1.58" 

2.42 
2.14 
2.16 

1.43 

1.54 

2.02 

2.03 
2.47 
1.89 

2.38 
1.47 
1.5.Si 



3. 05i 



2.38 
1.61 
2.11 
1.61 
1.50 

1.95-i 
1.57', 



3.38 

2.62 

.83 



2. 15] 

1.40 
1.83 

1.59] 

1.65i 

1.74] 

1.58] 

2.15 

1.69 

1.92 

l.S4i 

1.56' 



Ad- 
justed. 



$1.48 
2.47 
1.86 
1.96 
2. 50] 

1.96] 
1.80 

1.78, 

2.26] 
1.83 
1.60]- 
1.61" 

2.44 
2.16 
2.21 

1.46 
1.60 

1.91 

2.09 
2.47 
1.89 

2.17 
1.55 
1.73 



3.15i 



2.30 
1.65 
2.02 
1.65 
1.51- 

1.98 
1.59 



Bulk 
line. 



Price 
fixed. 



SI. 68 
2.75 
2.14 
2.16 
2.90 

2.20 
1.84 
1.84 

2.40 
2.00 
1.66 
1.80 



S2.10 
3.10 
2.50 
2.50 
3.30 

2.55 
2.19 
2.35 

2.75 
2.40 
2.00 
2.00 



Cumulative, per 
cent. 



Aver- 
age 
cost. 



2. 60 3. 00 

2. 40 2. 80 
2. 40 2 



3.35 
2.71 
1.03 



2. 12] 

1.31] 

1.78 

1.62] 

1.65 

1.75-i 

1.60 

1.92 

1.72-i 

1.90 

1.88 

1. 591. 



1.65 
1.80 

2.25 

2.40 
2.80 
2.20 

2.25 
1.70 

1.78 



3.54 



2.67 
1.80 
2.35 
1.95 
1.65 

2.22 
1.70 



3.83 
3.00 
1.25 



2.00 
2.20 

2.65 

2.75 
3.20 
2.60 

2.65 
2.10 
2.35 



3.95 



3.10 
2.20 
2.60 
2.35 
2.00 

2.60 
2.00 



2.13 

1.60 
2.01 

1.90 
1.80 
2.00 
1.90 
2.05 
2.00 
2.15 
2.02 
1.80 



7.34 
98.51 
72.18 
79.35 
99.59 

80.59 
68.94 
68.08 

97.20 
70.06 
21.74 
56.89 

98.01 
95.06 
96.37 

6.32 

49. 77 

78.86 

93.89 
98.86 
76.31 

95.10 

24.84 
64.14 



99.97 



97.64 
59.24 
93.25 
60.20 
24.73 

S2.46 
44.19 



Bulk. Price, 



24.73 
98.51 
74.09 
74.47 
99.59 

78. 25 
60.31 
59.45 

97.20 
69.44 
23.71 
55.21 



48.82 
98.51 
74.23 
74.47 
99.59 

75.71 
54.59 
64.43 

96.10 
69.44 
23.71 

47.80 



97. 57 97. 57 
95. 10 97. 20 
96. 37 95. 27 



6.32 
47.93 

92.57 

94. 00 
98.86 
77.01 

95.10 

24.84 
44.89 



99.97 



98.01 
59.06 
93.36 
64.41 
9.31 

90.12 
44.19 



4. .35 100.00 
3. 50 99. 78 
1.65' .21 



2.50 

2.00 
2.40 

2.30 
2.15 
2.35 
2.25 
2.45 
2.30 
2.40 
2.40 
2.15 



93.96 

4.56 
67.69 

57.65 
62.46 
67.07 
52.15 
79.11 
63.44 
76. 45 
73.77 
46.73 



100. 00 

99.78 

.21 



71.97 

4.56 
70.06 

63.45 
57.47 
68.32 
62.69 
71.90 
65.39 
74.23 
71.65 
50.47 



6.32 
57.63 

93.36 

94.00 
98.86 
78.25 

90.95 
48.93 
64.04 

99.97 



98.01 
59.22 
90.91 
65.39 
9.31 

90.12 
43.06 



100. 00 

99.78 

.21 



72.11 

4.56 
70.06 

62.36 
53.73 
68.32 
61.60 
72.04 
63.34 
71.79 
71.65 
51.47 



406 



HISTORY OF PEICES DURING THE WAR. 

KEY TO COST CHART OF ANTHRACITE COAL. 







Costs. 


Ad- 
justed 
standard 
percent 

sizes. 


General. 




Company. 


Individual. 


Ton- 
nage. 


Re- 
ported. 


Ad- 
justed. 


Ter 
cout. 


Re- 
ported 
cum. 


Ad- 
justed 
cum. 


Per 
cent. 


Re- 
ported 
cum. 


Ad- 
justed 
cum. 


Per 
cent. 


Re- 
ported 
cum. 


Ad- 
justed 
cum. 


145 fi7'? 


S4. 961 
5.26 
4.52 
4.96 
4.36 
4.30 
4.76 
5.998 
4.64 
3.37 
4.88 
4.21 
2.92 
4.59 
3.72 
2.77 
3.47 
3.6.5 
3.80 
4.77 
3.95 
5.77 
4.77 
5.24 
6.04 
6.69 
4.97 
4.32 
5.18 
3.96 
4.02 
5.24 
4.34 
3.83 
4.87 
3.37 
5.25 
3.05 
2.53 
3.14 
3.25 
3.42 
2.77 
3.34 
3.98 
4.01 
2.81 
3-39 
3.57 
3.21 
2.65 
4.19 
3.49 
4.11 
3.09 
2.84 
3.77 
3.56 
4.64 
4.05 
4.23 
5.20 
5.15 
5.42 
4.69 
3.19 
5.05 
3.65 
4.64 
5.06 
3.91 
5.07 
5.22 
3.17 
4.00 
3.41 
2.87 
3.80 


S4. 783 
5.45 
4.51 
4.14 
4.06 
4.46 
5.28 
5.77 
4.49 
3.78 
5.40 
4.22 
3.27 
4.05 
3.32 
3.04 
3.64 
3.77 
3.88 
4.82 
4.12 
5.39 
4.69 
5.03 
5.69 
6.30 
4.66 
3.77 
4.47 
3.89 
4.04 
4.92 
4.18 
3.83 
4.04 
3.27 
5.23 
2.80 
2.64 
3.18 
3.42 
3.70 
2.92 
3.24 
3.90 
4.18 
2.87 
3.71 
3.51 
3.44 
2.98 
4.23 
3.67 
4.45 
2.98 
3.05 
3.79 
3.67 
4.56 
4.49 
4.35 
4.71 
5.23 
4.85 
4.48 
3.28 
5.67 
4.00 
4.44 
4.86 
3.94 
4.93 

"3." 53" 
4.19 
3.60 
3.24 
4.01 


- 3.6 
-f 3.4 


0.44 
.14 
.01 
.02 
.03 
.36 


87.70 
95.64 
78. 16 
87.72 
74.87 
69. 78 


88. 87 
98.48 
80.24 
62.00 
60.65 
77. 73 








1.83 
.58 
.02 
.07 
.12 

1.50 


81.53 
91.40 
58.08 
81.06 
50.74 
44.64 


80 23 


46 


277 
367 
231 
740 

637 
389 
799 
438 
122 
981 
578 
063 
957 
571 
005 
642 
292 
369 
MO 
850 
955 
226 
932 
193 
622 
192 
537 
209 
783 
876 
572 
420 
778 
160 
037 
059 
178 
950 
519 
865 
712 
808 
648 
284 
404 
884 
142 
147 
067 
547 
359 
848 
590 
069 
445 
971 
071 
473 
764 
386 








95 93 


1 








59.36 


5 


- 6.92 
-1- 4.5 
-h 3.6 
-(-11.1 

- 0.5 
-H3.2 
-f- 6.8 
+10.8 
+ 0.1 
+ 5.3 
+ l.Q 
-10.65 
+ 5.46 
+ 0.72 
+ 3.22 
+ 2.27 
+ 1.1 
+ 4.6 
+ 1.7 

- 1..38 

- 3.96 

- 5.86 
-1- 3.44 

- 5.22 

- 9.00 

- 8.51 

- 3.63 

- 0.18 

- 3.59 

- 5.95 

- 5.98 

- 7.72 

- 3.10 

- 1.70 

- 8.-37 

- 2.76 

- 1.94 

- 1.13 
-f 4.03 

- 4.24 

- 4.49 

- 1.94 

- 2.51 

- 1.29 
+ 4.93 

- 1.77 
-f 2.5 
+ 3.23 

- 1.98 
-f 3.23 
+ 6.33 

- 3.74 
-t- 0.87 
+ 0.65 

- 1.35 

- 1.9 
+ 10.7 
+ 4.7 

- 3.0 
+ 4.4 

- 9.5 
+ 4.3 
+ 1.1 
+ 16.9 
+ 2.7 

- 2.0 

- 3.1 
+ 3.7 

- 2.6 
+ 1.8 

- 2.61 

- 8.24 

- 9.95 

- 2.51 
+ 0.2 


36 96 


q 








33.74 


11<5 








55 77 


so 










9 


.01 
.04 
.04 
.08 
.09 
.36 
.13 
.38 
.40 
.37 
.44 
.43 
.84 
.21 
.81 
.09 
.64 
.27 
.27 

1.12 
.96 

1.36 
.62 

1.14 
. .55 
.60 
.81 

1.11 

1.02 
.5-5 

1.53 

1.94 
.93 

1.26 
.73 
.69 

:i 

.09 
1.47 
.56 
.30 
.59 
.77 
.33 
.42 
.31 
.79 
.94 
.25 
.58 
.30 
.03 
.34 
.23 
.05 
.15 
.08 
.29 
.12 
.12 


98.64 
80.49 
29.62 
85.64 
67.66 
12.13 
79. 66 
44.28 

5.44 
35.26 
41.70 
48.48 
84.77 
55.39 
98.63 
84. 86 
94.40 
98. 94 
99.91 
89.36 
71.94 
93.20 
56.67 
61.29 
94.95 
74.84 
51.70 
81.85 
30.64 
95.50 
15.48 

3.47 
18.19 
23.93 
34.37 

6.13 
23.25 
38.30 
59.41 

7.60 
32.90 
39.92 
21.11 

5.04 
67.97 
36.16 
65.21 
16.27 
10-10 
46.46 
39.59 
80- 45 
63.75 
68. 52 
93. 76 
91.76 
96.64 
82.27 
20.18 
90.23 
41.26 


99.50 
79.52 
43.79 
98.73 
66.50 
22.25 
59.31 
24.12 
11-81 
32.78 
42.79 
49-84 
90.48 
61.98 
98.15 
85.30 
94.36 
99.37 
100-00 
84.62 
43-75 
79.37 
50.46 
58.52 
91.97 
63.23 
46.40 
57.38 
21.73 
96.23 

5.27 

1.94 
17.86 
27.58 
40.14 

7.98 
19.98 
31.53 
64.54 

6.74 
41.86 
30-21 
28-55 

9-54 
68.07 
38.28 
76.96 

8.77 
12. 75 
44.04 
38.86 
81.20 
79.48 
72.11 
86.80 
95.68 
91.42 
79.45 
23.13 
99.10 
52.17 








.04 
.17 
.18 
.31 
.36 
1.51 
.55 


97.23 
65.38 

8.03 
77.10 
39.94 

2.54 
63.15 


99 07 


IS 








56.39 


14 








18.76 


■'4 








95.35 


•>H 








42.11 


T'O 








2 54 


4S 








33.62 


1?6 


0.50 
.53 
.49 

.58 
.57 


54.07 
6.85 
43.96 
50.67 
57.30 


29.66 
14.65 
39.86 
49.53 
56.65 




13? 








1?? 








14.T 








143 








Wf* 


3.51 
.88 


74., SO 
27.71 


84 21 


61 








36 89 


W>6 


1.06 

.12 

.85 

.35 

.35 

1.48 

1.26 

1.79 

.82 

1.50 

.73 

.79 

1.07 

1.46 

1.34 

.73 

2.01 

2.55 

1.22 

1.67 

.96 

.91 

.86 

.64 

.12 

1.93 

.73 

.40 

.78 

1.02 

.43 

.56 

.41 

1.04 

1.24 

.33 

.76 


99.16 
88.12 
95.60 
99.51 
100.00 
91.19 
79.07 
94.75 
65.92 
71.00 
96.33 
82.58 
61.42 
86.82 
37.87 
97.06 
19.64 

4.58 
21.90 
29.08 
42.78 

7.76 
34.77 
67.68 
68.78 

9.69 
40.84 
48.49 
25.37 

6.32 
76.12 
45.15 
73.80 
20.68 
14.22 
55.74 
48,09 


99.15 
91.23 
95. 59 
99.65 
100-00 
90.34 
50.79 
86.85 
57.47 
66. .59 
94 13 
70.73 
53.62 
65.09 
27.37 
97.80 
6.94 
2.55 
20.96 
34.22 
47.59 
59.76 
23.76 
58.85 
72.37 
8.87 
48.95 
36.48 
35-49 
11.65 
75. 92 
45.14 
84.69 
10.63 
15.89 
51.12 
45.90 




31 








?.\? 








88 








87 








371 








315 
450 








"m 








37fi 








IS? 








IPS 








•Jfi 








3fi5 








337 








183 








.505 








fi3P 








306 








417 








?3P 








?'S 








?14 








15Q 








30 








484 








184 








V) 








195 








255 








108 








IRC) 








10? 








?R0 








310 








83 








IW 








100 


1.26 
,14 

1.41 
.97 
.20 
.64 
.31 

1.19 
.48 
.50 


65.21 
31.04 
41.35 
90.82 
88.16 
94.45 
66.97 
7.85 
84.22 
13. 58 


62.21 


10 









56.22 


112 








48.60 


77,261 








72.78 


16.014 








91.32 


51, 076 








85.17 


24,815 








56.08 


94, 535 








3.73 


38, 371 








98.53 


39, 667 








26 91 


81,560 










73, 899 




















65,090 


.20 
.09 


53.25 
90.62 


52. 05 








.82 
.36 


22.08 

85.85 


26 41 


28, 722 


92.68 








88.12 


12,919 










365, 099 


1.11 
.11 

.08 
.73 
.09 


19.30 
59.32 

32.98 
11.77 

48.99 


32.41 
64.65 
35.50 
20.71 
54. 18 


1.46 
.15 
.11 
.96 


23.36 
68.66 
40.95 
15.18 


39.37 
72.52 
43.44 
26.08 








37,175 








27, 960 








242,028 








31,141 


.39 


21.26 


28.08 



GOVERS-MENT CONTROL OVER PRICES. 407 

KEY TO COST CHART OF ANTHRACITE COAL— Continued. 





Costs. 


Ad- 
justed 
standard 
per cent 
sizes. 


General. 


Company. 


Individual. 


Ton- 
nage. 


Re- 
ported. 


Ad- 
justed. 


Per 
cent. 


Re- 
ported, 
cum. 


Ad- 
justed 
cum. 


Per 
cent. 


Re- 
ported 
cum. 


Ad- 
justed 
cum. 


Per 

cent 


1 Re- 
] ported 
! cum. 

i 


Ad- 
justed 
cum. 


163,227 
33, 476 


S3. 77 
5.70 
4.31 
4.67 
3.94 
3.74 
4.33 
3.82 
4.22 
3.95 
4.01 
3.87 
3.23 
3.66 
3.46 
3.24 
5.43 
4.69 
3.98 
4.05 
3.97 
4.02 
4.30 
3.36 
4.81 
3.22 
3.20 
3.04 
3.56 
3.66 
3.60 
3.28 
4.68 
4.50 
3.25 
3.93 
3.57 
3.81 
3.42 
3.84 
2.84 
3.29 
3.53 
4.95 
3.36 
3.35 
3.14 
4.48 
6.46 
4.71 
5.14 
7.04 
5.43 
4.32 
4.97 
6.15 
3.16 
3.78 
3.50 
4.79 
4.77 
3.98 
4.74 
4.42 
4.56 • 
4.08 
2.60 
4.21 1 
3.554 
3.337 
2.93 
3.383 
2.83 
3.63 
2.84 
3.27 
2.51 


S3. 73 
5.71 
4.03 
4.16 

"i.bi" 

4.39 

4.18 

4.37 

4.60 

4.29 

3.66 

3.03 

3.50 

3.06 

3.43 

4.93 

4.26 

3.83 

4.22 

4.11 

4.27 

4.22 

3.22 

5.27 

3.02 

3.11 

2.76 

3.37 

3.31 

3.22 

3.11 

4.51 

3.92 

3.27 

3.61 

3.59 

3.52 

3.22 

3.71 

2.79 

3.17 

3.135 

4.202 

3.335 

3.526 

3.44 

4.45 

6.01 

4.71 

5.54 

6.11 

6.37 

"i'n" 

5.17 

'Toe'" 

3.85 

4.62 

4.92 

4.15 

4.94 

4.71 

4.65 

4.20 

3.14 

4.72 

3.651 

3.591 

3.241 

4.057 

3.41 

4.05 

3.09 

3,58 

3.18 


- 1.6 
+ 0.1 

- 6.36 

- 8.9 
+ 2.1 
+ 6.51 
+ 2.08 
+ 7.8 
+ 2.3 
+14.81 
+ 5.75 

- 6.0 

- 4.81 

- 6.11 
-13.8 
+ 4.75 

- 4.41 

- 7.21 

- 3.88 
+ 4.33 
+ 3.45 
+ 5.42 

- 4.45 

- 6.1 
+ 8.48 

- 8.06 

- 6.20 
-11.44 

- 5.81 

- 9.43 
-10.54 

- 7.01 

- 3.46 
-12. 86 

- 3.43 

- 8.14 

- 1.66 

- 9.48 

- 9.55 

- 6.1 

- 9.3 

- 6.56 

- 6.91 
-11. 84 

- 4.25 

- .93 
+ 4.3 

- 1.6 

- 2.7 


.49 

.10 

1.20 

.25 


46.21 
97.82 
70.98 
80.74 


42.35 
99.49 
66.27 
62.63 








2.05 

.42 

4.99 

1.04 


16.61 

97. 19 

; 49. 63 

66.42 


18. 53 
99.03 


386,962 
82,638 
55, 156 








33.07 








39.57 










335, 330 


1.01 
1.23 
1.16 
.52 
.66 
.55 
.46 
.33 
.45 
.08 
.38 
.27 
.30 
.63 
.49 
.57 
.59 
.48 
.48 
.22 
.69 
.34 
.86 
.56 
.61 
.20 
.30 
.28 
.32 
.16 
.40 
.74 
.74 
.44 
.48 
.94 
.83 
.54 
.30 
.50 
.35 
.91 
.41 
.13 
.24 
.25 
.09 
.47 


45.29 
73.41 
51.89 
68.18 
56.05 
59.96 
52.64 
22.13 
42.15 
34.89 
22.61 
97.38 
79.96 
58.83 
63.62 
57.72 
61.88 
75.35 
29.08 
85.66 
21.80 
20.62 
13.95 
39.01 
42.76 
40.86 
25.70 
82.19 
78.15 
22.67 
64.80 
40.66 
50.73 
34.81 
52.18 
11.04 
26.53 
37.61 
87.26 
29.58 
28.60 
17.26 
77.53 
99. 63 
82.89 
91.43 
100.00 
97.11 


54.09 
74.77 
64.39 
72.83 
82.45 
70.95 
37.86 
13.16 
29.91 
12.83 
27.96 
92.95 
68.78 
47.03 
67.47 
61.77 
69.80 
66.98 
17.69 
96.87 
11.41 
14.31 

2.80 
25.18 
23. 74 
17.89 
13.97 
80. 52 
31.85 
21. S9 
35.90 
35.42 
31.30 
18.33 
40.62 

3.74 
15.93 
14.85 
65.76 
24.62 
30.56 
29.46 
77.37 
99.63 
86.06 
98.73 
99.72 
97.34 


1.34 
1.63 
1.52 
.69 
.87 
.72 
.61 
.43 
.59 
.11 
.49 
.35 
.39 
.83 
.64 
.75 
.78 
.63 
.63 
.29 
.91 
.45 
1.14 
.73 
.80 
.26 
.51 
.36 
.42 
.21 
.53 
.97 
.97 
.58 
.63 
1.24 
1.09 
.71 
.39 
.66 
.46 


55.41 
80.70 
60.35 
77.2fl 
65.10 
69.50 
62.06 
26.71 
51.26 
43.47 
27.20 
97.76 
85:36 
68.51 
73.39 
67.04 
72.32 
83,21 
35.87 
88.41 
26.28 
24.50 
17.63 
47.33 
62.06 
49.72 
31.41 
87.18 
84.59 
27.41 
63.73 
■ 49.46 
58. S3 
43.36 
62.05 
12.98 
32.50 
46.60 
89.71 
36.53 
35.23 


62.46 

82.80 
72.25 
80.23 
88.86 
78.83 
44.58 
16.43 
36.08 
16.20 
34.71 
94.48 
76.85 
54.45 
75.49 
69.94 
77.63 
74.85 
22.06 
98.09 
14.12 
17.94 

3.69 
31.05 
29.16 
22.32 
17.49 
87.21 
60.18 
27.58 
43.97 
43.33 
37.91 
22.90 
48.22 

4.93 
19.74 
18.65 
73.52 
30.32 
36.94 






407, 650 






382, 336 






172, 128 




1 


217, 662 






181,620 






153, 522 


1 


108, 589 


j 


147,428 


i 


i 


26,906 


i 


1 


124, 125 


1 




88,528 


■" ! 




97,634 


i 


1 


208, 745 


t 


1 ■ " 


161, 504 


1 


1 


187,028 


i 


i 


195,007 


i 


1 


157,978 


[ 


1 


159,271 


I 




72,448 




1 


227,685 


! 




113,817 


! 


j 


284,953 


1 


1 


184,286 






200, 475 






64,892 







128,959 






91,027 




. -- 


104,168 


1 




53,842 






132, 154 






243,729 






244,470 








145,581 




1 




158,148 




t 




312,131 




1 , 





274, 155 








176,881 








98,414 








166,047 






116,247 


! 




300, 277 


3.77 
1.72 

.55 
1.00 
1.05 

.38 
1.97 


6.66 

58.06 
99.62 
69.54 
87.96 
99.62 
96.42 


7.50 
54 27 


136, 586 








44,074 








99 62 


79,355 








69.63 
96 99 


83, 152 


+ 7.84 
+ 4.05 
+ 8.42 
+ 4.67 
- 5.3 








30,582 








99 62 


156,819 








95 05 


133,820 










170,527 


.52 


88.24 


85.82 








2.14 


83.74 


68 68 


65,989 










118,130 


- 4.32 
+ 2.87 
+ 10. 1 

- 2.3 
+ 7.6 
+ 4.3 
+ 4.3 
+ 6.5 
+ 0.8 
+ 2.9 
+10.6 
+16.1 
+ 2.7 

- 4.81 

- 6.81 
+ 2.44 
+ 0.21 

- 0.98 

- 8.65 

- 3.5 

- 0.92 




















10,252 


.31 
.35 
.14 
.15 
38 
.18 
.51 
.09 
.34 
.25 
.30 
.84 

1.07 
.96 
.98 

1.14 
.28 
.42 
.83 
.35 


46.77 
36.51 
85.34 
85.01 
59.21 
83.31 
77.00 
79.15 
64.99 

3.72 
67.27 
38.45 
27.60 
13.09 
31.62 

8.74 
41.14 

9.16 
24.76 

1.53 


60.96 
49.22 
82.97 
92.37 
62.38 
93.13 
86.57 
83.31 
65.46 
15.10 
87.10 
37.40 
34.68 
19.98 
60.29 
26.32 
58.80 
13.58 
33.61 
17.21 








1.28 

1.45 

1.57 

.63 

.59 

. 75 

2.13 

.37 

1.42 

i.as 

1.23 
3.50 


1&67 

9.48 
30.11 
75.43 
76.79 
71.29 
55.82 
61.01 
34.60 


35 0' 


115, 107 








24. 70 


46,963 








38.53 
86 83 


50,414 








125, 122 








64 37 


59, 541 








88 87 


169,394 








71 81 


29,577 








65 77 


112,689 








41 23 


81,969 










97,579 








39, 58 
12.98 


74 01 


278,410 








13 72 


353, 711 


1.41 
1.31 

1.30 
1.50 
.37 
.55 
L09 
.47 


33.91 
16.49 
39.17 
11.19 
50.09 
11.74 
30.17 
2.03 


42.36 
25.07 
69.19 
32.55 
06. 96 
16.98 
40. 95 
21.43 




328, 971 








32.5, 004 








375,596 
92,113 








138, 344 








272,981 
116.842 









408 HISTORY OF PRICES DURING THE WAR. 

KEY TO roST CHART OF ANTHRACITE COAL— Continued. 



Ton- 
nage. 



390,540 
180, 871 

90,599 
160, 034 

52, 709 
186,552 
219,333 

92, 918 
184, 978 

97, 621 
204,465 
126,562 
157, 015 
182, 768 
140,385 

95, 808 
178,191 
134,340 
153, 685 
248, 895 
218,248 
134, 502 

93, 589 
120, 120 
197, 200 
174, 447 
236, 856 
101, 304 
273, ISO 
141, 801 
138, 540 
161, 074 
126,417 

63,122 
6,190 

27, 844 
216, 696 

37, 140 

74, 055 

61, 490 

54, 941 
170, 018 

61, 980 
195, 548 

37, 719 

36, 092 

60, 196 
4,164 

30, 585 

98, 443 
108, 625 

84,361 
2,219 

81, 621 
8,284 

41, 100 
234, 630 
223, 779 
140,087 
142,391 

84, 102 
100, 691 

81, 865 
175, 310 
124, 792 

61,877 

95, 610 
132, 657 

27, 681 
154, 153 

79,014 

79, 168 
128, 612 
107, 283 

75,272 

78,054 

65,957 



Re- 
ported. 



$2.06 



Ad- 
justed. 



S2.99 



Ad- 
justed 
standard 
per cent 
sizes. 



General. 



Per 
cent. 



2.63 


2.89 


4.55 


4.22 


3.69 


3.84 


5.37 


4.59 


3.52 


3.90 


3.42 


3.80 


5.14 


4.78 


5.04 


5.13 


4.21 


4.43 


4.76 


4.38 


3.95 


4.05 


3.47 


4.02 


3.28 


3.67 


3.80 


3.70 


4.52 


4.69 


4.19 


4.33 


4.02 


4.25 


4.23 


4.19 


3.79 


3.86 


3.70 


4.79 


3. 87 


4.03 


3.97 


4.45 


4.13 


4.28 


4.88 


4.83 


4.168 


4.213 


3. 384 


4.003 


5.117 


5.144 


4.334 


4.412 


4.407 


4.570 


4.702 




5.070 




4. 573 


4. 523 


4.012 


3.863 


6.019 


5.692 


3.095 


3.828 


4.082 


3.630 


4.521 


4.803 


4.916 


4.9?1 


4.791 


4. 6 -."^ 


5.875 




4.046 


4.420 


3.769 


4.008 


3.170 


3.273 


6.184 


5.410 


5.305 


4.851 


5.031 


4.950 


14. 499 


5.00 


4.923 


4.381 


4.601 


4.669 


4.037 


4.057 


5.452 


5.036 


5.363 


5.205 


4.088 


4.637 


3.561 


3.901 


4.470 


4.210 


4.400 


4.50 


3.930 


3.71 


6.07 


5.27 


4.24 


4.27 


5.12 


5.59 


5.07 


4.73 


5.35 


4.92 


3.80 


3.84 


4.70 


4.61 


5.78 


5.51 


7.91 


7.06 


5.65 


5.97 


5.51 


5.02 


3.93 


3.81 


4.33 


4.07 


4.73 


4.28 


5.20 


4.75 


5.40 


4.97 


4.52 


4.77 


3.77 


4.40 


3.97 


4.36 



-t- 5.62 

- 7.71 
-7.2 

- 3.26 
-12.9 
+ 4.86 
+ 3.33 

- 3.91 

- 2.79 

- 0.76 
-5.2 
4- 2.90 
+ 6.63 
-f 8.24 

- 5.73 
-t- 1.1 

- 0.92 

- 0.47 
-0.88 

- 3.71 

- 5.38 

- 0.85 
-f- 4.51 

- 2.49 

- 3.71 

- 5.71 
+ 8.65 
+ 2.56 
+ 0.69 
4- 1.81 
+ 1.50 
+ 2.88 

- 1.1 
-1.9 
+ 1.3 
-h23.7 
-7.2 
-1-10.9 
-0.5 
-0.9 
+ 0.3 
+12.0 
-4.4 

- 3.64 
-12.55 

- 8.56 

- 1.60 
-12.47 
-11.0 
+ 5.6 
-0.2 

- 7.63 
+ 1.6 
+ 10.2 
+ 5.7 
+ 14.9 
+ 2.23 
-5.6 
-11.78 
+ 0.55 
+ 9.03 

- 6.67 

- 5.40 
+ 1.05 

- 1.90 

- 4.62 

- 6.81 
+ 6.77 

- 8.38 

- 5.52 
-6.00 

- 8.02 

- 8.63 

- 8.00 
+ 5.6 
+ 16.8 
+ 9.8 



1. IS 
.55 
.27 
.48 
.16 
.56 
.66 
.28 
.56 
.30 
.62 
.38 
.48 
.55 
.42 
.29 
.54 
.41 
.47 
.75 
.66 
.41 
.28 
.36 
.60 
.53 
.72 
.31 
.83 
.49 



Re- 
ported 
cum. 



1. IS 
4.27 
79.06 
43.24 
96.17 
37.07 
33.64 
91.71 
90.11 
67.57 
83.93 
55.18 
35.74 
25.31 
48.90 
78.79 
66.64 
62.29 
69.09 
47.52 
43.90 
53.05 
57.15 
65.57 
86.24 
66.10 
32.34 
91.18 
74.24 
76.49 



Ad- 
justed 
cum. 



.38 
.19 
.02 



.08 
.47 
.24 
.24 
.33 
.32 
.23 
.24 
.20 



79.53 
60.15 
98.66 
16.35 
64.65 
78.50 
86.46 
85.20 



63. 13 
45.72 
19.89 
99.49 
95.75 
89.55 
89.37 
86.55 
77.83 
62.62 
97.64 
96.01 
64.90 
39.62 
77.12 
76.06 
54. 40 
99.37 
69.42 
90.87 
90.53 
96.00 
48. 05 
82.65 



97.72 
53.72 
72.18 
83. 13 
93. 53 
96.49 
78.39 
45. .53 
56.87 



10.72 
7.29 
67.74 
48.12 
81.79 
51.05 
45.12 
88.43 
95.31 
76.65 
73.45 
59.18 
54.66 
39.41 
44.46 
85.21 
71.77 
68.48 
65.12 
48.87 
89.53 
55.07 
78.01 
70.16 
91.08 
66.41 
52.89 
95.62 
75.84 
81.63 



Company. 



Per 
cent. 



1.56 



80.90 
49.41 
99.39 
47.11 
36.56 
89.64 
92.59 
83.50 



76.35 
53. 08 
22.84 
98.34 
91.27 
93.31 
93.64 
73.54 
84.92 
60.62 
94.62 
95.63 
83.22 
50.49 
65.88 
80. 23 
41.30 
96.65 
69.21 
98.98 
87.40 
92.22 
47.64 
82.83 



.64 
.21 

.74 
.87 
.37 
.74 
.39 
.82 
.50 
.63 
.73 
.56 
.38 
.71 
.54 
.61 
.99 
.87 
.54 
.37 
.48 
.79 
.70 
.94 
.40 
1.09 
.57 



Re- 
ported 
cum. 



1.56 
5.30 



.78 
.15 
.14 
.24 
.02 
.12 
.39 
.43 
.34 



93.72 
45. 59 
61.20 
70.40 
87. 73 



93. 63 



,88. 15 
75.01 
72.31 



52.70 
97.41 
45.89 
41.82 
92.96 
92.19 
76.51 
88.00 
64.23 
44.59 
30.90 
57.86 
84.97 
75.69 
71.54 
77.81 
56.73 
53.57 
63.20 
66.29 
74.28 
89.20 
74.98 
40.11 
92.59 
81.79 
83.78 



Ad- 
justed 
cum. 



13.21 
9.59 



Individual. 



Per 
cent. 



Re- 
ported 
cum. 



24.14 
99.66 
97.20 
91.45 
01.21 
89.32 
84.17 
72.75 
98". 10 



55.09 
87.99 
58.21 
52. 55 
91.60 
96.67 
84.28 
81.05 
67.46 
63.09 
46.63 
51.68 
91.11 
79.54 
76.46 
73.13 
56.08 
92.47 
63.66 
85.06 
78.11 
93.26 
74.22 
61.12 
97.07 
83.89 
87.78 



28.36 
99.30 
93.40 
84.72 
94.74 
81.17 
90.73 
67.89 
95.93 



1.14 



60.64 



1.59 
.79 
.08 
.35 

2.72 
.47 
.93 
.77 



2.14 

.78 



.03 
1.03 
.10 
.52 
2.95 
2.81 
1.76 
1.79 
1.06 
1.27 
1.03 
2.20 
1.57 



.35 

2.81 

.99 

1.00 

1.37 

1.35 

.95 

.98 

.83 



68.50 
30.90 
97.31 
2.89 
37. 32 
69. 50 
78.03 
76.20 



33.18 
17.39 



92,46 

13.08 
66. 34 
53.69 
26.83 
97.31 
43.14 
86. 91 
85.49 
92.43 
20.87 
68.54 



96.77 
26.83 
50.62 
70. 54 
89. 85 
93.81 
59.03 
14.56 
28.64 



GOVERISTMENT CONTROL OVER PRICES. 409 

KEY TO COST CHART OF ANTHRACITE COAL— Continued. 





Costs. 


Ad- 
justed 
standard 
per cent 
sizes. 


General. 


Company. 


Individual. 


Ton- 
nage. 


Re- 
ported. 


Ad- 
justed. 


Per ^®- 
^l^\ ported 

^^°-^- \ cum. 

j 


Ad- 
justed 
cum. 


Per 

cent. 


Re- Ad- 
ported justed 
cum. cum. 


Per 
cent. 


Re- 
ported 
cum. 


Ad- 
justed 
cum. 


64,023 

41,316 

238, 729 

25, 565 


S4.62 
4.94 
4.86 
5.16 
4.94 
4.67 


S4.76 
5.13 
4.97 
4.83 
4.31 
4.18 


+ 3.2 
-t- 3.8 
+ 6.2 
+ 6.0 . 
-10.9 
-10.6 


. 19 80. 15 
. 13 86. 96 


87.92 
94.75 






.80 
.52 


63.95 

78.55 


77 45 






91.09 








.08 i 91.84 
.28 86.83 
.06 ! 81.91 


91. 16 
71.23 
64. 45 








.32 
1.15 

.24 


88.48 
79.70 
66.66 


84 53 


91, 747 








47.19 


19, 338 








39.81 













It may be repeated that the price-fixing committee gave frank 
recognition to the fact that a determination to fix prices at the " bulk 
line " would give the lowest-cost producers enormouslj^ large profits. 
They relied, however, upon the Government getting those profits 
through the operation of the excess-profits tax. Chairman Brookings 
gave voice to the sentiment that it made no especial difference to the 
Government whether these profits were held in check by the com- 
mittee or taken by tax. A considerable tax upon excess profits was 
already being collected in 1918, under the revenue act of 1917, upon 
the incomes of 1917, and one still higher was in prospect for the 
incomes of 1918.^ 

(6) THE INTERPRETATION OF A "REASONABLE PROFIT." 

Once the " bulk line '' of production had been found and the cost 
necessary to protect enough producers to supply tli^t amount, the 
technical difficulties of fixing any price were over. There remained 
then simply the allowance of a " reasonable " margin for profit above 
the " bulk-line " cost and the announcement of the price. The 
" bulk line '' for coal, in the Fuel Administration, was located by a 
committee of technical experts who left, as a matter of policy, the 
determination of the fixed price above the " bulk line " to the Fuel 
Administrator in person. The price-fixing committee, which had 
no su ch_ technical assistance, roughly Gstiiiiated their own "' bulk 
lines-ILancl fixed their own prices after .conferences with the industry. 
The whole body of price-control boards at Washington, either care- 
fully or roughly, figured that the producer should have a " reasonable 
profit," though they were not in agreement as to what that profit 
should be. 

The President in his address to the mine operators and manu- 
facturers of the United States, on Julj^ 12, 1917. had said: 

A just price must, of course, be paid for everytliiug the Government buys. 
By a just price I mean a price wbicli will sustain tlie industries concerned 

1 See " PriceyFixing as sgen by a Price-Fixer,*' ty F. W. Taussig in the Quarterly 
Journal of Economics, February, 1919. 



410 HISTORY OF PRICES DURING THE VV^AR. 

in a high state of eflicienoy, provide a living for those who conduct them, 
enable them to pay good wages, and make possible expansions of their enter- 
prises which will from time to time become necessary- as the stupendous under- 
takings of the great war develop. 

It was left to each board, however, to determine upon the inter- 
pretation of their general principle and its application to specific 
controls. 

The price-fixing committee tried in a rough way to measure the 
prewar profits and, with that weapon in hand, they fought in con- 
ference for the opportunist policy most favorable to the Govern- 
ment upon which they and the industry could agree. They were 
compelled, for want of adequate legal powers, to accomplish their 
ends by resort to indirect methods and did not have the same relative 
success with all industries. There was not, therefore, established by 
the price-fixing conunittee, and given out to the public as their 
formal policy, any resolute or general rule with respect to what they 
considered a " reasonable profit." It was, indeed, not possible for 
them to formulate any such general policy by reason of various 
cojnplications within certain industries. It has already heen noted, 
for example, that the difiiculties of negotiation made finally man- 
datory the apx^roval of particular cotton-goods prices at figures more 
than 25 per cent above cost. 

A considerable emphasis has already been given to the noteworthy 
work done by the Food Administration with respect to determining 
their " reasonable margin of profit." Mr. Herbert Hoover said over 
and again that no person was entitled to make more profit from any 
employment than he could have made under prewar conditions. He 
did not interpret this policy to mean, of course, that no licensee 
could charge more than a prewar price. The administration of his 
general policy gave form to three important aspects of rule: That 
the " reasonable margin of x>i'ofit " must be figured upon a cost basis, 
the fixing of maximum margins of profit above that basis, and the 
disregard of replacement value in fixing margins. 



12. THE LIFTING OF GOVERNMENT CONTROL OVER 

PRICES. 

The Government iDegan lifting its war-time control over prices 
immediately after the signing of the armistice, and had. in fact, 
virtually restored prices to free competition by the end of 1918. 
Some controls were continued a short while beyond November 11, 
1918, at requests from the industries to allow for gradual readjust- 
ment, or where it was required 



ALL CONIMODITIES 

CXINTP-OLLED AND UNCONTPOLIH) 

AUCa5T.19i7 T0MAY,I919 



that particular transactions al- 
i^ady underway be completed. 

The War Industries Board 
told its commodity chiefs after 
the armistice was signed that the 
war was-'OTer, and repeatedly 
refused to enter into new regu- 
lations. It closed its doors to 
new business officially on Decem- 
ber 31. 1918. The price-fixing 
committee refused numerous re- 
quests to continue price fixing, 
in the maixu and disbanded on 
March 1, 1919. The Fuel Ad- 
ministration relinquished its 
control over fuels and closed offi- 
cially all price control on Janu- 
ary *31. 1919. The Food Ad- 
ministration, though obliged to 
continue certain controls, such 
as wheat and sugar, lifted most 
of its regulations soon after the 
armistice. The TTar Trade 
Board continued its license con- 
trol over exports and imports 
somewhat longer than other 
boards continued price control, 
but closed its official work on June 30, 1919, and went into the 
State Department for liquidation. 

(i) THE EFFECT OF LIFTING CONTROL UPON PRICES. 

It is of especial significance, since most of the Government regu- 
lations over prices had been lifted by January 1. 1919, to inquire 

411 




The Bareaa of Labor Statii-tiCi index 
numbers. — "' AU commodities "' sepa- 
rated into controlled and Jiacoatrolied. — 
By montlis, Aagnst, 1017, to ilav, 1919 
(1913=100^ 



412 HISTORY OF PPJCES DUEING THE WAR. 

what then happened to prices. A succinct presentation of the effects 
of lifting control upon the "All Con;imoclities " index number of the 
Tiureau of Labor Statistics is given here. There follows a separa- 
tion, extending from August, 1917, when control began, to May, 
1919. of the series carried by the Bureau of Labor Statistics into con- 
trolled and uncontrolled commodities.^ Beginning with August, 
1917, all commodities carried by the Bureau of Labor Statistics 
were divided into two groups — one of commodities over which price 
control was exercised at some time during the war, and one of 
those over which no control was exercised. An index number 
for August, 1917, was figured for each series on a 1913 base, 
and subsequently the per cent of change each month from the 
preceding month was found and multiplied by the index number 
for the month used as a base. Thus, two new index numbers, one 
for controlled and one for uncontrolled commodities, were made 
from the Bureau of Labor Statistics "All Commodities " index num- 
ber, and by the same method. The fact that the Bureau of Labor 
Statistics index number in July, 1917, was 185, and that the new con- 
trolled index number for August stood at 191 and the uncontrolled 
at 162. does not, of course, mean that controlled prices rose that 
month or that uncontrolled prices fell. 

The behavior of the index number of controlled commodities, 
after control had been lifted in January, 1919, would seem to indi- 
cate that regulation had held it in check. Once the regulations wer© 
removed, and in spite of the fact that war pressure had ceased, the 
index started upAvard and continued rising throughout the spring. 
The index number of uncontrolled commodities, which showed less 
stability during the war, underwent no such fluctuation or rise dur- 
ing the first half of 1919 as characterized the controlled index. There 
were so many new influences tending to determine the course of 
prices after control was lifted that no further generalization upon 
the effectiveness of war-time regulation can hfere be made. 

' Tlie basis for determining which commodities were controlled and which were un- 
controUed was precisely that used in the making of controlled and uncontrolled indexes 
from the price section index number. It is easily possible, therefoi'e, to check the com- 
modities carried by the Bureau of Labor Statistics against the list of commodities 
counted as controlled and uncontrolled in the following chapter and. discover the separa- 
tion that is made here, 



GOVERISTMENT CONTROL OVEE PRICES. 



413 



THE BUREAU OF LABOR STATISTICS INDEX NUMBERS OP "ALL COMMODITIES " 
SEPARATED INTO CONTROLLED AND UNCONTROLLED COMMODITIES FROM 
JANUARY, 1914, TO MAY, 1919. 

[1913=100.] 



Uncontrolled Januarv, 1914, to August, 
1917. 



1915 


1916 


98 


110 


100 


111 


99 


114 


99 


116 


100 


118 


99 


118 


101 


119 


100 


123 


98 


127- 


101 


133 


102 


143 


105 


146 



January... 
February . 

March 

April 

May 

June 

July 

August . . . 
September 
October... 
November 
December. 



100 
99 
99 



99 
102 
103 
99 
98 
97 



150 
155 
160 
171 
181 
184 
185 
184 





1917 


1918 


1919 




Con- Uncon- 
trolled, trolled. 


Con- 
trolled. 


Uncon- 
trolled. 


Con- 
trolled. 


Uncon- 
trolled. 




1 


185 
186 
185 
189 
189 
188 
194 
198 
201 
198 
201 
194 


182 
184 
190 
194 
192 
201 
205 
209 
216 
211 
213 
211 


198 
192 
197 
202 
205 


204 


February ... 1 


200 


March 




201 


April 




197 


Mav 




202 


June . . 






July .. 










191 
189 
182 
183 
181 


162 
158 
168 
173 
176 








:::::::::::::::;::: 


October 












December. . 

















(2) THE PURPOSE OF THE INDUSTRIAL CONFERENCE BOARD. 



Considerable anxiety arose within the Government and out, 
following the lifting of war-time control over prices, lest prices 
become unstable while readjusting themselves to peace-time condi- 
tions. The informal discussion held at Washington between high 
officials following the signing of the armistice developed a belief 
that the agreements relied upon during the war to hold prices down 
could be modified to meet the peace-time situation. The Cabinet 
was called into special meeting on February 5^ 1919, and made plans 
for the creation of an industrial board. 

The industrial board, under the plan approved by the President, 
was to meet the representatives of industry and determine with them 
" fair prices " for the basic raw materials. These prices, it was 
thought, could be found by a study of cost and marketing data and 
could be agreed upon as during war time without resort to compul- 
sion. The personnel of the new board was announced by the Secre- 
tary of Commerce on March 10, 1919, and its seven members began 
work immediately. 



414 HISTORY OF PRICES DURING THE WAR. 

The new board held numerous conferences during March with rep- 
resentatives of tlie more important industries and discussed the low- 
ering of prices. In several cases agreements were reached and the 
agreed " fair prices "' announced. 

The strength of the board lay in part in the hope that it and offi- 
cials of the Government responsible for large purchases might work 
in absolute understanding. But on April 1, 1919, there arose a seri- 
ous difficulty in the refusal of the Eailroad Administration to ac- 
cept the " agreed upon " pripes set by the board for steel rails. There 
seemed no way of reaching an agreement between the Railroad 
Administration and the industrial board. The Attorney General 
announced, as his opinion, that the plan developed had no legal 
authority. The difficulties of various kinds, aggravated by the lack of 
statutory power, accumulated and the members of the board resigned 
as of May 12, 1919. The informal method of fixing i)rices had not 
proved as efficacious in peace time as during war. 



Part III. 



STATISTICAL DEVICES FOR MEASURING THE 
EFFECTS OF PRICE CONTROL. 



INTRODnCTION. 

A study of the extraordinary heights to which prices rose by August, 
1917, and of the actions then begun by the Government to arrest them, 
prompts the inquiry how those actions affected prices. The search 
for a full answer leads into wide fields of study, depending upon the 
individual urge, and leaves the investigator at last with little more 
than opinion. Men differ in the objective points by which they 
judge whether price control w^as effective, and seek nothing so much 
as facts with which to support their own theories. This monograph 
nowhere ventures to establish or contest any theory of Government 
regulation. It presents simply the f>ertinent facts. There have 
been set up in the present chapter various statistical devices with 
•which each person may for himself measure the effects of Govern- 
ment price control. 

It should be understood at the outset that no one can hope ever 
to measure precisely the effects of price control upon the general 
level of prices. The better price index numbers of commodities at 
wholesale, made from selected samples which are weighted to allow 
each commodity its proper influence upon the index, give an accurate 
enough record of the general price level. They show how wholesale 
prices actually moved during the war. But it can not be said, of 
course, to what further heights the prices would have carried these 
index numbers had there been no Government interference. It is 
possible only to look backward and analyze what did happen. The 
most useful analysis for students anxious to know the effects of con- 
trol is had by separating the controlled and uncontrolled commodi- 
ties in a general index number of prices and recomputing nev/ in- 
dexes for each. The resulting devices make reliable measures of 
past relative rises of controlled and uncontrolled prices and at least 
suggest probable rises under free competition. 

415 



416 HISTORY OF PRICES DURING THE WAR. 

There have been made, and put into this chapter for each student 
to use as he will, the follo^^^lng statistical devices for measuring the 
effects of price control: A tabulation of the commodities controlled 
and uncontrolled each month showing the gi'adual extension of con- 
trol by an arrangement of the series in the Price Section index num- 
ber; mdex numbers of controlled and uncontrolled prices for "all 
commodities," the 7 major groups and the 50 subclasses, rmming by- 
months from 1913 to 1918, and showing then' relative movements 
away from prewar levels; chain indexes of controlled and uncon- 
trolled prices for "all commodities," 7 major groups and selected 
iiubclasses, running by months from April, 1917, to the end of 1918, 
and showing in each month the rise or fall from the month preceding; 
the relative points below which 50 selected basic commodities were 
pegged; a comparison of controlled raw-material prices with their 
uncontrolled manufactures; a comparison of controlled prices of 
manufactured goods with their uncontrolled raw materials; a com- 
parison of controlled raw material prices with their controlled 
manufactures; a comparison of controlled wholesale prices with 
corresponding controlled retail prices^ and finally a comparison of 
war prices in the United States, England, France, and Canada. 

1. THE GRADUAL EXTENSION OF PRICE CONTROL. 

It is of value, before attempting any measure of the effects of price 
control, to note the extent to which the Government brought com- 
modities under control. An analysis of the 1,366 typical commodi- 
ties at wholesale, which are included in the .Price Section index 
number, shows that in September, 1917, only 3.66 per cent of them 
were controlled and the remaming 96.34 per cent uncontrolled. 
But by the time the armistice was signed the Government had 
brought 41.95 per cent of these commodities under price control, 
while 58.05 per cent of them were still uncontrolled. The table 
which follows shows the commodities that were brought under con- 
trol each month during the war and the rate at which the list of 
controlled commodities increased and that of uncontrolled commodi- 
ties decreased. 



GOVERNMENT CONTROL OVER PRICES. 



417 



"ALL COMMODITIES." 
(1366 series=100 per cent.) 



Control began. 



1917. 
September. 



October . 



November. 



December . ^ . . . 



1918. 
January . . 



Commodities. 



February. 



March . 
April . . 



June. 
July. 



August 

September. 
October . . . 
November. 
December . , 



Coal, coke, copper, wheat, iron ore, pig iron, 
steel bars, steel shapes, steel plates 

Steel blooms and biUets, sheet bars, wire rods, 
skelp, sugar 

Steel sheets, pipe, steel scrap, tinplate, lead, 
corn, oats, barley, fresh fruits and vegetables, 
live stock, poultry, fish, vegetable oils, 
southern or yellow pine, ammonia, smoke- 
less cannon powder 

Douglas fir, wood chemicals, Portland cement, 
remainder of iron and steel class 



Number of series. 



Con- 
trolled. 



Uncon- 
trolled. 



Nitrate of soda, fertilizers, except sulphur and 

sulphuric acid 

Zinc, formaldehyde, toluol, arsenic, animal 

feeds, coffee 

Aluminum, binder twine, manUa fiber 

Spruce, hemlock, nickel, quicksilver, silver, 

paper, caustic soda, soda ash, bleaching 

powder, carbon, tetrachloride 

Wool, hides and skins, rubber, platinum, 

manganese, cotton, linters, quebracho 

Sulphuric and nitric acids, sulphur, harness 

leather 

Cotton goods and cotton yarns, brick, build- 

iag tile, sand and gravel, crushed stone 

Woolen rags, glycerin, sole and belting leather, 

crude petroleum, kapoc 

Silk waste 

Burlap 



266 
294 



352 
362 



387 

469 

481 

545 

570 
572 
573 
573 
573 



1316 
1300 



1100 
1072 

1048 

1014 
1004 

979 

897 

885 

821 

796 
794 
793 
793 
793 



Percentage of series. 



Con- 
trolled. 



3.66 
4.83 



19.47 
21.54 

23.28 

25.77 
26.50 

28.34 

34.33 

35.22 

60.10 

41.73 
41.87 
41.95 
41.95 
41.95 



Uncon- 
trolled. 



96.34 
95.17 



80.53 
78.46 

76.72 

74.23 
73.50 



65.67 

64.78 

39.90 

58.27 
58.13 
58.05 
58.05 
58.05 



The queries which press most persistently, on one seeking to measure 
effects of price control, are whether the commodities that were 
brought finally under regulation had risen relatively higher than 
others, whether the controlled commodities afterwards became more 
stable than the uncontrolled, and, finally, to what heights prices 
were allowed to rise before the Government began regulating them. 
These moot points can scarcely be settled in a manner that will 
permit of generalization upon the effects of control as a whole, except 
by the construction of a weighted index number for commodities 
that came under control some time during the war and another for 
those which did not. It is true that none of the commodities in 
such a controlled list would have come under price control before the 
summer of 3 917, and some of them not until 1918. But, if one 
object of the inquiry is to determine whether the precontrol rises of 
commodities afterwards controlled were more threatening than rises 
of other commodities, this is the proper method to pursue. The 
index numbers presented here by months from January, 1913, to 
December, 1918, are not then strictly speaking for controlled and 
uncontrolled commodities as it is proposed to call them. They are, 
more specifically, an index number of representative commodities 
which were brought under price control some time before the signing 
of the armistice and an index number of other commodities equally 
representative which were not. 
125547°— 20 27 



418 



HISTORY OF PRICES DURING THE WAR. 



2. THE PRICE SECTION WEIGHTED INDEX NUMBER SEP- 
ARATED INTO CONTROLLED AND UNCONTROLLED 
PRICES. 

The index number of wholesale prices made by the Price Section of 
the War Industries Board is, by all odds, the most comprehensive 
and best device for measuring war prices that has been used in this 
country. This index number contained prices for 1,366 of the most 
important individual commodities that were dealt in at wholesale 
during the war, classified into 7 major groups and 50 subclasses. 

These 1,366 commodities, for which the index number contains 
monthly, quarterly, and yearly prices from January, 1913, to Decem- 
ber, 1918, fall under one or another of the following 7 groups and 50 
classes : 



I. Foop Group. 

1. Feed and forage. 

2. Wheat and wheat products. 

3. Com and corn products. 

4. Oats, rice, buckwheat, and their 

products. 

5. Barley, hops, rye, and their products. 

6. Sugar and related products. 

7. Vegetables and truck. 
8.- Edible vegetable oils. 
9. Fruits, nuts, and wine. 

10. Spices and condiments. 

11. Tea, coffee, and cocoa. 

12. Tobacco and tobacco products. 

13. Live stock, meats, and fats. 

14. Poultiy and dairy products. 

15. Fish and oysters. 

II. Clothinc". Group. 

Ifi. Cotton and cotton products. 

17. Wool and wool products. 

18. Silk and silk products. 

19. Hides and skins and their products. 

20. Hatters' fur and fur felt hats. 

21. Hair, bristles, and feathers. 

22. Butt'ons. 

III. Rubber, Paper, and Fibers 
Group. 

23. Rubber and rubber products. 

24. Paper. 

25. Fibers and fiber prodiicts. 

IV. Metals Group. 



26. Iron, steel, and their products. 

27. Ferroalloys, nonferrous and 

metals. 



rare 



V. Fuels Group. 

28. Coal and coke. 

29. Petroleum and its products. 

30. Matches. 

VI. Building Materials Group. 

r 

31. Clay products. 

32. Sand and gravel. 

33. Quarry products. . 

34. Cement. 

35. Glass. 

36. Lumber. 

37. Paints and varnishes. 

VII. Chemicals Group, 

38. Mineral acids. 

39. Heavy chemicals. 

40. Miscellaneous inorganic chemicals. 

41. Fertilizers. 

42. Soaps and glycerin. 

43. Essential oils, flavoring, and per- 

fumery materials. 

44 . Wood distillation products and naval 

stores. 

45. Natural dyestuffs and tanning chemi- 

cals. 

46. Coal-tar crudes, intermediates, and 

dyes. 

47. Drugs and pharmaceuticals. 

48. Proprietary preparations. 

49. Explosives. 

50. Miscellaneous organic chemica-ls. 



GOVERNMEISTT CONTROL OVER PRICES. 419 

The price series were, so to speak, laid upon a table and separated 
into those which some time came under price control and those 
which did not. The field of prices formally or informally controlled 
by the Government is infinitely wider and more indefinite than that 
covering simply the prices fixed. But an adequte measurement, 
covering all price regulations undertaken by the Government, requires 
that the broader interpretation of control be chosen. There was 
involved, therefore, considerable arbitrary judgment in determining 
whether certain prices were controlled. The use of the word control 
at any rate is consistent throughout this inquiry and it is doubtful 
whether the few exceptions which may be taken to the division 
made would materially affect the result. The 1,366 commodities 
were, as indicated, then separated into 573 controlled and 793 uncon- 
trolled commodities. 

(1) TABLES OF INDEX NUMBERS OF PRICES OF CONTROLLED AND 
UNCONTROLLED COMMODITIES. 

These 573 series of controlled wholesale prices and the 793 series 
of those uncontrolled, after classification under their proper groups 
and subclasses, were weighted by multiplying each individual series 
by the quantity of its 1917 production plus imports. That operation, 
designed to assign each commodity an influence upon the final index 
in proportion to its importance, gave 12 monthly, 4 quarterly and 1 
yearly aggregate for each of the 1,366 series for each of the 6 years. 
These aggregates were then turned into relatives by allowing the 
average prewar aggregate (July 1, 1913, to June 30, 1914,) to equal 
100. There was thus made an index number for controlled and 
another for uncontrolled prices upon a prewar base. The slight dis- 
crepancy between the Price Section " all commodities" index number 
listed here as "all," and the controlled and uncontrolled indexes 
occurs because class weights were not used in making the latter.^ 

It is of especial significance that the 573 series of the " all commod- 
ities" index, which the Government filially put under control, had 
risen much higher when control began than the remaining 793 uncon- 
trolled series. Indeed, just before the Government began control of 
them the index of these so-caUed controlled series reached 209, while 
the index for the uncontrolled series during the same month was 
only 160. But immediately after the beginning of control the index 
for the controlled series began to drop until by June, 1918, it was 
down to 189. The index of the uncontrolled series, on the other hand, 
continued steadily upward until October, 1918, when it reached 201. 
The controlled series likewise rose after June but never again reached 
the higher point to which they had climbed before control began. 

1 On the use of class weights, see War Industries Board Price Bulletin No. 1, " Summary," by Wes- 
ley C. Mitchell. 



420 HISTORY OF PRICES DURING THE WAR. 

The food prices that came finally under control during the war 
had risen to 194 when price control really set in, while the uncontrolled 
lot during that month had risen only to 150. The controlled food 
prices, which reached a peak of 200 in November, 1917, began 
droppmg as control w^as extended until they were as low as 179 in 
June, 1918. They then started upward again during the latter half 
of 1918. The uncontrolled food prices, while at a lower level when 
food control set in, continued rising during the wdiole time that the 
controlled food prices were falling. Control within the clothing group 
began relatively late and the behavior of the controlled and uncon- 
trolled indexes is not greatly different. The effect of the controlled 
wool prices upon their uncontrolled manufactures, and that of con- 
trolled cotton manufactures upon their raw material are studies, of 
course, which can be made only by use of the class indexes for wool 
and cotton. The effect of control within the rubber, paper, and fiber 
group does not show in the controlled index until during the latter 
half of 1918. There are few groups in which the effect of control upon 
market prices shows so immediately and clearly as in metals. The 
index of metals which the Government finally controlled reached an 
extraordinary peak of 350 in July, 1917, when talk of regulation 
began. The other metals, which never did come under control, had 
risen only to 205 in that month. Metal prices started downward 
before actual Government regulation began, and were brought by 
regulation down to 212 by November, 1917. It is noteworthy that 
the index of controlled metals was held within a few points of that 
stable level throughout the war. The rise within the controlled fuels, ^ 

' following Government regulation of coal, would seem to indicate that 
coal control did not hold prices down. The rise, however, is explained 
in a large way by increases which were from time to time allowed by 

^ the Fuel Administration. It is difficult to measure the effects of 
control within the building materials group because of the somewhat 
similar behavior of the controlled and uncontrolled groups, and the 
fact that building materials prices were so largely influenced by war 
buying. The controlled series within the chemical group began a 
decline in April, 1918, which continued throughout the year. They had 
fallen from 224 in April to 174 by December. The uncontrolled series 
during the same months rose gradually. 



GOVERIsrMENT CONTROL OVEE PRICES. 



421 









422 



HISTORY OF PRICES DURING THE WAR. 









gover:n^ment control over prices. 



423 




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03 n i-rj" 




424 



HISTORY OF PRICES DURING THE WAR. 









GOVERlsrMEjSrT CONTROL OVEE PRICES. 



425 




i 

•Jo 

yci. 



SfcJ 

j3. 






a, 





426 



HISTORY OF PRICES DURING THE WAR. 



PRICE SECTION ■WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1913-1915. 

[Base average prices July, 1913, to June, 1914=100.] 



1913— Months- 
January . . 
Febniairy. 

March 

April 

May 

June 



July 

August 

September. 
October... 
November. 
December. , 



Quarters- 
First 

Second . . 
Third... 
Fourth.. 



Vear. 



1914— Months- 
January . . 
February. 

March 

April 

May 

June 



July 

August 

September. 
October . . . 
November. 
December . 



Quarters — 

First 

Second . . 

Third 

Fourth.. 



1910 



Year 

-Months- 
January. . 
February. 

March 

April 

May 

June 



July 

August 

September. 
October . . . 
November. 
December. 



Quarters — 

First 

Second . . 
Third.... 
Fourth.. 



All commodities. 



Food group. 



Clothing group. 



Con- 
trolled. 

(.TO) 



98 
102 
103 
102 
102 
101 



97 



101 
102 



100 



99 
99 
99 
99 
99 
98 

98 
104 
10.5 
101 
99 
99 



99 
98 
102 
100 

100 



101 
102 
101 
101 

101 
100 

103 
103 
101 
101 
103 
107 



101 
101 
102 
104 



Year. 



L^ncon- 
trolled. 



(793) 



All. 



103 


103 


103 


102 


103 


102 


102 


101 


101 


100 


101 


100 


101 


100 


101 


101 


102 


102 


102 


102 


102 


102 


100 


101 


103 


102 


101 


100 


101 


101 


101 


102 


102 


101 


99 


100 


99 


100 


99 


99 


99 


98 


98 


97 


99 


97 


98 


97 


98 


101 


96 


101 


9.T 


99 


94 


98 


94 


98 


99 


100 


99 


97 


97 


100 


94 


98 


97 


99 


97 


100 


97 


100 


98 


100 


99 


100 


101 


100 


102 


100 


103 


102 


102 


102 


103 


102 


106 


104 


109 


107 


111 


111 


97 


100 


101 


100 


103 


102 


109 


107 


102 


102 



Con- 


Uncon- 


trolled. 


trolled. 


(214) 


(W) 


92 


100 


91 


100 


92 


100 


95 


99 


94 


99 


95 


100 


95 


99 


100 


99 


103 


101 


102 


101 


103 


101 


101 


101 


92 


100 


94 


99 


100 


100 


102 


101 


97 


100 


99 


100 


99 


99 


99 


99 


99 


100 


100 


100 


99 


100 


99 


100 


107 


100 


108 


100 


104 


101 


102 


101 


102 


101 


99 


99 


99 


100 


105 


100 


103 


101 


101 


100 


105 


101 


105 


-101 


105 


102 


104 


102 


104 


102 


102 


102 


105 


102 


103 


102 


98 


102 


97 


102 


99 


102 


101 


102 


105 


101 


103 


102 


102 


102 


99 


102 


102 


102 



All. 

(268) 



100 
102 
102 
103 
102 



97 
96 
99 
103 



101 
101 
100 
98 

98 
97 

98 
105 
107 
104 
103 
104 



101 
98 
103 
104 



105 
106 
105 
103 
103 
100 

103 
101 
99 
99 
102 
103 



105 
102 
101 
101 



I Con- 
trolled. 



(140) 



103 
103 
102 
101 
100 
99 

99 
lOO 
100 
102 
102 
101 



102 
100 
100 
101 



99 
100 
100 

99 
100 
100 

100 
99 
98 
95 
93 
94 



99 
100 
99 
94 

98 



101 
103 
105 
108 
111 
112 



96 
98 
103 
111 



Uncon- 
trolled. 

(269) 



101 
101 
100 
100 
100 
100 

100 
100 
100 
102 
101 
100 



101 
100 
100 
101 



99 
99 

100 
99 
99 

100 

100 
100 
94 
93 
90 
91 



99 
100 
98 
91 

97 



95 


92 


97 


94 


98 


95 


97 


% 


99 


97 


99 


97 



97 
97 
98 
103 
106 
107 



94 
97 
97 
105 

98 



GOVERiSTMENT CONTROL OVER PRICES. 



427 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1916-1918. 

[Base average prices July, 1913, to June, 1914=100.] 



All eommodities. 



Con- Uncon-' , ,, 
trolled, trolled. 1 -^"■ 

(573) (793) (1,366) 



Food group. 



Clothing group. 



Con- 
trolled. 



(214) 



Uncon- 
trolled. 

(54) 



All. 
(268) 



; Con- i Uneon- 
I trolled, trolled. 

j (140) ; (269) 



All. 
(409) 



1916— Months— 

• January . . 
February. 

March 

April 

May 

June 



July 

August 

September. 
October. . . 
November. 
December . 



Quarters- 
First . . . 
Second . 
Third... 
Fourth. 

Year 



1917— Months- 
January . . 
February. 
March . .'. . 

April 

May 

June , 



113 
113 
117 
120 
121 
120 

121 
125 
127 
134 
143 
146 



115 
120 
124 
141 

125 



1.51 
155 

le-i 

183 
192 
201 



July ! 209 

August 1204 

Septemt lur 205 

October 198 

November 200 

December i 193 



Quarters- 
First . . . 
Second. 
Third... 
Fourth. 

Year 



1918— Months- 
January . . 
February. 

March 

April 

May 

June 



July 

August 

September. 

October 

November. 
December . 



Quarters — 

First 

Second . . 
Third.... 
Fourth.. 



Year . 



157 
194 
206 
196 



195 
198 
197 
196 
192 
189 

195 
199 
204 
201 
200 
204 



197 
192 
199 
201 

197 



116 I 
119 
121 I 
123 I 
123 I 
124 

124 

124 ; 

125 
127 
131 
135 



119 
123 
124 
131 



140 
142 
142 
146 
149 
152 

160 
162 
163 
167 
172 
174 



141 
149 
162 
171 



178 
ISO 
182 
187 
189 
191 

194 
195 
199 
201 
200 
197 



180 
189 
196 
199 

191 



115 
118 
121 
123 
123 
122 

123 
125 
127 
132 
141 
144 



118 
123 
125 
139 



148 
151 
156 
170 
178 
183 

189 
187 
186 
182 
183 
182 



152 
177 

187 
182 



106 
106 
106 
109 
110 
110 

112 
116 
119 
127 
133 
132 



106 
110 
116 
131 



136 
140 
150 
170 
183 
182 

189 
1186 
193 
194 
200 
191 



175 


1 
176 1 


185 


193 


187 


196 


188 


194 


191 


189 


190 


182 


189 


179 


193 


186 


196 


192 


201 


199 


201 


194 


201 


193 


203 


201 


187 


194 


190 


183 


197 


193 


202 


196 


194 


192 



102 
102 
103 
104 
104 
104 

104 
104 
104 
104 
105 
105 



103 
104 
104 
105 



110 
110 
110 

111 

113 
115 

123 
127 
130 
150 
156 
156 



110 
113 
127 
154 

126 



165 
165 
166 
170 
172 
180 

180 
180 
181 
182 



165 
174 
180 
186 

176 



105 
106 
106 
109 
109 
109 

111 
115 
118 
125 
130 
129 



114 
117 
119 
121 
124 
126 

127 
131 
133 
143 
159 
171 



106 


117 


109 


124 


115 


130 


128 


157 


115 


132 


133 


170 


136 


169 


142 


173 


1.57 


177 


166 


181 


164 


189 


167 


195 


168 


195 


173 


197 


177 


201 


182 


204 


178 


207 


137 


170 


162 


182 


169 


196 


178 


204 


162 


188 


182 


214 


184 


216 


182 


222 


180 


236 


177 


1240 


175 


244 


182 


247 


187 


249 


194 


241 


195 


242 


194 


241 


202 


238 


183 


217 


177 


240 


188 


245 


197 


240 


186 


236 



111 

113 
116 
117 
118 
120 

123 
125 
128 
131 
139 
145 



113 
118 
125 
139 

124 



151 
153 
153 

158 
162 
168 

181 
186 
185 
186 
195 
198 



1-52 
163 

184 
193 

173 



205 
207 
210 
216 

214 
215 

221 
221 
230 
231 
227 
223 



207 
215 
224 
227 

218 



1 Price control began during month. 



428 



HISTORY OF PRICES DURING THE WAR. 



PRICE SECTION V.'EIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1913-1915. 

[Base: Average prices, July, 1913, to June, 1914=100.] 



1913— Months- 
January . . 
February. 

March 

April 

May 

June 



July 

August 

September. 
October . . . 
November. 
December . 

Quarters- 
First 

Second 

Third 

Fourth.... 



Year. 



1914— Months- 
January . . 
Februarj-. 
March . .'. . 

April 

May 

June 



July 

August 

September. 
October . . . 
November. 
December . 

Quarters — 

First 

Second 

Third 

Fourth.... 



Year. 



1015— Months- 
January . . 
February. 

March 

Aj)ril 

May 

June 



July 

August 

September. 
October - . . 
November. 
December . 



Quarters- 
First 

Second . . 

Third 

Fourth . . 



Rubber, paper, and 
fiber group. 



Con- 
trolled. 



(21) 



Year. 



U4 
140 
133 
125 
118 
115 

109 
lOS 
105 

97 
97 
97 



139 
119 
107 
97 

116 



96 



101 
100 
93 

93 
110 
105 
97 
99 
HI 



103 

102 



111 
96 



99 
97 
95 
96 
104 
117 



102 
97 
97 

106 



Uncon- 
trolled. 



(98) 



All. 
(119) 



Metals group. 



Con- 
trolled. 

(49) 



108 


1 
114 


108 


113 


108 


112 


103 


107 


103 


105 


103 


105 


103 


104 


103 


104 


103 


103 


103 


102 


103 


101 


99 


99 


108 


113 


103 


106 


103 


103 


102 


101 


104 


106 


98 


98 


98 


98 


97 


98 


98 


99 


98 


98 


97 


97 


97 


9,6 


98 


101 


98 


100 


97 


98 


97 


98 


97 


100 


98 


98 


98 


98 


97 


99 


97 


99 


97 


98 


97 


100 


85 


90 


85 


90 


85 


90 


85 


90 


86 


90 


86 


91 


86 


90 


85 


89 


86 


90 


86 


92 


87 


95 


89 


93 


85 


90 


86 


90 


86 


93 


87 


91 



120 
118 
117 
115 
114 
111 

111 
110 
108 
105 
99 
96 



118 
113 
110 
100 

110 



90 
91 
92 
94 
96 
99 

102 
105 
110 
113 
119 
132 



91 
96 
106 
121 



Uncon- 
trolled. 

(67) 



118 
113 
111 
110 
109 
108 

105 
105 
107 
106 
103 
100 



114 
109 
106 
103 

108 



95 
94 
92 

90 
100 
92 
87 
87 
90 



All. 

(116) 



120 
118 
116 
114 
113 
111 

110 
110 
108 
105 
100 
96 



118 
113 
109 
100 

110 



Fuels group. 



98 


97 


93 


94 


94 


93 


88 


89 


93 


93 


95 


91 


108 


93 


119 


95 


124 


98 


145 


101 


164 


106 


172 


110 


147 


110 


147 


114 


145 


116 


159 


124 


163 


136 


108 


93 


145 


102 


155 


111 


156 


125 


141 


108 



Con- 


Uneon- 


trolled. 


troUed. 


(32) 


(31) 


100 


104 


99 


106 


99 


106 


98 


107 


98 


106 


98 


106 


99 


105 


101 


103 


102 


104 


102 


103 


102 


102 


102 


99 


99 


105 


98 


106 


101 


104 


102 


101 


100 


104 


102 


100 


102 


99 


101 


99 


99 


97 


94 


95 


93 


93 


93 


89 


93 


87 


91 


85 


89 


84 


89 


83 


89 


83 


102 


100 


95 


95 


93 


87 


89 


83 


95 


91 


89 


82 


89 


80 


86 


78 


84 


77 


84 


77 


84 


77 


83 


76 


85 


77 


91 


79 


92 


87 


93 


95 


98 


103 


88 


80 


84 


77 


86 


78 


94 


95 


88 


82 



GOVERNMENT CONTROL OVER PRICES. 



429 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1916-1918. 

[Base: Average prices, July, 1913, to June, 1914=100.] 





Rubber, paper 
liber group 


, and 


Metals group. 


Fuels group. 




Con- 
trolled. 

(21) 


Uncon- 
trolled. 

(98) 


AU. 
(119) 


Con- 
trolled. 

(49) 


Uncon- 
trolled. 

(67) 


All. 
(116) 


Con- 
trolled. 

(32) 


Uncon- 
troUed. 

(31) 


AU. 
(63) 


1916— Months- 


132 
122 

130 
124 
114 
106 

101 
102 
102 
106 
111 
125 

128 
114 
102 
114 

114 

133 
139 
144 
142 
150 
147 

140 
140 
142 
139 
1.38 
138 

138 
146 
141' 
138 

141 

147 
140 
1144 
149 
156 
155 

156 
155 
153 
146 
143 
139 

143 
153 
155 
143 

149 


93 
96 
99 
103 
105 
106 

107 
109 
111 
113 
116 
119 

96 
104 
109 
116 

107 

127 
129 
130 
135 
136 
136 

135 
135 
142 
142 
141 
140 

129 
136 
137 
141 

136 

142 
144 
144 
150 
157 
160 

159 
160 
161 
161 
161 
160 

143 
156 
160 
161 

155 


103 
104 
109 
112 
112 
111 

112 
114 
117 
120 
123 
129 

106 
112 
114 
124 

114 

138 
141 
143 
146 
148 
147 

144 
143 
149 
147 
146 
145 

141 
147 
145 
146 

145 

148 
148 
150 
155 
162 
165 

164 
166 
166 
165 
163 
162 

149 
161 
165 
163 

160 


141 
148 
164 
168 
166 
165 

165 
169 
172 
177 
202 
220 

150 
167 
169 
199 

171 

230 
237 
251 
267 
285 
330 

350 
328 
1295 
234 
212 
211 

239 
296 
325 
219 

270 

212 
212 
212 
211 
212 
212 

214 
215 
215 
217 
217 
212 

212 
212 
215 
216 

213 


186 
203 
201 
212 
209 
197 

185 
181 
181 
187 
196 
202 

197 
206 
182 
195 

195 

199 
205 
210 

205 
206 
205 

205 
198 
192 
188 
190 
186 

205 
206 
199 

188 

199 

181 
179 
183 
181 
189 
190 

197 
207 
206 
205 
201 
200 

181 
187 
203 
202 

193 


147 
154 
168 
174 
171 
169 

167 
170 
172 
176 
202 
218 

155 
171 
171 
199 

174 

226 
234 
247 
260 
276 
315 

333 
313 
283 

228 
209 
208 

235 
286 
310 
215 

262 

208 
209 
209 
208 
209 
210 

212 
214 
214 
216 
216 
211 

209 
209 
213 
214 

211 


105 
106 
109 
114 
114 
114 

113 

107 
105 
109 
119 
123 

107 
114 
108 
117 

111 

131 
136 
134 
173 
182 
184 

178 
1178 
176 
176 
179 
180 

134 
180 
177 
178 

167 

182 
182 
184 
215 
219 
215 

215 

216 
218 
218 
224 
224 

182 
216 
216 
222 

209 


111 
115 
120 
120 
123 
123 

123 
123 
118 
117 
119 
119 

115 
123 
121 
118 

119 

127 
133 
134 
135 
137 
137 

140 
140 
142 
142 
144 
148 

131 
136 
140 
145 

138 

155 
157 
159 
161 
167 
169 

168 
168 
169 
169 
166 
166 

157 
166 
168 
167 

164 


106 




107 


March 


109 




112 




113 


June 


113 


July 


113 


August 


110 




109 


October 


111 




120 


December . 


122 


Quarters- 
First 


107 


Second . 


113 


Third 


111 


Fourth . 


118 


Year 


112 


1917— Months- 
January 

February 

March 

April 

May 

June 

July 

August 

September 

October 

November 

December 

Quarters- 
First 


129 
133 
131 
163 
172 
173 

168 
169 
165 
164 
167 
170 

131 


Second 


170 


Third 


167 


Fourth 


167 


Year 


158 


1918— Months- 
January 


173 


February 


174 


March 


175 


April 


200 


Mav 


204 


June 


202 


July 


201 


August 


202 


September 


204 




204 


November 


207 


December 


207 


Quarters-^ 
First 


174 


Second 


202 


Third 


202 


Fourth 


207 


Year 


196 







1 Price control began during month. 



430 



HISTORY OF PRICES DURING THE WAR. 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1913-1915. 

[Base: Average prices July, 1913, to June, 1914=100.] 



1913— 
Months — 

January 

February . . 

March , 

April 

May , 

June , 

July 

August 

September. 

October 

November . 
December. , 

Quarters— 

Fir.st 

Second 

Third , 

Fourth 

Year 

1914— 
Months — 

January 

February. . 

March 

April , 

May 

June 

July 

August 

September . 

October 

November. 
December. 

Quarters — 

First 

Second 

Third 

Fourth.... 

Year 

1915— 
Months — 
January. . . 
February . 

March 

April 

May 

June 

July 

August — 
September 
October... 
November 
December. 

Quarters — 

First 

Second 

Third 

Fourth.... 

Year 



Building materials group. 



Con- 
trolled. 



(42) 



108 
108 
109 
110 
110 
110 

104 
104 
104 
100 
99 
99 



108 
110 
104 
99 

106 



90 



90 
91 
91 
91 
92 
92 

93 
93 
93 

104 
106 
106 



91 

92 

93 

105 



Uncon- 
trolled. 

(107) 



100 
101 
101 
101 
101 
101 

101 
101 
102 
101 
100 
100 



101 
101 
101 
100 

101 



98 


100 


98 


100 


99 


100 


98 


99 


98 


99 


98 


99 


97 


99 


97 


99 


98 


99 


93 


98 


92 


98 


91 


97 


98 


100 


98 


99 


97 


99 


92 


98 



100 
99 
99 
101 
100 
101 



96 
100 
101 



All. 

'1491 



104 
104 

105 
105 
105 
105 

102 
102 
103 
100 
100 
100 



104 
105 
103 
100 

103 



99 



96 
95 
95 
101 
101 
102 



93 



95 
102 



Chemicals group. 



Con- 
trolled. 



(751 



102 
102 
103 
103 
103 
102 

102 
102 
101 
100 
100 
100 



102 
103 
102 
100 

102 



99 



98 


98 


98 


98 


99 


99 


98 


101 


107 


96 


99 


108 


95 


98 


111 


94 


98 


109 


99 


99 


99 


98 


99 


99 


98 


99 


101 


95 


98 


109 



99 
107 
108 
108 

125 
129 
141 
152 
163 
173 



107 
132 
163 

125 



T^ncon- 
1 rolled. 



(167) 



103 
103 
103 
102 
102 
102 

102 
101 
102 
100 
101 
101 



103 
102 
102 
100 



99 
99 
100 



102 



135 
141 
142 
147 
144 
154 

158 
158 
163 
166 
171 
174 



139 
148 
159 
170 



GOVERNMENT CONTROL OVER PRICES. 



431 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1916-191& 

[Base: Average prices July, 1913, to June, 1914=100.] 



Building materials group. 



Con- 
trolled. 



(42) 



Uncon- 
trolled. 

(107) 



All. 
(149) 



Chemicals group. 



Con- 
trolled. 



(75) 



Uncon- 
trolled. 



(167) 



All. 

(242) 



1916— Months- 
January.. . 
February . 

March 

April 

May 

June , 



July 

August 

September . 

October 

November . 
December. . 



Quarters — 

First 

Second. . . 
Third.... 
Fourth. . . 



Year . 



1917- 



-Months — 
January... 
February . 

March 

April 

May 

June 



July 

August 

September. 

October 

November . 
December. . 



Quarters- 
First... 
Second. 
Third.. 
Fourth. 



Year . 



1918- 



-Months— 
January... 
February . 

March 

April 

May 

June 



July 

August 

September . 

October 

November . 
December. . 



Quarters - 
First... 
Second. 
Third.. 
Fourth. 

Year 



113 
114 
115 
113 
114 
114 

111 
111 
HI 
119 
120 
121 



114 
114 
111 
119 

115 



129 
130 
131 
157 
158 
159 

164 
164 
164 
165 
1 167 
167 



130 
158 
164 
166 



174 
175 
177 
184 
186 
187 



189 
186 
187 
186 



176 
186 
188 
186 



108 
111 
112 
117 
118 
118 

117 
117 
117 
118 
119 
122 



110 
118 
117 
120 

116 



132 
133 
135 
141 
144 
148 

151 
152 
153 
153 
155 
155 



134 
144 
152 
154 

146 



161 
160 
167 
175 
178 
180 

184 
186 
190 
190 
190 
188 



162 
178 
187 
189 



109 
111 
112 
113 
113 
113 

112 
112 
112 
116 
118 
119 



110 
113 
112 
118 

114 



129 
130 
132 
146 
148 
151 

155 
155 
156 
157 
159 
159 



130 
148 
155 
158 

148 



165 
165 
169 
176 
179 
181 

182 
184 
186 
185 
186 
185 



167 
179 
184 
185 

179 



196 
216 
218 
216 
200 
197 

177 
164 
160 
163 
163 
167 



210 
205 
167 
164 



167 
172 
179 
190 
192 

196 
203 
217 
217 
1213 
221 



169 

188 
206 
217 



207 
223 
224 
224 
212 
207 

192 
193 
196 
193 
192 
174 



218 
215 
194 
186 

203 



177 
181 
181 
176 
171 
170 

163 
156 
153 
152 
152 
149 



179 
172 
158 
151 



145 
142 
141 
142 
152 
157 

162 
161 
163 

167 
167 
167 



143 
150 

162 
167 



166 
165 
166 
167 
170 
171 

172 
173 
174 
178 
179 
178 



166 
169 
173 

178 



189 
200 
201 
198 

188 
185 

175 
166 
162 
162 
163 
162 



196 
190 
168 
162 



159 
157 
159 
163 
172 
174 

180 
183 
190 
193 
191 
193 



158 
170 
184 
192 

176 



186 
192 
192 
192 
190 
189 

184 
186 
188 
190 
193 
183 



190 
190 
186 
189 

189 



1 Price control began during month. 



432 



HISTORY OF PRICES DURING THE WAR. 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 

UNCONTROLLED PRICES, 1913-1915. 

[Base: Average prices July, 1913, to June, 1914=100.] 



1913— Months- 
January . . 
February. 

March 

April 

May 

June 



July 

August 

September. 
October . . . 
November. 
December . 



Quarters- 
First... 
Second. 
Third.. 
Fourth. 



ear. 



1914— Months- 
January . . 
February. 

March 

April 

May 

June 



July 

August 

September. 
October . . . 
November. 
December . 



Quarters- 
First 

Second . . 
Third... 
Fourth.. 



Year. 



1915— Months- 
January . . 
February. 
March — 

April 

May 

June 



July 

August — 
September. 
October . . . 
November. 
December . 

Quarters- 
First 

Second 

Third 

Fourth.... 

Year 



The food group. 



Feed 

and 

forage 

class. 



All 
con- 
trolled. 

(22) 



83 



102 
10.5 
104 
104 
101 



81 
90 
100 
103 

93 



95 
95 
95 
101 
106 
102 

98 
108 
109 
104 
101 
100 



103 
105 



Wheat 
and 

wheat 

prod- 
ucts 

class. 



All 
con- 
trolled. 

(12) 



Con- 
trolled. 



(6) 



105 
104 
102 
104 
104 
104 



100 
99 
100 
100 



104 
104 
99 
99 

101 



101 
101 
101 
101 
102 
99 



110 
116 
115 
117 
120 



101 
101 
107 



Corn and com prod- 
ucts class. 



102 


118 


101 


107 


108 


135 


109 


146 


110 


150 


111 


148 


110 


148 


109 


127 


113 


128 


108 


121 


95 


111 


88 


115 


92 


114 


95 


124 


109 


143 


no 


141 


106 


120 


92 


118 


104 


130 



70 
72 
75 
82 
84 
90 

91 
108 
110 
103 
105 
100 



73 
85 
105 
103 



92 
91 
95 
99 
102 
104 

104 
118 
116 
107 
100 
94 



93 
102 
114 
101 



104 
108 
105 
110 
110 
108 

114 
118 
111 
93 
93 
97 

106 
109 
114 
94 



Un- 

con- 

troUed. 

(3) 



99 
99 
99 
99 
99 

99 
99 
100 
100 
100 
100 



99 
99 
100 



100 
100 
100 
100 

100 
100 
100 
102 
102 



All. 

(9) 



79 



87 
89 
92 

93 

105 
107 
102 
104 
100 



103 
102 



94 
94 
97 
99 
102 
103 

103 
113 
111 
106 
100 



Oats, flee, buck- 
wheat, and their 
products class. 



Con- 
trolled. 



(9) 



102 
99 


97 
95 


100 


102 


100 


110 


102 


101 


100 


102 


102 


103 


101 


106 


101 


104 


101 


107 


102 


108 


103 


106 


103 


111 


103 


114 


103 


109 


103 


96 


103 


% 


104 


99 


101 


104 


102 


107 


ia3 


110 


103 


97 


102 


105 



92 
92 
93 
94 
96 
97 

103 
105 
101 

105 
103 
100 



92 



103 
102 



97 
97 
97 
96 
97 
100 



110 
116 
108 
102 
109 



97 
97 
108 
106 



113 
120 
122 
121 
119 
115 

116 
106 
99 
99 
101 
102 

118 
118 
108 
101 



Un- 
con- 
trolled. 

(1) 



100 
100 
100 
100 
100 
100 

100 
100 
100 
100 
100 
100 



100 
100 
100 
100 

100 



100 
100 
100 
100 
100 
100 

100 
100 
100 
100 
100 
100 



100 
100 
100 
100 

100 



100 
100 
101 
101 
101 
101 

101 
101 
101 
101 
101 
101 

101 
101 
101 
101 

101 



All. 

(10) 



Con- 
trolled. 

(4) 



92 
92 
93 
95 
96 
97 

103 
105 
101 
104 
103 
100 



92 
96 
103 
102 



97 
97 
97 
96 
97 
100 



110 
116 
108 
102 
108 



97 
97 
108 
106 



113 
120 
122 
121 
119 
115 

115 
106 



101 
102 

118 
118 
107 
101 



Barley, hops, rye, 
and their prod- 
ucts class. 



Un- 
con- 
trolled, 

(4) 



100 
98 
95 
96 
99 
98 

94 
104 
114 
107 
103 



97 
105 
103 

101 



101 
98 
95 
94 
95 
95 

89 
105 
121 
115 
122 
124 



95 
105 
120 

105 



138 
150 
141 
139 
141 
135 

135 
129 
105 
109 
115 
121 

143 
138 
123 
115 



99 
99 
99 
100 

100 
100 
100 
101 
101 
100 



99 
100 
101 

100 



99 
100 
100 
100 

100 
100 
101 
100 
100 
100 



100 
100 
100 



100 
100 
101 
102 
103 
103 

103 
104 
103 
104 
103 
103 

101 
103 
103 
103 



GOVEKNMEIirT CONTROL OVER PRICES. 



433 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 

UNCONTROLLED PRICES, 1916-1918. 

[Base: Average prices July, 1913 to June, 1914=100.] 



The food group. 



All 
con- 
trolled- 

(22) 



Feed 
and 
forage 
class. 



All 
con- 
trolled. 

(12) 



Wheat 
and 

wheat 

prod- 
ucts 

class. 



Corn and corn prod- 
ucts class. 



Con- 


Un- 


trolled. 


trolled. 


(6) 


(3) 


110 


104 


108 


104 


106 


105 


111 


105 


110 


105 


106 


105 


117 


105 


125 


105 


126 


105 


140 


105 


144 


105 


134 


105 


108 


104 


109 


105 


123 


105 


140 


105 


123 


105 


145 


114 


147 


113 


165 


113 


218 


115 


241 


119 


252 


119 


299 


131 


302 


136 


301 


139 


293 


172 


1 208 


175 


247 


173 


153 


113 


236 


117 


301 


135 


267 


173 


240 


135 


243 


181 


247 


181 


232 


181 


233 


184 


219 


185 


223 


191 


236 


185 


242 


182 


227 


183 


195 


183 


190 


194 


211 


194 


240 


181 


225 


187 


236 


183 


198 


190 


224 


186 



All. 

(9) 



Oats, rice, buck- 
wheat, and their 
products class. 



Con- 


Un- 


trolled. 


troUed. 


(9) 


(1) 


104 


101 


104 


101 


104 


101 


129 


101 


139 


101 


139 


101 


140 


101 


142 


101 


144 


101 


155 


101 


163 


101 


163 


101 


104 


101 


136 


101 


142 


101 


160 


101 


135 


101 


117 


101 


116 


101 


123 


101 


157 


101 


174 


101 


174 


101 


179 


101 


174 


101 


173 


101 


180 


101 


U80 


101 


187 


101 


119 


101 


169 


101 


175 


101 


183 


101 


161 


101 


192 


101 


197 


101 


209 


101 


214 


101 


207 


101 


206 


101 


210 


101 


197 


101 


191 


101 


197 


101 


194 


101 


195 


101 


200 


101 


209 


101 


199 


101 


196 


101 


200 


101 



All. 

(10) 



Con- 
trolled. 

(4) 



Barley, hops, rye, 
and their prod- 
ucts class. 



Un- 
con- 
trolled. 

(4) 



1916— Months- 
January . . 
February. 

March 

April 



June. 



July 

August 

September. 
October . . . 
November. 
December. 



Quarters- 
First 

Second . . 
Third... 

Fourth . . 



Year. 



1917— Months- 
January . . 
February. 
March — 

April 

May 

June 



July 

August 

September. 
October . . . 
November. 
December. 



Quarters- 
First . . . 
Second. 
Third.. 
Fourth. 



Yeax 

1918— Months- 
January . . 
February. 

March 

April 

May 

June 



July - 

August 

September. 
October . . . 
November. 
December. 



Quarters- 
First . . . 
Second . 
Third.. 
Fourth. 

Year 



105 
104 
100 
104 
108 
106 

103 
108 
110 
117 
126 
126 



103 
106 
108 
125 

111 



131 
134 
145 
170 
191 
193 

218 
197 
214 
212 
1239 
207 

137 

184 
210 
214 

184 

207 
220 
220 
190 
175 
170 

175 
187 
200 
184 
185 



216 
178 



186 
192 



128 
126 
117 
122 
120 
113 

120 
143 
152 

167 
177 
168 



123 
119 
138 
171 



178 
174 
189 
221 
267 
248 

230 
1232 
215 
211 
209 
203 

181 
247 
226 
208 

216 

202 
205 
202 
209 
206 
207 

215 
213 
212 
211 
211 
214 

203 
208 
213 
212 



108 
107 
105 
109 
108 
106 

114 
119 
120 
130 
133 
126 



106 
108 
118 
130 

119 



136 
137 
150 
188 
205 
214 

250 
254 
254 
258 
241 
226 

141 

202 
253 
240 

209 

225 
228 
217 
219 
209 
214 

221 
225 
214 
192 
191 
206 

223 
214 
221 
196 

213 



104 
104 
104 
128 
159 
159 

1.59 
141 
144 
155 
162 
162 



104 
135 
141 
159 



117 
110 
123 
156 
173 
173 

178 
173 
171 
179 
178 
186 

119 

168 
174 
181 



190 
195 
207 
212 
206 
205 

208 
196 
189 
196 
192 



198 
207 
197 
195 

199 



132 
132 
125 
129 
131 
131 

130 
157 
176 
182 
200 
194 



130 
131 
155 
192 



204 
200 
213 
238 
265 
262 

266 
244 
1235 
235 
228 
253 

206 
254 
248 
240 

237 

260 
308 
358 
327 
283 
228 

217 
217 
210 
202 
200 
199 

310 
278 
214 
200 

251 



103 
104 
105 
105 
105 
106 

106 
106 
106 
106 
106 
105 



104 
105 
106 
106 

105 



105 
104 
104 
104 
104 
105 

109 
110 
112 
124 
132 
134 

104 
104 
110 
130 

112 

154 
154 
153 
158 
160 
171 

175 
176 

177 
178 
178 
179 

154 
163 
176 

178 

168 



125547°— 20 28 



Price control began during month. 



434 



HISTORY OF PRICES DURING THE WAR. 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1913-1915. 

[Base: Average prices July, 1913, to June, 1914=100.] 



1913-Months— 

January... 
February . 
March..!.. 

April 

May 

June 

July 

August 

September 
October... 
Novemlx>r . 
December. 

Quarters- 
First 

Second 

Third 

Fourth.,. - 

Fear 

1914— Months- 
January... 
February . 

March 

April 

May 

June 

July 

August 

September 
October... 
November. 
December. 

Quarters- 
First 

Second 

Third 

Fourth.... 

Ycai- 

1915— Months- 
January... 
February . 

March 

April 

May 

June 

July 

August 

September 
October... 
November 
December. 

Quarters- 
First 

Second 

Third 

Fourth.... 

Yrar 



The food group. 



Sugar and related prod- 
ucts class. 



Con- 
trolled. 

(9) 



105 
100 
101 
99 
99 
99 

105 
110 
109 
103 
104 
99 



102 

99 

108 

102 

103 



97 
91 
90 
96 
100 

100 
151 
161 
136 
116 
115 



95 
95 
137 
122 



117 
131 
136 
136 
138 
139 
138 
133 
123 

lis 

132 
13S 



Un- 
con- 
trolled. 

(1) 



103 
103 
103 
103 
103 
107 

107 
107 
107 
107 
107 
107 



103 
104 
107 
107 

105 



107 
95 
85 
87 
91 
95 

95 
99 
99 
99 
99 



132 



12S 


96 


138 


95 


132 


97 


129 


99 



All. 

(10) 



105 
100 
101 
99 
99 
99 

105 
110 
109 
103 
104 
99 



102 
99 
108 
102 

103 



96 
97 
91 
90 
96 
100 

99 
150 
160 
136 
115 
115 



95 
95 
137 
122 



117 
131 
135 
136 
138 
139 

138 
133 
123 
117 
132 
138 

128 
138 
131 
129 



Vege- 
tables 
and 
truck 
class. 



All 

con- 
trolled. 

(15) 



90 



102 
104 
102 
97 
98 



98 
100 
101 
102 
104 
104 

113 

115 

104 

93 

83 

81 



100 
103 
111 

85 

100 



Edible vegetable oils 
class. 



Con- 
trolled. 

(13) 



105 
106 
102 



96 
104 



97 



98 
98 
99 
101 
99 



98 



98 

100 

92 

81 

93 



90 
98 
96 
93 
90 
87 

84 
81 
89 
111 
115 
125 

94 
90 
84 
117 

96 



Un- 
con- 
trolled. 

(1) 



109 
111 
114 
110 
112 
112 

108 
106 
106 
106 
108 
104 



111 
111 

107 
106 

109 



101 
99 
90 



87 
102 
82 
81 
87 
120 



SO 



93 



115 
144 
145 
140 
115 
114 

112 
120 
120 
131 
149 
131 

135 
123 
118 
137 



All. 
(14) 



91 
91 
95 
95 

9;8 

105 
106 
102 
98 
99 



90 
96 
105 



98 
99 
100 
99 



90 
99 
97 
94 
90 
87 

84 
82 
89 
112 
115 
125 

95 
91 
85 
117 



Fruits, nuts, and wine 
class. 



Con- 


Un- 


trolled. 


troUed. 


(10) 


(7) 


71 


96 


71 


97 


74 


97 


75 


99 


88 


100 


102 


102 


96 


103 


89 


103 


86 


104 


83 


105 


88 


103 


90 


102 


72 


97 


88 


101 


90 


103 


87 


103 


84 


101 


99 


101 


110 


98 


117 


96 


116 


96 


114 


95 


113 


94 


92 


94 


79 


95 


69 


97 


60 


97 


60 


97 


61 


96 


108 


QS 


115 


95 


80 


95 


CO 


97 


90 


96 


63 


94 


66 


95 


66 


95 


76 


95 


82 


94 


90 


90 


85 


90 


74 


89 


72 


89 


70 


82 


67 


84 


68 


87 


65 


95 


82 


93 


77 


89 


69 


84 


73 


90 



GOVERNMENT CONTROL OVER PRICES. 



435 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1916-1918. 

[Base: Average prices, July, 1913, to June, 1914=100.] 



The food group. 



Sugar and related prod- 
ucts class. 



Con- 
trolled. 

(9) 



Un- 
con- 
trolled. 

(1) 



All. 
(10) 



Vege- 
tables 
and 
truck 
class. 



All 
con- 
trolled. 

(15) 



Edible vegetable oils 
class. 



Con- 
trolled. 

(13) 



Un- 
con- 
trolled. 

(1) 



All. 
(14) 



Fruits, nuts, and wines 
class. 



Con- 


Un- 








trolled. 


(10) 


(7) 


72 


86 


75 


86 


75 


83 


75 


84 


77 


85 


89 


85 


83 


88 


84 


89 


80 


92 


82 


99 


89 


102 


89 


102 


74 


85 


81 


85 


84 


90 


87 


101 


81 


90 


92 


104 


105 


104 


114 


101 


114 


101 


114 


100 


lis 


110 


116 


106 


109 


108 


103 


108 


106 


120 


1116 


126 


121 


127 


104 


103 


116 


104 


109 


108 


115 


124 


111 


109 


124 


129 


1.30 


130 


138 


134 


144 


134 


164 


137 


168 


139 


155 


138 


139 


141 


136 


143 


140 


153 


140 


175 


137 


184 


130 


131 


159 


137 


144 


141 


139 


171 


143 


145 



All. 

(17) 



1916— Months- 
January... 
February . 
March. .L. 

April 

May 

June 

July 

August 

September 
October... 

November 
December. 



Quarters- 
First... 
Second. 
Third.. 
Fourth. 



Year. 



1917-Months— 

Januarjr — 
February . . 

March 

April 

May 

June , 



July 

August 

September . 

October 

November. 
December.. 

Quarters- 
First 

Second 

Third 

Fourth 



Year 

1918— Months- 
January.. 
February . 

March 

April 



June 

July 

August 

September . 

October 

November . 
December.. 

Quarters — 

First 

Second 

Third 

Fourth..... 

Year 



134 
140 
155 
167 
176 
174 

175 
163 
153 
170 
175 
159 



143 
173 
164 
168 

162 

155 
156 

164 
184 
185 
181 

189 
206 
204 
1201 
200 
192 

159 
184 
200 
198 



182 
181 
181 
181 
180 
180 

181 
182 
203 
212 
212 
213 

181 
180 
188 
212 

191 



99 
91 

87 
87 
87 
95 

95 
103 
95 
95 
95 
95 



99 
99 
103 
103 
134 
142 

90 
91 
100 
127 

102 

147 
158 
158 
162 
162 
166 

166 
170 
193 
193 
221 
221 

154 
163 
177 
212 



134 
139 
154 
166 
175 
173 

174 
162 
152 
169 
174 
159 



142 
172 
163 

167 

161 

154 
156 
163 

183 
184 
180 

188 
204 
202 
200 
199 
192 



101 
115 
121 
124 
.123 
128 

135 
130 
138 
139 
166 
177 



112 
125 
134 
161 

133 



212 
272 
275 
314 
307 

276 
215 
186 
174 
1182 
178 



158 


222 


182 


299 


199 


226 


197 


178 


184 


232 i 


181 


184 


181- 


188 


181 


186 


ISl 


169 


ISO 


159 


180 


150 


181 


165 


182 


201 


202 


207 


212 


196 


212 


181 


213 


171 


181 


186 


180 


159 


188 


191 


212 


183 


191 


ISO 1 



129 
132 
141 

147 
149 
146 

138 
151 
145 
163 
181 
180 



134 

147 
145 
175 

150 

175 
175 
1,83 
199 
209 
211 

199 
199 

208 

233 

1246 

248 

177 
206 
202 
242 



252 
255 
255 
256 
256 
252 

251 

249 
255 
255 
255 
255 

2.54 
254 
252 
255 
25J ' 



132 
120 
124 
120 
120 
116 

112 
124 
108 

97 
105 
96 



126 
119 
115 

100 

115 

103 
101 
89 
97 
91 
91 

93 

87 



88 
104 
112 
105 
102 

96 

105 
105 
97 
103 
104 
120 

101 
101 
102 
109 

103 



129 
131 
140 
146 

148 
145 

138 
151 
144 
162 
179 
178 



134 
147 
144 
173 

150 

173 
173 
181 
196 
206 
208 

197 

197 
205 
230 
243 
244 

176 
204 
200 
238 



249 
252 
.252 
252 
252 
248 

248 
246 
251 
252 
251 
252 

251 
251 
249 
252 

250 



Price control began during month. 



436 



HISTORY OF PRICES DURING THE WAR. 



TRICE SECTION WEKMITEP INDEX NXTMRER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED I'RICES, 1913-1915. 





[Base: Average prices, July, 


1913, to June, 1915= 100.] 










The food group. 




Spices 

and 
condi- 
ments 
class. 








Tobac- 


Live- 


Poul- 
















co and 


ftock, 


try and 










Tea, coffee, and cocoa 
class. 


tobac- 
co prod- 


meats, 
and 


dairy 
prod- 


Fish a 


nd oyster class. 










ucts 


fats 


ucts 
















class. 


class. 


class. 










All 


Con- 
trolled. 


Un- 




All 


All 


All 


Con- 
trolled. 


Un- 






uncon- 


con- 


AH. 


uncon- 


con- 


con- 


con- 


All. 




trolled. 


trolled. 




trolled. 


trolled. 


trolled. 


trolled. 






(10) 


(9) 


(11) 


(20) 


(15) 


(48) 


(43) 


(14) 


(1) 


(15) 


1913— Months- 






















January 


103 


129 


103 


124 


103 


97 


104 


104 


105 


105 


February . . . 


103 


123 


104 


120 


103 


95 


103 


117 


105 


111 


March 


101 


115 


106 


113 


99 


101 


100 


99 


105 


102 


April 


101 


110 


103 


109 


• 97 


103 


98 


99 


105 


102 


May 


102 


109 


104 


108 


97 


99 


89 


83 


105 


95 


June 


101 


lOl 


104 


102 


98 


101 


86 


85 


105 


96 


July 


99 


96 


103 


• 97 


99 


101 


91 


84 


92 


88 


August 


100 


96 


101 


97 


99 


100 


90 


91 


92 


91 


September . . 


99 


98 


102 


98 


101 


100 


102 


93 


99 


96 


October 


100 


108 


102 


107 


102 


100 


107 


92 


102 


97 


November . . 


100 


106 


102 


106 


102 


97 


114 


96 


102 


99 


December. . . 


100 


101 


101 


101 


102 


97 


115 


115 


102 


108 


Quarters- 






















First 


102 


122 


104 


119 


101 


97 


102 


107 


105 


106 


Second 


101 


107 


103 


106 


97 


101 


91 


89 


105 


98 


Third 


100 


97 


102 


97 


100 


100 


96 


89 


94 


92 


Fourth 


100 


105 


102 


105 


102 


98 


112 


101 


102 


102 


Year 


101 


107 


103 


107 


100 


99 


100 


96 


102 


99 


1914— Months- 




January 


100 


99 


99 


99 


100 


99 


112 


116 


102 


109 


February . . . 


101 


102 


99 


102 


100 


101 


105 


107 


102 


104 


March 


101 


98 


98 


98 


99 


101 


99 


112 


102 


107 


April 


101 


98 


98 


98 


99 


lOl 


90 


101 


102 


102 


May 


99 


96 


99 


97 


99 


101 


84 


96 


102 


99 


June 


99 


101 


98 


100 


- 99 


101 


84 


96 


102 


99 


July 


99 


98 


98 


98 


99 


103 


90 


99 


102 


101 


August 


110 


102 


107 


103 


100 


105 


90 


101 


102 


101 


September.. 


109 


92 


103 


94 


100 


108 


100 


105 


102 


103 


October 


106 


80 


100 


84 


100 


102 


106 


122 


102 


112 


November . . 


105 


81 


101 


84 


100 


■ 100 


112 


112 


102 


107 


December. . . 


105 


80 


HI 


86 


100 


100 


113 


110 


102 


106 


Quarters- 






















First 


101 


100 


99 


100 


100 


100 


105 


112 


102 


107 


Second 


100 


98 


98 


98 


99 


101 


86 


98 


102 


100 


Third 


106 


97 


103 


98 


100 


105 


95 


102 


102 


102 


Fourth 


105 


80 


104 


84 


100 


101 


110 


115 


102 


108 


Year 


103 


94 


101 


95 


99 


102 


99 


106 


102 


104 


1915— Months- 




January 


107 


82 


103 


86 


101 


95 


112 


113 


102 


107 


February . . . 


112 


85 


120 


91 


101 


92 


106 


116 


102 


109 


March 


115 


83 


120 


89 


101 


92 


100 


121 


102 


111 


April 


116 


85 


119 


91 


101 


92 


91 


109 


102 


105 


May 


114 


83 


115 


89 


101 


95 


84 


101 


102 


102 


June 


114 


79 


113 


85 


101 


96 


82 


95 


102 


99 


July 


115 


80 


119 


87 


101 


98 


89 


97 


87 


92 


August 


114 


80 


121 


87 


101 


96 


91 


99 


87 


92 


September . . 


114 


76 


118 


83 


101 


96 


96 


96 


87 


91 


October 


117 


77 


119 


84 


101 


98 


101 


92 


87 


89 


November. . 


123 


81 


126 


89 


101 


94 


109 


108 


87 


97 


December. . . 


124 


h2 


121 


88 


101 


92 


HI 


98 


87 


92 


Quarters- 






















First 


111 


83 


11" 


89 


101 


93 


106 


117 


102 


109 


Second 


114 


82 


116 


88 


lOl 


94 


86 


102 


102 


102 


Third 


115 


79 


120 


S6 


101 


97 


92 


97 


87 


92 


Fourth 


121 


80 


122 


87 


101 


95 


97 


99 


87 


93 


Year 


110 


81 


119 


87 


101 


95 


98 


104 


94 


99 







GOVERNMENT CONTROL OVER PRICES. 



437 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1916-1918. 

[Base: Average prices, July, 1913, to June, 1914=100.] 



1916— Months- 
January... 
February . 

March 

April 

May 

June 

July 

August 

September 
October... 
November 
December. 

Quarters- 
First 

Second 

Third 

Fourth.... 

Year 

1917— Months- 
January... 
February . 

March 

April 

May 

June 

July 

August 

September 
October . . . 
November, 
December. 

Quarters- 
First 

Second. . . '. 

Third 

Fourth.... 

Year 

1918— Months- 
January... 
February . 

March 

April 

May 

June 

July 

August 

September 
October... 

November 
December. 

Quarters- 
First 

Second 

Tiiird 

Fourth 

Year 



The food group. 



Spices 
and 
condi- 
ments 
class. 



All 
uncon- 
trolled. 

(10) 



129 
132 
144 
141 
137 
135 

135 
132 
132 
132 
132 
140 



135 
138 
133 
135 

135 



148 
155 
158 
164 
169 
171 

171 
170 
172 

175 
178 
177 

154 
168 
171 
177 

167 

176 
182 
187 
204 
209 
211 

210 
208 
209 
206 
206 
201 

182 
207 
209 
204 

200 



Tea, coffee, and cocoa 
class. 



Con- 


Uu- 


trolled. 


trolled. 


(9)' 


(11) 


81 


120 


85 


118 


91 


118 


92 


118 


93 


118 


92 


116 


89 


117 


90 


118 


94 


117 


92 


116 


91 


112 


89 


111 


86 


119 


92 


118 


91 


117 


91 


113 


90 


116 


93 


114 


92 


118 


87 


117 


88 


125 


90 


132 


90 


132 


87 


130 


85 


133 


83 


133 


81 


133 


80 


132 


81 


134 


91 


116 


89 


129 


85 


132 


80 


133 


87 


127 


89 


135 


189 


139 


93 


140 


95 


139 


93 


138 


90 


138 


92 


143 


92 


145 


100 


148 


111 


149 


118 


150 


177 


154 


90 


138 


93 


139 


94 


145 


129 


151 


99 


143 



All. 

(20) 



97 



96 
97 
101 

102 
100 

98 

101 
101 
108 
118 
123 
173 



100 
103 
133 

107 



Tobac- 


Live- 


Poul- 


co and 


stock, 


try and 


tobac- 


meats. 


dairy 


co prod- 


and 


prod- 


ucts 


fats 


ucts 


class. 


class. 


class. 


All 


All 


All 


uncon- 


con- 


con- 


trolled. 


trolled. 


trolled. 


(15) 


(48) 


(43) 


101 


94 


109 


99 


97 


105 


99 


104 


101 


100 


106 


100 


100 


109 


95 


100 


114 


90 


100 


114 


96 


100 


113 


103 


100 


116 


108 


100 


114 


124 


100 


114 


131 


105 


116 


134 


100 


98 


105 


100 


109 


95 


100 


114 


102 


102 


114 


129 


100 


109 


108 


107 


120 


133 


109 


127 


132 


109 


138 


124 


110 


150 


137 


110 


156 


130 


119 


156 


122 


129 


152 


130 


134 


156 


142 


135 


169 


151 


138 


1167 


1171 


155 


168 


174 


158 


167 


177 


109 


128 


130 


113 


154 


130 


133 


159 


141 


150 


167 


174 


125 


152 


144 


154 


167 


193 


156 


168 


188 


161 


171 


172 


167 


184 


157 


171 


185 


149 


185 


185 


137 


195 


190 


154 


200 


189 


168 


202 


198 


182 


203 


191 


203 


203 


182 


218 


200 


193 


227 


157 


168 


184 


175 


185 


147 


199 


192 


168 


202 


189 


216 


183 


183 


179 



Fish and oyster class. 



Con- 


Un- 








trolled. 


(14) 


(1) 


106 


88 


115 


82 


133 


95 


115 


102 


104 


102 


109 


97 


114 


100 


115 


100 


119 


100 


134 


100 


142 


100 


153 


100 


118 


88 


109 


100 


116 


100 


143 


100 


122 


97 


169 


105 


166 


105 


181 


105 


199 


105 


198 


105 


189 


105 


189 


109 


189 


109 


210 


126 


1221 


126 


235 


126 


224 


126 


172 


105 


195 


105 


196 


114 


227 


126 


198 


113 


247 


126 


239 


126 


229 


126 


220 


126 


218 


146 


225 


146 


226 


146 


231 


146 


233 


146 


251 


156 


260 


160 


264 


174 


239 


126 


222 


139 


230 


146 


258 


163 


237 


144 



All. 
(15) 



97 
97 
113 
108 
103 
103 

107 
107 
109 
116 
120 
125 



102 
105 
108 
120 

109 



135 
134 
141 
150 
150 
145 

147 
147 

166 
171 
178 
172 

137 
148 
153 
174 

153 

183 
180 
175 
171 
180 
184 

184 
186 
188 
201 
207 
217 

179 

178 
186 
208 

188 



' Price control began during month. 



138 



HISTORY OF PRICES DURING THE WAE. 



PKICj- section weighted INDEX NLMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 19ia-1915. 

[Base: Average prices July, 1913, to June, 1914=100.] 









The clothing group. 








Cotton and cotton 
products class. 


Wool and woolen 
products class. 


Silk and silk products 
class. 




Con- 
trolled. 

(57) 


Uncon- 
trolled. 

(24) 


All. 
(81) 


Con- 
troUcd. 

(21) 


Uncon- 
trolled. 

(45) 


All. 
(66) 


Con- 
trolled. 

(2) 


Uncon- 
trolled. 

(52) 


All. 

(54) 


1913— Months- 


103 
103 
103 
102 
101 
100 

99 
100 
100 
102 
102 
102 

103 
101 
100 
102 

101 

100 
100 
99 
99 
99 
99 

99 
97 
94 
89 

85 
84 

100 
99 
97 

86 

95 

83 

84 
85 
87 
89 
89 

91 
92 
94 
99 
102 
104 

84 
89 
93 
102 

92 


100 
98 
97 
97 
95 
95 

95 
95 
97 
110 
107 
100 

98 
96 
96 
105 

99 

90 
98 
103 
98 
100 
102 

102 
102 
72 
64 
52 
56 

99 
100 
92 

57 

87 

54 
61 
61 
67 
75 
71 

71 

67 
70 
92 
95 
93 

59 
71 
69 
93 

73 


102 
101 
101 
100 
99 
98 

98 
98 
99 
105 
104 
101 

101 
99 
98 

103 

100 

98 
99 

101 
98 
99 

100 

100 
99 
86 
79 
72 
73 

99 
99 
95 
75 

92 

72 
75 
76 
79 
84 
82 

83 
82 
85 
97 
99 
100 

74 
82 
83 
99 

84 


122 
122 
118 
114 
110 

no 

109 
108 
107 
105 
102 
96 

121 
111 
108 
101 

110 

92 
92 
94 
97 
99 
101 

102 
103 
105 
106 
111 
114 

92 
99 
103 
110 

101 

122 
133 
138 
136 
136 
136 

139 
143 
145 
146 
349 
153 

131 
136 
143 
149 

140 


106* 
106 
100 
106 
105 
105 

104 
103 
102 
102 
101 
99 

106 
105 
103 
101 

104 

98 
98 
98 
98 
98 
98 

99 
100 
100 
100 
101 
101 

98 
98 
100 
101 

90 

103 
104 
107 
107 
107 
108 

109 
111 
112 
113 
115 
116 

105 
107 
111 
114 

109 


108 
108 
108 
107 
106 
105 

105 
103 
103 
102 
101 
99 

108 
106 
104 
101 

105 

97 
97 
98 
97 
98 
99 

99 
100 
100 
101 
102 
103 

98 
98 
100 
102 

99 

105 
107 
110 
110 
111 
111 

112 

114 
116 
116 
118 
120 

108 
111 
114 
118 

113 


91 
90 
89 
91 
91 
91 

97 
96 
103 
98 
98 
99 

90 
91 

98 
98 

94 

101 
102 
103 
103 
102 
99 

103 
99 
91 

88 
82 
88 

102 
101 
98 

85 

96 

85 
85 
84 
84 
84 
85 

84 
85 
88 
89 
88 
95 

85 
84 
85 
01 

86 


96 
100 
96 
95 
95 
97 

96 
100 
101 
100 
99 
99 

97 
95 
99 
100 

98 

100 
101 
100 
100 
100 
103 

100 
96 
94 
93 
90 
91 

100 
101 
96 
91 

97 

92 
92 
92 
93 
92 
91 

91 
92 
93 
97 
103 
107 

92 

92 

92 

102 

95 


96 




100 


March . .' 


96 




95 


May 


95 


June 


96 


July 


96 


August 


100 


Septeni1:)er. 


101 


October 


100 


November 


99 


December 


99 


Quarters- 
First 


97 


Second 


95 


Third 


99 


Fourth 


100 


Year 


98 


1914— Months- 
January 


100 


February 


101 


March 


100 


Aprl 


100 




100 


June 


103 


July 


100 


August 


96 


September 


94 


October 


93 


Nnv«Tn her . 


90 


December 


91 


Quarters- 
First 


100 


Second 


101 


Third 


% 


Fourth 


91 


Year 


97 


1915— Months- 


92 


February 


92 


March 


92 


April 


92 




92 


June 


91 


July 


91 


Aupust 


92 


September 


93 


October 


97 




103 


December 


107 


Quarters- 
First 


92 


Second 


92 


Third 


91 


Fourth 


102 


Year 


94 







GOVERNMENT CONTEOL OVER PRICES. 



439 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARxlTED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1916-1918. 

[Base: Average prices Julj', 1913, to June, 1914=100.] 





The clothing group. 




Cotton and cotton 
products class. 


Wool and woolen 
products class. 


Silk and silk products 
class. 




Con- 
trolled. 

(57) 


Uncon- 
trolled. 

(24) 


All. 
(81) 


Con- 
trolled. 

(21) 


Uncon- 
trolled. 

(45) 


AU. 

(66) 


Con- 
trolled. 

(2) 


Uncon- 
trolled. 

(52) 


All. 
(54) 


1916— Months- 


106 
109 
110 
112 
114 
116 

119 
124 
128 
140 
153 
160 

108 
114 
124 
151 

124 

158 
157 
161 
169 
172 
184 

193 
194 
200 
206 
206 
211 

159 
175 
196 
208 

184 

225 
233 
246 

268 

1270 

275 

279 
283 
269 
270 
270 
267 

235 
271 
277 
269 

263 


94 
95 
91 
95 
95 
100 

103 
104 
120 
128 
148 
161 

93 
97 
109 
145 

111 

141 

138 
131 
148 
156 
167 

203 
200 
192 
192 

224 
228 

136 

157 
198 
215 

176 

238 
244 
248 
261 
234 
225 

235 
229 
264 
261 
240 
227 

243 
240 
243 
243 

242 


101 
103 
103 
105 
107 
110 

112 
116 
125 
135 

151 
160 

102 
107 
118 
149 

119 

151 
150 
149 
161 
166 
177 

197 
196 
197 
200 
213 
218 

150 
168 
197 
210 

181 

230 
237 
247 
265 
256 
256 

262 
262 
267 
267 
258 
251 

238 
259 
264 
259 

255 


157 
161 
161 
160 
161 
162 

163 
164 
166 
169 

179 
■ 187 

160 
161 
164 

178 

166 

194 
203 
215 

217 
230 
265 

268 
273 
273 
283 
285 
286 

202 
234 
272 

285 

248 

288 
286 
290 
289 
1288 
290 

298 
297 
299 
299 
298 
287 

283 
289 
298 
294 

292 


121 
125 
128 
130 
132 
133 

136 
138 
141 
142 
147 
155 

125 
131 
138 
148 

136 

164 

170 

175 
182 
188 
197 

206 
218 
223 
227 
237 
244 

170 
189 
216 
236 

202 

248 
252 
259 
266 
270 
272 

279 
281 

285 
289 
285 
281 

253 
269 
282 
285 

272 


125 
129 
132 
133 
135 
136 

139 
141 
144 
145 
151 
158 

129 
135 
141 
152 

139 

167 
174 
179 
186 
193 
203 

213 
225 
228 
234 
243 
248 

173 
194 
222 
242 

208 

253 
256 
262 
268 
272 
274 

281 
283 
286 
290 
286 
282 

257 
272 

233 
286 

274 


95 
92 
101 
103 
109 
111 

111 
120 
124 
124 
123 
121 

9S 
107 
118 
122 

111 

119 
110 
112 
113 
115 
137 

164 
173 
161 
152 
142 
152 

114 
122 
166 
149 

138 

152 
157 
163 
185 
202 
221 

235 
2-15 
1250 
235 
224 
220 

157 
203 
244 
226 

208 


109 
116 
122 
121 
120 
121 

122 
128 
125 
128 
134 
134 

116 
121 
125 
132 

124 

132 
135 
134 
136 
136 
i41 

147 
153 
151 
145 
147 
147 

133 
138 
150 
147 

142 

150 
151 
153 
159 
162 
.171 

172 
174 
179 
181 

184 
181 

151 
164 
175 
182 

168 


109 




115 




122 




121 




120 


June 


121 


July 


122 




128 


September 


125 


October 


128 




134 


December 


134 


Quarters- 
First ■- 


116 


Second 


121 


Third... 


125 


Fourth 


132 


Year 


123 


1917— Months- 


132 




134 


March 


133 


April 


136 


Mav 


136 


June 


141 


July 


147 




153 


September 


151 


October 


146 


November 


147 


December 


147 


Quarters- 
First.. 


133 


Second 


138 


Third ^ 

Fourth 


150 

147 


Year 


142 


1918— Months- 
January 


150 


February 


151 


March 

April 


153 

159 


May 


162 


June 


171 


July 


172 


August 


175 


September 


180 


October 


181 


November 


184 


December 


182 


Quarters— 
Fii-st.... 


151 


Second 


164 


Third 


176 


Fourth 


182 


Year 


168 







1 Price control began during month. 



440 



HISTORY OF PRICES DURING THE WAR. 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1913-1915. 

[Base: Average prices July, 1913, to June, 1914=100.] 



The clothing group. 



Hides and sidns and their 
products class. 



Con- 
trolled. 

(60) 



Uncon- 
trolled. 

(96) 



All. 
(156) 



Hatters' 
fur class 
and fur 
felt hats. 



All un 
controlled. 



(10) 



Hair, 

bristles, 

and 
feathers 

class. 



All un- 
controlled 

(22) 



Buttons 
class. 



All im- 
con trolled. 



1913— Months- 
January... 
February . 

March 

April 

May 

June 

July 

August 

September 
October. . . 
November 
December. 

Quarters — 

First 

Second 

Third 

Fourth.... 

Year 

1914— Months- 
January... 
February . 

March 

April 

May 

June 

July 

August 

September 
October... 
November 
December. 

Quarters- 
First 

Second 

Third 

Fourth.... 

Year— 

1915— Months- 
January. . . 
February . 

March 

April 

May 

June 

July 

August 

September 
October... 
November 
December. 

Quarters- 
First 

Second 

Tliird 

Fourth.... 

Year 



97 
97 
96 
95 
95 
95 

95 
97 
98 
101 
101 
100 



97 
95 
97 
100 



99 
102 
102 
102 
102 
102 

101 
102 
104 
103 
105 
109 



101 
102 
10? 
105 

103 



99 
99 
100 
100 
100 
100 



99 
99 
99 
100 



100 
100 
100 
101 
100 
100 

101 
101 
101 
101 
101 
102 



100 
100 
101 
102 

101 



99 
99 
100 
100 
100 



97 

99 

100 



100 
101 
101 
101 
101 
101 

101 
101 
102 
102 
102 
105 



101 
101 
101 
103 

101 



112 


104 


107 


113 


104 


107 


112 


104 


107 


105 


104 


104 


107 


104 


105 


108 


104 


106 


112 


105 


107 


115 


105 


109 


115 


105 


109 


116 


105 


109 


117 


106 


110 


118 


106 


110 


112 


104 


107 


107 


104 


105 


114 


105 


108 


117 


106 


110 



105 
105 
105 
105 
105 
105 

104 
104 
103 
103 
101 
«9 



105 
105 
104 
101 

104 



97 
97 
100 
100 
99 



101 
101 
101 
101 
101 
100 

100 
100 
99 
99 
99 
99 



101 
101 
100 
99 

100 



101 
101 
101 
101 
100 
100 

100 
100 
100 
104 
103 
101 



101 
100 
100 
103 

101 



113 



105 



108 



97 


100 


97 


100 


97 


100 


97 


99 


97 


98 


97 


98 


97 


98 


97 


98 


97 


97 


97 


96 


98 


100 


99 


100 


97 


100 


97 


98 


97 


98 


98 


99 


97 


99 



GO^^RNMEISTT CONTROL OVER PRICES. 



441 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 

UNCONTROLLED PRICES, 1916-1918. 

[Base: Average prices July, 1913, to June, 1916=100.] 





The clothing group. 




Hides and skins and their 
products class. 


Hatters' 
fur class 
and fur 
felt hats. 


Hair, 
bristles, 

and 
feathers 

class. 


Buttons 
class. 


• 


Con- 
trolled. 

(60) 


Uncon- 
trolled. 

(96) 


All. 
(156) 


All un- 
controlled. 

(10) 


All un- 
controlled. 

(22) 


All un- 
controlled. 

(20) 


1916— Months- 


117 
122 
125 
130 
134 
137 

135 
135 
134 
143 

165 
189 

122 
134 
135 
166 

139 

189 
184 
185 
182 
186 
182 

180 
176 
168 
168 
175 
■ 177 

186 
1S3 
175 
173 

179 

170 
160 
153 
150 
1 166 
168 

166 
104 
165 
166 
166 
165 

101 
163 
165 
166 

164 


113 
113 
115 
116 
118 
119 

123 
122 
123 
125 
132 
136 

114 

lis 

1?3 
131 

121 

159 
158 
158 
158 
157 
158 

168 
168 
167 
167 
168 
168 

158 
158 
168 
168. 

163 

176 
175 

175 
175 
177 
178 

183 
183 
183 
183 
185 
185 

175 
177 
183 
184 

180 


114 
116 
118 
120 
123 
125 

127 
127 
127 
131 
143 
154 

116 
123 
127 
143 

127 

169 
167 
167 
166 
167 
166 

172 
171 
• 165 
168 
170 
171 

168 
166 
170 
170 

168 

174 
170 
168 
168 
173 
175 

177 
177 
177 
177 
178 
178 

171 

» 172 

177 

178 

174 


101 
101 
103 
103 
105 
105 

106 
106 
110 
111 
115 
118 

101 
104 
107 
114 

107 

121 
125 
130 
130 
131 
131 

132 
132 
135 
136 
1.55 
1.59 

125 
131 
133 
150 

135 

164 
179 
177 
183 
189 
192 

218 
219 
221 
221 
221 
220 

173 
188 
219 
221 

200 


99 
100 
100 
100 
100 
100 

99 
100 

99 
101 
103 
104 

100 
100 
99 
103 

100 

106 
106 
107 
107 
106 
109 

110 
112 
114 
113 
112 
115 

106 
108 
112 
113 

110 

121 
121 
125 
131 
131 
131 

137 
146 
145 
147 
147 
146 

122 
131 
143 
147 

136 


96 




95 




S8 




97 




102 




101 


July 


104 




104 




102 




102 




102 




102 


Quarters- 
First 


96 




100 


Third 


103 


Fourth 


102 


Year 


101 


1917— Months- 


107 




108 




107 


April 


107 




109 




109 


July 


707 




101 




107 




107 




107 




109 


Quarters- 
First 


108 




109 


Third 


107 


Fourth 


107 




108 


1S18— Months— 

January 


123 




123 




125 


April 


125 




125 




127 


July 


128 




128 


Sentember 


130 




130 




130 




130 


Quarters- 
First 


124 




126 


Third 


129 


Fourth 


130 




127 







1 Price control began during month. 



442 



HISTORY OF PRICES DURING THE WAR. 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES 1913-1915. 

[Base: Average prices, July, 1913, to June, 1915=100.] 



1913— Months- 
January . . . 
February.. 

March 

April 

May 

June 

July 

August 

September 
October. . . 
November. 
Decemlier . 

Quarters — 

First 

Second 

Third 

Fourth 

Year 

1914— Months- 
January . . . 
February.. 

March 

April 

May 

June 

July 

August 

September 
October.. . 
November - 
December . 

Quarters- 
First 

Second 

Third 

Fourth 

Year 

1915— Months- 
January . . . 
February.. 

March 

April 

May 

June 

July 

August 

September , 
October . . . 
November. 
December . 

Quarters- 
First 

Second 

Third 

Fourth 

Year 



The rubber, paper, and fibers group. 



Rubber and rubber 
products class. 



Paper class. 



Con- 
trolled. 



(10) 



169 
161 
1-19 
13S 
127 
123 

113 
111 
104 
92 
93 
96 



160 
129 
109 
94 

123 



95 
100 

99 
104 
102 

91 

92 
115 
100 

96 
104 
125 



98 
99 
104 
108 

102 



126 
98 

100 
98 
93 
97 

99 
95 
92 
94 
107 
127 



108 
96 
95 

109 

102 



LTneon- 
trolled. 

(24) 



111 
111 
111 
104 
103 
104 

104 
104 
104 
104 

104 



111 

104 
104 
102 

105 



All. 
(34) 



Con- 
trolled. 

(1) 



123 
122 
119 1 
111 

108 
108 

106 
105 
104 
102 
102 



121 
109 
105 
100 

109 



96 

96 
100 
98 
96 

97 
102 



99 



102 
84 
83 
83 
82 
83 

84 
83 
82 
83 
85 
90 



101 
101 
101 
100 
101 
100 

101 
101 
100 
100 
100 
99 



Uncon- 
trolled 

(40) 



101 
98 
101 
101 
101 
100 

100 
100 
100 
100 
100 
100 



101 


100 


100 


101 


100 


100 


100 


100 


100 ' 


100 


101 


100 


100 


100 


100 


100 


100 


100 


100 


99 


99 


99 


100 


99 


99 


100 


100 


100 


100 


104 


102 


102 


102 


102 


100 


100 


100 


99 


100 


100 


101 


103 


100 


100 


100 


101 


99 


100 


99 


100 


99 


99 


99 


100 


99 


100 


99 


100 


99 


100 


99 


100 


99 


100 


99 


100 


99 


101 


99 


100 


99 


100 


99 


100 


99 


100 


99 


100 



All. 
(41) 



101 
99 
101 
101 
101 
100 

100 
101 
100 
100 
100 
100 



100 
100 
100 
100 



100 
100 
100 
100 
100 
99 



100 
100 
103 
102 
102 



100 
99 
100 
102 

100 



100 
100 
100 
99 
99 
100 

100 
100 
100 
99 
99 
100 



100 
99 
100 
100 



Fibers and fiber 
products class. 



Con- 
trolled. 



(10) 



116 
116 
116 
113 

108 
105 

105 
109 
111 
108 
103 
99 



116 
108 
109 
103 

109 



05 
94 
95 
94 

92 
106 
106 
98 
86 
80 



94 
94 
103 

87 

94 



82 
86 
89 
93 
97 
100 



Uncon- 
trolled. 

(31) 



97 



99 
99 
99 

101 
101 
102 
102 
102 
102 



97 
99 
101 
102 

100 



100 
98 
97 
99 

101 



95 
102 
103 
97 
94 
92 



98 
99 
100 



98 



96 
96 
101 
106 
102 
106 



99 


108 


98 


108 


97 


108 


98 


108 


101 


111 


107 


111 



86 


98 


93 


97 


105 


102 


98 


108 


104 


102 


110 


107 


96 


105 


101 



GOVERNMENT GONTROL OVER PRICES. 



443 



V-RXrv SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
PRICE faEOlION ^^^^^^^^^j^CONYROLLED PRICES 1916-1918. 

[Base: Average prices, July, 1913, to June, 1910=100.] 







The rubber, paper, and fibers group. 






Rubber and rubber 
products class. 


Paper class. 


Fibars and fiber 
products class. 




Con- 
troUed. 1 

(10) 


Uncon- 
rolled. 

(24) 


All. 
(34) 


Con- ; Uncon- 
Tolled. trolled. 

(1) (40) 


. „ Con- Uncon- 
^^^- trolled, trolled. 

(41) (10) (34) 


All. 
(44) 


1916— Months— 


146 
127 
140 
131 
116 
101 

92 

92 

93 

97 
104 
119 

138 
116 
92 
107 

113 

121 
125 
132 
127 
129 
118 

104 
103 
105 
100 
95 
S8 

126 

124 

104 

94 

112 

96 
83 
88 
93 
198 
98 

98 
98 
98 
98 
96 
96 

89 
97 
98 
97 

95 


87 
87 
87 
88 
88 
88 

89 
89 
89 
90 
92 
93 

87 
88 
89 
92 

89 

102 
102 
103 
108 
109 
110 

110 
111 
119 
121 
121 
121 

102 
109 
113 
121 

111 

123 
125 
125 
131 
139 
140 

140 
141 
141 
141 
141 
141 

125 
137 
140 
141 

136 


99 
95 
98 
97 
94 
91 

89 
90 
90 
92 
95 
98 

97 
94 
90 
95 

94 

106 
107 
109 
112 
113 
112 

109 
109 
116 
117 
115 
114 

107 
112 
111 
115 

112 

117 
117 
118 
123 
131 
131 

131 
132 
132 
132 
131 
131 

117 
128 
131 
131 

127 

1 


100 

99 

99 
101 
102 
104 

108 
112 
115 
118 
116 
126 

99 
102 
111 
120 

108 

149 
162 
169 
168 
168 
168 

166 
166 
170 
166 
164 
161 

160 
168 
168 
164 

165 

170 
169 
170 
1 173 
191 
191 

195 
195 
195 
196 
196 
196 

170 

185 
195 
196 

187 


108 
116 
131 
147 
153 
158 

162 
169 
178 
187 
194 
202 

118 
153 
169 
194 

159 

208 
209 
208 
208 
202 
196 

186 
182 
187 
175 
171 
166 

209 
202 
185 
170 

192 

165 
168 
170 
177 
181 
194 

191 

195 
198 
199 
199 
199 

168 
184 
195 
199 

186 


106 
112 
122 
134 
139 
143 

147 
153 
160 
168 
173 
181 

113 
139 
153 

174 

145 

192 
196 
197 
197 
192 
188 

195 
177 
183 
172 
169 
165 

195 
192 
ISO 
i-39 

184 

166 
168 
170 
■ 176 
184 
193 

192 
194 
197 
199 
199 
198 

168 
184 
195 
198 

1S7 


121 

128 
129 
126 
119 

118 

117 
119 
118 
121 
127 
141 

127 
121 
118 
129 

124 

151 
155 
155 
163 
194 
209 

215 
217 
219 
222 
235 
258 

164 
188 
217 
238 

199 

266 
270 
1272 
280 
281 
280 

281 
275 
266 
233 
224 
206 

270 
280 
274 
221 

261 


116 
132 
138 
139 
143 
145 

150 
153 
153 
156 
156 
169 

129 
142 
152 
161 

146 

ISO 
189 
192 
207 
216 
224 

230 
230 
231 
239 
241 
240 

187 
215 
231 
240 

218 

239 
238 
238 
240 
244 
247 

243 
244 

244 
245 
244 
232 

238 
244 
244 
240 

241 


118 




131 




134 


\pril 


133 




133 




134 


July 


137 




139 


Septemlier 

October 


139 
142 




144 


December 


158 


Quai-ters- 
First , 


128 




133 


Third 


138 


Fourth 


118 


Year 


137 


1917— Months- 


168 




175 




177 


April 


189 




206 


June 


218 


July 


224 




225 


September 


226 


October 


232 


November 


239 


December 


248 


Quarters- 
First 


173 




204 


Thi^-d 


225 


FourtS. 


239 




210 


1918— Months- 


250 




251 


March 


252 




256 




260 


June... 

July 


251 
259 




256 


September 

October .- 


253 
240 




236 


December 


221 


Quarters- 
First 


251 


Second 


259 


Third 


256 






Year 


249 







1 Price control began during month. 



444 



HISTORY OF PRICES DURING THE WAR. 



PRICE SECTION WEIGHTED INDEX NUMBER, SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1913-1915. 

(Base: Average prices, July, 1913, to Jime, 1914=100.] 





The metals group. 




Iron, steel, and their products 

class. 


Forroalloys, nonferrous, and 
rare metals class. 




Con- 
trolled. 

(36) 


Uncon- 
trolled. 

(52) 


All. 

(88) 


Con- 
trolled. 

(13) 


Uncon- 
trolled. 

(15) 


All. 
(28) 


1913— Months- 
January 


121 

121 
120 

117 
115 
113 

112 

111 
108 
104 
98 
96 

121 
115 
110 
99 

111 

95 
98 
98 
96 
93 
92 

92 
93 
95 
92 
90 
89 

97 
94 
93 
90 

93 

89 
90 
60 
91 
91 
93 

97 
103 
108 
111 
117 
131 

90 
92 
103 
120 

101 


99 
99 
99 
100 
100 
100 

100 
100 
100 
100 
101 
100 

99 
100 
100 
100 

100 

100 
100 
100 
99 
99 
99 

99 
99 
99 
99 
99 
99 

100 
99 
99 
99 

99 

99 
98 
98 
97 
97 
97 

97 
97 
98 
100 
100 
100 

98 
97 
97 
100 

98 


121 
120 
119 
116 
115 
113 

112 
111 
108 
104 
98 
96 

120 
114 
110 

99 

111 

95 
98 
97 
96 
93 
92 

92 
93 
95 
92 
90 
89 

97 
94 
93 
90 

. 93 

89 
90 
90 
91 
92 
93 

97 
103 
108 
111 
117 
131 

90 
92 
103 
119 

101 


111 
105 
102 

105 
106 
102 

101 

106 
109 
108 
103 
98 

106 
104 
105 
103 

104 

97 
98 
96 
96 
95 
94 

92 
92 
89 
84 
85 
90 

97 
95 
91 

86 

92 

94 
100 
102 
112 
119 
131 

127 
119 
122 
122 
129 
138 

98 
121 
122 
130 

118 


121 
116 

112 
111 
111 
109 

106 
106 
108 
106 
104 
100 

116 
110 
107 
103 

109 

99 
98 
96 
94 
93 
91 

89 
100 
91 
84 
86 
89 

97 
98 
93 
86 

92 

95 
110 
123 
129 
153 
175 

185 
155 
155 
152 
169 
174 

109 
152 
165 
165 

148 


115 




109 


March . .... 


107 


April 


108 


May 


108 


June 


105 


July 


103 


August 


106 


September 


109 


October 


107 


November 


103 


December 


99 


Quarters- 
First 


110 


Second 


107 


Third 


106 


Fourth 


103 


Year 


106 


1914— Months- 
January 


98 


February 


98 


March 


96 


April 


95 


May 


94 


June 


92 


July 


91 


August 


95 


September 


90 


October 


84 


November 


85 


December 


90 


Quarters- 
First 


97 




94 


Third 


92 


Fourth 


86 


Year 


92 


1915— Months- 
January 


94 


February 


104 


March 


111 


April 


119 


May 


134 


June 


150 


July 


152 


August 


134 


September 


136 


October 


135 


November 


146 


December 


153 


Quarters- 
First 


103 


Second 


134 


Third » 


140 


Foinrth .■ 


145 


Year 


lao 







GOVERNMENT CONTROL OVER PRICES. 



445 



PRICE SECTION WEIGHTED INDEX NUMBER, SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1916-1918. 

|Base: Average prices, July, 1913, to June, 1914=100.] 



The metals group. 



Iron, steel, and their products 
class. 



Con- 
trolled. 

(36) 



Uncon- 
trolled. 

(52) 



All. 



Ferroalloys, nonferrous, and 
rare metals class. 



Con- 
trolled. 

(13) 



Uncon- 
trolled. 

(15) 



All. 
(28) 



1916— Months- 
January. . , 
February . 

March 

April 

May 

June 



July 

August 

September . 

October 

November . 
December. . 



Quarters- 
First . . . 
Second. 
Third . . 
Fourth. 

Year 



1917— Months- 
January. . , 
February . 

March 

April 

May 

June , 



July 

August 

September . 

October 

November . 
December. . 



Quarters — 

First 

Second. . . 
Third . . . . 
Fourth... 



Year. 



1918— Months- 
January. . , 
February . 

March 

April 

May , 

June . 



July 

August 

September . 

October 

November . 
December. . 



Quarters — 

First 

Second. . . 

Third 

Fourth... 



Year . 



139 
143 
161 
165 
162 
163 

165 
169 
171 
176 
203 
222 



146 
163 



200 
169 



237 
241 
257 
276 
297 
348 

374 
349 
1313 
244 
219 
218 



244 
310 
346 
227 

282 



218 
219 
219 
218 
218 
218 

218 
220 
220 
222 
223 
217 



219 
218 
219 
221 

219 



105 
106 
105 
113 
119 
119 

120 
120 
120 
129 
130 
136 



106 
117 
120 
132 

119 



142 
142 
145 
149 
155 
160 

170 
175 
189 
185 
185 
185 



143 
154 
178 
185 



187 
184 
186 
186 
191 

194 
194 
194 
199 
201 
205 



185 
188 
194 
202 



138 
143 
160 
164 
161 
162 

164 
168 
170 
175 
202 
221 



145 
162 
167 
198 

168 



235 
238 
254 
274 
294 
344 

370 
346 
310 
243 
218 
217 



242 
306 
342 
226 



218 
218 
218 
217 
217 
218 

218 
219 
219 
222 
222 
217 



218 
217 
219 
220 

218 



156 
173 
178 
187 
190 
177 

167 
174 
180 
182 
198 
207 



169 
185 
174 
196 

181 



193 
217 
223 
211 
222 
227 

212 
205 
1 197 
176 
171 
172 



211 
220 
205 
173 

202 



175 
174 
173 
174 
175 
177 

188 
189 
189 
189 
189 
183 



174 
175 



187 
181 



200 
219 
217 
228 
224 
210 

195 
191 
192 
197 
207 
213 



212 
221 
192 
206 

208 



215 
221 
215 
217 
213 

211 
201 
192 
189 
191 
186 



215 
214 
202 

188 

205 



181 
178 
183 
180 



197 
209 
208 
206 
201 
199 



181 
187 
205 
202 

194 



175 
192 
194 
205 
205 
191 

179 
181 
185 
188 
202 
209 



187 
200 
182 
200 

192 



200 
217 
222 
213 
219 
221 

212 
203 
195 
181 
180 
178 



213 
218 
203 
180 

203 



177 

176 

177, 

177 

181 

183 

192 
197 
197 
196 
194 
190 



177 
180 
195 
193 

187 



1 Price control began during month. 



446 



HISTOKY OF PRICES DURING THE WAR. 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1913-1915. 

[Base: Average prices July, 1913, to June, 1914=100.] 







The Tuels group. 






Coal and 
coke class. 


I'etroleum and petroleum 
products class. 


ISIatches 
class. 




All con- 
trolled. 

(27) 


Con- 
trolled. 

(5) 


Uncon- 
trolled. 

(22) 


All. 

(27) 


All uncon- 
trolled. 

0) 


1913— Months— 


104 
101 
100 
99 
99 
100 

100 
101 
101 
102 
102 
101 

102 
99 
101 
101 

101 

100 
100 
100 
98 
98 
98 

98 
99 
99 
99 
99 
99 

100 
98 
99 
99 

99 

99 
99 
98 
95 
95 
95 

95 
95 
96 
96 
97 
99 

99 
95 
95 
98 

97 


87 
93 
96 
95 
% 
96 

98 
102 
104 
104 
105 
105 

92 
95 
101 
104 

OS 

105 
108 
106 
101 
82 
80 

79 
78 
70 
64 
63 
63 

106 
88 
76 
63 

83 

63 
63 
55 
54 
54 
54 

52 
58 
75 
79 
81 
97 

60 
54 
62 
86 

G5 


104 
100 
100 
107 
100 
100 

105 
103 
104 
103 
102 
99 

105 
106 
104 
101 

104 

100 
99 
99 
97 
95 
93 

89 
87 
85 
83 
83 
83 

99 
95 
87 
83 

91 

81 
80 

77 

77 
77 
77 

76 
77 
79 
86 
95 
103 

79 
77 
77 
95 

C;2 


99 
102 
103 
104 
103 
103 

103 
103 
103 
103 
103 
101 

102 
103 
103 
102 

102 

101 
102 
101 
98 
92 
89 

86 
84 
81 
78 
77 
77 

102 
93 

84 
77 

89 

76 
75 
71 
70 
70 
70 

69 
71 
78 
84 
91 
101 

74 
70 
73 
92 

77 


99 




99 




99 




99 




99 




99 


July 


99 




99 




99 




100 




100 




100 


Quarters- 


99 




99 


Third 


99 


Fourtli 


100 




100 


1914— Months- 


101 




101 




101 




101 




101 




101 


July 


101 




101 




101 




101 




101 




101 


Quarters- 


101 




101 


Third . 


101 




101 


Year 


101 




101 




101 




101 


/ April 


105 




105 




105 


July 


105 




105 




106 




106 




106 




lOG 




101 




105 




105 


Fourth . . 


106 




104 







GOVERNMEIsrT CONTROL OVER PRICES. 



447 



raiCE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1916-1918. 

[Base: Average prices July, 1913, to June, 1914=100.] 





The fuels group. 


>■ 


Coal and 
coke class. 


Petroleum and petroleum 
products class. 


Matches 
class. 




All con- 
trolled. 

(27) 


Con- 
trolled. 

(5) 


Uncon- 
trolled. 

(22) 


All. 
(27) 


AUnncon* 
trolled, 

(9) 


191G— Months- 
January 


102 
100 
99 
103 
103 
103 

103 
104 
106 
110 
123 
122 

100 
103 
104 
118 

106 

127 
127 
124 
177 
189 
189 

180 
1181 
170 
169 
174 
175 

120 
185 
177 
173 

165 

177 
177 
178 
215 
218 
213 

212 
213 
215 
215 
223 
223 

177 
215 
214 
220 

207 


114 
122 
136 
142 
144 
144 

142 
115 
104 
106 
108 
125 

124 
143 
120 
113 

125 

142 
163 
163 
163 
164 
168 

172 
172 
193 
193 
193 
193 

156 
165 
178 
193 

173 

195 
196 
200 
215 
223 
223 

223 
1223 
,227 
227 
227 
227 

197 
220 
224 
227 

217 


111 
115 
120 
120 
123 
123 

123 
123 
118 
117 
118 
119 

115 
123 
121 
118 

119 

126 
132 
133 
135 
136 
137 

139 
139 
141 
142 
143 
148 

130 
136 
140 
145 

138 

155 
157 
159 
161 
167 
169 

168 
168 
169 
169 
166 
166 

157 
166 
168 
107 

104 


112 
117 
125 
127 
130 
130 

128 
120 
114 
114 
115 
121 

118 
129 
121 
117 

121 

131 
141 
142 
143 

144 
146 

149 
149 
157 
157 
158 
161 

138 
145 
151 
159 

148 

167 
169 
171 
177 
183 
185 

,184 
184 
186 
186 
184 
184 

169 
182 
185 
185 

ISO 


121 


February 


121 


March. 


121 




121 


May 


121 


.Tnnp 


122 


July 


123 


August 


124 




124 


October 


127 




137 


December 


148 


Quarters- 
First 


121 


Second 


121 


Third 


124 


Fourth 


137 


Year 


126 


1917— Months- 
January 


163 


February 


164 


March 


164 


April 


164 


May 


164 


June 


164 


July 


165 




165 


September 


165 




1C6 


November 


167 




168 


First 


164 




165 


Third 


165 




167 


Year 


165 


1918— Months- 
January 


1C8 


February 


1C8 


March 


169 




169 


May 


169 


June 


170 


July 


171 


August 


172 




173 


October 


173 


November. .-. 


173 


December 


174 


Quarters- 
First 


168 


Second 


1C9 




172 


Fourth. 


174 


Year 


171 







1 Price control began during month. 



44-8 



HISTORY OF PRICES DURING THE WAR. 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES 1913-1915. 

[Base: Average prices July, 1913 to June, 1914=100.] 



1913— Months- 
January 

February.. 

March 

April 

May 

June 

July 

August 

September 
October. . . 
November . 
December. 

Quarters- 
First 

Second 

Third 

Fourth 

Year 

1914— Months- 
January... 
February . 

March 

April 

May 

June 

July 

August 

September 
October. . . 
November. 
December. 

Quarters — 

First 

Second 

Third 

Fourth 

Year 

1915— Months- 
January... 
February. 

March 

April 

May 

June . . 

July 

August 

September 
October... 
November 
December. 

Quarters — 

First 

Second 

Third 

Fourth.... 

Year 



The building materials group. 



Clay products class. 



Con- 
trolled. 

(3) 



100 
100 
100 
100 
101 

101 
101 
101 
100 
100 
100 



100 
100 
101 
100 

100 



101 
100 
100 
99 
99 
99 



100 
99 

99 
99 



96 
96 
97 

87 
87 
97 

97 
97 
97 
97 
100 
100 



Uncon- 
trolled. 

(13) 



97 
97 
98 
100 
100 
100 

100 
100 
100 

100 



97 
100 
100 

99 



100 
100 
100 
100 
100 
101 

101 
102 
102 
102 
101 
101 



100 
100 
102 
101 

101 



101 
101 
101 
102 
102 
102 

102 
102 
102 
102 
101 
103 



101 
102 
102 
102 

102 



All. 
(10) 



99 
100 
100 
100 

100 
100 
100 
100 
99 
99 



100 
100 
99 

100 



100 
100 
100 
100 
100 
100 

101 
101 
101 
101 
100 
100 



100 
100 
101 
100 

100 



99 
99 
100 
100 
100 
100 

101 
101 
100 
100 
100 
102 



100 
100 
101 
101 

100 



Sand and gravel class. 



Con- 
trolled. 

(8) 



99 

98 
98 
99 
98 

99 
98 
99 
99 
99 
100 



98 



100 
101 
102 
101 
101 
100 

100 
99 

100 
99 

100 

101 



101 
101 
99 
100 

100 



105 
108 
101 
103 
102 
100 

100 
96 
97 
99 
100 
105 



105 
102 
97 
102 



Uncon- 
trolled. 

(1) 



100 
100 
100 
100 
100 
100 

100 
100 
100 
100 
100 
100 



100 
100 
100 
100 

100 



100 
100 
100 
100 
100 
100 

100 
100 
100 
100 
100 
100 



100 
100 
100 
100 

100 



100 
100 
100 
100 
100 
100 

100 
100 
100 
100 
100 
100 



100 
100 
100 
100 

100 



All. 
(9) 



99 
98 
99 
99 
99 
100 



99 



100 
101 
102 
101 
101 
100 

100 
99 

100 
99 

100 

101 



101 
101 
99 

;oo 

100 



105 
108 
101 
103 
102 
100 

100 
96 
97 
99 
100 
105 



105 
102 

98 
102 



Quarry 
prod- 
ucts 
class. 



All 
uncon- 
trolled. 

(15) 



98 
98 
100 
100 
100 
100 

101 
101 
101 
101 
101 
101 



100 
101 
101 

100 



101 
101 
101 

98 



101 



Cement class. 



Con- 


Uncon- 


trolled. 


trolled. 


(6) 


(1) 


91 


100 


94 


100 


99 


100 


103 


100 


104 


100 


103 


100 


104 


100 


104 


100 


105 


100 


105 


100 


102 


100 


100 


100 


95 


100 


103 


100 


104 


100 


102 


100 


101 


100 


96 


100 


95 


100 


99 


100 


99 


100 


97 


100 


97 


100 


97 


100 


99 


100 


99 


100 


98 


100 


96 


100 


87 


100 


97 


100 


97 


100 


98 


100 


94 


100 


96 


100 


85 


100 


88 


100 


86 


100 


85 


100 


86 


100 


87 


100 


91 


100 


92 


100 


93 


100 


94 


100 


97 


100 


96 


100 


86 


100 


86 


100 


92 


100 


96 


100 


90 


100 



GOVERlsrMEIsrT CONTEOL OVER PRICES. 



449 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES 1916-1918. 

[Base: Average prices July, 1913 to June, 1916=100.] 





The building materials group. 
















Quarry 










Clay products 


class. 


Sand and gravel class. 


prod- 
ucts 


Cement class. 
















class. 










Con- 


Uncon- 


All. 


Con- 


Uncon- 


All. 


All 


Con- 


Uncon- 


All. 




trolled. 


trolled. 


trolled. 


trolled. 


uncon- 
trolled. 


trolled. 


trolled. 




(3) 


(13) 


(16) 


(8) 


(1) 


(9) 


(15) 


(6) 


(1) 


(7) 


1916— Months- 






















January 


107 


107 


107 


110 


100 


109 


99 


101 


120 


101 


February . . . 


109 


107 


108 


110 


100 


109 


103 


104 


120 


104 


March 


112 


105 


107 


109 


100 


109 


103 


110 


120 


110 


April 


112 


105 


107 


109 


100 


109 


105 


112 


120 


112 


May 


113 


109 


110 


108 


100 


108 


105 


115 


120 


115 


June 


114 


109 


110 


110 


100 


110 


108 


115 


120 


115 


July 


117 


110 


112 


110 


100 


110 


108 


113 


120 


113 


August 


118 


114 


115 


110 


100 


109 


108 


114 


120 


114 


September. . 


119 


114 


115 


110 


100 


109 


108 


114 


120 


114 


October 


123 


116 


118 


109 


100 


108 


110 


115 


120 


115 


November. . 


125 


118 


120 


112 


100 


111 


110 


117 


120 


117 


December. . . 


127 


125 


126 


115 


100 


114 


113 


120 


120 


120 


Quarters- 






















First 


109 


106 


107 


110 


100 


109 


102 


105 


120 


105 


Second 


113 


107 


109 


109 


100 


109 


106 


114 


120 


114 


Third 


118 


113 


114 


110 


100 


109 


108 


114 


120 


114 


Fourth 


125 


120 


121 


112 


100 


111 


111 


117 


120 


117 


Year 


117 


112 


113 


110 


100 


110 


107 


112 


120 


112 


1917— Months- 




January 


130 


133 


132 


126 


121 


126 


120 


125 


130 


125 


February . . . 


134 


136 


136 


126 


121 


126 


120 


132 


130 


132 


March 


136 


141 


140 


117 


121 


117 


120 


138 


130 


138 


April 


138 


146 


143 


123 


121 


123 


120 


146 


130 


146 


May 


142 


152 


149 


128 


121 


127 


129 


147 


130 


147 


June 


146 


158 


154 


128 


121 


128 


133 


151 


130 


151 


July 


150 


159 


157 


131 


121 


131 


134 


151 


130 


151 


August 


151 


163 


159 


134 


121 


134 


134 


151 


130 


151 


September.. 


152 


163 


160 


133 


121 


132 


134 


151 


130 


151 


October 


152 


163 


160 


131 


121 


131 


143 


152 


130 


152 


November. . 


154 


163 


160 


155 


121 


153 


144 


152 


130 


152 


December... 


155 


164 


161 


159 


121 


157 


144 


1149 


130 


149 


Quarters- 






















First 


134 


137 


136 


123 


121 


123 


120 


132 


130 


132 


Second 


142 


152 


149 


126 


121 


126 


127 


148 


130 


148 


Third 


151 


162 


159 


133 


121 


132 


134 


151 


130 


151 


Fourth 


153 


163 


160 


148 


121 


146 


144 


151 


130 


151 


Year 


145 


153 


151 


132 


121 


132 


131 


146 


130 


146 


1918— Months- 




January 


156 


174 


169 


183 


136 


181 


148 


151 


170 


151 


February . . . 


163 


174 


171 


181 


136 


178 


148 


152 


170 


153 


March 


163 


179 


174 


173 


136 


171 


. 148 


167 


170 


167 


April 


164 


184 


178 


172 


136 


170 


161 


167 


170 


167 


May 


172 


195 


188 


177 


136 


175 


166 


172 


170 


172 


June 


177 


201 


194 


185 


136 


183 


172 


172 


170 


172 


July 


1188 


201 


197 


1182 


136 


179 


172 


171 


170 


171 


August 


197 


206 


203 


185 


136 


183 


173 


174 


170 


174 


September.. 


203 


211 


208 


184 


136 


181 


173 


173 


170 


173 


October. . .'. . 


201 


211 


208 


196 


136 


192 


173 


172 


170 


172 


November.,. 


201 


210 


209 


199 


136 


195 


192 


176 


170 


176 


December. . . 


205 


200 


201 


197 


136 


194 


192 


173 


170 


173 


Quarters- 






















First 


161 


176 


171 


179 


136 


177 


148 


157 


170 


157 


Second 


171 


193 


187 


178 


136 


176 


167 


171 


170 


171 


Third 


196 


206 


203 


184 


136 


181 


173 


172 


170 


172 


Fourth 


203 


207 


206 


197 


136 


194 


186 


174 


170 


174 


Year 


183 


196 


192 


184 


136 


182 


168 


169 


170 


169 



125547°— 20- 



-29 



1 Price control began during month. 



450 



HISTORY OF PEICES DURING THE WAR. 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES 1913-1915. 

[Base: Average prices July, 1913, to June, 1914=100.] 





The building materials group. 




Glass 
class. 


Lumber class. 


Paints and varnishes class. 




All 
uncon- 
trolled. 

(10) 


Con- 
troUed. 

(24) 


Uncon- 
trolled. 

(38) 


All. 

(62) 


Con- 
trolled. 

(1) 


Uncon- 
troUed. 

(29) 


All. 

(30) 


1913— Months- 
January 


102 
102 
102 
102 
102 
102 

102 
102 
102 
101 
101 
101 

102 
102 
102 
101 

102 

99 
99 
99 
99 
99 
99 

99 
99 
99 
99 
99 
99 

99 
99 
99 
99 

99 

91 
90 
90 
90 
90 
90 

90 
90 
90 
90 
95 
91 

90 
90 
90 
91 

90 


115 
115 
115 
115 
115 
115 

105 
105 
105 
99 
99 
99 

115 
115 
105 
99 

108 

98 
98 
98 
98 
98 
98 

97 
97 
97 
90 
90 
90 

98 
98 
97 
90 

96 

90 
90 
90 
91 
91 
91 

92 
92 
92 
109 
109 
109 

90 
91 
92 
109 

96 


103 
103 
103 
103 
103 
103 

102 
102 
102 
101 
101 
101 

103 
103 
102 
101 

102 

99 
99 
99 
98 
98 
98 

96 
96 
96 
93 
93 
93 

99 
98 
96 
93 

97 

93 
93 
93 
91 
91 
91 

90 
90 
90 
95 
95 
95 

93 
91 
90 
95 

92 


104 
104 
104 
99 
99 
99 

111 
111 
104 
99 

105 

99 
99 
99 
98 
98 
98 

96 
96 
96 
91 
91 
91 

99 
98 
96 
91 

96 

91 
91 
91 
91 
91 
91 

91 
91 
91 
104 
104 
104 

91 
91 
91 
104 

94 


90 
88 
92 
92 
94 
94 

94 
102 
102 
102 
100 
100 

90 
94 
99 
101 

96 

100 
100 
100 
100 
100 
98 

98 
98 
106 
102 
102 
83 

100 
100 
101 
95 

99 

82 
94 
98 

100 
98 

100 

96 
94 
90 
96 
110 
118 

92 
100 

94 
108 

98 


99 
100 
100 
100 

99 
100 

100 
100 
102 
101 
100 
100 

100 
100 
101 
100 

100 

100 
100 
99 
100 
99 
99 

100 
101 
102 
100 
99 
99 

100 
99 

101 
99 

100 

99 
100 
100 
103 
104 
105 

120 
117 
116 
117 
116 
119 

100 
104 
118 
117 

110 


99 


February 


99 


March 


100 


April 


100 


May 


99 


June 


99 


July 


100 


August 


100 


September 


102 


October 


101 


November 


100 


December 


100 


Quarters- 
First 


99 


Second 


99 


Third 


101 


Fourth 


100 


Year 


100 


1914— Months- 
January 

February 


100 
100 


March 


99 


April 


100 


May 


99 


June 


99 


July 


99 


August 


101 


September 


102 


October 


100 


November 


99 


December 


98 


Quarters- 
First 


100 


Second 


99 


Third 


101 


Fourth 


99 


Year 


100 


1915— Months- 
January 


98 


February 


100 


March 


100 


April 

May 


103 

103 


June 


105 


July 


118 


August 


116 


September 


115 


October 


116 


November 


115 


December 


119 


Quarters- 
First. . 


99 


Second 


104 


Third 


116 


Fourth 


117 


Year 


109 







GOVERNMENT CONTROL OVER PRICES. 



451 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES 1916-1918. 

[Base: Average prices July, 1913, to June, 1914=100.1 



The building materials group. 



Glass 
class. 



All 
uncon- 
trolled. 

(10) 



Lumber class. 



Con- 
trolled. 

(24) 



Uncon- 
trolled. 

(38) 



All. 
(62) 



Paints and varnishes class. 



Con- 
trolled. 

(1) 



Uncon- 
trolled. 

(29) 



All. 
(30) 



1916— Months- 
January . . . 
February . . 

March 

April 

May 

June 

July 

August 

September 
October. . . 
November 
December. 

Quarters — 

First 

Second 

Third 

Fourth 

Year 

1917— Months-- 

January . . . 
February . . 

March 

April 

May 

June 

July 

August 

September 
October. . . 
November . 
December. 

Quarters- 
First 

Second 

Third 

Fourth 

Year 

1918— Months- 
January . . . 
February.. 

March 

April 

May 

June 

July 

August 

September 
October. . . 
November. 
December. 

Quarters — 

First 

Second 

Third 

Fourth.... 

Year 



105 
107 
107 
111 
111 
112 

112 
112 
113 
114 
114 
114 



106 
112 
113 
114 

111 



138 
138 
138 
139 
139 
144 

145 
145 
145 
145 
155 
155 



138 
141 
145 
152 

144 



161 
161 
168 
168 
169 
170 

171 
171 
178 
178 
178 
179 



163 
169 
173 
178 



117 
117 
117 
113 
113 
113 

109 
109 
109 
119 
119 
119 



117 
113 
109 
119 

115 



128 
128 
128 
164 
164 
164 

171 
171 
171 
171 
>171 
171 



128 
164 
171 
171 

159 



179 
179 
179 
190 
190 
190 



188 
188 
184 
184 
184 



179 
190 

188 
184 

185 



99 
99 
99 
99 
99 
99 

100 
100 
100 
103 
103 
103 



99 
99 
100 
103 

100 



111 

111 
111 
125 
125 
125 

131 
131 
131 
137 
137 
137 



111 
125 
131 
137 

125 



142 
142 
142 
152 
152 
152 

153 
153 
153 
154 
154 
154 



142 
152 
153 
154 

150 



111 
111 
111 
108 
108 
108 

106 
106 
106 
113 
113 
113 



111 
108 
106 
113 

109 



122 
122 
122 
150 
150 
150 

156 
156 
156 
159 
159 
159 



122 
150 
156 
159 

146 



166 
166 
166 
176 
176 
176 

176 
176 
176 
173 
173 
173 



166 
176 
176 
173 

172 



121 
134 
139 
153 
146 
134 

121 
118 
121 
146 
165 
181 



132 
144 
120 
163 

140 



188 
188 
204 
213 
228 
236 

224 
200 
226 
242 
1260 
271 



194 
225 
217 
258 

223 



276 
287 
294 
307 
307 
287 

283 
287 
283 
287 
278 
271 



299 

284 

278 

287 



124 
132 
137 
154 
155 
152 

146 
143 
144 
142 
146 
150 



131 
154 
144 
146 

144 



154 
156 
161 
165 
171 
174 

180 
181 
183 
176 
172 
175 



157 
170 
181 
174 

171 



176 
176 
190 
205 
207 
210 

222 
228 
232 
231 
227 
226 



181 

207 
228 

228 

211 



124 
132 
137 
154 
154 
152 

145 
142 
142 
142 
147 
151 



131 
153 
143 
147 



156 
157 
163 
168 
174 
177 

182 
182 
185 
179 
177 
180 



159 
173 
183 
178 

173 



181 
181 
195 
210 
211 
214 

225 
231 
235 
234 
229 
228 



186 
212 
230 
230 



1 Price control began during month. 



452 



HISTORY OF PRICES DURING THE WAR. 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1913-1915. 

[Base: Average prices July, 1913, to June, 1914=100.] 





The chemicals group. 




Mineral acids class. 


Heavy 


chemicals class. 


Miscellaneous inorganic 
chemicals class. 


Ferti- 
lizers 

class. 




Con- 
trolled. 


Un- 
con- 
trolled. 


All. 


Con- 
trolled. 


Un- 
con- 
trolled. 


All. 


Con- 
trolled. 


Un- 
con- 
trolled. 


All. 


All 

con- 
trolled. 




(6) 


(2) 


(8) 


(3) 


(6) 


(9) 


(2) 


(18) 


(20) 


(25) 


1913— Months- 






















January 


102 


100 


102 


103 


97 


101 


104 


102 


102 


103 


February . . . 


102 


100 


102 


103 


97 


101 


104 


102 


102 


103 


Maich 


102 


100 


102 


105 


101 


104 


103 


101 


101 


103 


April 


102 


100 


102 


105 


99 


103 


102 


101 


101 


104 


May 


102 


100 


102 


102 


101 


101 


102 


101 


101 


104 


June 


102 


100 


102 


102 


98 


100 


101 


101 


101 


103 


July 


102 


100 


102 


102 


102 


102 


101 


101 


101 


103 


August 


102 


100 


102 


102 


102 


102 


101 


101 


101 


100 


September . . 


101 


100 


101 


94 


102 


97 


100 


101 


101 


99 


October 


101 


100 


101 


100 


100 


100 


100 


101 


101 


99 


November. - 


100 


100 


100 


100 


102 


101 


100 


100 


100 


99 


December. . . 


99 


100 


99 


100 


101- 


100 


100 


100 


100 


100 


Quarters- 






















First 


102 


100 


102 


104 


98 


102 


104 


102 


102 


103 


Second 


102 


100 


102 


103 


99 


101 


102 


101 


101 


104 


Third 


102 


100 


101 


99 


102 


100 


101 


101 


101 


101 


Fourth 


100 


100 


100 


100 


101 


101 


100 


100 


100 


100 


Year 


102 


100 


104 


102 


100 


101 


102 


101 


• 101 


102 


1914— Months- 




January 


99 


100 


99 


100 


101 


101 


99 


100 


100 


100 


February. .. 


99 


100 


99 


100 


100 


100 


100 


100 


100 


100 


March 


99 


100 


100 


100 


100 


100 


100 


100 


100 


101 


April 


99 


100 


99 


100 


96 


99 


100 


100 


100 


100 


May 


99 


100 


100 


100 


95 


99 


100 


100 


100 


100 


June 


99 


100 


99 


100 


97 


99 


100 


98 


99 


99 


July 


99 


100 


99 


100 


101 


100 


100 


98 


99 


98 


August 


98 


100 


98 


100 


99 


100 


99 


98 


98 


98 


September . . 


99 


100 


99 


100 


99 


100 


104 


123 


120 


99 


October 


98 


100 


98 


101 


98 


100 


104 


117 


115 


98 


November.. 


97 


100 


97 


101 


99 


100 


103 


114 


112 


96 


December. . . 


97 


100 


97 


101 


96 


99 


102 


117 


115 


96 


Quarters- 






















First 


99 


100 


99 


100 


100 


100 


100 


100 


100 


100 


Second 


99 


100 


99 


100 


96 


99 


100 


99 


99 


100 


Third 


98 


100 


99 


100 


100 


100 


101 


107 


106 


99 


Fourth 


97 


100 


97 


101 


98 


100 


103 


116 


114 


97 


Year 


98 


100 


99 


100 


96 


-100 


101 


105 


105 


99 


1915— Months- 




January 


97 


100 


97 


101 


96 


99 


102 


117 


115 


95 


February . . . 


97 


100 


97 


99 


96 


98 


102 


122 


119 


98 


March 


97 


100 


97 


99 


95 


98 


102 


121 


118 


99 


April. . . : 


99 


100 


99 


105 


98 


103 


102 


127 


123 


102 


May 


100 


100 


100 


112 


96 


107 


102 


129 


125 


103 


June 


100 


100 


100 


112 


95 


107 


102 


132 


127 


101 


July 


123 


133 


123 


138 


103 


127 


102 


146 


139 


104 


August 


123 


133 


124 


169 


102 


148 


101 


152 


144 


105 


September . . 


141 


152 


141 


171 


102 


149 


102 


151 


143 


109 


October 


142 


.152 


142 


202 


102 


170 


101 


156 


147 


116 


November. . 


145 


152 


145 


219 


109 


183 


101 


163 


153 


134 


December. . . 


146 


152 


146 


316 


111 


250 


101 


178 


165 


142 


Quarters- 






















First 


97 


100 


97 


100 


96 


99 


102 


119 


116 


97 


Second 


100 


100 


100 


110 


96 


106 


102 


129 


125 


102 


Third 


129 


139 


129 


100 


102 


141 


101 


149 


142 


106 


Fourth 


144 


152 


144 


245 


107 


201 


101 


165 


155 


130 


Year 


117 


123 


118 


154 


101 


137 


102 


141 


134 


109 



GOVEENMENT CONTKOL OVER PRICES. 



453 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 

UNCONTROLLED PRICES, 1916-1918. 

[Base: Average prices July, 1913, to June, 1914=100.] 



The chemicals group. 



Mineral acids class. 



Con- 
trolled, 



(6) 



Un- 
con- 
trolled. 

(2) 



All. 

(8) 



Heavy chemicals class. 



Con- 
trolled. 



(3) 



Un- 
con- 
trolled. 

(6) 



All. 



Miscellaneous taorganic 
chemicals class. 



Con- 
trolled. 



(2) 



Un- 
con- 
trolled. 

(18) 



All. 
(20) 



Ferti- 
lizers 
class. 



All 
con- 
trolled. 

(25) 



1916— Months- 
January. . . 
February . 

March 

April 

May 

June 

July 

August 

September 
October... 
November 
December. 

Quarters- 
First 

Second 

Third 

Foiu-th.... 

Year 

1917— Months- 
January. . . 
February . 
March...'.. 

April 

May 

June 

July 

August 

September 
October... 
November. 
December. 

Quarters- 
First 

Second 

Third 

Fourth.... 

Year 

1918— Months- 
January. . . 
February . 

March 

April 

May 

June 

July 

August 

September 
October.., 
November. 
December. 

Quarters — 

First 

Second 

Third 

Fourth.... 

Year 



183 
194 
197 
196 
181 
180 

153 
139 
137 
133 
132 
133 



192 
186 
143 
133 

163 



133 
134 
144 
149 
155 
148 

152 
167 
170 
171 

176 
186 



137 
151 
163 

177 



1 181 
191 
197 
202 
184 
174 

154 
154 
154 
142 
142 
142 



190 
187 
154 
142 



208 



208 
208 
245 

208 
170 
170 
152 
152 
152 



208 
220 
183 
152 



137 
137 
137 
138 
120 
120 

138 
138 
138 
148 
151 
158 



137 
126 
138 
152 



162 
158 
158 
232 
232 
195 

176 
176 
162 
162 
162 
162 



159 
219 
171 
162 

178 



183 
195 
197 
196 
182 
182 

154 
140 
138 
134 
133 
133 



192 

187 
144 
133 

164 



133 
134 
144 
148 
154 
147 

152 
166 
169 
170 
175 
185 



137 
150 
162 
177 



180 
190 
196 
203 
185 
175 

155 
155 
155 
143 
143 
143 



189 



155 
143 



169 



350 
507 
498 
443 
351 
367 

327 
310 
330 
359 
343 
371 



451 
387 
322 
358 

379 



351 
340 
337 
352 
384 
373 

381 
394 
519 
471 
403 
410 



342 
370 
431 
427 

393 



246 
263 
346 
'323 
299 
293 

245 
254 
301 
331 
327 
278 



318 
305 
267 
312 



115 
117 
117 
121 
120 
122 

125 
123 
121 
123 
120 
126 



116 
121 
123 
122 



166 
164 
168 
"179 
185 
190 

193 
196 
192 
203 
215 
214 



166 
185 
194 
211 

189 



225 
217 
217 
225 
230 
226 

224 
235 
227 
243 
252 
239 



220 
227 
229 
245 



274 
381 
375 
339 
276 



262 
249 
262 
283 
271 
292 



343 
301 

258 
282 

296 



291 
283 
283 
296 
320 
314 

321 
330 
414 
384 
342 
347 



286 
310 
355 
358 

327 



239 
316 
304 
292 
276 
271 

238 
248 
277 
303 
303 
266 



287 
280 
255 
290 



103 
104 
106 
108 
108 
107 

107 
107 
107 
106 
107 
110 



104 
108 
107 
108 

107 



112 
117 
122 
133 
135 
135 

135 
151 
154 
149 
1 151 
150 



117 
134 
147 
150 

137 



132 
149 
149 
132 
133 
133 

133 
133 
133 
132 
132 
132 



144 
133 
133 
132 



218 
251 
256 
281 
275 
261 

243 
226 
225 
232 
221 
228 



242 
273 
231 
227 

243 



231 


212 


144 


237 


218 


145 


229 


211 


148 


242 


224 


151 


247 


229 


156 


248 


230 


166 


254 


235 


173 


252 


236 


187 


256 


239 


189 


254 


237 


198 


233. 


220 


193 


234 


220 


202 


232 


213 


146 


246 


228 


158 


254 


237 


183 


240 


226 


198 



243 



252 
235 
236 
258 
261 
256 

240 
240 
235 
254 
251 
230 



241 

258 
238 
245 



199 
227 
231 
253 
248 
236 

221 
207 
206 
211 
202 



219 
246 
211 
207 



226 



233 
221 
222 
237 
240 
236 

223 
223 
218 
234 
232 
214 



225 
238 
221 
227 



174 
179 
179 
177 
159 
156 

141 
135 
134 
136 
138 
141 



177 
164 
137 
138 



1203 
215 
215 
218 
206 
203 

195 
197 
190 
187 
187 
184 



211 
209 
194 
1S6 



1 Price control began during month. 



454 



HISTORY OF PRICES DURING THE WAR. 



PRICE SECTION "WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED 
AND UNCONTROLLED PRICES, 1913-1915. 

[Base: Average prices July, 1913, to June, 1914=100.] 





The chemicals group. 










Essen- 






















tial 






















oils, 






















flavor- 






















ing 
and 


Wood distillation prod- 


Natural dyestuffs and 




Soaps ana giycenn 


ucts and naval stores 


tannine chemicals 






Class. 




per- 
fum- 
ery 

mate- 
rials 

class. 


class. 






class. 








Con- 


Uncon- 


AH. 


All un- 


Con- 


Uncon- 


All. 


Con- 


Uncon- 


All. 




trolled. 


trolled. 


con- 
trolled. 


trolled. 


trolled. 


trolled. 


trolled. 






(21) 


(9) 


(30) 


(20) 


(5) 


(4) 


(9) 


(1) 


(18) 


(19) 


1913— Months- 






















January 


96 


99 


98 


90 


121 


118 


119 


100 


102 


102 


February . . . 


99 


99 


99 


96 


121 


129 


126 


100 


102 


102 


March 


100 


99 


99 


93 


121 


133 


129 


100 


102 


102 


April 


101 


99 


100 


94 


119 


118 


118 


100 


103 


103 


May 


100 
99 


99 
99 


99 
99 


97 
102 


119 
118 


105 
105 


109 
110 


100 
100 


103 
102 


103 


June 


101 


July 


99 
102 


99 
100 


99 
101 


100 
107 


118 
116 


101 
93 


107 
100 


100 
100 


102 
102 


101 


August 


101 


September . . 


102 


100 


101 


104 


116 


98 


104 


100 


102 


101 


October 


102 


100 


101 


105 


108 


92 


97 


100 


101 


100 


November. . 


101 


101 


101 


101 


103 


98 


100 


100 


99 


99 


December. . . 


101 


101 


101 


99 


103 


97 


99 


100 


99 


99 


Quarters- 






















First 


98 


99 


99 


93 


121 


127 


125 


100 


102 


102 


Second 


100 


99 


99 


97 


110 


109 


112 


100 


103 


102 


Third 


101 


100 


100 


106 


117 


98 


104 


100 


102 


101 


Fourth 


101 


101 


101 


101 


104 


96 


99 


100 


100 


100 


Year 


100 


100 


100 


99 


115 


107 


110 


100 


102 


101 


1914-Months— 




January 


100 


100 


100 


97 


95 


103 


100 


100 


99 


99 


February. . . 


100 


100 


100 


97 


95 


109 


104 


100 


99 


99 


March 


99 


100 


100 


97 


87 


102 


97 


100 


99 


99 


April 


99 


100 


99 


98 


87 


100 


96 


100 


99 


99 


May 


99 
97 


100 
100 


99 
99 


96 
95 


87 
87 


102 
104 


97 
99 


100 
100 


99 
99 


99 


June 


99 


July 


98 
98 


100 
100 


99 
99 


98 
94 


87 
87 


104 
103 


99 
97 


100 
100 


99 
99 


99 


August 


99 


September . . 


114 


100 


104 


102 


88 


100 


96 


100 


124 


119 


October 


106 


99 


101 


99 


89 


99 


96 


100 


125 


119 


November. . 


99 


99 


99 


92 


93 


98 


97 


100 


129 


122 


December. . . 


98 


100 


99 


89 


102 


96 


98 


100 


127 


121 


Quarters- 






















First 


100 


100 


100 


97 


92 


105 


101 


100 


99 


99 


Second 


98 


100 


99 


96 


87 


103 


97 


100 


99 


69 


Tliird 


103 


100 


101 


98 


87 


103 


98 


100 


107 


106 


Fourth 


101 


100 


101 


93 


95 


• 98 


97 


100 


127 


121 


Year 


100 


100 


100 


96 


90 


102 


98 


100 


108 


106 


1915— Months- 




January 


98 


100 


99 


88 


110 


93 


98 


100 


122 


117 


February . . . 


102 


100 


100 


76 


113 


90 


97 


100 


124 


118 


March...' 


102 


100 


100 


77 


113 


90 


98 


100 


125 


119 


April 


102 


100 


100 


76 


128 


94 


105 


100 


136 


128 


May 


102 
99 


100 
100 


100 
99 


75 

75 


128 
138 


100 
90 


109 
105 


100 
100 


138 

148 


129 


June 


136 


July 


97 

98 


100 
100 


99 
99 


76 
72 


154 
160 


94 
91 


113 
113 


100 
153 


152 
170 


140 


August 


166 


September . . 


.109 


100 


102 


71 


173 


87 


115 


211 


182 


189 


October 


125 


100 


107 


72 


173 


96 


121 


252 


195 


208 


November . - 


1.52 


100 


115 


77 


181 


128 


145 


252 


209 


220 


December. . . 


158 


100 


117 


80 


198 


144 


161 


252 


226 


233 


Quarters- 






















First 


101 


100 


100 


80 


112 


91 


98 


100 


124 


118 


Second 


101 


100 


100 


75 


131 


94 


106 


100 


140 


131 


Third 


102 


100 


100 


73 


162 


90 


114 


155 


168 


165 


Fourth 


145 


100 


113 


76 


184 


122 


143 


252 


210 


220 


Year 


112 


100 


103 


76 


147 


99 


115 


152 


161 


159 







GOVERNMENT CONTROL, OVER PRICES. 



455 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED 
AND UNCONTROLLED PRICES, 1916-1918. 

[Base: Average prices July, 1913, to June, 1914=100.] 



1916— Months- 
January... 
February . 

March 

April 

May 

June 

July 

August 

September 
October... 
November 
December. 

Quarters- 
First 

Second 

Third 

Fourth.... 

Year 

1917— Months- 
January. . . 
February . 

March 

April 

May 

June 

July 

August 

September 
October... 
November 
December. 

Quarters — 

First 

Second 

Third 

Fourth.... 

Year 

1918— Months- 
January. . . 
February. 

March 

April 

May 

June 

July 

August 

September 
October... 
November 
December. 

Quarters- 
First 

Second 

Third 

Fourth.... 

Year 



The chemicals group. 



Soaps and glycerin 

class. 



Con- 


Uncon- 


trolled. 


trolled. 


(21) 


(9) 


154 


100 


161 


100 


171 


100 


187 


101 


189 


101 


177 


101 


164 


101 


142 


101 


148 


101 


166 


104 


180 


108 


190 


107 


162 


100 


185 


101 


151 


101 


179 


106 


169 


102 


187 


107 


193 


107 


196 


107 


208 


110 


238 


129 


260 


144 


253 


144 


238 


138 


260 


136 


265 


136 


1267 


140 


274 


140 


192 


107 


235 


127 


250 


139 


269 


139 


236 


128 


276 


142 


277 


143 


275 


147 


273 


149 


269 


153 


269 


155 


269 


158 


274 


158 


275 


160 


279 


168 


275 


165 


219 


172 


276 


144 


271 


152 


273 


159 


257 


168 


269 

• 


156 



All. 
(30) 



116 
118 
121 
126 
126 
123 

119 
113 
115 
122 
129 
131 

118 
125 
116 
127 

122 

130 
132 
133 
138 
161 
177 

175 
167 
172. 
174 
177 
179 

132 
159 
171 
176 

160 



181 
182 
185 
185 

187 
188 

190 
192 
193 
201 
197 
186 

182 
187 
192 
194 



Essen- 
tial 
oils, 

flavor- 
ing 
and 
per- 
fum- 
ery 

mate- 
rials 

class. 



All un- 
con- 
trolled. 

(20) 



83 
82 
83 
81 
83 
91 

91 
92 
95 
105 
104 
101 

82 
85 
93 
104 



102 
100 
100 
101 
105 
104 

103 
105 
112 
121 
124 
124 

101 
103 
107 
123 

108 



Wood distillation prod- 
ucts and naval stores 
class. 



Con- 


LTncon- 


trolled. 


troUed. 


(5) 


(4) 


228 


151 


260 


156 


276 


148 


275 


146 


264 


117 


264 


128 


263 


129 


263 


145 


207 


140 


170 


136 


173 


139 


185 


144 


254 


151 


268 


131 


244 


138 


176 


140 


236 


140 


186 


151 


193 


145 


193 


142 


221 


137 


226 


141 


226 


135 


245 


126 


247 


126 


253 


139 


275 


154 


282 


156 


1291 


146 


191 


146 


224 


137 


249 


130 


282 


151 


237 


141 


284 


143 


293 


146 


284 


138 


221 


131 


.221 


141 


200 


182 


201 


212 


200 


212 


200 


241 


200 


259 


200 


266 


200 


255 


288 


142 


214 


152 


200 


221 


200 


260 


226 


194 



All. 
(9) 



176 
190 
189 
188 
165 
173 

173 
183 
162 
147 
150 
158 

185 
175 
173 
152 



162 
161 

158 
164 
168 
164 

165 
166 
176 
193 
197 
193 

160 
166 
169 
194 



189 
194 
186 
161 
168 
188 

208 
208 
227 
240 
244 
237 

189 
172 
215 
241 



Natural dyestuffs and 
tanning chemicals 
class. 



Con- 


Uncon- 


trolled. 


trolled. 


(1) 


(18) 


274 


280 


295 


344 


295 


360 


295 


361 


295 


351 


295 


350 


295 


292 


■ 295 


259 


295 


252 


295 


232 


295 


228 


295 


220 


288 


328 


, 295 


355 


295 


268 


295 


227 


294 


294 


295 


221 


295 


220 


295 


223 


295 


222 


295 


220 


295 


213 


295 


210 


295 


211 


295 


210 


211 


217 


211 


206 


211 


202 


295 


222 


295 


218 


295 


210 


211 


209 


274 


215 


189 


204 


189 


208 


189 


215 


252 


219 


1 252 


233 


295 


236 


201 


250 


201 


252 


201 


253 


201 


251 


201 


254 


201 


255 


189 


209 


266 


229 


201 


252 


201 


254 


213 


236 



All. 
(19) 



278 
333 
345 
346 
338 
337 

293 
268 
262 
247 
244 
238 

319 
341 
274 
243 

294 

238 
238 
240 
239 
238 
232 

230 
231 
230 
215 
207 
204 

239 
236 
230 
209 

229 



201 
203 
209 
227 
238 
250 

238 
240 
240 
239 
241 
242 

204 
238 
240 
241 

231 



I Price control began during month. 



456 



HISTORY OF PRICES DURING THE WAR. 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1913-1915. 





[Base 


Average prices July, 


1913, to July, 1914=100.] 










The chemicals group. 




Coal tar crudes, in- 
termediates, and 
dyes class. 


Drugs 
and 

phar- 
ma- 

ceuti- 
cals 

class. 


Pro- 
prie- 
tary 
prep- 
ara- 
tions 
class. 


Explosives class. 


Miscellaneous or- 
ganic chemicals 
class. 




Con- 
trolled. 

(1) 


Un- 
con- 
trolled. 

(18) 


All. 
(19) 


All im- 

con- 
trolled. 

(27) 


All im- 

con- 
troUed. 

(23) 


Con- 
trolled. 

(9) 


Un- 
con- 
trolled. 

(10) 


All. 
(19) 


Con- 
trolled. 

(2) 


Un- 
con- 
trolled. 

(12) 


All. 
(14) 


1913— Months- 
January 

February 

March 


83 
83 
83 
100 
100 
100 

100 
100 
lOO 
100 
100 
100 

83 
100 
100 
100 

96 

100 
100 
100 
100 
100 
100 

117 
117 
117 
117 
117 
117 

100 
100 
117 
117 

109 

117 
117 
117 
833 
833 
833 

1167 
1167 
1167 
1418 
1418 
1500 

117 
833 
1167 
1445 

889 


112 
112 
111 
114 
113 
112 

112 
107 
105 
103 
103 
102 

112 
113 
108 
103 

109 

95 
94 
95 
95 
95 
94 

101 
106 
195 
225 
267 
233 

95 
95 
134 
242 

141 

255 
411 
448 
554 
435 
572 

628 
638 
648 
663 
666 
680 

371 
520 
638 
667 

549 


109 
109 
108 
113 
112 
111 

111 
106 
105 
103 
103 
102 

109 
112 
107 
103 

108 

95 
95 
95 
95 
95 
95 

103 
107 
187 
215 
252 
222 

95 

95 

132 

230 

138 

242 
383 
417 
581 
473 
596 

679 
688 
697 
735 
737 
758 

347 

550 
688 
741 

582 


103 
103 
100 
100 
100 
99 

98 
99 
101 
100 
99 
99 

102 
100 
99 
99 

100 

100 
102 
101 
100 
100 
101 

101 
106 
136 
134 
124 
118 

101 
100 
114 
125 

110 

117 
116 
117 
122 
126 
132 

132 
138 
147 
152 
174 
178 

116 
127 
139 

168 

137 


100 
100 
100 
100 
100 
100 

100 
100 
100 
100 
100 
100 

100 
100 
100 
100 

100 

100 
100 
100 
100 
100 
100 

100 
100 
100 
100 
100 
100 

100 
100 
100 
100 

100 

100 
101 
101 
101 
101 
100 

100 
100 
100 
100 
100 
100 

101 
101 
100 
100 

101 


103 
102 
104 
103 
103 
103 

103 
103 
103 
100 
102 
102 

103 
103 
103 
101 

102 

98 
98 
99 
99 
97 
98 

95 
100 
98 
96 
96 
97 

98 
98 
98 
96 

98 

97 
98 
97 
107 
109 
111 

143 
142 
158 
175 
181 
177 

97 
109 
148 
177 

133 


104 
104 
104 
104 
104 
104 

104 
103 
103 
99 
102 
103 

104 
104 
103 
101 

103 

98 
97 
99 
99 
96 
98 

94 
98 
102 
101 
106 
104 

98 
98 
98 
104 

99 

188 
187 
186 
189 
188 
200 

200 
198 
209 
212 
217 
219 

187 
193 
202 
216 

199 


104 
103 
104 
103 
103 
104 

103 
103 
103 
98 
102 
102 

104 
103 
103 
101 

103 

98 
97 
99 
99 
96 
98 

94 

98 
100 

99 
103 
102 

98 
98 
98 
102 

99 

161 
161 
160 
165 
165 
174 

183 
181 
194 
201 
207 
206 

161 
108 
186 
205 

180 


107 
103 
103 
103 
103 
101 

101 
101 
101 
101 
99 
99 

104 
102 
101 
100 

102 

99 
99 
99 
99 
99 
99 

99 
142 
142 
137 
142 
142 

99 
99 
128 
140 

117 

137 
125 
125 
142 
148 
154 

154 
148 
155 
152 
166 
166 

129 
148 
152 
162 

148 


106 
105 
105 
102 
101 
101 

100 
100 
101 
101 
99 
98 

106 
101 
100 
99 

102 

99 
101 
100 
100 
100 
100 

98 
98 
101 
103 
102 
102 

100 
100 
99 
102 

100 

102 
100 
100 
100 
100 
104 

106 
108 
109 
109 
117 
119 

100 
101 
107 
115 

106 


106 
105 
105 


April 


102 


May 


101 


June 


101 


July 


100 


August 


100 


September 

October 

November 

December 

Quarters- 
First 


101 
101 
99 

98 

106 


Second 


102 


Third ■... 


100 


Fourth 


99 


Year 


102 


1914— Months- 
January 

February 

Msrch 


99 
101 
100 




100 


May 


100 


June 


100 


July 


98 


August 


99 


September 

October 

November 

December 

Quarters- 
First 


102 
104 
103 
103 

100 


Second 


100 


Third 


100 


Fourth 


103 


Year 


101 


1915— Months- 
January 

February 

March 


102 
101 
100 


April 


101 


May 


101 


.Tune 


105 


July 


108 


August 


108 


September 

October 

November 

December 

Quarters- 
First 


110 
110 
119 

120 

101 


Second 


103 


Third 


108 


Fourth 


116 


Year 


107 







GOVERNMENT CONTROL OVER PRICES. 



457 



PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND 
UNCONTROLLED PRICES, 1916-1918. 

[Base: Average prices July, 1913, to July, 1914=100.] 



1916— Months- 
January . . 
February. 

March 

April 

May 

June 



July 

August 

September. 

October 

November. 
December . 



Quarters- 
First 

Second . . 
Third.... 
Fourth. . 



1917— Months- 
January . . 
February . 

March 

April 

May 

June 



July 

August 

September. 

October 

November. 
December. . 



Quarters- 
First.... 
Second . 
Third.. 
Fourth. 

Year 



1918— Months- 
January . . 
February. 

March 

April 

May 

June 



July 

August 

September. 
October...: 
November. 
December. , 



Quarters- 
First... 
Second . 
Third... 
Fourth. 

Year. 



The chemicals group. 



Coal tar crudes, in- 
termediates, and 
dyes class. 



Con- 
trolled. 



(1) 



Un- 
con- 
trolled. 

(18) 



1500 
1500 
1500 
1500 
1500 
1167 

1167 
1167 
667 
667 
500 
500 



1500 
1389 
1000 
556 



Year 1111 



500 
500 
500 
500 
500 
500 

500 
500 
500 
500 
500 
500 

500 
500 
500 
500 



652 
643 
560 
560 
531 

465 
306 
377 
363 
363 
358 



654 
551 
416 
361 

495 

350 
344 
329 
307 
299 
301 

285 
281 
280 
271 
286 
297 

341 
303 
282 
285 



All. 
(19) 



500 


303 


500 


292 


1500 


291 


500 


295 


500 


288 


500 


276 


500 


276 


500 


258 


500 


255 


500 


257 


- 500 


250 


500 


251 


83 


244 


500 


293 


500 


280. 


500 


257 


360 


249 


464 


270 



747 
732 
724 
649 
649 
591 

532 
478 
405 
392 
376 
371 



734 
630 
471 
379 

553 



364 
359 
345 
325 
318 
320 

305 
302 
300 
293 
307 
316 

356 
321 
302 
305 

321 

312 
311 
314 
308 

297 
297 

281 
278 
280 
274 
275 
229 

312 
301 
280 
259 



Drugs 
and 

phar- 
ma- 

ceuti- 
cals 

class. 



All un- 
con- 
trolled 

(27) 



Allun 
con- 
trolled. 

(23) 



194 
209 
216 
226 
224 
209 

198 
191 
192 
189 
197 
196 



203 
217 
195 
194 

202 

192 
197 
214 
222 
227 
224 

223 
221 
224 
230 
232 
234 



Pro- 
prie- 
tary 
prep- 
ara- 
tions 
class. 



100 
100 
102 
102 
102 
102 

102 
102 
1«2 
102 
102 
102 



101 
102 
102 
102 



102 
102 
103 
103 
103 
104 

105 
105 
108 
110 
110 
110 



Explosives class. 



Con- 
trolled, 



(9) 



202 


102 


225 


104 


223 


106 


232 


110 


220 


106 


235 


112 


238 


112 


240 


112 


239 


112 


241 


112 


243 


112 


246 


113 


253 


114 


2.59 


114 


274 


116 


319 


117 


288 


117 


238 


112 


241 


112 


251 


114 


294 


117 


256 


114 



Un- 
con- 
trolled. 

(10) 



179 
186 

188 
190 
188 
184 

171 
159 
150 
151 
147 
149 



184 
187 
160 
149 

170 

147 
147 
152 
158 
165 
163 

169 
169 
172 
173 

1 175 
178 



166 

174 
179 
183 
184 
183 
179 

167 
166 
166 
162 
163 
141 

179 
182 
166 
155 

170 



211 
212 
208 
201 

188 
189 

186 
182 
177 
171 
169 
.156 



210 
192 
182 

165 



140 
132 
130 
128 
136 
137 

133 
134 
136 
136 
140 
140 



149 


134 


165 


134 


170 


134 


175 


138 



135 

138 
138 
138 
135 
136 
136 

135 
137 
137 
136 
137 
135 

138 
136 
136 
136 

136 



All. 
(19) 



Con- 
trolled. 

(2) 



202 
204 
202 
197 

188 
187 

182 
175 
169 
165 
162 
154 



203 
191 
175 
160 



142 
137 
136 
137 
145 
144 

144 
144 
147 
147 
151 
151 

138 
143 
145 
149 



149 
150 
151 
149 
150 
149 

145 
146 
145 
144 
144 
137 

150 
145 
145 
142 



Miscellaneous or- 
ganic chemicals 
class. 



Un- 
con- 
trolled 

(12) 



166 
160 
160 
171 
171 
199 

191 
181 
175 
158 
158 
160 



162 
180 
182 
159 

171 

175 
175 
183 
184 
201 
211 

211 
208 
201 
201 
206 
210 

177 
199 
207 
206 

197 

217 
1219 
217 
217 
217 
210 

198 
201 
280 
280 
280 
280 

218 
214 
226 
280 



123 
128 
132 
133 
134 
134 

133 
123 
123 
127 
132 
136 



128 
134 
127 
132 

130 

136 
135 
135 
142 
151 
152 

197 
205 
210 
232 
216 
212 

135 
148 
204 
220 

177 

202 
199 
199 
198 
198 
198 

199 
199 
199 
198 
200 
195 

200 
198 
199 
198 



All. 
(14) 



124 
129 
133 
134 
135 
135 

135 
125 
125 
128 
133 
137 



129 
135 
128 
133 



137 
136 
137 
143 
153 
153 

197 
205 
210 
232 
216 
212 

136 
149 

204 
220 

177 

202 
200 
200 
199 
199 
198 

199 
199 
3D1 
200 
202 
197 

200 
198 
200 
200 

200 



1 Price control began during month. 



458 HISTORY OF PRICES DURING THE WAR. 

There follows a separation of the 1,366 commodities carried in the 
Price Section Index Number into those controlled and uncontrolled. 
The separation indicated forms the basis for all comparisons in this 
section, for the chain index of controlled and uncontrolled prices 
and for frequent illustrations in the inquiry. The individual com- 
modity series counted as controlled are' listed here under their 
proper classes, as numbered in the "History of Prices During the 
War," when one or more series of a class came under control. This 
method was also used to list the uncontrolled series. The class index 
numbers for the controlled and uncontrolled series run parallel 
The first of the 50 classes in the Price Section Index Number, for 
example, is known as "8. Feeds and Forage Class" and the last as 
"57. Miscellaneous Inorganic Chemical Class." A full count of the 
series in one of these classes under the controlled list, and of those 
in the same class under the uncontrolled list, makes up the full 
number of series carried by the Price Section for that class. 



GOVERlsrMElSrT CONTROL OVER PRICES. 459 

(2) THE SERIES OF THE PRICE SECTION INDEX NUMBER CONSIDERED 

UNCONTROLLED. 

Food Group. 

10. Com and corn products class (3 series) : 

Alcohol, grain, 190 proof. 

Beer, western, light or dark. 

Whisky, Bourbon, 4 years in bond, 100 proof. 

11. Oats, buckwheat, and rice class (1 series): 

Puffed rice. 

12. Barley, hops, rye, and their products class (4 series): 

Beer, light or dark. 

Hops, Pacific coast. 

Hops, prime to choice. New York State. 

Whisky, rye, straight, 4 years in bond, 100 proof. 

13. Sugar and related products class (1 series): 

Honey, clover, comb, lower grade. 

15. Edible vegetable oils class (1 series): 

Cocoa beans, in bags. 

16. Fruits, nuts, and wine class (7 series): 

Almonds, ne plus ultra, unshelled. 
Apricots, canned, X standard, 2^ California. 
Claret, medium grade, California. 
Nuts, Brazil, medium, unshelled. 
Peaches, canned, X standard, 2^ California. 
Pineapple, canned X standard, 2^ Hawaiian, sliced 
Walnuts, No. 1 soft shelled. 

17. Spices and condiments class (10 series): 

Cassia, China rolls. 

Cloves, Zanzibar. 

Ginger, Cochin, A. B. C. 

Mace, Singapore. 

Nutmegs, 105s to llOa. 

Pepper — 

Black, Lampong. 
Black, Singapore. 
Red, Japan. 

Salt- 
American, medium. 
Domestic. 

18. Tea, coffee, and cocoa class (11 series): 

Cocoa — 

Arriba. 

Bahia. 

Trinidad. 
Tea- 
Ceylon, Pekoe. 

Country, green, gunpowder. 

Country, green, imperial fiirsts. 

Darzeeling, fancy orange. 

Formosa, good. 

Goochow, good. 

Pingsuey, gunpowder, firsts. 

Pingsuey, imperial firsts. 



460 HISTORY OF PRICES DURING THE WAR. 

19. Tobacco and tobacco products class (15 series): 
Broadleaf, Connecticut, second. 
Broadleaf, Pennsylvania, B's. 
Burley, good leaf, bright red. 
Cigars, little, under 3 pounds. 
Cigars, little, over 3 pounds. 
Cut plug. 

Habana Vuelta Abajo. 
Habana, remedios fillers. 
Habana, seed, medium and dark wrappers. 
Little Dutch, Ohio. 
Long cut. 
riug. 
Scrap. 
Sumatra. 
Zimmers Spanish. 

22. Fish and oysters class (1 series): 

Codfish, salt, whole bank medium. 

Clothing Group. 

23. Cotton and cotton products class (24 series): 

Cotton (raw materials) — 

Cotton, average in the United States. 
Egyptian, brown F. G. F. 
Egyptian, medium. 
Good, No. 1, Oomra. 
Long staple, strict middling, IJ-inch. 
Long staple, strict middling, l-j^g-inch. 
Long staple, strict middling, l|-inch. 
Long staple, strict middling, 1 i^-inch. 
Sea Island, extra choice. 
Short staple, upland middling, American. 
Short staple, upland middling. New York. 
Short staple, upland middling. New Orleans. 
Cotton manufactures — 

Hosiery- — * 

Men's half, 176 needles, 17/1 combed yam. 

Women's full fashioned, 18/1 combed yarn, 33 gauge. 
Tire fabric. Sea Island, 17|-ounce, combed. 
Underwear — 

Long staple, men's balbriggan, 178E, 5J pounds per dozen, 26 
gauge, 22/1 combed yarn. 

Long staple, merino shirts and drawers, 50 per cent wool, 24 gauge. 

Long staple, men's shirts and drawers, flat fleece, 12^ to 13 pounds 
per dozen. 

Long staple, women's ribbed union suits, 12 pounds per dozen. 
Velvet, millinery (17 inch, 2.955 ounces per yard). 
Cotton waste — 

Dirty card fly, mill run. 
No. 1 card strips, graded stock. 
For packing purposes. 
Dirty picker motes, mill run. 



GOVEKlSrMEIsrT CONTROL OVER PRICES. 461 

24. Wool and woolen products class (45 series): 
Blankets, all-wool, 5 pounds to the pair. 
By-products — 

Noils, tliree-eightlis blood. 
Waste, card, one-fourth blood. 
Tops- 
Australian, 64s. 
Buenos Aires, 40s. 
Buenos Aires, 46e. 
Territory, 50s. 
Knit goods — 

Men's shirts and drawers, 50 per cent wool, 24-gauge. 
Men's half-hose, seamless, wool. 
Worsted cloths — 
Dress goods — 

Sicilian cloth, cotton warp, 50-inch. 

Serge, botany, 11433, 7-ounce, 54-inch. 

Serge, 10-ounce, 54-inch. 

Storm serge, double-warp, 50-inch. 
Suitings — 

Clay diagonal, 16-ounce, 56 to 58 inch. 

Serge, Fulton Mills, 3192, 11-ounce, 56 to 58 inch. 
Trousering — 

Cotton warp, worsted-filled, 10 to 11 ounce, 60-inch. 
Woolen cloths — 
Carpets — 

Axminster, 6 2/3 by 7. 

Body Brussels, 9-wire, 256 pitch. 

Tapestry, 8-wire, 200 pitch. 
Broadcloth, dress, botany, 315, 10-ounce, 54 to 56 inch. 
Felt, upholstery, 11 to 13 ounce. 
Felt, interlining, 13-ounce. 
Overcoating — 

Melton, Worumbo, 30-ounce, 58-inch. 

Twill, plain soft-faced, black, 24-ounce, 54 to 56 inch. 
Suits, serge, 5130. 
Shirtings — 

All-wool flannel, white Ballard. 

Black Thibet. 

Wool, Middlesex. 
Velour, dress, Worumbo, 829, 11-ounce, 54-irich. 
Woolen yarn — 

Carpet yarn, 3-ply velvet, 55 yards to the ounce. 
Weaving yarn, 12 to 16 run, one-fourth blood. 
Weaving yarn, 20 to 28 run, three-eighths blood. 
Worsted yarn — 

Carpet yarn, white 16s. 
French system — 

l/40s, one-half blood. 

l/50s, domestic. 

2/50s, fine territory or domestic. 
Knitting yarn — 

2/5s to 2/lOs, one-fourth blood. 

2/lls to 2/20s, one-fourth blood. 



462 HISTOEY OF PEICES DURING THE WAR. 

24. Wool and woolen products class (45 series) — Continued. 

Worsted yarn — Continued. 

Knitting yarn — Continued. 

2/16s to 2/20s, three-eighths blood. 
2/20s to 2/24S, low, one-fourth blood. 
2/26S to 2/30s, one-half blood. 
Weaving yarns Bradford system — 
2/26S to 2/30s, one-fourth blood. 
2/36s, three-eighths blood. 
2/40s, one-half blood. 
2/50s, fine territory or domestic. 

25. Silk and silk products class (52 series): 

Raw silk, Chinese — 

Canton filature, extra extra A. 
Steam filature, best chops, first and second choice. 
Steam filatures, second grade chops. 
Tsatlee improved, Stars and Stripes, and Red Indian. 
Tsatlee improved black lion, 1, 2, 3. 
Tussah, best chops. 
Raw silk, Japanese — 

Filature, Kansai, 13 to 15 extra extra. 
Filature, Shinshu, No. 1, 13 to 15. 
Silk manufactures — 
Broad silk — 

Nos. 1 to 23, inclusive. 

Japanese Habutai, 6-momme, 36-inch. 

Japanese Habutai, 3|-momme, 36-inch. 
Hose — 

Ladies', all-silk, standard quality. 

Ladies', medium- priced, all-silk. 

Ladies', cotton feet, silk- top. 

Men's half, all-silk. 

Men's, cotton-top. 
Plush— 

Tussah face, cotton back, artificial fur. 

Millinery, artificial-silk face, cotton back, 17-inch. 

Cloaking, 1410, Tussah warp, cotton filling. 
Ribbon — 

Satin and taffeta. 

All-silk, satin, and taffeta. 
Velvet- 
Millinery, colored silk, spun silk warp, cotton filling. 

Spun warp, millinery. 
Semimanufactui'es — 
Silk thi'ead — 

Embroidery, No. 1. 

Embroidery, No. 2. 
Spun silk yarn — 

Artificial silk, B quality, 150 denier, unbleached. 

Domestic, 60/1. 

Domestic, gray, spun, 60/2-1 

Imported, 200/2, gray. 
Viscose yarn, artificial silk, B quality 360 denier, unbleached. 



GOVERlSrMElSrT CONTROL OVER PRICES. 463 

26. Hides and skins and their products class (96 series): 
Calf-skin leather — 

Full grained, bordered, black kip H, second grade. 
Full grained, bordered, black, L, second grade. 
Full grained, smooth, black, L, second grade. 
Full grained, smooth, colored, M, second grade. 
Snuffed, smooth, black, M, second grade. 
Cattle hide leather — 

Case, bag and strap leather: 

Case, colors, 2J-ounce, B. 

Strap, colors, 9-ounce, B. 

Strap, colors, 6-ounce, B. 

Embossed bag and belt, 4^-0 unce, B. 

Smooth bag, SJ-ounce, B. 
Cattle side, upper leather — 

Chrome, box, 1. m. weight, A quality. 

Chrome, black, slightly corrected, smooth. 

Chrome, patent. 

Sides, black gun metal, 1. m. weight, A quality. 

Waterproof, H weight, A quality. 
Offal, heads, bellies, and shoulders — 
Shoulders — 

Double-oak belting. 

Hemlock. 
Heads — 

Scoiu'ed oak heads. 

Union heads. 
Bellies — 

Hemlock dry hide bellies. 
Skirting — • 

California oak, No. 1. 

California oak, BB, No. 2 
Horsehid^ leather — 

Glove, buffed, M, second grade. 
Shoe, upper and patent. 
Shoe, upper and patent, M, second grade. 
Shoe, upper and patent, upper, M, second grade. 
Sheepskin leather — 

Fancy and other stock — 

Bag roans. 

Black, for beading, quarter lining. No. 1. 

Black, for beading, quarter lining. No. 2. 

Black, for beading, quarter lining, No. 3. 

Tops and plain black chrome. 

White alum. 
Glove stock — 

Domestic Napa. 

Domestic suede. 

Fleshers. 

South African cape. 
Glazed kid leather — 

Black and colors, export and domestic. 



464 HISTORY OF PRICES DURING THE WAR. 

2(3. Hides and skins and their products class (96 series) — Continued. 
Glazed kid leather — Continued. 
Shoe stock — 

Black, dull and glazed. 

Colors. 

Imitation calf. 
Leather manufactures — 

Bags, cowhide, 2^-ounce, 18-inch. 
Belting — 

Fii'st quality. 

Light doubles. 

Regular quality. 
Gloves, men's — 

Unlined, mocha, P. X. M., first grade. 

One clasp, P. X. M., unlined cape, first grade. 

Silk lined, P. X. M., cape, first grade. 

Silk lined, P. X. M., mocha, first quality. 
Gloves, women's and children's^ — 

Children's gloves, average grade. 

One clasp, P. X. M., cape, second grade. 

One clasp, P. K., cape, first grade. 

One clasp, P. X. M., first grade. 
Harness, sets — 

Standard farm team. 

Team, all purposes. 

Single buggy, standard. 

Horse collars — 
High grade. 

Standard imitation Scotch. 
Saddles — 

Riding, high grade. 
Spring seat, standard. 
Shoes, boys' and youths'— 
Boys'— 

Grade I. •^ 

Grade II. 

Grade III. 
Little Gents' — 

Grade I. 

Grade II. 

Grade III. 
Shoes, men's — 

Black calf Oxford. 

Black kid, A-boot. 

Black, low price. 

Black, Rumania calf. 

Bench, combination tan Oxfords. 

Bench, patent colt. 

Farmer, mechanic, and laborer, 49-226. 

Farmer, mechanic, and laborer, 49-307. 

Handstitched patent kid Oxfords. 

Rumania calf, high. 

Steel or black calf A-boot. 

Tan, low price. 

Tan, kid, A-boot. 

Vici kid. 



GOVEKNMENT CONTEOL OVER PRICES. 465 

26. Hides and skins and their products class (96 series) — Continued. 

Shoes, misses' and children's — 

Children's gunmetal, button, low heel, sizes 9-11^. 

Misses', vici patent, button, low heel, sizes 12-2^. 
Shoes, women's — 

Black kid, button, dull kid top. 

Black kid, lace, regular top, classic heel. 

Boots, McKay. 

Boots, welt. 

Brown kid, welt, leather heel, 7^-inch boot. 

Glazed kid, Oxford, leather heel. 

Glazed kid, welt, leather heel, 7|-inch boot. 

Kid Oxford, McKay. 

Low shoes, patent leather. 

Oxford, McKay. 

Oxford, welt. 

Patent kid, full seam vamp, black cloth top. 

Patent pump (T. and W.). 

Black kid (T. and W.). 
Suit case, cowhide, 2-|-ounce, 24-inch. 

27. Hatters' fur and fur felt hats class (10 series): 

Coney- — 

Best B. C. B. unpulled. 

French, best extra. 

French, best mottled. 

French, unpulled. 

Scotch, best B. C. B. 
Hair, best OOlH. 
Hats — 

Fur felt- A. 

Fur felt No. 1. 

Knox. 

Stetson. 

28. Hair, bristles, and feather class (22 series): 

Bristles — ■ 

Chunking, superior No. 3. 

Chunking, superior No. 5. i 

Hankow, superior No. 3. 

Hankow, superior No. 5. 

Tiensin, superior No. 3. 

Tiensin, superior No. 5. 
Brushes — ■ 

Hair, prophylactic. No. 500. 

Hand, prophylactic, No. 400. 

Tooth, prophylactic. No. 1. 
Feathers — • 

Chicken, body, colored, dry picked. 

Chicken, body, white, dry picked. 
Duck, white or yellow. 

Geese, mixed gray. 

Geese, prime white. 

Turkey, body, white. 
Feather articles — • 

Mattress, 40-pound. 

Pillow, chicken feather, 18 by 25. 

125547°— 20 30 



466 HISTORY OF PRICES DURING THE WAR. 

28. Hair, bristles, and feather class (22 series) — Contiaued. 

Hair — 

Cattle, washed, dotaestic. 

Hog, processed, domestic. 

Horse manes. 

Horse tails. 
Hair cloth, 50-pick, 24-inch. 

29. Button class (20 series): 

Raw materials — 

Shells, fresh water pearl, all varieties. 

Shells, yellow Manila, bold and bold medium, average weight l^^ pounds 
Ocean, West Australian, bold medium, average weight ^ pound. 
Pearl, Tahiti, black chickens, average weight -^ pound. 
Vegetable ivory (Tagua nuts). 
Manufactures — 
Buttons — 

Bone, white, commercial, 22-line. 
Bone, underwear, Navy prices, 22-line. 
Glass, jet, 18 line. 
Metal, Army blouse, 36-line. 
Metal, trouser, 27-line. 
Pearl- 
Ocean and fresh water. 

Imported, ocean, Trochus Japanese, first grade. 
Fresh water, all sizes and grades. 
Ocean, West Australian, fine shirt button, 16-line. 
Ocean, smoked Panama, 36-line. 
Ocean, Tahiti, ^ fine, 36-line. 
Ocean, West Australian, ^ fine, 36-line. 
Shoe, No. 4 bright black, regular finish. 
Vegetable ivory, flannel shirt, 24-line. 
Vegetable ivory, trouser, black, 22-line. 

Rubber, Paper and Fibers Group. 

30. Rubber and rubber products class (24 series): 
Chemicals — 

Barytes, domestic. 
Flowers, sulphur. 
Lithopone. 
Magnesite, calcined. 
Whiting, commercial. 
Zinc oxide, standard American process. 
Fabrics- 
Cotton, 17J-ounce Sea Island, combed. 
Reclaimed rubber — 
Mechanical. 
Truck tires. 
Rubber products — 
Clotliing, rubber — 

Calendered, single texture, western. 
Calendered, double coated, fire coat. 
Double texture, bombazine coat. 
Single texture, woman's coat. 



GOVEKNMENT CONTROL OVER PRICES. 467 

30. Rubber and rubber products class (24 series) — Continued. . 

Rubber products — Continued. 
Footwear, rubber — 

Arctics. 

Boots. 
Tires and tubes, rubber — 
' Pneumatic plain tread, 30 by 3^ inches. 

Pneumatic non-skid, 30 by 3J inches. 

Pneumatic non-skid, 33 by 4 inches. 

Pneumatic tubes, 33 by 4 inches. 

Solid rubber tire, 36 by 5 inches. 
Sundries, druggists' — 

Ice bags, cloth lined. 

Water bottles (all rubber). 
Rubber goods- 
Conveyor belting, 8-inch, 5-ply. 

Water hose, ^-inch, 5-ply. 

31. Paper class (40 series): 

Paper — 

Nos. 1 to 20, inclusive. 
Boards — 

Bogus bristol. 

Chip. 

News. 

Plain. 

Straw. 
Paper — 

Blotting. 

Building, red rosin, sized sheeting. 

Tissue, Manila. 

Wrapping, Nos. 1 to 10, inclusive. 

Writing, bond. No. 4. 

Writing, coupon bond, No. 1. 

32. Fibers and fiber products class (34 series): 

Raw materials- 
Fibers— 

American, Kentucky, double dressed. 

Flax, New Zealand, good, fair shipment. 

Istle, Palma. 

Jute, raw, M, double triangle, shipment. 

Sisal, Mexican, current shipment. 

Sisal, Java— A, shipment. 
Manufactured products- 
Cordage, jute — 

Packing, coarse. 

Papermaker's twine. 

Rope, No. 1, J-inch and above. 

Rope, No. 2, J-inch and above. 

Twine, wool, A quality. 

Twine, wrapping, 2 to 6 ply. 

Twine, wrapping, hide rope form. 
Cord and twine — 

India, dark color, No. 2. 

India, dark color, No. 9. 



468 HISTORY OF PRICES DURING THE WAR. 

32. Fibers and fiber products class (34 series) — Continued. 

Manufactured products — Continued. 
Cordage, hard fiber — 

Manila rope, third-grade basis. 

Pure manila rope, basis f -inch diameter. 

New Zealand rope, basis f-inch diameter. 

Russian, tarred basis. 

Sisal, rope basis. 
Hemp and twine — 

American, mixed. No. 9. 

American, mixed, No. 12. 

Pure, No. 9. 

Pure, No. 12. 
Oakum — 

Best. 

Plumbers'. 

United States Navy. 

Navy. 
Rope, hard fiber — ■ 

Manila, basis price. 

Manila, lariat. 

Oilwell drilling cables. 

Sisal, basis, f-inch diameter. 

Transmission. 
Packing, fine. 

Metal Group. 

33. Iron and steel and their products class (52 series): 

Manufactures — 

Adzes, carpenters'. 

Anvils, American. 

Augers, regular, 1-inch. 

Axes, single-bit, base weight, first quality. 

Braces, common ball. 

Butts, loose-pin, wrought steel, 3 J by 3^ inch. 

Carvers, stag handles, 8-inch. 

Chains, traces, wagon, western standard, straight with ring. 

Chisels, regular, socket firmer, 1-inch. 

Files, 8-inch, mill bastard, Nicholson. 

Gimlets, bits, common double cut. 

Hammers, Maydole, No. 1|. 

Hammers, farriers', 2^-pound, turning. 

Hinges, gate, with latch, western. 

Hinges, spring, holdback, cast-iron. 

Hods, coal, galvanized, open, 17-inch. 

Hooks, bush, light. 

Hooks, grass, bent shank. 

Hooks and eyes, group 3, No. 40J. 

Knives and forks, cocobolo handles, metal bolsters. 

Knobs, door, steel, bronze plated. 

Locks, common mortise, knob lock, 3i-inch. 

Locks, padlocks. 

Lock sets. 



GOVER^STMEISTT CONTROL OVER PRICES. 469 

33. Iron and steel and their products class (52 series) — Continued. 

Manufactures — Continued. 

Pans, dripping, refrigerator, galvanized, IB-inch. 

Planes, Sargent, No. 414 Jack. 

Pails, galvanized, light. 

Punches, saddlers' or drive, good. 

Rasps, horse, 16-inch, plain. 

Rings and ringers, hog, gray iron. 

Rings and ringers, bull rings, steel. 

Saws, cross-cut, Disston, No. 2, 6-foot, Champion tooth. 

Saws, hand, Disston, No. 8, 26-inch, skewback. 

Shaves, spoke, iron. 

Shovels, Ames, No. 2. 

Spoons, tinned, iron, table. 

Springs, carriage, black, 1^-inch and wider. 

Staples, fence, bright. 

Swages, 1-inch. 

Tongs, 18-inch, blacksmiths'. 

Traps, fly, balloon, glove or Acme. 

Trowels, Johnson's, brick, lO^-inch. 

Truck, Avarehouse, hand. 

Turns, cupboard. 

Vises, so lid -box, 50-pound. 

Vises, self-adjusting, jaw vises, Prentiss patent. 

Washers, cast-iron, ^-inch, barrel lots. 

Wedges, oil finish. 

Wheelbarrows, tubular steel, steel tray. 

Wire, clothes line, No. 20. 

Wire, cloth and netting, black. 

Wire, cloth and netting, standard galvanized. 

34. Nonferrous metals class (11 peries): 

Antimony, ordinary brands. 
Brass — 

Sheets. 

Rods. 
Copper — 

Casting. 

Sheets. 

Wire. 
Lead — 

Sheet. . . 

Solder. 

Pipe. 
Tin, pig, straits. 
Zinc, prime western. 

35. Rare metals c]ass (4 series): 

Chromite, 40 per cent and over 
Ferro vanadium. 
Spiegeleissen, 20 per cent. 
Tung.sten ore, 60 per cent. 



470 HISTORY OF PRICES DURING THE WAR. 

Fuels Group. 

36. Petroleum and petroleum products class (22 series): 

Fuel oil, wholesale markets — 

Tulsa, Okla. 

Vinton, La. 

Houston, Tex. 

San Francisco. 

Los Angeles, Calif, 
Gasoline, tank wagon — 

Baltimore. 

Chicago. 

Kansas City. 

New York. 

San Francisco. 
Kerosene, standard white, 110 test. 
Kerosene, tank wagon — 

Baltimore. 

Chicago. 

Kansas City. 

New York. 

San Francisco. 
Lubricating oil — 

Dark, steam refined. 

Red paraffin. 

Paraffin, 903 sp. 

Spindle No. 150. 

Spindle No. 200. 
Paraffin, crude, 118 to 1,220. 

37. Matches class (9 series) : 

Best and cheapest. 

Japanese safety, extra quality, "Namco" brand. 

Nitedal brand, safety. 

Standard, No. 1. 

Standard, No. 2. 

Standard, No. 5. 

Safe home. 

Searchlight. 

Strike-on-the-box. 

Building Materials Group.* 

38. Clay products class (13 series): 

Brick- 
Face, building. No. 1, color gray. 
Fire, high-grade. 
Paving, No. 1. 

Dinner sets, china, commercial grade. 

China, decorated in cheap standard treatments. 

Ground plastic. 

Kaolin, refined white. 

Pipe, sewer, salt-glazed, fire-clay-. 

' This group includes a few materials whichare not strictly building materials, such as china, etc., but 
which are included in the group because of convenience in classification. The aggregate importance of 
these materials is so small, however, that their inclusion has a negligible influence on the index number. 



GOVERNMENT CONTROL OVER PRICES. 471 

38. Clay products class (13 series) — Continued. 

Pipe, sewer, vitrified, salt-glazed, 4-inch. 
Sanitary ware, white, with glazed finish. 
Sinks, kitchen, porcelain. 
Stoneware, Ohio standard, white and black. 
Tile, drain, 4-inch. 
^ 39. Sand and gravel class (1 series): 
Railway ballast. 

40. Quarry products class (15 series): 

Granite — 

Dark, monumental. 

Light, building, light blue. 

Building, red, white, and blue. 

Crushed, No. 3^, J inch to ^ inch. 

Monumental, red and gray 

Paving blocks. 
Limestone — 

Crushed, for furnace flux. 

Crushed, railway ballast. 

Indiana building, buff, rough block. 
Lime, in bulk. 
Marble, sawn. 

Slate, green roofing. No. 1 grade, 20 by 10. 
Stone — 

Building, gray blockstone. 

Curbing, 4-inch and under. 

Flagging, sawed. 

41. Cement class (1 series): 

Natural rock cement. 

42. Glass class (10 series): 

Glass — ■ 

Plate, polished, glazing area 3 to 5 square feet. 

Plate, polished, glazing area 5 to 10 square feet. 

Window, single, 40-A. 

Window, double, 40-A. 

Window, single, 40-B. 

Window, double, 40-B. 
Glassware — ■ 

Milk bottles, glass. 

Nappies, 4-inch, common. 

Pitchers, ^gallon, common. 

Tumblers, table, J-pint. 

43. Lumber class (38 series): 

Ash- 
Firsts and seconds, 4/4. 

No. 1 common, 4/4. 

No. 2 common, 4/4. 
Birch — 

Firsts and seconds, 4/4. 

No. 1 common, 4/4. 

No. 2 common, 4/4. 

No. 3 common, 4/4. 



472 HISTORY OF PRICES DURING THE WAR. 

43. Lumber class (38 series)— Continued. 
Chestnut^ 

Firsts and seconds, 4/4. 

No. 1 common, 4/4. 

No. 3 common, 4/4. 

Sound, wormy, 4/4. 
Gum — 

Firsts and seconds, 4/4, red. 

Firsts and seconds, 4/4, sap. 

No. 1 common, 4/4, red. 

No. 1 common, 4/4, sap. 

No. 2 common, 4/4. 
Hickory — 

No. 2 common, 8/4. 
Maple, hai'd — 

Firsts and seconds, 4/4. 

No. ] common, 4/4. 

No. 3 comimon, 4/4. 
Oak, plain — 

Firsts and seconds, 4/4. 

No. 1 common, 4/4. 

No. 1 common. 

No. 3 common, 4/4. 
Poplar, yellow — 

Firsts and seconds, 4/4. 

No. 1 common, 4/4. 

No. 2 common, 4/4. 

No. 1 common, 8/4. 

Saps or selects, 4/4. 
Pine, eastern white — 

Dimension: No. 1, S-l-S-L, 2 by 4 inches by 16 feet. 

Dimension: No. 1, S-l-S-lL, 2 by 10 inches by 16 feet. 

Inch finish, select, 1-inch. 

No. 2 boards, 1 by 8 inches by 12 feet. 

No. 3 boards, 12 by 10 inches by 20 fe'et. 

No. 4 boards, mixed widths, 10 to 20 feet. 

Selects, C and better, 5/4 M-L. 

Shop, No. 1, 8/4 M-L. 
Shingles, red cedar. 
■14. Paints and varnish class (29 series): 
Paint pigments — 

Bone black. 

Lamp black. 

Prussian blue. 

Chrome green. 

Paris green. 

Ochre. 

Venetian red. 

Ultramarine. 

Umber. 

Chrome yellow. 
Paints and pigments — 

Barytes, domestic, floated. 

Blanc fixe, pulp. 



GOVERlsrMElSrT CONTROL OVER PRICES. 473 

44. Paints and varnish class (29 series) — Continued. 

Paints and pigments— Continued. 
Lead — 

Basic, sulphate. 

Basic, carbonate, dry. 

Red. 
Litharge. 
Lithophone. 
Paint, outside white. 
Whiting. 
Zinc oxide. 
Paint and varnish, raw materials- 
Casein. 

Carnauba wax. 
Copal gum, Manila 
Kauri gum, ordinary chips. 
Oil, china wood. 
Oil, linseed. 
Shellac, T-N. 
Turpentine, spirits of. 
Varnish, inside, oil. 

The Chemicals GROtrp. 

45. Mineral acids class (2 series): 

Hydrocholoric acid (muriatic), 20° Baume. 
Rock salt, crushed, f. o. b. car, mines. 

46. Heavy chemicals class (6 series): 

Bicarbonate of soda, commercial, 99.9 per cent pure. 

Caustic potash (potassium hydroxide), 88-92 per cent. 

Lime, burnt, in bulk. 

Rock salt, crushed. 

Salt cake (sodium sulphate), unground, spot. 

Sodium sulphide, 60 per cent. 

47. Miscellaneous inorganic chemicals class (18 series): 

Alluminiim sulphate, commercial. 

Barium chloride, white crystals. 

Borax (sodium tetraborate), crystals and granulated. 

Bromine. 

Calcium carbide. 

Calcium chloride. 

Copper sulphate (blue vitriol). 

Ferrous sulphate (copperas, sulphate of iron). 

Lead acetate (sugar of lead), brown, broken. 

Magnesium sulphate (epsom salts), technical. 

Mercuric chloride (bichloride of mercury, corrosive sublimate). 

Phosphorous, yellow. 

Potassium chlorate crystals. 

Potassium permanganate. 

Silver nitrate (lunar caustic). 

Sodium silicate (water glass, 40° Baurn^). 

Sodium trio-sulphate (hypo). 

Zinc chloride. 



474 HISTORY OF PRICES DURING THE WAR. 

49. Soaps and glycerin class (9 series): 

Rosin, grade F, 280-pound barrel. 
Soap — 

Toilet, average of two leading brands. 

White floating, Flotilla. 

White floating, Ivory. 

White laundry. Proctor & Gamble white naphtha. 

White laundry, crystal white. 

Octagon. 

Yellow rosin laundry, Lenox. 
Sodium silicate. 

50. Essential oils, flavoring and perfumery materials class (20 series): 

Balsam, Peru. 
Benzoin gum, Siam. 
Musk, natural. 
Oils of— 

Cassia. 

Bergamot. 
- Cedar leaf. 

Cedar wood. 

Eucalyptus, Australia. 

Lavender flowers. 

Lemon. 

Neroli, petale. 

Orange, sweet, Italian. 

Peppermint. 

Rose. 

Sassafras. 

Wintergreen (sweet birch). 

Wormwood. 
Orris root, Florentine. 
Vanilla beans. 
Vanillin. 

51. Wood distillation products and naval stores class (4 series): 

Acetic acid, 28 per cent, in barrels. 
Acetone oil. 
Rosin, grade F. 
Turpentine, spirits of. 

52. Natural dyestuffs and tanning chemicals class (18 series): 
Raw materials — 

Divi-divi. 
Fustic sticks. 

Gambier, common or spot, ex-store. 
Hemlock bark. 
Logwood sticks. 
Oak bark. 

Sumac, Sicily, 29 per cent tannin. 
Quercitron bark. 
Manufactured materials — 
Chestnut extract. 
Dextrine, domestic potato. 
Fustic extract, solid. 

Hemlock bark, extract, 25 per cent tannin. 
Indigo, Bengal. 
Logwood extract, solid. 



GOVERNMEISTT CONTROL OVER PRICES. 475 

52. Natxiral dyeatuffs and tanning chemicals claas (18 series) — Continued. 
Manufactured materials — Continued . 

Oak bark extract. 
Quercitron extract, 51°. 
Sodium bichromate. 
Turkey red oil. 

53. Coal tar crudes, dyes and intermediates class (18 series): 

Coal tar crudes — 

Creosote oil. 

Benzol, pure white. 

Napthaline, refined flakes. 

Solvent naptha. 
Coal tar intermediates — 

Aniline oil. 

Beta-napthol. 

Paranitraniline . 

Phenol, U. S. P. crystals (carbolic acid). 

Salicylic acid. 
Coal tar dyes— 

Bismark brown (2R) No. 284. 

Chrysoidine R (No. 34). 

Chrysoidine Y (No. 33). 

Direct black. No. 462. 

Indigo, synthetic, No. 874. 

Nigrosine, spiiit soluble, blue shade, No. 698. 

Nigrosine, water soluble, blue shade. No. 700. 

Orange II (No. 145). 

Scarlet,. 2 R (No. 82). 

54. Drugs and pharmaceuticals class (27 series) : 

Aspii-in, Bayer. 

Antipirine. 

Aloes, cape. 

Acetphenitidin. 

Acetanilid, C. P. 

Belladonna root. 

Bismuth subnitrate. 

Castor oil, 1, or AA. 

Cream of tartar crystals. 

Cocaine hydrochloride, large crystals. 

Citric acid crystals. 

Camphor, Japanese refined. 

Calomel, U. S. P. (mercurous chloride). 

Digitalis, domestic. 

Iodine, resublimed. 

Lanolin, anhydrous. 

Licorice root. 

Menthol. 

Morphine sulphate. 

Nux Vomica. 

Opium gum. 

Quinine sulphate. 

Salol. 

Sodium bromide, granular. 

Strychnine sulphate. 

Tartaric acid, crystals. 

Thymol. 



476 HISTOKY OF PRICES DURING THE WAR. 

55. Proprietary preparations class (23 series): 

An antiseptic wash. 

An ant-acid. 

A disinfectant. 

A cathartic. 

A digestive remedy. 

Cough remedy No. 1. 

Cough remedy No. 2. 

A facial cream. 

A hair tonic. 

A headache remedy. 

Laxative — 

No. 1. 

No. 2. 

No. 3. 
Liniment — 

No. 1. 

No. 2. 
Mouth wash. 
Prepared food. 
Pm'gative. 
Salve. 

Talcum powder. 
Tonic- 
No. 1. 

No. 2. 
Tea. 

56. Explosives class (10 series): 

Commercial explosives — 

Dynamite, 40 per cent N. G. 

Dynamite, 40 per cent L. F. Am. 

Powder F. F. F., black. 
Military explosives — 

Ammonium nitrate. 

Picric acid. 

Powder — • 

Smokeless, foreign cannon (water dried). 
Smokeless, United States military rifle (air dried). 

Phenol. 

Trinitrotoluol, crude, melting point 76°. 

Trinitrotoluol, refined, melting point 79.6° to 80°. 

57. Miscellaneous organic chemicals class (12 series): 

Ether. 

Hexamethylenetetramine. 

Hydroquinone. 

Lactic acid, 22 per cent. 

Oxalic acid. 

Pyrogallic acid. 

Solvents — 

Alcohol, denatured. 

Alcohol, grain, 190 proof. 

Amyl acetate. 

Carbon bisulphide. 

Chloroform. 

Fusel oil, amyl alcohol. 



GOVERN" MENT CONTROL OVER PRICES. 477 

(3) THE SERIES OF THE PRICE SECTION INDEX NUMBER CONSIDERED 

CONTROLLED. 

Food Group. 

8. Feed and forage class (22 series): 

Com chop. 
Com^ 

Kafir, No. 3, white. 

Mixed, cash. No. 3. 
Feed, molasses alfalfa. 
Meal — 

Alfalfa, new choice. 

Cottonseed. . 

Linseed. 
Molasses, black strap. 
Hay- 
Alfalfa, No. 2. 

Clover, No. 1. 

Clover, mixed, No. 1. 

Johnson grass. No. 2. 

Prairie, No. 2. 

Wild oat. 

Choice, tame oat. 

Timothy, No. 2. 

Fancy wheat. 
Hulls, cottonseed, looee. 
Oats, cash, No. 3, white. 
Straw — 

Oat. 

Rye. 

Wheat. 

9. Wheat and wheat products class (12 series): 

Biscuit, social tea. 
*" Bread, loaf, before baking. 

Cake, Regina, pound, raisin, and plain. 

Crackers — • 
Graham. 
Soda, in boxes. 

Cream of wheat. 

Flour, wheat, standard patents. 

Macaroni. 

Mill feeds- 
Bran. 

Middling, standard, 100-pound jute sacks. 
Shorts, mixed. 

Wheat, No. 2, red winter, cash. 

10. Corn and corn products class (6 series) : 

Corn, yellow, cash. No. 3. 

Corn meal, white, in bulk. 

Corn oil, crude, in 400-pound barrels. 

Cornstarch, powdered, in bags. 

Corn sirup, 43° crystal, in 100-pound barrels. 

Hominy grits, in bulk, carload lots. 



478 HISTORY OF PRICES DURING THE WAR. 

11. Oats, buckwheat, and rice class (9 series): 

Buckwheat. 
Flour — 

Aunt Jemima pancake. 

Buckwheat. 

Gold medal. 

Teco pancake. 
Oats, No. 3, white, cash. 
Oatmeal, carload lots. 
Rice — 

Honduras head, domestic, clean. 

Japanese head, domestic, clean. 

12. Barley, hops, rye, and their products class (4 series): 

Barley, fair to good. 

Malt, western grade, standard. 

Rye, No. 2, Minneapolis. 

Rye flour, pure, medium straight. 

13. Sugar and related products class (9 series): 

Corn, No. 3, yellow. 

Glucose, 42° mixing. 

Molasses, fancy, blended, in barrels. 

Sugar — 

Beet, refined, standard granulated. 
Cane, raw, 90° centrifugal. 

Cane, refined, fine granulated, in bags or liarrels. 
Cane, refined, granulated, in cartons, cased. 
Cane, refined, cubes, in barrels. 
Cane, refined, No. 7, soft, brown, in barrels. 
14. Vegetables and truck class (15 series): 
Beans — 

Navy, or pea, dried. 
Pinto, dried. 
Dried, unclassified. 
Cabbage — 

Fresh, unclassified. 
Fresh, white, Danish. 
Corn, New York standard, canned. 
Onions, fresh, unclassified. 
Peas — 

Fresh, shelled. 
Canned, No. 3 sieve. 
Peanuts — 

Dried, unclassified. 
Dried, shelling stock, or grade No. 3. 
Potatoes — 

Fresh, white, unclassified. 
Fresh, sweet, unclassified. 
Tomatoes — 

Fresh, canners' stock. 
Canned, standard. 
15. Edible vegetable oils class (13 series): 
Beans, soya. 
Butter, cocoa, in bulk. 



GOVERNMENT CONTROL OVER PRICES. 479 

15. Edible vegetable oila class (13 series) — Continued. 

Cottonseed. 
Copra, in bags. 
Lard substitutes, in barrels. 
Oil- 
Coconut, crude, in tank cars. 

Cottonseed, crude, in tank cars. 

Cottonseed, prime, summer yellow, in barrels. 

Corn, crude, in barrels. 

Corn, refined, in barrels. 

Palm kernel, crude. 

Soya bean, crude, in barrels. 

Olive, edible. 

16. Fruits, nuts and wine class (10 series): 

Apples — 

Average of all varieties. 

Baldwin. 

Ben Davis. 

Dried. 
Bananas, Jamaica. 
Lemons, California. 

Oranges, California— Valencias and navels. 
Peaches, dried, California, choice. 
Prunes, dried, California, 60-70. 
Raisins, dried, choice, seeded. 
18. Tea, coffee, and cocoa class (9 series) : 
Coffee- 
Caracas, washed. 

Colombian, Bogotas. 

Costa Rica, fair to good. 

Cucuta, fair to good. 

Hayti, unwashed. 

Mocha, small. 

Padang, interior. 

Rio, No. 7. 

Santos, No. 4. 
20. Live stock, meats and fats class (48 series): 
Bacon — 

Short, clear sides, smoked, loose. 

Rough sides, smoked, loose. 

Breakfast, loose. 
Beef— ^ 

Fresh native sides. 

No. 1 plate. 

Salt, extra mess. 
Cows, choice to prime. 
Hams, smoked, loose. 
Heifers, choice to prime. 
Hogs — 

Dressed. 

Live, bulk of sales. 

Live, carload lots. 

Live, light to heavy. 

Heavy fair to choice heavy shipping and heavy butcher. 

Common to choice light bacon, and fair to fancy select butchers. 



480 HISTORY OF PRICES DURING THE WAR. 

20. Live stock, meats and fats class (48 series) — Continued. 
Lambs — 

Good to prime. 
Carload lots. 
Lamb, dressed, round. 
Lard — 

Compound, in tierces. 
Leaf. 

Pure leaf, kettle rendered, tierces. 
Prime, steam, loose. 
Prime, contract. 
Stearine. 
Margarine, standard, high-grade. 
Meat, mutton, dressed. 
Mutton, legs. 
Pork loins. 
Pork, salt mess. 
Sheep — 
Prime. 
Carload lots. 
Ewes. 
Wethers. 
Oleomargarine, standard, uncolored, pound carton. 
Oleo oil, extra. 
Steers — 
/ Feeding, 790 to 839 pounds. 

Feeding, 940 to 989 pounds. 
Choice to prime, heavy beeves. 
Good to choice, corn-fed. 
Native beef. 
1,180 to 1,229 pounds. 
Good native, fresh carcass. 
Steer — 

Chucks, No. 1. 
Loins, No. 1. 
Rounds, No. 1. 
Tallow, packers' prime. 
Veal calves, prime, live. 
Veal, city dressed, good to prime. 
21. Poultry and dairy products class (43 series): 
Butter: 

Creamery — 

Extra, San Francisco. 

Extra, Philadelphia. 

Seconds, New York. 

Firsts, New York. 

Fancy, New Orleans. 

Extra, New York. 

Elgin. 

Centralized firsts, Cincinnati. 

Firsts, Chicago. 

Extra, firsts. 

Extra, Chicago. 

Seconds, Boston. 

Extra, Boston. 



GOVERNMENT CONTROL OVER PRICES. 481 

21. Poultry and dairy products class (43 series)— Continued. 
Butter — Continued. 

Whole milk, extra, at Cincinnati. 
Cheese — 

Whole milk, American twins. 
New York State, full cream, large colored. 
Colored. 

California, flats, fancy. 
Flats, average and fancy. 
Long horn. 
Chickens, broilers, western, combed. 
Ducks. 
Eggs- 
Average, fresh, best, St. Louis. 
Average, best, fresh, New York. 
Candled, western. New Orleans. 
Firsts — 

Western, Boston. 

Fresh, Chicago. 

Fresh, Cincinnati. 

Fresh gathered. New York. 

Extra, western, Philadelphia. 

Selected, pullets. 

Fowls — 

Live, Chicago. 

Live, choice, New York. 

Dressed, western killed, corn fed. 

Dressed, western, dry picked, and packed. 
Turkeys — 

Dressed, iced. 

Live. 
Milk- 
Fresh, Chicago. 

Grade B, New York. 

Fresh, San Francisco. 

Evaporated. 

Sweetened, condensed. 
Oleomargarine. 
22. Fish and oysters class (14 series): 
Bluefish. 
Carp. 
Cod. 

Flounder. 
Haddock. 
Hake. 

Halibut, western white. 
Herring, lake. 
Mackerel, Spanish 
Salmon. 

Salmon, mild cured. 
Salmon, pink, No. 1 tails, canned. 
Sardines, l-oils, keyless, canned. 
Trout, lake. 
125547''— 20 31 



482 HISTORY OF PRICES DURING THE WAR. 

Clothing Group. 

23. Cotton and cotton products class (57 series): 
Cotton goods: 

Damask, l)leached, G4-inch. 
Denim, Amoskeag, 2S-inch, 2.20-yard. 
Drilling, Massachusetts D standard, 30-inch, 2.85-ounce. 
Duck- 
Sail, numbered, firsts, 22-inch, No. 6. 

Standard, United States Army, firsts, 28.2-inch, 8-ounce. 

Shelter tent, first quality, 35|-inch, 1.90-yard. 

Wide, numbered, firsts, 60-inch, No. 8. 
■ Cotton linters — 

Grade A, cut 25-40, 
Grade B, cut 45-75. 
Grade C, cut 80-125. 
Grade D, cut 130-175. 
Cotton manufactures — 

Bags, 2 bushel, Amoskeag, 16-ounce. 

Blankets, 90-inch, colored, 2 pounds to pair, 54 by 74. 

Calico, American standard, 28-inch, 64 by 64. 

Cambric, Lonsdale. 

Cashmere, cotton warp, 36-inch. 

Cotton, absorbent, Maplewood grade. 

Flannels, unbleached, 31.|-inch, 3 J yards. 

Gauze, bandage, bleached, 36-inch, 20 by 12. 

Gauze, Brunswick, bleached, 36-inch, 20 by 12. 

Gingham, Lancaster, 26J-inch, 6.5 yards. 

Lawn, 40-inch, 88 by 80, 8.5 yards. 

Mattress, Anchor, from linters, 4/6 by 6/4, 45 pounds. 

Percale, 36 inches, 5.35 yards. 

Print cloths — 

39-inch, 72 by 76, 4.25 yards. 

27-inch, 64 by 60, 7.60 yards. 
Sateen, 39-iiich, 72 by 120, 3.50 yards. 
Sheeting — 

Brown, 36-iiich, 44 by 48, 2.85 yards. 

Brown, 36-inch, Ware Shoala LL, 4. yards. 

Bleached, 90-inch, Wamsutta, S. T. 
Shirting — 

Bleached, 36-inch, 76 by 84, 3.90 yards, in gray. 

Muslin, 36-inch, Rough Pdder, 4 yards. 
Rope, first grade, IJ-inch. 
Tape, No. 7118, 60 by 38. 

Ticking, Amoskeag, A. C. A. 32-inch, 2.05 yards. 
Tire fabric, 17|-ounce, Egyptian, carded. 
Thread, cotton, 6-cord, white, 200-yard spool. 
Towels, Terry, 22 by 44 and 83 by 32. 
rwill, 29.5-inch, 104 by 48, 2.15 yards, 
fwine, wrapping, first grade. 
. Seed, cotton. 
Waste, cotton, Osnaburg. 



GOVERNMENT CONTROL OVER PRICES. 483 

23. Cotton and cotton products class (57 series) — Continued. 

Cotton manufactures— Continued , 
Yarns — 

Carded, white, northern mule spun, 22/1, cones. 
Carpet, short staple, 8/3 warp, twist slack. 
Hosiery — 

Long staple, 10/1, combed, C. C. hosiery, twist, cones. 
Short staple, 30/1, northern carded, double roving mule spun. 
Weaving — 

Short staple — 

10/1 carded, white, northern mule spun, cones. 
16/2, southern 2 ply skein. 
Long staple — 

24/1, eastern peeler cones, carded. 
36/1, eastern peeler cones, combed. 
50/2, eastern peeler cones, combed. 
60/2, eastern peeler cones, combed. 
70/2, eastern peeler cones, combed. 
80/2, eastern peeler cones, combed. 
Egyptian twist, 60/1. 
Egyptian, single, 70/1, skeins, combed. 
Sea Island, 80/1, combed. 

24. Wool and woolen products class (21 series): 

Kaw materials — 

Domestic wool — 

Ohio, fine, unwashed, delaine. 
Ohio, three-eighths blood, unwashed. 
Ohio, one-fourth blood, unwashed. 
Territory, staple, F. and F. M., scoured basis. 
Territory, combing, one-half blood. 
Imported wool — 

Australian, choice Sydney and Geelong, merinos, 64s, scoured basis. 
Australian, choice Sydney and Geelong, merinos 70s, scoured basis. 
Chinese, China ball. No. 2, open grain basis. 
South American — 
Buenos Aires — 

36s, grain basis, 28 per cent shrinkage. 
40/44 grain basis, 30 per cent shrinkage. 
468, grain basis, 34 per cent shrinkage. 
Montevideo — 

50s, grain basis, 35 per cent shrinkage. 
South African — 

58/60s, scoured basis. 
60/64s, scoured basis. 
708, scoured basis. 
Substitutes — 
Clips- 
Blue worsted. 
Reworked blue serge. 
Kags, graded — 
Blue serge. 
Light skirted cloth. 
Light worsted. 
3, A shoddy, reworked blue serge. 



484 HISTORY OF PRI^E.S DURING THE WAR. 

25. Silk and silk products class (2 series): 
Waste silk — 

Japan, best white Prisons. 
Japan, pierced cocoons, 
2(J. Hides and skins and their products class ((10 series): 
Cattle hides — 
Oountry — 
Branded. 
Cows, heavy. 

Steers, No. 1, (iO pounds, and up. 
Imported — 
Bogota. 
Vera Cruz. 
Imported dry — 
Packer. 

Puerto Cabella, 21 to 2.3 pounds, selected. 
Tuxpam, 20 to 27 pounds, selected . 
Vera Cruz, 18 to 19 pounds, selected. 
Packer — 
Cows — 

Branded. 
Light native. 

Native, over 55 pounds. 
Steers — 

Butt branded. 
Extreme light Texas. 
HesLYj native. 
Light Texas. 

Spready. 
Calfskins — 

Country. 

Country kips — 

Kips No. 1, 15 to 25 pounds. 

Selected, 5 to 7 pounds. 

Selected, 7 to 9 pound.s. 

Selected, 9 to 12 pounds. 
Green, trimmed to butchers — 

No. 1. 

No. 2. 

New England - 

4 to 5 jjounds. 

5 to 7 pounds. 
7 to 9 pounds. 
9 to 12 pounds. 
12 to IT) pounds. 
16 pounds and up. 

Selected — 

5 to 7 pounds. 
7 to 9 pounds. 
9 to 12 pounds. 
Goatskins — 
Amritsars — 

1,000 pounds to 500 skins. 
1,110 pounds to 500 skins. 
1,200 pounds to 500 skins. 



GOVERNMENT CONTROL OVER PRICES. 485 

26. Hides and skins and their products class (60 series)— Continued. 
Goatskins — Continued. 
Brazil, first selection. 
Rio Hache. 
San Luis Zacatecas. 
Sheep and lambskins — 
Country — 

Lambs. 

Sheep and shearlings. 
Imported — 

Capeskins, glove. 

Lambs, Greek and Macedonian. 

Lambskins, Spanish. 

Mochas. 
Packer — '' 

Lambs. 

Sheep and shearlings. 
Horsehides, country. 
Leather, cattle hide — 
Belting butts — 

Light standard tannages. 

Heavy standard tannages. 

Medium standard tannages. 

No. 1 heavy. 
Harness leather — 

Grade B. California oak. 

Grade 2. 
Sole leather — 

Buenos Aires, dry hide, hemlock. M. W., reject second grade. 

Buenos Aires, dry hide, hemlock, O. W., 2d grade. 

Hemlock packer slaughter. No. 1. 

Hemlock slaughter, No. 1, best tannages. 

No. 1 scoured oak bends, all weights. 

No. 1 scoured oak backs, all weights. 

Rubber, Paper, and Fibers Group. 

30. Rubber and rubber products class (10 series): 

Rubber, crude — 

African, Niger flake. 
Brazilian Para — 

Cameta. 

Upper Caucho Ball. 

Upriver, coarse. 

Upriver, fine. 
Centrals, Guayule — 

Corinto scrap. 

20 per cent, guaranteed. 
Plantation Hevea — 

First latex crepe. 

Fine smoked sheets, ribbed. 
Rubber substitute — 
Gutta joolatong. 

31. Paper class (1 series) : 

News print rolls, car lots. 



486 HISTOEY OF PRTCJES DURING THE WAR. 

32. Fibers and fiber products class (10 series): 

Raw materials — 

Kapok, prime .Tapara. 
Manila — 

^air, current shipment. 

Good, current shipment. 

Midway, shipment. 
Manufactured product — 
Binder twine — 

Manila, 600 feet to the pound. 

Pure manila, 650 feet to the pound. 

Standard manila or extra, 550 feet to the pound. 

Standard, 500 feet to the pound. 

White sisal, 500 feet to the pound. 
Burlap, 40-inch, lOJ-ounce, Calcutta. 

Metals Group. 

33. Iron and steel and their products class (36 series): 

Raw materials and slightly manufactured products — 
• Iron ore — 

Mesabi Bessemer, 55 per cent. 

Mesabi non-Bessemer, 51| per cent. 
Coke, Connellsville furnace, f. o. b. ovens. 
Pig iron—^ 

Basic. 

Bessemer. 

Foundry, No. 2 southern. 
Scrap, steel — 

Heavy melting. 

No. 1 railroad wrought. 
Billets, steel — 

Bessemer. 

Open-hearth. 
Bars — 

Iron, common, from mill, Pittsburgh. 

Sheet steel, Bessemer. 

Sheet steel, open-hearth. 

Steel. 
Shapes, steel, structural. 
Plates, steel, tank. 
Manufactured products — 
Rails, steel — 

Bessemer, standard. 

Open-hearth, standard. 
Spikes, steel — 

Standard railroad. 
Skelp, grooved. 
Pipe, cast iron, 0-inch. 
Hoops, steel. 
Sheets — 

Black, No. 28. 

Blue annealed. No. 10. 

Galvanized, No. 28. 



GOVERNMENT CONTROL OVER PRICES. 48 T 

33. Iron and steel and their products class (36 series) — Continued. 

Manufactured products — ^Continued. 

Tin plate, domestic coke, 14 by 20 inches. 

Wire rods, Bessemer. 

Wire fence — 

Plain, annealed, Nos. to 9. 
Barbed, galvanized. 

Calk, toe, blunt and medium, 1 prong. 

Chains, American coil. 

Nails- 
Cut, eightpenny, fence and common. 
Wire, eightpenny, fence and common.. 

Rivets, button head, structural. 

Screws, wood, 1-inch, No. 10, fiat head. 

Shoes, horse and mule. 

34. Ferro-alloys, nonferrous and rare metals class (13 series): 

Aluminum — 

98 to 99 per cent, contract price. 

98 to 99 per cent, open market. 
Copper — 

Electrolytic. 

Lake. 
Lead, pig. 
Nickel, ingot. 
Nickel, shot and ingot. 
Zinc, sheet. 
Quicksilver. 

Ferromanganese, 80 per cent. 
Manganese ore, 49 per cent. 
Platinum, refined ingots. 
Silver, fine. 

Fuels Group. 

35. Coal and coke class (27 series): 

Coal- 
Anthracite, f. o. b. New York — 

Chestnut. 

Egg. 

Pea. 

Steam. 

Stove. 
Bituminous (districts in which produced) — 

Cartersville and Franklin, 111. (2 series). * 

Clinton, 111. (2 series). 

Eastern Kentucky (2 series). 

Georges Creek, Md. (2 series )v- ■ 

Hocking, Ohio (2 series). 

Mount Olive, 111. (2 series). 

Pittsburgh, No. 8, Ohio (2 series). 

Springfield, 111. (2 series). 

Standard, 111. (2 series). 

Western Kentucky (2 series). 
Coke- 
Birmingham. 
Connellsville. 



488 HISTORY OF PRICES DURING THE WAR. 

36. Petroleum and petroleum products class (5 series): 
Crude petroleum — 

California, at wells. 

Gulf, barrel, 42-gallon, at wells. 

Illinois. 

Mid-continent. 

Pennsylvania. 

BuiLDiNCi Materials Crottp, 

3S. Clay products class (3 series): 
Brick, common. 
Tile— . ' 

Hollow, building. 

Hollow blocks, standard size. 
39. Sand and gravel class (8 series): 
Sand- 
Building. 

Building, coke and engine. 

Fine building. 

Foundry. 

Fire and furnace. 

Glass. 

Molding. 
Gravel. 
41. Cement class (G series): 

Cement, Portland (markets) — 

New York. 

New England and Middle States. 

Hlinois. 

Indiana. 

Ohio, Indiana, Illinois, and IMichigan. 

Western Washington. 
43. Lumber class (24 series) : 
Douglas fir — 

Is and 2s, 1-inch. 

No. 2 and better, drop siding, 1/6. 

No. 1 common, SIS, 1 by 8 inch and 10-inch. 

Is and 2s, 2-inch. 
Hemlock, eastern — 

No. 1 boards, SIS, 1 by 8 inch by 16 feet. 

No. 1 fencing, SIS, 1 by 16 inch. 

No. 1 piece stuff, SlSlE, 2 by 4 inch by 16 feet. 

Timbers, rough, 4 by 4 inch to 8 by 8 inch by 16 feet. 
Pine, southern yellow — 

Finish B and better, 6-inch and wider. 

Common boards, No. 1, S2S, 1 by 10 inch. 

Common boards. No. 2, S2S, 1 by 8 inch. 

No. 1, SlSlE, 2 by 8 inch by 16 feet. 

Timbers, SlSlE, 6 by 8 inch by 16 feet. 
Spruce — 

Boards — 

Covered, 5-inch and up. 
Matched. 



GOVERNMENT CONTROL OVER PRICES. 489 

43. Lumber class (24 series) — Continued. 

Spruce — Continued. 

Bundled furring, 2-inch. 
Frames — 

8-incli and under. 

9-inch and under. 

10-inch. 

11 or 12 inch. 
Random^ 

2 by 3; 2 by 4. 

2 by 8. 

2 by 10. 

2 by 12. . ' 

44. Paints and varnishes class (1 series) : 

Soya bean oil . 

Chemicals Group. 

45. Mineral acids class (6 series) : 

Nitrate of soda, 95 per cent. 
Nitric acid, 42° Baume. 
Pyrites, urn size, lump ore wash. 
Sulphuric acid — 

60° Baume. 

66°. 
Sulphur, brimstone, stick, crude. 

46. Heavy chemicals class (3 series): 

Bleaching powder, 35 per cent chlorine. 
Caustic soda, 76 per cent, spot. 
Soda ash, light, 58 per cent, spot. 

47. Miscellaneous inorganic chemicals class (2 series): 

Ammonia, liquid anhydrous, in cylinders. 
Arsenic, white. 

48 . Fertilizers class (25 series) : 

Acid phosphate, 16 per cent phosphoric acid. 
Bones — 

Raw ground, 4 per cent ammonia and 50 per cent bone phosphate. 

Ground, steamed, 1^ per cent ammonia and 60 per cent bone phosphate. 
Carbonate of potash, calcined, 80 to 85 per cent. 
Cottonseed meal. 
Cyanamid, 22 per cent ammonia. 
Dried blood, 12 to 13 per cent ammonia. 

Fish scrap, dried, 11 per cent ammonia, and 14 per cent bone phosphate. 
Hoofmeal. 
Kainit. 
Manure salt. 

Manure salt, double, 48 to 53 per cent basis. 
Muriate of potash, 80 to 85 per cent. 
Nitrate of soda, 95 per cent. 
Sulphate of ammonia. 
Sulphate of potash, 90 to 95 per cent. 
Tankage — 

Garbage. 

Slaughterhouse, concentrated, 14 to 15 per cent ammonia. 

Slaughterhouse, crushed, 9 and 20 per cent. 



490 HISTORY OF PRICES DURING THE WAR. 

48. Fertilizers class (25 series) — (Continued. 

Phosphate rock — 

Florida, high grade, hard, 77 per cent. 

Florida land pebble, 68 per cent. 

Tennessee, domestic, 78 to 80 per cent. 
Pyrites, urn size, lump ore wash. 
Sulphuric acid, 60°. 
Sulphur, brimstone, stick, crude. 

49. Soaps and glycerin class (21 series): 

Fats and oils — 

Degras, American. 
Grease — 

Brown. 

House. 
Oil- 
Coconut, domestic, in tanks. 

Com, crude, in barrels. 

Cottonseed, crude, in tank cars. 

Menhaden, southern. 

Palm, Images. 

Red. 

Soya bean. 

Whale, natural, winter. 

Olive. 
Soapstock, cottonseed oil, loose — 

65 per cent f. a. 

50 per cent f. a. 
Stearine — • 

White grease, loose. 

Yellow grease, loose. 
Tallow- 
Packers', No. 1. 

Packers', No. 2. 
Other materials — 
Caustic soda. 
Glycerine — 

Dynamite, carload lots, drums included. 
C. P., in bulk. 

51. Wood distillation products and naval stores class (5 series): 

Acetone. 

Acetate of lime. 

Alcohol, wood, refined, 95 per cent. 

Methyl acetone. 

Ethyl methyl ketone. 

52. Natural dyestuffs and tanning chemicals class (1 series): 

Quebracho, extract, solid. 

53. Coal tar crudes, intermediates and dyes class (1 series): 

Toluol, pure. 
56. Explosives class (9 series): 

Aqua ammonia, 20 per cent. 
Cotton linters. 
Glycerine, dynamite. 
Nitrate of soda, 95 per cent. 



GOVBRNMElSrT CONTROL, OVER PRICES. 491 

56. Explosives class (9 series)— Continued . 

Nitric acid, 42° Baume. 

Powder, smokeless, Army and Navy, cannon, air dried. 

Powder, smokeless, American, cannon, water dried. 

Sulphuric acid, 66° Baume. 

Toluol. 

57. Miscellaneous organic chemicals class (2 series): 

Carbon tetrachloride. 
Formaldehyde. 

3. THE CHAIN INDEXES OF CONTROLLED AND UNCON- 
TROLLED PRICES. 

Perhaps no statistical measure is more significant for making 
broad economic interpretations of the effects of price control upon 
war-time prices than a series of controlled and uncontrolled price 
index numbers. The outstanding shortcoming of such index num- 
bers is, however, that no single device can be made to answer sev- 
eral general queries with accuracy. The so-called controlled index 
number for the period 1913-1918 by necessity includes commodities 
as controlled from the begiuning of 1913, while none were actually 
controlled until August, 1917, and while all did not come under con- 
trol until the signing of the armistice. It is, therefore, an excellent 
measure of the war-time price movement of the so-called controlled 
commodities or the uncontrolled commodities, but a crude measure 
of the immediate effects of each regulation as it came on. To show 
these effects more accurately, there has been devised a chain index 
of controlled prices showing each month, for all prices under control 
by the end of the month, the per cent of rise or fall from the prices 
of the identical commodities in the month preceding. There has 
been made, too, a like chain of uncontrolled prices. This schedule 
permits, by reason of its changing base, the gradual transfer of com- 
modities from the uncontrolled list to the controlled list. The con- 
trolled list, which increases from month to month, and the uncon- 
trolled list, which decreases in exact degree, are thus strictly accu- 
rate for each month. There is, so far as known, no more precise 
statistical measure of the immediate effects of regulation upon 
prices than the chain index of controlled and uncontrolled commodi- 
ties constructed here.^ 

1 The task of constructing a chain index of 1,366 commodities from April, 1917, to December, 1918, in 
view of the volume of transfers from the uncontrolled to the controlled list after September, 1917, was a 
prodigious one. It involved the separate handling of thousands of 8 and 9 figure aggregates, which do 
not show in the completed index, anew each month. Some few liberties were necessarily taken, and com- 
binations of series were sometimes entered together during the same month in order to reduce the calcu- 
lations involved. Thesef ew eases were considered with care, however, audit is believed that the general 
result is as satisfactory as any that could be made. The chronological order in which commodities were 
transferred from the uncontrolled to the controlled list follows: 

1917. 

September. — Coal, coke, copper, wheat, iron ore, pig iron, steel bars, steel shapes, steel plates. 

Orfo6er.— Steel blooms and billets , sheet bars ,wire rods, skelp, sugar. 

iVovemfter.— Steel sheets, pipe, steel scrap, tinplate, lead, com, oats, barley, fresh vegetables, vegetable 
nils, live stock, poultry, fish, fresh fruits, southern or yellow pine, ammonia, smokeless cannon powder. 

December. — Douglas fir, wood distillation products, cement, remainder of iron and steel class. 



492 



HISTORY OF PRICES DURING THE WAR. 



The chain index, which was made simply to find whether Govern- 
ment regulation affected current war prices, was made to begin in 

April, 1917. The "all 



WQGMTED Q1A1N INDEX TOR PRICES Of 

ALL COMMODITIES 

1SS6 SEBIES' 

CONTROLLED d, UNCONTRIXLED 
DURING THE WAR 
SHOWING CliANGE5 A5 CONTROL 15 EXTCNDrD 



o-™575 5nracs 

1566 ■'° 733 SCRIES 




commodities" chain 
index, and that for 
each group and class 
figured, contains its 
full lot of commodi- 
ties from the month 
of our entrance into 
war until the first 
month of regulation. 
The whole lot of com- 
modities were then 
separated, more and 
more each month as 
regulation was ex- 
tended, into those 
controlled and un- 
controlled. The "all 
commodities ' ' chain 
index in April, 1917, 
for example, contains 
1,366 commodities. 
But regulation soon 
began and in Sep- 
tember the commodi- 
ties were separated 
into 50 controlled and 
1,316 uncontrolled. 
Each month there- 
after, until the cessa- 
tion of hositilities, the 
extension of regulations necessitated the transfer of certain series 
from the uncontrolled list to the controlled list. By October, 1918, 
the original 1,366 uncontrolled commodities had been separated into 
573 controlled series and 793 uncontrolled prices. 



Weighted chain index for prices.— "All commodities'' (1,366 series') 
controlled and uncontrolled during the war, showing changes as 
control is extended. (Controlled, 0-573 series; uncontrolled, 1,366- 
793 series.) 



Jamiary.— Nitrate of soda, all fertilizers excepting sulphur and sulphuric acid. 
February.— Zinc, formaldehyde, toluol, arsenic, animal feeds, coffee. 
March. — Aluminum, binder twine, mamla fiber. 

April. — Spruce, hemlock, nickel, quicksilver, silver, newsprint paper, caustic soda, soda ash, bleaching 
powder, carbon tetrachloride. 
May. — Wool, hides and skins, rubber, platinum metals, manganese ore, cotton linters, quebracho. 
June. — Sulphuric acid, nitric acid, sulphur, harness leather. 
July.— Cotton goods and cotton yarns, brick, building tile, sand and gravel. 
August.— Woolen rags, glycerin, sole and belting leather, crude petroleum, kapok. 
September .—Sm waste. 
October. — Burlap. 



GOVERNMENT CONTROL OVER PRICES. 493 

To repeat, the chain index of controlled and that of uncontrolled 
commodities for each class figured, each group, and "all commodi- 
ties," represents a series of percentages of the aggregate rise or fall 
each month by comparison with prices of the identical commodities 
during the preceding month. For example, when 16 additional series 
were brought under control in October, 1917, they were not compared 
simply with the 50 series that made up the list of controlled commodi- 
ties for September. But, in order to be strictly accurate, new Sep- 
tember aggregates were figured for September using the whole 66 
series which by the end of October were under control. It was thus 
found that the weighted prices of the 66 series under control during 
October, by reason presumably of extended regulation, fell 14.78 per 
cent below the corresponding 66 price series for September, when 
only 50 of them were regulated. And, by the same process, it was 
found that the remaining 1,300 series still uncontrolled in October, 
rose 1.11 per cent above their own level for September. Each con- 
trolled commodity was taken out of the uncontrolled list and put into 
the controlled list in the month when control began. The chain index 
of controlled commodities throughout, therefore, is a comparison of 
prices during the month when regulation began with the prices of 
identical commodities in the month before, and the uncontrolled 
index is a comparison of prices stOl uncontrolled by the end of each 
month with identical series for the month preceding.^ 

The 1,366 commodities, which went into the "all comjuodities " 
chain index, each month rose steadily higher than their level of the 
month before until August, 1917. And from September on until the 
signing of the armistice the commodities that were not under control 
moved steadily upward in price. But each month some of these un- 
controlled commodities were put under regulation and there is a 
marked difference in the behavior of the chain index of controlled 
commodities. The Government had begun to control prices in earnest 
by September, and the September controlled prices fell 8.05 per cent 
below their own August level while those under control in October 
fell 14.78 per cent below their own September level. It is of especial 
note that while the uncontrolled index continued upward from our 
declaration of war to the signing of the armistice, the controlled index 
made an enormous drop at the beginning of control, and from No- 
vember, 1917, held relatively stable. 

The behavior of the food group chain index, significantly, is very 
like that of "all commodities " in which it has a large weighting. The 
clothing group chain index shows that the controlled series went 
somewhat higher in their monthly rises between May and September, 

1 A fuller commercial description of each of the above series of commodities, which were all taken from 
the Price Section index number, may be had by a study of the list of controlled commodities selected 
previously for the controlled index number. 



494 HISTORY OF PRICES DURING THE WAR. 

1918, than those not under control, and then fell below. The out- 
standing features of the chain index for the metals group are the extent 
to which prices were scaled from previous heights and the strength 
with which they were held afterward. Metal prices, in September, 
1917, were brought 9.32 per cent below their August level; in October 
they were brought 24.82 per cent below their September level; and 
in November they were brought 9.68 per cent below their October 
level. Metal prices, once reduced to this lower level, show scarcely 
the variation of 1 per cent up to the signing of the armistice. The 
fuels group chain index shows a fairly stable price movement except 
for the enormous increase of 20.9 per cent in April, 1918, the beginning 
of the new "coal year" when the annual contracts, under which a 
very large proportion of aU coal mined is sold, were reversed. 



GOVERNMENT CONTROL OVER PRICES. 



495 



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GOVERNMENT CONTEOL OVER PRICES. 



497 















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125547°— 20 32 



498 



HISTORY OF PRICES DURING THE WAR. 















Dlr-^ li ■< QO 


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WEIGHTED CHAIN INDEX TOO. PR1CE3 OP 

COTTON § COTTON PRODUCTS 

SI 5CR1E3' 
CONTROLLCD ^ UNCONTROLLED 

DURING TME VAH. 
SHOWING CHANGE 5 A5 CONTROL 13 EXTENDPn 

— CONTROLLED O "57 SERIES 
x'x UNCONTROLLED. 0|-">24 SERIES 


■0 


031 

das 


















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GOVERIS^MENT CONTROL OVER PRICES. 



499 















P f 1 1 




2 
5 










1 








































aac 
Km 

ISO 

us 




330 










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500 



HISTORY OF PEICES DURING THE WAR. 



CHAIN INDEX OF CONTROLLED AND UNCONTROLLED rRICES. 
(Showing weighted rise or fall, by per cents, of controlled and uncontrolled prices for each month of the war.] 







All commodities. 




Food group. 


Con- 
trolled 
series. 


Un- 
con- 
trolled 
series. 


Comparison. 


Con- 
trolled 
prices. 


Un- 
con- 
trolled 
prices. 


Con- 
trolled 
series. 


Un- 
con- 
trolled 
series. 


Comparison. 


Con- 
trolled 
prices. 


Un- 
con- 
trolled 
prices. 






1917. 












1917. 








1366 
1366 
1366 
1366 
1366 
1316 








-1-9.73 




268 


April with March . . 




+13.21 









-1-4.44 




268 


May with April .... 




+ 7.38 









-1-4.13 
-1-4.23 




268 
268 


June with Mav 




- .79 








July with June 




+ 4.20 








— 1.61 




268 


August with July . . 




— L35 


50 


September with 
August. 




-8.05 


-fl.94 


12 


256 


September with 
August. 


-7.19 


+ 4.75 




















66 


1300 


October with Sep- 
tember. 


— 


14.78 


+ L11 


21 


247 


October with Sep- 
tember. 


-1.95 


+ 1.92 


266 


1100 


Novem.ber with 
October. 


_ 


.12 


-f3.64 


185 


83 


November with 
October. 


-M.83 


+10.24 


294 


1072 


December with 
November. 

1918. 




4.60 


-I-L75 


185 


83 


December with 
November. 

1918. 


-5.77 


+ 3.35 


318 


1048 


January with De- 
cember, 1917. 


+ 


L25 


4-L72 


185 


83 


January with De- 
cember. 1917. 


-H.46 


+ .45 


352 


1014 


February with Jan- 


-1- 


1.66 


+ .98 


214 


54 


February with Jan- 
uary. 
March with Feb- 


-H.99 


+ .36 


362 


1004 


March with Feb- 


— 


.90 


-fl.66 


214 


54 


-L17 


+ .40 






ruary. 












ruary. 






387 


979 


April with March . . 

May with April 

June with May 


_ 


1. .53 


-1-3.30 


214 


54 


April with March . . 

May with April 

June with May 


-2.83 


+ 2.33 


469 


897 


_ 


2.22 


+ .74 


214 


54 


-3.24 


+ 1.53 


481 


885 


— 


1.45 


+ 1.42 


214 


54 


-1.85 


+ 4.36 


545 


821 


July with Jime 


+ 


2.83 


-(-1.42 


214 


54 


July with June 


-1-4.05 


- .15 


570 


796 


August with July . . 


-1- 


2.25 


+ .50 


214 


54 


August with July . . 


+3.03 


- .04 


572 


794 


September with 

August. 


+ 


2.43 


-1-2.08 


214 


54 


September with 
August. 


+3.80 


+ .52 




















573 


793 


October with Sep- 
tember. 


- 


1.63 


-1- .51 


214 


54 


October with Sep- 
tember. 


-2.48 


+ .66 


573 


793 


November with 
October. 


— 


.27 


- .49 


214 


54 


November with 
October. 


- .53 


+ 3.59 


573 


793 


December with 
November. 


-1- 


2.06 


-L04 


214 


54 


December with 
November. 


+4.00 


+ .42 



Clothing group. 



Con- Sn- 
t^olled troUed 
series, series. 



67 
69 
122 
138 
140 

140 

140 

140 



409 
409 
409 
409 
409 
409 

409 



400 

409 

409 

409 
342 
340 

287 
271 
269 

269 

269 

269 



Comparison. 



Con- 
trolled 



1917. 

April with March . . 

May with April 

June with May 

July with June 

August with July . . 

September with 
August. 

October with Sep- 
tember. 

November with 
October. 

December with 
November. 

1918. 

January with De- 
cember, 1917. 

February with Jan- 
uary. 

March with Feb- 
ruary. 

April with March . 

May with April... 

June with May — 

July with June 

August with July . 

September with 
August. 

October with Sep- 
tember. 

November with Oc- 
tober. 

December with No- 
vember. 



+4.89 
+ .38 
+ .87 
+ .69 
-3. 16 

+ .45 

- .23 

-1.26 



Un- 
con- 
trolled 



Rubber, paper, and fiber group. 



" ;" " iroiiea 
P^^es- prices 



+3.36 
+2.07 
+ 4.15 
+ 6.41 
+ 1.58 
+ .03 

+ .8.5 

+ 4.01 

+ L51 



+3.20 

+ 1.11 

+2.01 

+3.95 
- .39 
+ .92 
+ 2.78 
+ .13 
+3.81 

+ .54 

-1.78 

-1.78 



Con- 
trolled 
series. 



Un- 
con- 
trolled 
series. 



119 
119 
119 
119 
119 
119 

119 



119 

119 

111 

110 
100 
100 
100 
99 
99 

98 

98 

98 



Comparison. 



with 
with 



1917. 

April with March. . 

May with April 

June with May 

July with June 

August with July . . 

September with 
August. 

October with Sep- 
tember. 

November 
October. 
December 
November. 

1918. 

January with De- 
cember, 1917. 

February with Jan- 
uary. 

March with Feb- 
ruary. 

April with March . . 

May with April 

June with M:ay 

July with June 

August with July . . 

September with 
August . 

October with Sep- 
tember. 

November with Oc- 
tober. 

December with No- 
vember. 



Con- 
trolled 
prices. 



-0.26 

+ .70 
+4.93 
+ .11 
+ .60 
-1.54 
+ .05 

-4.41 

-2.42 

-2.63 



GOVEEISTMENT CONTROL OVER PRICES. 



501 



CHAIN INDEX OF CONTROLLED AND UNCONTROLLED PRICES— Continued. 
[EShowing weighted rise and fall, by per cents, of controlled and uncontrolled prices for each month of the war.] 



Metals group. 


Fuels group. 


Con- 


Un- 




Con- 


Un- 


Con- 


Un- 




Con- 


Un- 


trolled 


trolled 


Comparison. 


trolled 


trolled 


trolled 


trolled 


Comparison. 


trolled 


con- 
trolled 


series. 


series 




prices. 


prices. 


series. 


series. 




prices. 


prices. 






1917. 










1917. 








116 
110 


April with March . . 




+ 5.22 
+ 6.53 




03 
03 


April with March 




+ 17 S3 




May with April 




May with April. . 




+ 3.96 




110 
116 
110 


June with May 




+ 14.15 
+ 5.59 
- 6.14 




03 
03 
63 


June with May 




+ 72 




July with June 




July With June 




— 1 07 




August with July.. 




August with July 




+ .24 


11 


105 


September with 
August. 


- 9.32 


- 9.46 


27 


36 


September with 
August. 


- 6.07 


+ 5,05 


IS 


98 


October with Sep- 
tember. 


-24.82 


- 4.83 


27 


30 


October with Sep- 
tember. 


- .20 


+ .17 


26 


90 


November with 
October. 


- 9.68 


- 3.00 


27 


36 


November with 
October. 


+ 2.08 


+ .08 


39 


77 


December with No- 
vember. 

1918. 


- .39 


- 1.25 


27 


36 


December with No- 
vember. 

1918. 


+ .70 


+ 1.96 


39 


77 


January with De- 
cember, 1917. 


+ .10 


- .95 


27 


30 


January with De- 
cember, 1917. 


+ .88 


+ 3.52 


-10 


76 


February with Jan- 
uary. 


+ .39 


- 1.14 


27 


30 


February with Jan- 
uary. 


+ .19 


+ 1.17 


42 


74 


March with Febru- 
ary. 
April with March . . 


- .15 


+ 1.99 


27 


30 


March with Febru- 


+ . 56 


+ 1.37 


46 


70 


- .40 


- 1.07 


27 


36 


April with March . . 


+ 20.90 


+ 3.47 


49 


67 


May with April 


+ .07 


+ 4.09 


27 


30 


May with April 


+ 1.13 


+ 3.46 


49 


67 


June with May 


+ .22 


+ .98 


27 


36 


June with May 


- 2.39 


+ .87 


49 


67 


July with June 


+ .86 


+ 3.35 


27 


36 


July with June 


- .16 


- .48 


49 


67 


August with July.. 


+ .47 


+ 5.13 


32 


31 


August with July. . 


+ .34 


+ .15 


49 


67 


September with 
August. 


+ .01 


- .40 


32 


31 


September with 

August. 


+ 1.17 


+ .45 


49 


67 


October with Sep- 
tember; 


+ 1.10 


- .60 


32 


31 


October with Sep- 
tember. 


0.00 


0.00 


49 


67 


November with 
October. 


+ .11 


- 1.81 


32 


31 


November with 
October. 


+ 2.53 


- 1.56 


49 


67 


December with 
November 


- 2.61 


- .51 


32 


31 


December with 
November. 


0.00 


- .08 


Building materials group. ' 


Chemicals group. 


Con- 


Un- 




Con- 


Un- 


Con- 


Un- 




Con- 


Un- 


trolled 
series. 


trolled 
series. 


. Comparison. 


trolled 
prices. 


trolled 
prices. 


trolled 

series. 


trolled 

series. 


Comparison. 


trolled 
prices. 


trolled 
prices. 






1917. 










1917. 








149 
149 
149 
149 
149 
149 


April with March . . 




+ 10.40 
+ 1.58 
+ 1.05 
+ 2.72 
+ .24 
+ .33 I 




242 
242 
242 
242 
242 
242 


April with March 




+2 47 




May with April 




May with April 




+6 40 




June with May 




June with May. . 




+ 2.00 




July with June 




July with June 




+2 05 




August with July . . 




August with July 




+ 1 07 




September with 




September with 




+ 4.00 






August. 










August. 








149 


October with Sep- 
tember. 




+ .45 




242 


October \vith Sep- 
tember. 




+ 1.0S 


6 


143 


November with 
October. 


+ 0.57 


+ 1.15 


22 


220 


November with 
October. 


+2.88 


-1.13 


16 


133 


December with 
November. 

1918. 


- .19 


+ .51 


27 


215 


December with 
November. 

1918. 


+ 2.54 


-1.71 


16 


133 


January with De- 
cember, 1917. 


+3.91 


+ 3.71 


51 


191 


January with De- 
cember, 1917. 


+ .74 


-4. S3 


10 


133 


February with 
January. 


+ .71 


- .12 


55 


187 


February with 
January. 


+ 1.23 


+ 4.43 


16 


133 


March with Feb- 
ruary. 


+ 1.80 


+ 3.12 


55 


187 


March \vith Feb- 
ruary. 


+ .33 


+ .83 


31 


118 


April with March.. 


+ 4.20 


+ 4.73 


60 


182 


April with March. . 


- .45 


+ .45 


31 


118 


May with April ! + .96 | 


+ 1.73 


62 


180 


May with April 


-1.21 


-2.41 


31 


118 


June with May 


+ .09 


+ 1.57 


72 


170 


June with Mav 


-1.99 


+ .47 


42 


107 


July with June 


+ .32 


+ 1.68 


72 


170 


July with June 


-7.62 


+ .09 


42 


107 


August with July . . 


+ .93 


+ 1.11 


75 


107 


August with July . . 


—2.33 


- .50 


42 


107 


September with 
August. 


+ .09 


+ 1.86 


75 


167 


September with 
August. 


+1.19 


+ .03 


42 


107 


October mth Sep- 
tember. 


-1.47 


0.00 


75 


167 


October with Sep- 
tember. 


-1.40 


+2.39 


42 


107 


November with 
October. 


+ .53 


+ .35 


75 


167 


November with 
October. 


- .30 


+ .56 


42 


107 


December with 
November. 


- .35 


- 1.03 


75 


167 


December with -9.44 
November. 


- .95 



502 



HISTORY OF PRICES DURING THE WAR. 



CHAIN INDEX OF CONTROLLED AND UNCONTROLLED PRICES— Continued. 
[Showing weighted rise or fall, by per cents, of controlled and uncontrolled prices for each month of the wax.] 



"Wheat and wheat products. 



Con- 
trolled 
series. 



Un- 
con- 
trolled 
series. 



Comparison. 



1917. 

April with March . . 

May with April 

June with Alay 

July with June 

August with July. . 

September with 
August. 

October with Sep- 
tember. 

November with 
October. 

December with 
November. 

1918. 

January wth De- 
cember, 1917. 

February with Jan- 
uary. 

March with Feb- 
ruary. 

April with March 

May with April.. 

June with May... 

July with June... 

August vfith July 

September with 
August. 

October with Sep- 
tember. 

November with 
October. 

December with No- 
vember. 



Con- 
trolled 
prices. 



- 7.19 

- 2.10 

- .82 

- 2.64 

- .77 
+ 1.41 

- 1.09 

-I- 3.28 

- 1.60 
+ .84 
-I- 3.76 

- 1.04 

- .39 

- .39 

- ..08 
-1-1.53 



Un- 
con- 
trolled 
prices. 



+ 17.01 
+20. 91 

- 7.26 

- 7.07 
+ .73 



Cotton and cotton products. 



Con- 
trolled 
series. 



57 



Un- 
con- 
trolled 
series. 



Comparison. 



1917. 

April with March . . 

May with April 

June with May 

July with June 

August \vith July.. 

September with 
August. 

October mth Sep- 
tember. 

November with 
October. 

December with 
November. 

1918. 

January with De- 
cember, 1917. 

February with Jan- 
uary. 

March with Feb- 
ruary. 

April with March . . 

May with April 

June with May 

July with Tune 

August with July . . 

September with 
August. 

October with Sep- 
tember. 

November with 
October. 

December with No- 
vember. 



Con- 
trolled 
prices. 



0.00 

0.00 

+ 1.33 

+ 1.37 

- 4.85 

+ .46 

- .23 



Wool and woolen products. 




Hides and skins and their products. 


Con- 


Un- 




Con- 


Un- 


Con- 


Un- 1 


Con- 


Un- 


trolled 


trolled 


Comparison. 


trolled 


trolJed 


trolled 


trolled 


Comparison. 


trolled 


trolled 


Series. 


series. 




prices. 


prices. 


series. 


series. 




prices. 


prices. 






1917. 










1917. 








66 
66 
66 
66 


April with March . . 




+3.62 

+3.72 
+ 5.51 
+4.88 




156 
156 
156 
156 


April with March . . 




-0.66 




May with April 




May with April 




+ .40 




June with May 




June with May 




— .26 




July with June 




July with June 




+3.73 




66 


August with July . . 




+5.44 




156 


August with July. . 




- .76 




66 


September with 




+ 1.65 




156 


September with 

August. 




-2.02 






August. 
















66 


October with Sep- 
tember. 




+2.26 




156 


October with Sep- 
tember. 




- .06 




66 


November with 
October. 




+3.89 




156 


November with 
October. 




+1.77 




66 


December with 
November. 

1918. 




+2.39 




156 


December with 
November. 

1918. 




+ .20 




66 


January with De- 
cember, 1917. 




+1.69 




156 


January with De- 
cember, 1917. 




+1.93 




66 


February with Jan- 
uary. 




+ 1.19 




156 


February with Jan- 
uary. 




-2.30 





66 


March with Febru- 
ary. 




+2.65 




156 


March with Febru- 
ary. 




-1.32 




66 
51 


April with March . . 




+2.29 

+ 1.84 


"""48' 


156 
108 


April wth March . . 




+ .34 


15 


May with April 

June with May 


-1.66 


May wth April 

June with May 


+10.60 


+ 1.22 


15 


51 


- .24 


+ .86 


50 


106 


+ .68 


+ .62 


15 


51 


July with June 


+ 1.70 


+2.50 


50 


106 


July with June 


- 1.72 


+ 2.50 


21 


45 


August with July. . 


- .21 


+ .93 


60 


96 


August with July . . 


- 1.19 


+ .06 


21 


45 


September With 

August. 


+ .83 


+ 1.20 


60 


96 


September with 

August. 


+ .70 


- .16 


















21 


45 


October with Sep- 
tember. 


- .21 


+1.55 


60 


96 


October with Sep- 
tember. 


+ .80 


+ .15 


21 


45 


November with 
October. 


- .41 


-1.47 


60 


96 


November with 
October. 


- .05 


+ .79 


21 


45 


December with 


-3.53 


-1.38 


60 


96 


December with 


- 1.03 


+ .44 






November. 










November. 





GOVERNMENT CONTROL OVER PRICES. 



503 



CHAIN INDEX OF CONTROLLED AND UNCONTROLLED PRICES— Continued. 
[Showing weighted rise or fall, by per cents, of controlled and uncontrolled prices for each month of the wax.] 



Iron and steel and their products. 


Coal and coke. 


Con- 


Un- 




Con- 


Un- 


Con- 


Un- 




Con- 


Un- 


trolled 


trolled 


Comparison. 


trolled 


trolled 


trolled 


trolled 


Comparison. 


trolled 




series. 


series. 




prices. 


prices. 


series. 


series. 




prices. 


prices. 






1917. 










1917. 








88 


April with March. . 




+ 7.69 




27 


April with March 




-1-42.78 




88 






-1- 7.35 




27 


May with April 




+ 6.92 




88 


Jime with May.. 




-1-17.14 




27 


June with May.. . . 




+ .27 




88 


July with June.. 




-1- 7.45 




27 


July with June.. . . 




— 5.07 




88 


August with Julv . . 




- 6.53 




27 


August with Julv . . 




-1- .48 


9 


79 


September with 
August. 


- 9.73 


-10.69 




27 


September with 
August. 


- 6.06 




















16 


72 


October with Sep- 
tember. 
November with Oc- 


-26.03 


-3.84 




27 


October with Sep- 
tember. 
November with Oc- 


- .17 




23 


65 


-10.42 


- 6.27 




27 


-t- 2.69 








tober. 










tober. 






36 


52 


December with No- 
vember. 

1918. 


- .44 


+ .13 




27 


December with No- 
vember. 

1918. 


+ .74 




36 


52 


January with De- 
cember, 1917. 


+ .10 


-1- .51 


27 




January with De- 
cember, 1917. 


+ .84 




36 


52 


February with 
Januarv. 


+ .41 


-1- .33 


27 




February with 
January, 


-1- .24 




36 


52 


March with Febru- 
ary. 


- .03 


- 1.55 


27 




March with Febru- 
ary. 


+ .52 




, 36 


52 


April with March. . . 


- .52 


4- 1.12 


27 




April with March. . . 


-1-20.91 




36 


52 


May with April 


- .01 


+ .15 


27 




May with April 


-1- 1.14 




36 


52 


June withMav 


-t- .11 


+ 2.52 


27 




June %vith May 


- 2.39 




36 


52 


July with June 


+ .11 


+ 1.42 


27 




July with June 


- .18 




36 


52 


August \vith July . . . 


+ .49 


+ .44 


27 




August with Julv. . . 


+ .43 




36 


52 


September with 
August. 


+ .02 


- .13 


27 




September with 
August. 


-1- .99 




















36 


52 


October with Sep- 
tember. 


+ 1.23 


+ 2.61 


27 




October with Sep- 
tember. 


-1- .002 




36 


52 


November with Oc- 
tober. 


+ .13 


+ .68 


27 




November with Oc- 
tober. 


+ 3.48 




36 


52 


December with No- 
vember. 


- 2.53 


+ 2.09 


27 




December with No- 
vember. 


0.00 




Lumber. 


Fertilizers class. 


Con- 


Un- 




Con- 


Un- 


Con- 


Un- 




Con- 


Un- 


trolled 


troUed 


Comparison. 


trolled 


trolled 


trolled 


trolled 


Comparison. 


trolled 


trolled 


series. 


series. 




prices. 


prices. 


series. 


series. 




prices. 


prices. 






1917. 










1917. 








62 


April with January . 




-1-22. 98 




25 


April with March. . - 




-t- 1 94 




62 










25 


Mav with April . 




-1- 3.09 




62 










25 


June with May 




-1- 6.48 




62 


July with April. .. 




+ 4.56 




25 


Julv with June 




+ 4.21 




62 










25 


August with July. . . 




-1-7.83 




62 










25 


September with 
August. 




+ .98 






















62 


October with July . . 




-1- 1.39 




25 


October with Sep- 
tember. 
November with Oc- 




+ 4.91 


5 


57 










25 




- 2.64 
















tober. 






9 


53 


1918. 








25 


December with No- 
vember. 

1918. 




+ 5.12 


9 


53 


January with De- 
cember, 1917. 


-)-5.26 


+ 3.67 


22 


3 


January with De- 
cember, 1917. 


+ .68 


- 1.53 


9 


53 








22 


3 


February with Jan- 


-1-3.12 


+14.53 


9 


53 








22 


3 


March with Febru- 


- .17 


+ 2.55 


24 


38 


Apnl with January. 


-F5.63 


+ 6.72 


22 


3 


April with March. . 


-f-2.38 


0.00 


24 


38 








22 


3 


May with April 


-H.22 


-25.12 


24 


38 








25 





June with Mav 


-1.52 




24 


38 


Jidy with April 


- .60 


+ .82 


25 





July with June 


-4.06 




24 


38 








25 





August Avlth Julv . . 


-H.02 




24 


38 








25 





September with 
August. 


-3.41 






















24 


38 


October with July. . 


-2.58 


-1- .30 


25 





October with Sep- 
tember. 


-1.51 




24 


38 








25 





November with Oc- 
tober. 


+ .12 




24 


38 








25 





December with No- 
vember. 


-1.63 





504 HISTORY OF PRICES DURING THE WAR, 

4. RELATIVE POINTS BELOW WHICH 50 BASIC COMMODI- 
TIES WERE PEGGED. 

One of the primary motives behind price control during the war 
was the desire to stimulate a maximum production. The various 
committees, though always desirous of holding prices within reason- 
able bounds, were anxious primarily to assure a full output and did 
so frequently by means of liberal price allowances. They under- 
took to meet these ends by a rather extensive regulation over the 
prices of important basic raw materials. The Government early 
reoTilated wheat, and then as occasion demanded it extended control 
to various other raw materials such as copper, iron ore, pig iron, 
lumber, wool, hides and skins, and cotton yams. A study of the 
schedules of these fixed prices, gives a very poor notion of the relative 
market heights at which each regulation began, both with respect to 
its own prewar level and with respect to that of other controlled 
prices. It is of significance to know whether Government inter- 
ference with prices began generally at the same relative heights, or 
whether other factors dictated the time and character of the Govern- 
ment control. Another equally significant inquiry is the relation 
which the fix:ed prices bore to the market prices prevailing at the 
time regulation set in. 

There have here been chosen from the whole list of 573 controlled 
commodities 50 of the most representative individual price series 
which typify the common practices of Government regulation. The 
actual market prices at wholesale by months from January, 1913, 
through December, 1918, for each of these controlled basic commodi- 
ties, have been turned into relative prices by making the average pre- 
war price (July 1, 1913, to June 30, 1914) equal 100. Each relative 
price thus is strictly comparable with any other. Relative prices of 
this character, for those who seek simply the relation of any market 
price when Government control began, to -its corresponding prewar 
price are more accurate than the index numbers or chain indexes of 
groups and classes. The relative prices of individual raw materials 
controlled, for the point in mind, have the decided advantage of 
standing as separate series precisely at the height they had attained 
when taken hold of by the Government. They, moreover, are free 
from weights and permit of a study of price rises pure and simple. 
These devices make readily possible a comparison of the relative 
points, above their prewar prices, below which any or all of the 50 
selected commodities were pegged. 

The market price for calfskins. No. 1, coimtry, 8 to 15 pounds, at 
Chicago, for example, was $0.1984 per pound (made equal to 100) 
before the war in Europe. It had reached $0.4040 per pound (found 
equal to 204 when compared with the prewar price) in May, 1918, 



GOATLRISTMENT CONTROL OVER PRICES. 505 

when the Goyernment determined upon control of calfskm prices. 
The Government set the price at $0.34 per pound (similarly found 
equal to 171). It is clear that while the market had sent calfskin 
prices from 100 in 1913-14 to 204 by May, 1918, the Government 
then fixed them at a maximum of 171. They were in point of fact, 
quoted subsequently at figures above this maximum. Data are given 
by which one may make for himself a similar analysis for each of the 
50 commodities carried. A summary of the relative price of each 
commodity before the European war, the relative market price which 
prevailed when the Government determined upon regulation, and the 
relative price at which the Government fixed its initial price precedes 
the fuller tables of individual commodities. 

The 50 individual commodities, which were selected from the lot 
of 573 controlled in price and the actual prices of which may be had 
from the Price Section's class bulletins, follow with their full com- 
mercial descriptions : 

I. Food Group. 

1. Bacon, rough sides, smoked loose, Chicago. 

2. Beef, good native steers, fresh carcass, Chicago. 

3. Cattle, steers, choice to prime, heavy beeves, Chicago. 

4. Corn, cash, No. 3 yellow, Chicago. 

5. Cottonseed oil, crude, in barrels, f. o. b. mill. 

6. Hogs, live (bulk of sales), Chicago. 

7. Oats, No. 3, white, cash, Chicago. 

8. Rice, Honduras head, domestic, clean, New Orleans. 

9. Sugar, 96° centrifugal, New York. 

10. Wheat, No. 1 northern spring, Minneapolis. 

II. Clothing Group. 

11. Calfskins, No. 1 country hides, 8 to 15 pounds, Chicago. 

12. Cattle hides, packer, heavy native steers, Chicago. 

13. Cotton duck, standard United States Army, firsts, 28^-inch 8-ounce, commercial. 

14. Cotton linters, grade D, cut 130-175, New York. 

15. Cotton yarn, weaving, carded, white, northern mulespun, 22/1 cones, Boston. 

16. Leather, harness, grade B, California oak, Chicago. 

17. Leather, belting, butts, medium standard tannages, Philadelphia. 

18. Print cloths, 27-iiich, 64 by 60, 7.60 yards, Boston. 

19. Rags, woolen, new clips, blue worsted, New York. 

20. Sheeting, Ware Shoals, L. L., brown. New York. 

21. Wool, domestic, Ohio, Pennsylvania, West Virginia, unwashed, fine delaine, 

Boston. 

22. Wool, Buenos Aires, 46s, shrinkage 34 per cent, Boston. 

III. Rubber, Paper, and Fiber Group. 

23. Manila fiber, fair current shipment, New York. 

24. Paper, newsprint, rolls, car lots. United States average. 

25. Rubber, crude, Hevea, first latex crepe, New York. 



506 HISTORY OF PRICES DURING THE WAR. 

IV. Metals Group. 

26. Copper, electrolytic, New York. 

27. Iron ore, Mesabi Non-Bessemer, 51| per cent, lower lake ports. 

28. Lead, pig. New York. 

29. Pig iron, basic, Mahoning or Shenango Valley furnace. 

30. Quicksilver, New York. 

31. Steel bars, base, Pittsburgh. 

32. Steel billets, open hearth, Pittsburgh. 

33. Steel plates, tank, Pittsburgh. 

34. Steel structural shapes, Chicago. 

35. Tin plates, domestic coke, 14 by 20 inches, Pittsburgh. 

36. Zinc sheets, f. o. b. La Salle or Peru, 111. 

V. Fuels Group. 

37. Coal, anthracite, chestnut. New York. 

38. Coal, bituminous, Pittsburgh, No. 8 Ohio, Columbus and Detroit. 

39. Coke, Connellsville furnace, f. o. b. ovens. 

40. Petroleum, crude, Mid-continent (Kansas-Oklahoma), at wells. 

VI. Building Materials Group. 

41. Cement, Portland domestic, New York. 

42. Douglas fir, common, No. 1, 1 by 8 by 10, Washington mills. 

43. Pennsylvania hemlock, No. 1 boards, 1 by 10 to 16, f. o. b. mill. 

44. Southern or yellow pine, common boards, No. 1 S2S, 1 by 10, Arkansas. 

45. Spruce, random, 2 by 10, Boston. 

VII. Chemicals Group. 

46. Alcohol, wood, refined, 95 per cent, New York. 

47. Arsenic, white. New York. 

48. Caustic soda, 76 per cent, spot, New York. 

49. Nitrate of soda, 95 per cent. New York. 

50. Sulphuric acid, 60° Be., New York. 



GOVERI^MENT CONTROL OVER PRICES. 



507 





508 



HISTORY OF PRICES ln'^I^'G THE WAR. 






GO^^RlSrMElSrT CONTROL OVER PRICES. 



509 



S .og 





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- 


















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510 



HISTORY OF PRICES DURING THE WAR. 




..RCMTn/EPFa-ctsor 

, STCEL PLATES 



fcYMQNTFia 

JA^^UAt^Y,1913™DCCCMBERlSla. 

. AVERAGE OUCTED PRICES 

My iab""jurcisM-ioo 



Ul 



1017 I toy , V 



m 



i -ibi 



ux 




Relativeprices.— Pig iron, basic— By months, Janu- Relative prices.— Steel plates, tant.— By months. 
ary, 1913, to December, 1918. (Average quoted January, 1913, toDecember, 1918. (Average quoted 



ary 

prices, July, 1913, to June, 1914=100.) 



prices, July, 1913, to June, 1914=100.) 



GOVEKN'MElSrT CONTROL, OVER PRICES. 



511 



RELATIVE PRlCeSOF 

ANTHRACITE COAL 

CHESTNUT 






BY MONTHS 
JANUARY,19J3~DEC£M£ea{916 
AVERACE QLOTEO PR!CE^Uli;la3'6ll^e,^3M■ IOO 






MO 


ISia 1 1914 1 1013 'I I9le 


1917 


i9ia 1 1 


n4ii 


iryi i| I .'7' 1 


^ 


UM. 


1 n !; 


im 


Z40 


■ Z20 














220 


iOO 
ISO 






r— 






r 


200 
MO 


140 

120 
100 


k J- 


l./~ 


'X/' 


4 


f 


1 

i 


J 


140 

izo 

100 




v 


V 


V 






\ 






eo 


'"I- 














i5 ? R 


"k'i%"'^ 


TiV 


"g'VV 


"l"^"s"§ 


? ^p 




isaa 1 1914 


\013 


1916 


1917 


19IO : 











loie 


1917 


lOUJ 1 1 




44X 


4Xt 


J^X 


M? 






I 




44,,; 

«0 










uo 

















340 


BOATive PRiceux 








leo. 


COAL 

MTUMINOUa 

TbY MONTHS 
(JANUAHy. 1913-"DecmEER1915 














































240 


-a« 


1915 


1914 1 1913 


[44^ 


1^ 


UU^ 


220 











r 


-"^ 


220 


200 
160 














200 
180 


160 
140 
120 


.A 


f* 


y 


f^ 







160 
140 
120 
100 
SO 


60 
60 


f^ 


^ 


V 


'T 






l"S"rc" 


j"si"fi"= 


ii"ii"] 


'\T<i't 


1 U ! 


n^„^,,h, 




— 


1913 1 1S>» 


1913 


1916 1917 


i9ia J 





Relative prices.— Anthracite coal, chestnut.— By 
months, January, 1913, to December, 1918. (Aver- 
age quoted prices, July, 1913, to June, 1914=100.) 



Relative prices.— Coal, bituminous.— By months, 
January, 1913, toDecember, 1918. (Average quoted 
prices, July, 1913, to June, 1914—100.) 



512 



HISTORY OF PRICES DURING THE WAR. 




Relative prices. — Coke, Connellsville. — By months, 
January, 1913, to December, 1918. (Average quoted 
prices, Julj^ 1913, to June, 1914=100.) 



Relative prices.— Crude petroleum, mid-continent.— 
By months, January, 1913, to December, 191S. 
(Average quoted prices, July, 1913, to June, 1914= 
100.) 



GOVERNMENT CONTROL OVER PRICES. 



513 






125547°— 20- 



514 



HISTORY OF PRICES DURING THE WAR. 



A SUMM-VRY OF ACTUAL AND RELATIVE PRICES BELOW WHICH BASIC COMMODITIES 

WERE FIXED. 



Commodity. 


Prewar price (July, 
1913 to June, 1914). 


Market price when 
■ control began. 


Government initial 
fixed price. 




Actual. 


Relative. 


Actual. 


Relative. 


Actual. 


Relative. 


FOODS. 


550. 1298 
.1297 

9. 1022 
.0859 
.0607 

8.3094 
.4005 
.0526 
.0340 
.8901 

.1984 
.1881 
.1550 
.0205 
.2438 
.4121 
.5042 
.0335 
.1250 
.0606 
.2317 
.3083 

.0780 

1.9046 

.6123 

.1492 

3. 3083 

.0418 

13.3183 

38. 8558 

1.2600 

21.7917 

1.2600 

1.4600 

3. 4375 

.0735 

3. 7800 

1.0900 

2. 0625 

.9725 

1.5800 

7.9167 

24.8300 

13. 8750 

24. 2800 

. 4558 
.0310 
.0181 
2. 3183 
.0085 


100 
100 
100 
100 
100 
100 
100 
100 
100 
100 

100 
100 
100 
100 
100 
100 
100 
100 
100 
100 
100 
100 

100 
100 
100 

100 
100 
100 
100 
100 
100 
100 
100 
100 
100 
100 

100 
100 
100 
100 

100 
100 
100 
100 
100 

100 
100 
100 
100 
100 










2. Beef 










3. Cattle 










4 Com . - 


:::::::::;;;; ;:;: 








$0.1750 
16. 9500 


288 
204 


SO. 1750 
15.5000 


288 


6. Hops, live 


187 


7. Oats 




8. Rice 


.0938 

.0090 

2. 7875 

.4040 
.3110 
.3425 
.0487 
. 7120 
.6800 
.9700 
.1300 
.5650 
.2300 
.7500 
.7400 

.2731 

3.24.50 

.6000 

..2545 

5.0500 

.0625 

42. 7500 

121.7500 

3.8800 

55. 2500 

7.0500 

5.1900 

12. OOOO 

.1800 

4.9000 
2. 5400 
11. 7500 
2.2500 

2. 5600 
IS. 5000 
32. 6200 
27. 5000 
46. 3700 

1. 3500 
.1600 
.0490 

4.4938 
.0125 


178 

203- 

. 313 

201 
167 
221 
238 
292 
165 
192 
388 
452 
380 
324 
240 

350 
170 
98 

171 
153 
150 
321 
313 
308 
254 
560 
355 
349 
245 

130 
233 

570 
231 

162 
234 
131 
198 
191 

296 
516 
271 
194 
147 


.0913 
. 06005 
2. 1700 

.3400 
.3300 
.3350 
.0467 
.6650 
.6800 
.9000 
.1125 
.0200 
.1750 
.7500 
.7400 

.2600 
/ 3. 1000 
t 3.5000 

.6300 

.2350 

5.0500 

.0805 

33. OOOO 

105. OOOO 

2.9000 

47. 5000 

3. 2500 

3.0000 

7. 7500 

.1500 

4. 8000 
2.0000 
6.0000 


174 


9. Sugar, raw 


176 


10. Wheat. 


244 


V CLOTHING. 

11. CalfsldiLS 


171 


12. Cattle hides 


177 


13. Cotton duck 


216 


14. Cotton lintors 


228 




273 


16. Leather, harness 


165 


17. Leather, bolting . . ... 


190 


18. Print cloths 


336 


19. Rags, woolen 


490 


20. Sheeting 


289 




324 


22. Wool, Buenos Aires 


240 


BTJBBER, PAPER, AND FIBER. 

23. Manila flber 


333 


24. Paper, newsprint 


163 


25. Rubber, crude 


184 

103 


METALS. 


1.58 


27. Iron, ore 


153 


28. Lead, pig 


193 


29. Pig iron, basic 


248 


30. Quicksilver 


270 


31. Steel bars .• 


230 


32. Steel billets 


218 


33. Steel plates 


2.58 


34. Steel stnactural shapes 


205 


35. Tinplate 


225 


36. Zinc sheets 


204 


FUELS. 

37. Coal, anthracite 


127 


38. Coal, bituminous 


183 


39. Coke, Connells-villo 


291 






BUILDING MATERIALS. 

41. Cement, Portland 


1.8500 
18.5000 
32. OOOO 
24.0000 
45.0000 

.7900 
.0900 
.0350 
4.2250 
.0090 


117 


42. Douglas fir 


234 


43. Per.nsylvPi.Tiift, TiRmlnr^lr 


129 


44. Southern or yellow pine 


173 


45. New England spruce 


185 


CHEMICALS. 

46. Alcohol, wood 


173 


47. Arsenic 


290 


48. Caustic soda 


193 


49. Nitrate of soda 


182 


50. Sulphuric acid 


106 







616 



HISTORY OF PRICES DURING THE WAR. 



RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. 
[Arranged to show relative points below which basic prices were pegged.] 







- 




Food 


group. 
















Cattle, 




Cotton- 






Rice, 








Bacon, 
rough 
sides, 

smoked, 
loose, 

Chicago 
(per 
lb.). 


Beef, 
good. 


steers. 


Corn, 


seed 
oil, 


Hogs, 


Oats, 


Hon- 
duras 


Sugar, 


Wheat, 
No. 1 




native 


to 
prime 
heavy 
beeves, 
Chicago 
(per 
cwt.). 


cash, 


crude, 

in 

barrels, 

f. 0. b. 

mill 

(per 

lb.). 


live, 


No. 3, 


head, 


raw. 


North- 




steers, 


No. 3, 


(bulk of 


white, 


domes- 


96° cen- 


ern 




fresh 
carcass. 


yellow, 
Chicago 


sales), 
Chicago 


cash, 
Chicago 


tie, 
clean, 


trifugal. 
New 


spring, 
Minne- 




Chicago 


(per 


(per 


(per 


New 


York 


apoUs 




(per 
lb.). 


bu.). 


cwt.). 


bu.). 


Orleans 
(per 
lb.). 


(per lb.). 


(per 

bu.). 


Prewar base price. . 


SO. 1298 


$0. 1297 


$9. 1022 


$0.6859 


$0.0507 


$8. 3094 


$0. 4005 


$0.0526 


$0. 0340 


$0.8901 


Made equaltc. 


100 


100 


100 


100 


100 


100 


100 


100 


100 


100 


Market price when 






















control began 










.1750 


16.9500 




.0938 


.0690 


2.7875 


Found equal to . 










288 
.1750 


204 
15. 5000 




178 
.0913 


203 
.06005 


313 


Government price. . 










2. 1700 


Found equal to. 










288 


187 




174 


176 


244 


1913— Months- 






















January — 


S.3 


111 


99 


70 


S3 


90 


S3 


90 


104 


97 


Febmary. . 


86 


99 


98 


71 


86 


98 


84 


90 


103 


98 


March 


88 


99 


98 


74 


87 


110 


82 


91 


104 


95 


April 


92 


99 


98 


81 


95 


106 


87 


93 


100 


99 


May 


96 


99 


95 


83 


97 


102 


95 


92 


98 


102 


June 


99 


99 


96 


89 


101 


103 


102 


96 


98 


103 


July 


10.5 


97 


99 


90 


119 


109 


98 


102 


104 


101 


August 


101 


96 


98 


108 


110 


101 


105 


105 


110 


99 


September . 


98 


99 


100 


110 


101 


101 


106 


97 


109 


97 


October 


97 


100 


100 


102 


95 


99 


99 


103 


103 


94 


November. 


97 


100 


98 


106 


99 


94 


99 


100 


• 106 


95 


December.. 


97 


100 


98 


100 


92 


93 


101 


95 


99 


96 


Quarters- 






















First 


85 


103 


98 


82 


85 


99 


83 


91 


104 


97 


Second 


96 


99 


96 


84 


97 


104 


94 


94 


99 


101 


Third 


101 


98 


99 


104 


107 


104 


104 


102 


108 


99 


Fourth 


97 


100 


99 


102 


96 


95 


100 


99 


103 


95 


Year 


95 


100 


98 


90 


95 


101 


95 


96 


103 


98 


1914— Months- 




January 


98 


100 


. 101 


91 


96 


98 


97 


95 


98 


98 


February . . 


99 


100 


101 


90 


98 


103 


98 


99 


101 


104 


March 


97 


100 


102 


95 


101 


103 


98 


100 


88 


104 


April 

May 


95 


101 


102 


99 


104 


102 


98 


100 


88 


102 


93 


102 


100 


102 


102 


99 


100 


101 


96 


105 


June 


98 


102 


101 


104 


103 


97 


100 


102 


98 


103 


July 


105 


104 


106 


104 


102 


108 


93 


102 


96 


101 


August 


111 


109 


110 


118 


89 


107 


105 


105 


168 


120 


September . 


110 


111 


116 


115 


79 


103 


123 


95 


171 


128 


October 


103 


111 


115 


107 


67 


94 


117 


90 


131 


124 


November. 


97 


111 


112 


100 


75 


, 92 


121 


83 


115 


130 


December.. 


92 


110 


107 


94 


80 


87 


122 


94 


116 


134 


Quarters- 






















First 


98 


100 


101 


92 


98 


102 


98 


98 


96 


102 


Second 


96 


102 


101 


102 


103 


100 


99 


101 


94 


103 


Third 


109 


108 


111 


114 


90 


106 


107 


101 


145 


116 


Fourth 


97 


111 


111 


101 


74 


91 


120 


88 


121 


129 


Year 


100 


105 


106 


102 


92 


100 


106 


97 


114 


113 


191&-Months— 






















January — 


91 


100 


101 


104 


91 


82 


134 


93 


119 


152 


February . . 


91 


94 


94 


108 


98 


80 


144 


94 


138 


170 


March 


86 


91 


95 


105 


91 


81 


144 


94 


142 


165 


April 


86 


91 


92 


110 


91 


87 


143 


94 


141 


173 


May 


88 


94 


95 


111 


89 


89 


133 


94 


142 


177 


June 


90 


97 


102 


109 


86 


89 


122 


94 


144 


144 


July 


86 


101 


109 


114 


85 


85 


134 


92 


143 


156 


August 


SO 


102 


108 


119 


86 


83 


112 


86 


140 


154 


September . 


75 


104 


107 


112 


88 


88 


87 


80 


126 


110 


October 


85 


106 


106 


93 


109 


93 


91 


83 


121 


114 


November. 


92 


106 


109 


93 


113 


80 


92 


90 


140 


114 


December.. 


94 


106 


106 


97 


120 


76 


105 


87 


145 


127 


Quarters- 






















First 


89 


95 


97 


106 


93 


81 


140 


94 


133 


162 


Second 


88 


94 


96 


110 


89 


88 


133 


94 


113 


165 


Third 


80 


103 


108 


114 


87 


86 


113 


86 


136 


140 


Fourth 


90 


106 


107 


94 


114 


83 


96 


87 


135 


118 


Year 


87 


99 


102 


107 


98 


85 


120 


90 


137 


147 







GOVEBNMElirT COIfTEOL. OVER PRICES. 



517 



RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. 
[Arranged to show relative points below which basic prices were pegged.] 



Food group. 



Bacon, 
rough 
sides, 

smoked, 
loose, 

Chicago 
(per 
lb.). 



Beef, 
good, 

native 

steers, 
fresh 

carcasS; 

Chicago 
(per 
lb.). 



Cattle, 
steers, 
choice 

to 
prime 
heavy- 
beeves, 
Chicago 

(per 
cwt.) 



Com, 

cash. 

No. 3, 

yeUow, 

Chicago 

(pe^ 

bu.). 



Cotton- 
seed 
oil, 

crude, 
in 

barrels 

f. o. b. 
mill 
(per 
lb.). 



Hogs, 

live, 
(bulk of 

sales), 

Chicago 

(per 

cwt.) 



Oats, 
•No. 3, 
white, 

cash, 
Chicago 

(per 

bu.). 



Rice, 
Hon- 
duras 
head, 

domes- 
tic, 
clean 
New 

Orleans 
(per 
lb.). 



Sugar, 
raw, 
96° cen- 
trifugal. 
New 
York 
(per lb.). 



Wheat, 
No. 1 
North- 
em 
spring, 
Minne- 
apoUs 
(per 
bu.). 



Prewar base price. 

Made equal to. 

Market price when 

control began — 

Found equal to 
Government price. 

Found equal to, 

1916— Months- 
January — 
February . . 

March 

April 

May 

June 



.1298 
100 



3.1297 
100 



.1022 
100 



$0. 6859 
100 



July 

August 

September 

October 

November, 
December., 

Quai'ters- 

First 

Second 

Third 

Fourth 

Year , 



1917— Months- 
January... 
February. . 

March 

April 

May 

June 



July 

August... - 
September 
October... 
November 
December. 

Quarters- 
First 

Second — 

Third 

Fourth 

Year 



191&— Months- 
January — 
Febmary . . 

March , 

April 

May , 

June , 



July 

August 

September . 

October 

November. 
December.. 

Quarters — 

First 

Second 

Third 

Fourth 

Year 



104 
105 
110 
111 

118 
120 
123 
123 

125 
121 

99 
108 
120 
123 

113 

123 
131 
147 
164 

179 
176 

183 
193 
207 
236 
1234 
232 

133 
173 
193 
234 

184 

204 
206 
203 
199 
191 
180 

200 
200 
206 
203 
203 
216 

204 
191 
202 
207 

201 



106 
106 
106 
106 
106 
109 

109 
106 
106 
106 
106 
106 

106 
107 
107 
106 

107 

106 
109 
115 
123 
123 
125 

126 
132 
146 
146 
1 146 
144 



110 
124 
136 
146 

129 



135 
135 
135 
158 
173 
183 

185 
187 
189 
189 
189 



135 
172 
187 
189 

171 



104 
102 
106 
107 
111 
121 

118 
116 
119 
120 
126 
127 

104 
113 
118 
125 

114 



126 
130 
137 
143 
146 
147 

149 
160 
179 
181 
1171 
156 

131 
145 
163 
170 

152 

151 
151 
153 
177 
192 
196 

199 
204 
211 
211 
214 
218 

152 
187 
205 
214 

190 



111 
108 
105 
111 
109 
106 

117 
125 
126 
141 
143 
133 

107 
109 
123 
139 

123 

144 
146 
164 

218 
240 
252 

301 
301 
301 
292 
1266 
244 

152 
235 
301 
265 

239 

240 
243 
228 
228 
216 
221 

234 
242 
226 
193 
189 
212 

236 
221 
234 
197 



.0607 
100 

.1750 
288 

.1750 
288 

130 
136 
154 

168 
172 
154 

148 
150 
151 
175 
188 
185 

140 
165 
149 
182 

161 

181 
178 
197 
226 
242 
240 

213 
221 
238 
266 
282 
281 

187 
236 
225 
277 

231 



288 



288 

288 

2 288 



288 
288 
288 



$8. 3094 
100 

16. 9500 
204 

15. 5000 
187 



87 
99 
114 
116 
120 
115 

117 
123 
128 
121 
115 
113 

100 
117 
123 
117 

114 



130 
150 
172 
189 
192 
182 

184 
208 
219 
206 
1204 
205 

151 
188 
203 
205 



192 
199 
203 
203 
202 
198 

212 

226 

233 

2 202 

2 200 

2 205 

198 
201 
224 
202 

206 



.4005 
100 



121 
116 
104 

no 

109 
98 

101 
112 
115 
123 
139 
130 

114 
lO.'i 
109 
131 

115 

142 
141 
154 
175 
175 
169 

197 
161 
149 
150 
1 163 
190 



146 
173 
167 
170 

164 



207 
221 
230 
222 
192 
191 

194 
174 
180 
173 
180 
179 

220 
201 
182 
178 



$0. 0526 
100 

.0938 
178 

.0913 
174 



87 
87 
87 
87 

86 
85 
82 
85 
91 
90 

87 
87 
84 
89 

87 

90 
90 
93 
128 
133 
135 

133 

135 
136 
147 
1147 
151 

91 
133 
135 

148 

127 



151 
151 
162 
171 
172 
174 

il78 
176 
174 
174 
174 
174 

155 
172 
176 
174 



.0340 
100 

.0690 
203 

. 06005 
176 

137 
144 
166 
181 
189 
186 

185 
164 
163 
184 
183 
156 

149 
185 
171 
174 

170 

154 
152 
161 
183 
179 
178 

195 
214 
205 
1203 
203 
186 

156 
180 
205 
198 

185 



2 177 
177 
177 
177 
177 
177 

178 
2 178 
205 
214 
214 
214 

177 
177 
186 
214 



$0. 8901 
100 

2. 7875 
313 

2. 1700 
244 

145 
144 
128 
137 
136 
125 

131 
167 
181 
197 
217 
198 

139 
133 
160 
204 

158 

125 
203 
223 
268 
335 
303 

290 
1313 
250 
244 
244 
244 

214 
302 
285 
244 

261 

2 244 
244 
244 
244 
244 
244 

244 
250 
249 
249 
249 
249 



244 
244 
247 
249 



246 



Government control began during month . 



2 Government revised price during month. 



518 



HISTORY OF PRICES DURING THE WAR. 



RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. 
[Arranged to show relative points below which basic prices \^'cre, pegged.] 



Prewar base price 

Made equal to 

Market price when control be 
gan 

Found equal to 

Government price 

Found equal to 

1913— Months- 
January 

February 

March 

April 

May 

June 

July 

August 

September 

October 

November 

December 

Quarters- 
First 

Second 

Third 

Fourth 

Year 

1914— Months- 
January 

February 

March 

April 

May 

June 

July 

August 

September 

October 

November 

December 

Quarters- 
First 

Second 

Third 

Fourth 

Year 

1915— Months- 
January 

February 

March 

April 

May 

June 

July 

August 

September 

October 

November 

December 

Quarters — 

First.; 

Second 

Third 

Fourth 

Year 



Clothing group. 



Calfskins, 

No. 1 
country, 
8-1 ri lbs., 
Chicago 
(per lb.). 



$0. 1984 
100 

.4040 
204 

.3400 
171 

91 

89 
87 
89 
94 
93 

96 
96 
97 
102 
102 
105 



92 
96 
103 

95 



98 
103 
101 
101 
101 

101 
103 
110 
113 
112 
121 

100 
101 
107 
116 

106 



113 

lis 

108 
89 
96 

100 

102 
IIG 
103 
113 
117 
120 

113 
95 
107 
119 

109 



Cattle 
hides, 
packer, 
heavy, 
native 
steers, 
Chiciigo 
(per lb.). 



$0. 1861 
100 

.3110 
167 

.3300 
177 

103 
97 
97 
93 
89 
94 

95 
100 
101 
106 
106 
105 

99 
92 
99 
106 



97 
98 
97 
97 
98 
99 

104 
110 
113 
114 
117 
121 

97 
98 
109 
117 

105 

124 
126 
124 
101 
111 
125 

138 
147 
142 
142 
141 
138 

125 
112 
143 
141 

130 



Cotton 
duck, 
Standard, 
U. S. Army 
firsts, 28§ 
in., 8 oz.. 
Commercial 
(per yd.). 



$0. 1550 
100 



.3425 


.0487 


.7120 


221 


238 


292 


.3350 


.0467 


.6650 


216 


228 


273 


100 


122 


98 


100 


110 


100 


100 


122 


98 


100 


110 


100 


100 


110 


100 


100 


117 


98 


100 


117 


93 


100 


117 


98 


100 


110 


103 


100 


112 


109 


100 


112 


107 


100 


110 


107 



100 
100 
100 
100 



100 
100 
100 
100 
100 
100 

100 
90 
90 
90 
81 
81 

100 
100 
94 

84 



S3 



Cotton 

linters^ 

Grade D, 

cut 130-175, 

New York 

(per lb.). 



$0. 0205 
100 



Cotton 

yarn, 

wea\'ing, 

carded, 

white, 

northern 

mulcspun 

22/1 cones, 

Boston 

(per lb.). 



118 
112 
115 
111 



98 
85 
85 
85 
85 
85 

&5 
85 
55 
55 
49 
55 

89 
85 
75 
53 

70 I 

08 

102 I 

103 i 
127 ; 
127 ! 
195 I 



77 


202 


70 


84 


198 


79 


84 


205 


82 


90 


327 


90 


90 


351 


94 


90 


* 375 


98 


81 


91 


75 


77 


150 


77 


82 


201 


79 


90 


351 


94 



199 



SO. 2438 
100 



99 
100 
100 
107 



Leather 
harness, 
Grade B, 
Calif, oak, 
Chicago 
(per lb.). 



GOVEKJSTMElSrT CONTROL OVER PRICES. 



519 



RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. 
[Arranged to show relative points- below which basic prices were pegged.] 



Prewar base price 

Made equal to 

Market price when control 
began 

Found equal to 

G-overnment price 

Found equal to 

1913— Months- 
January 

February 

March 

April 



Clothing group. 



Leather 
belting, 
butts, 
medium 
standard 
tannages, 
Philadel- 
phia 
(per lb.). 



June 

July 

August 

September . 

October 

November . 
December. . 



Quarters- 
First... 
Second. 
Third.. 
Fourth. 



Year 

1914— Months- 
January. . . 
February. 

March 

April 



June 

July 

August 

September . 

October 

November. 
December.. 



Quarters- 
Fust... 
Second. 
Third.. 
Fourth. 

Year 



1915— Months- 
January 

February . . 

March 

April ,. 

May 

June 

July 

August 

September . 

October 

November . 
December.. 



Quarters- 
First... 
Second. 
Third.. 
Fourth. 

Year 



.5042 
100 

.9700 
192 

,9600 
190 

103 
103 
103 
103 
101 
101 

99 
99 



101 
101 



103 
102 



100 
101 



101 
101 
99 
99 

101 
101 
105 
109 
109 
109 

100 
100 
102 
109 

103 

111 
105 
111 
111 
111 
111 

121 
125 
135 
139 
139 
149 

109 
111 
127 
142 



Printcloths, 

27 in., 

64 by 60, 

7.60 yds., 

Boston 

(per yd.). 



.0335 
100 

.1300 
388 

.1125 
336 

112 
108 
108 
102 
97 
99 

98 

97 

104 

108 

105 



110 
99 



104 
103 



80 



Rags, 

woolen, 

new clips, 

blue 
worsted, 
New York 
(per lb.). 



.1250 

100 

.5650 
452 

.6200 
496 

92 
92 
124 
108 
108 



100 
104 
104 

103 
105 

87 
103 



98 
104 
108 
113 
104 
104 

96 
92 
120 
124 
120 
120 

103 
107 
103 
121 

109 

136 
156 
192 
172 
172 
172 

168 
172 
196 

176 
204 
216 

161 
172 
179 
199 



Sheeting, 

Ware 

Shoals,L.L. 

brown. 
New York 
(per yd.). 



.0606 
100 

.2300 
380 

. 1750 
289 

105 
103 
103 
101 



97 
97 
101 
103 
103 
103 

104 
100 
98 
103 

101 

103 
101 
99 
97 
97 
97 

97 
95 
91 
83 

74 
74 

101 
97 

94 
77 

92 

72 

74 
76 
81 
78 
78 

87 
91 
99 
95 
95 
95 

74 
79 
92 
95 

85 



Wool, 

dom., Ohio, 

Penn., 

W. Va., 

Unwashed, 

fine 

delaine, 

Boston 

(per lb.). 



.2317 
100 

.7500 
324 

.7500 
324 

122 
119 
110 
110 
97 
97 

97 
97 
97 
97 
97 
96 

117 
101 
97 
97 



96 
100 
100 
101 
106 
114 

119 
119 
114 
106 
110 
110 

99 
107 
117 
109 

108 

114 
132 
140 
127 
127 
123 

127 
132 
132 
132 
132 
136 

129 
126 
130 
133 

129 



Wool, 

Buenos 

Aires 46s, 

shrinkage 

34 per cent, 

Boston 

(per lb.). 



.3083 
100 

.7400 
240 

,7400 
240 

123 
122 
120 
118 
117 
120 

122 
123 
120 
117 
110 
97 

122 
118 
122 
108 

117 



78 
81 
88 
89 
91 

94 
95 
96 
97 
99 
101 



110 
114 
117 
120 
122 
123 

127 
128 
130 
131 
133 
136 

114 
122 
128 
134 

124 



620 



HISTORY OF PRICES DURING THE WAR. 



RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. 
[Arranged to show relative points below which basic prices were pegged.] 









Clothing group. 








Calfskins, 

No. 1 
countrv, 
8-15 lbs., 
Chicago 
(per lb.). 


Cattle 

hides, 
packer, 

heavy, 
native 

steers, 
Chicago 
(per lb.). 


Cotton 
duck, 
standard, 
U.S. Army 
firsts, 28i 
in., 8oz., 
Commercial 
(per yd.). 


Cotton 

linters. 

Grade D, 

cut 130-175, 

New York 

(per lb.). 


Cotton 

yarn, 
wea\'ing, 

carded, 

white, 
northern 
mulespun 
22/1 cones, 

Boston 
(per lb.). 


Leather 
harness, 
Grade B, 
Calif, oak, 
Chicago 
(per lb.). 


Prewar base price 

Made equal to 

Market price when control be- 


50. 1984 
100 

.4040 
204 

.3400 
171 

129 
125 
139 
141 
164 
164 

171 
164 
166 
181 
227 
271 

131 

156 
167 
226 

170 

239 
208 
202 
214 
232 
214 

227 
202 
174 
176 
202 
166 

216 
220 
201 
181 

205 

161 
163 
156 
181 
1204 
197 

197 
197 
197 
197 
197 
197 

160 
194 
197 
197 


$0. 1861 
100 

.3110 
167 

.3300 
177 

124 
128 
122 
120 
133 
144 

145 
141 
140 
143 
109 
180 

125 
132 

142 
164 

141 

180 
171 
164 
164 
169 
177 

177 
172 
177 
181 
189 
188 

172 
170 
176 

186 

176 

176 
157 
141 
146 

1 167 
177 

174 

2 161 

161 

161 

2 156 

156 

160 
164 
166 

158 

161 


$0. 1550 
100 

.3425 
221 

.3350 
216 

94 
94 
94 
94 
103 
103 

116 
116 
123 
129 
137 
129 

94 
100 
118 
132 

111 

129 
129 
137 
161 
161 
177 

194 
194 
194 
194 
221 
221 

132 
167- 
194 
212 

176 

221 
221 
221 
221 
221 
221 

1 216 
216 
216 
216 
221 
221 

221 
221 
216 
219 

219 


$0. 0205 
100 

.0487 
238 

.0467 
228 

341 
366 
341 
341 
341 
390 

390 
390 
307 
341 

378 
378 

350 

358 
362 
366 

359 

378 
378 
378 
378 
322 
322 

322 
256 
256 
256 
238 
238 

378 
340 
278 
244 

310 

238 
238 
238 
238 
1228 
228 

228 
228 
228 
228 
228 
228 

238 
231 

228 
228 

231 


$0. 2438 
100 

.7120 
292 

.6650 
273 

105 
105 
104 
110 
112 
115 

116 
118 
125 
135 
149 
170 

104 
112 
120 
151 

122 

160 
152 
148 
168 
174 
180 

205 
205 
238 
197 
205 
217 

153 
174 
216 
206 

187 

238 
249 
257 
281 
289 
292 

I 288 
287 
285 
285 
273 
242 

248 
287 
287 
267 

272 


$0. 4121 
100 

.6800 




165 




.6800 




165 


1916— Months- 


112 




112 




112 




114 




114 


June 

July 


119 
119 




119 




121 




121 




131 




155 


Quarters- 
First 


112 




116 


Third 


120 


Fourth 


136 




121 


1917— Months— 


163 




163 




163 




163 




163 




163 


July 


163 




163 


September 


163 




163 


November 


163 


December 


163 


Quarters- 
First 


163 


Second 


163 


Third 


163 


Fourih 


163 


Year 


163 


1918— Months- 
January 


165 




165 




165 




165 


May 


165 


June 


1 165 


July 


165 


August 


165 




165 


October 


165 




165 


December 


165 


Quarters- 
First 


165 




165 


Third 


165 


Fourth. 


165 


Year . . 


165 




— 



1 Government control began during month. 



3 Government revised price during month. 



GOVERNMENT CONTROL OVER PRICES. 



521 



RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. 
[Arranged to show relative points below which basic prices were pegged.] 



Clothing group. 



Leather 
belting, 
butts, 
medium 
standard 
tannages, 
Philadel- 
phia 
(per lb.). 



Printcloths, 

27in., 

64 by CO, 

7.60 yds., 

Boston 

(per yd.). 



Rags, 

woolen, 

new clips, 

blue 
worsted. 
New York 
(per lb.). 



Sheeting, 

Ware 

Shoals, L.L.; 

brown. 
New York 
(per j^d.). 



Wool, 

dom., Ohio, 

Penn., 

W. Va., 

unwashed, 

fine 

delaine, 

Boston 

(per lb.). 



Wool, 

Buenos 

Aires 46s, 

shrinkage 

34 per cent, 

Boston 

(per lb.). 



Prewar base price 

Made equal to 

Market price when control 
began : 

Found equal to 

Government price 

Found equal to 

1916— Months- 
January 

February 

March 

April 

May 

June 



July 

August 

September . 

October 

November . 
December. , 



Quarters- 
First... 
Second. 
Third.. 
Fourth. 

Year 



1917— Months- 
January... 
February . 
March. . . ; . 

April 

May 

June '. . 



July 

August 

September . 

October 

November . 
December., 

Quarters — 

First , 

Second 

Third , 

Fourth 

Year , 



1918— Months- 
January. . , 
February . 

March 

April 



Jxme 

July 

August 

September . 
October.... 
November . 
December.. 



Quarters- 
First... 
Second. 
Third . . 
Fourth. 

Year 



0. 5042 
100 

.9700 
192 

.9600 
190 

149 
149 
155 
149 
157 
159 

159 
159 

157 
157 
169 
169 

151 
155 
158 
165 



175 
175 
182 
182 

188 
188 

188 
188 
188 
188 
188 
188 

177 
186 
188 
188 

185 

188 
190 

188 
188 
186 
188 

192 
1190 
190 
190 
190 
190 

189 
188 
191 
190 



0. 0333 
100 



,1125 
335 

101 
104 
106 
113 
117 
115 

115 
120 
134 
149 

164 
162 

104 
115 
123 

158 

125 

161 
152 
152 
159 
ISO 
207 

216 
213 
205 
222 
239 
254 

155 
187 
211 
239 

198 



265 
308 
355 
390 
382 
388 

1388 
371 
336 
336 
336 
287 

313 
387 
362 
316 



0. 1250 
100 

.5650 
452 

.6200 
496 

248 
276 
248 
236 
224 
224 

224 
220 
212 

188 
256 
252 

257 
228 
219 
232 

234 

276 
252 
254 
252 
250 
258 

258 
202 
256 
256 
296 
296 

261 
253 
259 
283 

264 



340 
340 
332 
332 
344 
360 

452 

1488 
496 
496 
496 

488 

337 
345 
479 
493 



.0606 
100 



321 



SO. 2317 
100 



2300 


.7500 


380 


324 


1750 


.7500 


289 


324 


97 


140 


99 


140 


99 


145 


103 


145 


109 


145 


109 


145 


109 


149 


120 


161 


128 


155 


140 


158 


153 


170 


163 


186 


98 


142 


107 


145 


119 


152 


152 


171 


119 


152 


163 


196 


163 


211 


169 


220 


173 


231 


182 


240 


194 


304 


198 


317 


202 


322 


202 


326 


223 


324 


231 


324 


243 


324 


165 


209 


IK^ 


258 


201 


322 


232 


324 


195 


278 


272 


324 


289 


324 


309 


324 


371 


324 


380 


1324 


380 


319 


380 


324 


289 


324 


297 


319 


297 


319 


297 


319 


297 


293 


290 


324 


377 


322 


322 


322 


297 


311 



$0. 3083 
lOO 

.7400 
240 

.7400 
240 

136 
139 
143 
146 
149 
151 

152 
156 
162 
165 
169 
175 

139 
149 
157 
170 

154 

175 
178 
185 
190 
211 
227 

343 
343 
242 
240 
237 
240 

179 
211 
243 
239 

• 217 

240 
240 
240 
240 
"240 
240 

240 
240 
240 
240 
240 
257 

240 
240 
240 
246 

241- 



1 Government control began during month. 



622 



HISTORY OF PRICES DURING THE WAR. 



RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. 
[Arranged to show relative points below whicli basic prices were pegged.] 



Prewar base price 

Made equal to j 

Market price when control began 

Found equal to 

Government price 

Found equal to 

1913— Months— 

Januar J' 

February 

March 

April - 

May 

June 

July 

August 

September 

October 

November 

December 

Quarters- 
First 

Second 

Third 

Fourth 

Year 

1914— Months- 
January 

February 

March 

April 

May 

June 

July 

August 

September 

October 

November 

December 

Quarters- 
First 

Second 

Third 

Fourth 

Year 

1915— Months- 
January 

February , 

March 

April 

May 

June 

July 

August 

September 

October 

November 

December 

Quarters- 
First 

Second 

Third ._ 

Fourth 

Year 



Rubber, paper, fiber group. 



Manila 
liber, fair 

current 
shipment, 
New York 

(per lb.) 



SO. 0780 

100 

.2731 

350 

.2600 
333 



143 
143 
138 
132 
122 
112 

109 
115 
115 
109 
97 
91 

141 

122 

113 

99 



119 



120 



Paper, 
newsprint, 

rolls, car 

lots United 

States 

average 

(per c\Yt.) 



$V.9046 

100 
3. 2450 

170 
3. 1000 

163 
3.5000 

184 

101 
101 
101 
100 
101 
100 

101 
101 
100 
100 
100 
99 

101 
100 
100 
100 

100 



87 


100 


99 


100 


93 


100 


90 


100 


98 


100 


95 


99 


95 


100 


9.5 


100 


03 


100 


95 


100 


S3 


102 


90 


102 


93 


100 


94 


100 


97 


100 


89 


101 



99 


100 


113 


99 


123 


99 


131 


99 


125 


99 


124 


99 


119 


99 


122 


99 


116 


99 


115 


99 


127 


99 


129 


99 


112 


100 


127 


99 


119 


99 


123 


99 



99 



Rubber, 

crude, 

Hevea, first 

latex, crepe 

New York 

(per lb.) 



GOVERNMENT CONTROIi OVEK PRICES. 



523 



RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. 
[Arranged to show relative points below which, basic prices were pegged.] 



Prewar base price 

Made equal to 

Market price when control began. 

Found equal to 



Government price. . 
Found equal to. 



1916— Months- 
January . . 
February. 

March 

April 

May 

Jime. 



July. 

August — 
September. 
October . . . 
November. 
December. 



Quarters- 
First... 
Second . 
Third... 
Fourth. 

Year 



1917— Months- 
January . . 
February. 

March 

April 

May 

June 



July 

August 

September. 
October . . . 
November. 
December . 



Quarters- 
First 

Second . . 
Third.... 
Fourth. . 

Year 



1918— Months- 
January . . 
February. 

March 

April 

May 

June 



July 

August 

September. 
October . . . 
November. 
December . 

Quarters- 
First 

Second 

Third 

Foiuth 

Year 



Rubber, paper, fiber group. 



Manila 
liber, fair 

current 

shipment, 

New York 

(per lb.) 



$0.0780 

100 

.2731 

350 

.2600 
333 



149 
175 
172 
166 
166 
159 

160 
156 
148 
143 
139 
173 

166 
164 
155 
152 



202 
205 
203 
235 
256 
308 

327 
329 
321 
321 
314 
349 



203 
266 
325 
328 



366 
350 
1333 
333 
333 
333 

2 333 
305 
293 
280 
240 
199 

350 
333 
311 
240 



Paper, 

newsprint, 
rolls, car 

lots United 

States 

average 

(percwt.) 



$1.9046 

100 
3.2450 

170 
3. 1000 

163 
3.5000 

184 

100 
99 
100 
101 
102 
105 

108 
112 
115 
118 
116 
128 



100 
103 
111 
120 

108 



150 
162 
169 
168 
168 
167 

167 
167 
170 
167 
164 
162 



160 
168 
168 
164 

165 



170 
169 
170 
1173 
2 191 
191 

2 195 
193 
196 
197 
197 
197 

170 
185 
195 
197 



Rubber, 

crude, 

Hevea, first 

latex, crepe 

New York 

(per lb.) 



SO. 6123 

100 

.6000 

93 

.6300 
103 



146 
140 
147 
136 
117 
105 

95 
95 
98 
102 
112 
129 

•145 
119 
96 
114 

191 

127 
140 
139 
134 
135 
118 

111 
106 
109 
104 
98 
91 



135 
129 
109 

98 

118 

100 
86 
91 
98 
1103 

103 

103 
103 
103 
103 
100 
100 

92 
101 
103 
101 

99 



1 Government control began, during, month. 



2 Government revised price durisg month. 



524 



HISTORY OF PRICES DURING THE WAR. 



RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. 
[Arranged to show relative points below which basic prices were pegged.] 



' 1 


Metal group. 




Copper, 
electro- 
lytic. 
New York 
(per lb.). 


Iron ore, 

Mcsalii, 

non-Bcs- 
scmer, 51i 

per cent 
lower lake 
ports (per 

gr. ton). 


Lead, pig, 
New York 
(perlb.). 


Pig iron, 

basic, Ma- 
honing or 
Shcnango 
Valley 
furnace 
(per gr. 
ton). 


Quick- 
silver, 
New York 
(per flask 
of 75 lbs.). 




$0. 1492 
100 

.2545 
171 

.2350 
158 

112 
102 
100 
104 
105 
100 

98 
105 
111 

111 
104 
97 

105 
103 
105 
104 

104 

97 
98 
96 
96 
95 
93 

90 
83 
81 

76 
79 
87 

97 
95 
85 
81 

89 

92 
98 
100 
115 
125 
132 

128 
115 
119 
120 
126 
136 

97 
124 
121 
127 

117 


$3. 3083 
100 

5.0500 
153 

5.0500 
153 

103 
103 
103 
103 
103 
103 

103 
103 
103 
103 
103 
103 

103 
103 
103 
103 

103 

1Q3 
103 
103 
103 
86 
86 

86 
86 
86 
86 
86 
86 

103 
92 

86 
86 

92 

86 
86 
86 
86 
86 
86 

85 
85 
85 
85 
85 
85 

86 
86 
85 
85 

85 


$0.0418 
100 

.0625 
150 

.0805 
193 

103 
104 
104 
105 
104 
104 

104 
111 
112 
105 
103 
97 

103 
104 
109 
102 

105 

98 
97 
95 
91 
93 
93 

93 
93 
92 
84 
88 
91 

97 
93 

92 
88 

92 

89 
92 
97 
101 
102 
142 

135 
111 
110 
110 
123 
128 

93 
115 
119 
121 

112 


$13.3183 
100 

42.7500 
321 

33. OOOO 
248 

123 
122 
121 
119 
114 
109 

108 
106 
105 
104 
98 
95 

122 
114 
106 
99 

110 

94 
99 

98 
98 
98 
98 

98 
98 
98 
96 
94 
94 

97 
98 
98 
95 

97 

94 
94 
94 
94 
94 
95 

96 
106 
111 
113 
118 
131 

94 

94 

104 

121 

103 


$38. 8558 


Made equal to 


100 




121.7500 




313 




105.0000 


Found equal to 


270 


1913— Months- 


103 


February 


103 


March 


102 


April 


101 


May 


102 


Jline. 


103 


July. 


103 


August 


103 


September 

October 


101 
99 


November 


100 


December . . . 


102 


Quarters — 
First 


103 


Second 


102 


Third 


102 


Fourth 


100 


Year 


102 


1914— Months- 


100 


February 

Marcli . 


100 
99 


April 


98 




98 


June 


98 


July 


95 


August 


214 


September 


191 


October 


138 


November 


129 


December 


132 


Quarters- 
First 


100 


Second 


98 


Third 


167 


Fourth 


133 


Year 


124 


1915— Months- 


133 


February 


153 


March 


188 


April 


184 


May 


199 




246 


July 


249 


August 


236 


September 


230 


October 


244 


November 


278 


December 


347 


Quarters- 
First 


158 


Second 


210 


Third 


238 


Fourth 


290 


Year 


224 







GOVEENMENT COFTEOL OVER PRICES. 

RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. 
[Arranged to show relative points below wtiich basic prices were pegged.] 



525 



Prewar base price , 

Made equal to , 

Market price when control began. 
Foimd equal to 

Government price 

Found equal to ..[. 



1916- 



-Months — 
January.. 
February. 
March..".. 

April 

May 

June 



July 

August 

September. 

October 

November. . 
December.. 

Quarters- 
First 

Second 

Third 

Fourth 

Year 

1917— Months- 
January 

February. . . 

March 

April 

May 

June 



July 

August 

September. 

October 

November. 
December.. 



Quarters- 
First 

Second.. . 

Third 

Fourth... 

Year 

191S— Months- 
January . . 
February. 

March 

April 



June 

July 

August 

September. 

October 

November.. 
December.. 



Quarters- 
First . . . 
Second . 
Third... 
Fourth. 

Year. 



Metal group. 



Copper, 
electro- 
lytic, 
New York 
(per lb.). 



$0. 1492 
100 

.2545 
171 

.2350 
158 



162 
184 
184 
196 
200 
184 

172 
183 
189 

192 
216 
227 



176 
193 
182 
212 

191 



203 
236 
240 
216 
217 
218 

194 
182 
1171 
158 
158 
158 

226 

217 
182 

158 

196 

•158 
158 
158 
158 
158 
158 

2 174 
174 
174 
174 
174 
170 

158 
158 
174 
173 



Iron ore, 
Mesabi, 
non-Bes- 
semer, 511 
per cent 
lower lake 
ports (per 
gr. ton). 



S3. 3083 
100 

5.0500 
153 

5.0500 
153 



107 
107 
107 
107 
107 
107 

107 
107 
107 
107 
107 
153 



107 
107 
107 
122 

111 



153 
153 
153 
153 
153 
153 

153 
153 
1153 
153 
153 
153 

153 

153 
153 
153 

153 

153 
153 
153 
153 
153 
153 

2 153 
166 
166 

2 174 
174 
174 

153 
153 

162 i 
174 I 

160 i 



Lead, pig, 
New York 
(perlb.). 



Pig iron, 
basic, Ma- 
honing or 
Shenango 
Valley 
furnace 
(per gr. 
ton). 



D.0418 
100 

.0625 
150 

.0805 
193 



142 
150 
171 
183 

178 
166 

152 
149 
163 
167 
168 
ISO 

154 
176 
155 
172 
164 

183 
207 
220 
222 
244 
267 

256 
253 
208 
161 
1150 
153 

203 
244 
239 
154 

210 

162 
167 
172 
162 
163 
182 

192 
193 
193 
193 
193 
157 



167 
169 
192 
181 

177 



$13.3183 
100 

42.7500 
321 

33.0000 
248 



134 
133 
137 
136 
135 
135 

135 
135 
137 
149 
ISS 
225 



134 
135 
136 

188 

148 



225 
225 
242 
291 
312 
366 

394 

384 
1321 

248 
248 
248 

230 
322 

368 
248 



248 
248 
248 
2 240 
210 
240 

240 
240 
240 

2 248 
248 
248 

248 
240 
240 
248 

244 



Quick- 
silver, 
New York 
(per flask 
of 75 lbs.). 



$38.8558 
100 

121.7500 
313 

105.0000 
270 



596 
730 
550 
361 
245 
188 

205 
192 
194 
204 
204 
206 



625 
265 
197 
205 

323 



209 
311 
292 
298 
273 
217 

277 
296 
289 
260 
264 
298 

270 
262 
287 
274 

274 

332 
309 
312 
1313 
308 
313 

326 
323 
329 
328 
323 
305 

319 
311 
326 
319' 

319 



1 Government control began during month. 



2 Government revised price during month. 



526 



HISTORY OF PRICES DURING THE WAR. 



RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. 
[Arranged to show relative points below which basic prices were pegged.] 





Metal group. 




Steel bars, 

base, 
Pittsburgh 
(percwt.). 


Steel bil- 
lets, open- 
hearth, 
Pittsburgh 
(per gr. 
ton). 


Steel 

plates, 

tank, 

Pittsburgh 

(percwt.). 


Steel, 

structviral 

shapes, 

Chicago 

(percwt.). 


Tin plate, 
dom. coke, 
14 by 20 in. 
Pittsburgh 
per 100-lb. 
base box). 


Zinc 
sheets, 
f. 0. b. La 
Salle or 
Peru, in. 
(per lb.). 




$1.2600 
100 

3. 8800 
308 

2.9000 
230 

111 
111 
111 
111 
111 
111 

111 
111 
111 
110 
103 
97 

111 
111 

111 
103 

110 

95 
97 
95 
91 
90 
89 

89 
94 
94 
91 

88 
83 

96 
90 
92 

88 

91 

87 
87 
91 
95 
95 
95 

101 
103 
107 
113 
129 
139 

89 
95 
104 
127 

104 


$21.7917 
100 

55. 2500 
254 

47.5000 
218 

131 
133 
133 
126 
124 
122 

122 

lis 

110 
103 
94 
92 

132 
124 
117 
96 

117 

92 
96 
96 
95 
92 
89 

89 
93 
95 
92 

88 
87 

95 
92 
92 

89 

92 

87 
88 
89 
89 
89 
93 

103 
112 
123 
124 
125 
151 

88 
91 
113 
133 

106 


$1.2600 
100 

7.0500 
560 

3. 2500 
258 

119 
115 
115 
115 
115 
115 

115 
114 
111 

108 
102 
95 

116 
115 
113 
102 

112 

95 
96 
94 
91 
90 
87 

88 
94 
94 
90 
87 
83 

9o 
90 
92 

87 

90 

87 
87 
91 
95 
93 
91 

97 
100 
106 
113 
129 
139 

89 
93 
101 
127 

102 

1 


SI. 4500 
100 

5. 1900 
355 

3. 0000 
205 

112 
112 
112 
112 
112 
112 

112 
112 
112 
109 
108 
97 

112 
112 
112 
105 

110 

92 
95 
95 
91 

88 
88 

88 
94 
95 
92 

87 
82 

94 
89 
92 

87 

90 

88 
88 
91 
92 
94 
95 

98 
102 
105 
108 
123 
134 

89 
94 
102 
121 

101 

1 


$3.4375 
100 

12.0000 

349 

7.7500 

225 

105 
105 
105 
105 
105 
105 

105 
105 
102 
102 
102 
99 

105 
105 
104 
101 

104 

99 
97 
97 
97 
97 
97 

97 
97 
107 
100 
93 
95 

98 
97 
101 
96 

98 

92 
92 
92 
96 
96 
96 

92 
92 
92 
92 
92 
105 

92 
96 
92 
96 

94 


$0. 0735 




100 


Market price when control 


.1800 




245 




.1500 




204 


1913— Months- 


122 




117 




112 




107 




104 




99 


July 






109 




109 




104 




102 




99 


Quarters— 
piist 


117 




103 


Third 


104 




102 


Year 


107 


1914— Months- 


101 




99 




97 




95 




95 




95 


July 


95 




100 




116 


October 


110 




109 




116 


Quarters— 
Fhst 


99 




95 


Third 


104 


Fourth 


112 


Year 


102 


1915— Months- 
January 


126 


Febriiary 


168 


March 


184 




192 


May 


260 


June 


398 


July 


367 




256 


September . . . 


218 


October 


218 


No vember 


272 




299 


Quarters- 
First 


159 


Second 


284 


Third 


280 


Fourth 


263 
247 







GOVERNMENT CONTEOL OVER PRICES. 



527 



RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. 
[Arranged to show relative points below which basic prices were pegged.] 



Prewar base price 

Made equal to 

Market price when control 
began ." 

Found equal to 

Government price 

Found equal to 

1916— Months- 
January ■-.... 

February 

March 

April 

May 

June 

July 

August 

September 

October 

Norember 

December 

Quarters— 

Fhst 

Second 

Third 

Fourth 

Year , 

1917— Months- 
January , 

February , 

March , 

April 

May 

June 

July 

August 

September 

October , 

November , 

December 

Quarters- 
First 

Second 

Third 

Fourth 

Year 

1918— Months- 
January 

February 

March 

April 

May 

June 

July ; 

August 

September 

October 

November 

December 

Q.uarters — 

First 

Second 

Third 

Fourth 

. Year 



Metal group. 



Steel bars, 

base, 
Pittsburgh 
(percwt.) 



SI. 2600 
100 

3. 8800 
308 

2. 9000 
230 



148 
163 

187 
198 
198 



l86 
203 
206 
208 
219 
233 



166 
198 
203 
220 



238 
238 
260 
269 
289 
317 

357 
357 
'308 
230 
230 
230 

245 
292 
341 

230 

27-7 

230 
230 
230 
230 
230 
230 

230 
230 
230 
230 
230 
221 

230 
230 
230 
227 
229 



Steel bil- 
lets, open- 
hearth, 
Pittsburgh 
(per gr. 
ton). 



S21.7917 
100 

55. 2500 
254 

47. 5000 
218 



103 
170 
190 
206 
197 
195 

204 
213 

216 
220 
242 
262 



174 
20O 
211 
241 

207 

291 
298 
312 
344 
404 
436 

436 
385 
321 
1254 
218 
218 

301 
395 
381 
230 



218 
218 
218 
218 
218 
218 

218 
218 
218 
218 
218 
207 

21S 
218 
218 
214 



Steel 1 Steel, 

plates, structural 

tank, ! shapes, 

Pittsburgh ! Cliicago 

(percwt.). j (percwt.). 



$1.2600 
100 

7. 0500 
560 

3.2500 
258 



151 
171 

201 
218 
225 
230 

230 
233 
238 

244 
264 
280 



174 
224 
234 
263 

224 

287 
298 
344 
357 
357 
563 

714 
711 
1560 
258 
258 
258 



426 
662 

258 

413 



258 

258 
258 
258 
258 
258 

258 
258 
258 
258 
258 
246 

258 
258 
258 
254 



$1.4600 
100 

5. 1900 
355 

3. 0000 
205 



163 
167 
177 
188 
191 
191 

191 
198 
201 
201 
218 
236 



169 
190 
197 
218 



236 
244 
255 
260 
316 
397 

424 
424 
1355 
205 
205 
205 

245 
324 
401 
205 

294 

205 
205 
205 
205 
205 
205 

205 
205 
205 
205 
' 205 
197 

205 
205 
205 
203 

205 



Tin plate, 
dom. coke, 
14 by 20 in. 
Pittsburgh 
(per 100-lb. 
base box). 



$3.4375 
100 

12. 0000 

349 

7. 7500 

225 



107 
111 
116 
131 
131 
167 

171 
171 
171 
171 
171 
171 



112 
143 

171 
171 



204 
204 
218 
233 
233 
247 

349 
349 
349 
349 
1225 
225 

208 
238 
349 
267 

265 

225 
225 
225 
225 
225 
225 

225 
225 
225 
225 
225 
218 

22s 
225 
225 
223 



Zinc 

sheets, 

f. o. b. La 

Salle or 

Peru, 111. 

(per lb.). 



$0.0735 
100 

.1800 
245 

.1500 
204 



318 
333 
340 
343 

327 
265 

212 
204 
204 
207 
248 
2£6 



331 
312 
207 
24 

274 

286 
286 
2S6 
278 
259 
259 

259 
259 
259 
259 
259 
259 

286 
265 
259 
259 



259 
245 
204 
204 
204 
204 

204 
204 
204 
204 
204 
204 

236 
204 
204 
204 

212 



'Government control began during month. 



628 



HISTORY OF PRICES DURING THE WAR. 



RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. 
[Arranged to show relative points below which basic prices were pegged.] 



Fuel Group. 



Building Materials Group. 



Coal, 
anth- 
racite, 
chest- 
nut, 
New 
York 
(per 
long 
ton.) 



Coal, 
bitumi' 
nous, 
Pitts- 
burgh, 
No. 8 
Ohio, 
Colum- 
bus and 
Detroit 
(per 
short 
ton). 



Coke, 
Con- 
nells- 
ville 
furnace 
f. o. b. 
ovens 
(per 
short 
ton). 



Petro- 
leum, 


Cement, 


Doug- 
las flr 


crude, 


Port- 




Mid- 


land, 


No. 1, 

IbyS 
by 10 
Wash- 
ington 
mills 
(perM 
bd. ft.) 


conti- 
nent 
(Kans.- 
Okla.) 
at wells 
(per 
bbl.) 


domes- 
tic. 
New 
York 
(per 
bbl.) 


$0.9725 


$1.5800 


$7.9167 


100 


100 


100 


2.2500 


2.5600 


18.5000 


231 


162 


234 




1.8500 


18. 5000 




117 


234 


8.5 


100 


120 


90 


100 


133 


90 


100 


133 


90 


100 


139 


90 


100 


133 


90 


100 


120 


*94 


100 


107 


102 


100 


107 


105 


100 


101 


105 


100 


101 


105 


100 


101 


105 


]00 


101 


89 


100 


128 


90 


100 


131 


101 


100 


105 


105 


100 


101 


97 


100 


116 


105 


100 


101 


107 


100 


101 


107 


100 


107 


102 


100 


101 


76 


100 


101 


76 


100 


101 


76 


100 


101 


76 


100 


107 


66 


100 


101 


56 


100 


95 


56 


100 


95 


56 


.100 


88 


107 


100 


103 


86 


100 


101 


74 


100 


103 


56 


100 


93 


81 


100 


100 


56 


100 


95 


56 


100 


95 


41 


91 


101 


41 


89 


95 


41 


89 


95 


41 


85 


95 


41 


85 


95 


51 


85 


95 


76 


90 


101 


82 


90 


101 


82 


90 


107 


102 


111 


120 


51 


.97 


97 


41 


87 


95 


57 


86 


97 


89 


97 


109 


60 


92 


99 



Penna. 
hem- 
lock, 
No. 1 

boards, 
Iby 
10-16 

f. 0. b. 
mill 

(per M 

bd. ft.) 



South- 
ern or 
yellow 
pine, 
com- 
mon 
boards, 
No. 1, 
S-2-S 
1 by 10 
inches 
Ark. 
(per M 
bd. ft.) 



New 
Eng- 
land 
Spruce, 
ran- 
dom, 
2 by 10 
Boston 
(per M 
bd. ft.) 



Prewar base price 

Made equal to 

Market price when control 
began 

Found equal to 

Government price 

Found equal to 

1913— Months- 
January 

February 

March 

April 

May 

June 



July 

August 

September. 
October . . . 
NovemI)er. 
December . 

Quarters- 
First 

Second 

Third 

Fourth 

Year 



1914— Months — 

January.. 
February. 

March 

April 



June 

July 

August 

September. 
October . . . 
November. 
December . 



Quarters— 
Furst... 
Second . 
Third... 
Fourth. 

Year 



191.5 — Months — 

January . . 
February. 

March 

April 

May 

June , 



July 

August 

September. 
October . . . 
November. 
December . 



Quarters- 
First 

Second . . 
Third.... 
Fourth.. 

Year 



S3. 7800 

100 
4. 9000 

130 

4. 8000 
127 

107 
101 
101 
90 
92 
94 

96 
100 
103 
103 
103 
103 

104 
92 
99 

103 



103 

103 

103 

93 

95 

97 

99 
112 
105 
105 
105 
105 

103 



102 
105 

101 



105 

105 

104 

93 

94 

96 

99 
102 
104 
105 
106 
106 

104 

94 

102 

105 

102 



$1. 0900 

100 
2. 5400 

233 

2. 0000 

183 

113 
98 
93 
97 
96 
94 

92 
99 
100 
106 
115 
100 

101 
96 
97 

107 

100 



99 
99 
99 
97 
97 

95 
91 
91 
96 
102 
102 

99 

98 

92 

100 

97 

103 
105 
95 
94 
88 
90 

89 
94 
95 
98 
97 
100 

101 
91 
92 
99 



$2. 0625 
100 
11.7500 

570 

6. 0000 

291 

178 
149 
124 
113 
104 
107 

115 
121 
119 
105 
93 
91 

1.50 

108 

118 

97 

118 

93 
93 
91 
93 
93 
91 

91 

87 
84 
81 
75 
79 



$24. 8300 $13. 8750 $24. 2600 
100 



79 
76 
76 
79 
79 
79 

85 
81 
81 
97 
115 
112 

77 

79 

82 

108 



100 


'lOO 


32.6200 


27.5000 


. 131 


1980 


32.0000 


24.000 


129 


173 


95 




96 




100 




101 




101 




101 




101 


105 


101 


105 


101 


105 


100 


97 


100 


97 


100 


97 


97 




101 




101 


105 


100 


97 


100 


101 


100 


101 


101 


101 


101 


101 


101 


97 


102 


97 


94 


97 


94 


94 


94 


94 


94 


94 


94 


101 


94 


101 


93 


101 


100 


101 


99 


97 


94 


94 


94 


101 


97 


98 


93 


97 


S9 


97 


89 


97 


90 


101 


90 


101 


90 


101 


89 


101 


89 


101 


89 


101 


90 


130 


94 


130 


98 


130 


91 


97 


90 


101 


89 


101 


94 


130 


91 


107 



GOVERNMENT CONTROL OVER PRICES. 

RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. 
[Arranged to show relative points below which basic prices were pegged. ] 



529 



Prewar base price 

Made equal to 

Market price when control 
began 

Found equal to 

Government price 

Found equal to , 

1916— Months- 
January 

February 

March 

April 

May 

June 



July 

August 

September. 
October . . . 
November. 
December.. 

Quarters - 

First 

Second 

Third 

Fourth 

5rear 

1917— Months- 
January 

February... 

March 

April 

M^y 

June 



July 

August 

September. 

October 

November. , 
December.. 

Quarters- 
First 

Second 

Third 

Fourth 

Year 



1918— Months- 
January.. 
February. 

March 

April 



June. 



July 

August 

September. 
October . . . 
November. 
December . , 

Quarters — 

First 

Second 

Third 

Fourth 

Year 



Fuel Group. 



Coal 
anth- 
racite, 
chest- 
nut, 
New 
York 
(per 
long 
ton.) 



$3. 7800 
100 
4.9000 



Coal, 
bitumi- 
nous, 
Pitts- 
burgh, 
No. 8 
Ohio, 
Colum- 
bus and 
Detroit 
(per 
short 
ton). 



$1.0900 

100 

2.5400 



109 
122 
115 
119 
140 
128 

106 
107 
112 
129 
113 

129 
129 
122 
106 
128 
122 

124 
130 
»132 
132 
132 
141 

126 
119 
128 
135 
127 

141 
141 
141 
133 
133 
133 

133 
133 
141 
2 141 
169 
169 

141 
133 
136 
160 
143 



103 
103 
123 
228 
425 
366 



102 
109 
340 
162 

442 
438 
335 
248 
374 
392 

269 
1269 
184 
184 
224 
224 

405 
338 
240 
211 
299 

224 
224 
224 
224 
2 224 
2 215 

219 
219 
219 
219 
219 
219 

224 
222 
219 
219 
221 



Coke, 
Con- 

nells- 

viQe 

furnace 

f. o. b. 

ovens 
(per 

short 

ton). 



130 


233 


4. 8000 


2.0000 


127 


183 


106 


96 


106 


97 


106 


95 


109 


102 


105 


102 


107 


103 



$2. 0625 
100 
11.7500 

570 

6.0000 

291 

139 
127 
145 
137 
115 
127 

127 
127 
133 
152 
279 
279 

137 
126 
129 
236 
157 

352 
364 
412 
352 
339 
461 

594 
485 
«570 
291 
291 
291 

376 
384 
549 
291 
400 

291 
291 
291 
291 
291 
291 

291 
291 
291 
291 
291 
291 

291 
291 
291 
291 

291 



Petro- 
leum, 
crude, 
Mid- 
conti- 
nent 
(Kans. 
Okla.) 
at wells 
(per 
bbl.) 



Building Materials Group. 



Cement 
Port- 
land, 

domes- 
tic, 
New 
York 
(per 
bbl.) 



SO. 9725 

100 

2.2500 



125 
133 
151 

158 
158 
158 

155 
106 
92 
92 
93 
117 

137 
158 
119 
101 
129 

143 
173 
173 
173 
173 
173 

173 
173 
204 
204 
204 
204 

165 
173 
184 
204 
182 

204 
204 
204 
229 
3 229 
229 

229 
J 229 
229 
229 
229 
229 

204 
229 
229 
229 
224 



Doug- 
las fir 
com- 
mon. 
No. 1, 
IbyS 
by 10 
Wash- 
ington 
mills 
(per M 
bd. ft.) 



162 

1.8500 

117 

106 
106 
106 
106 
106 
106 

106 
106 
106 
106 
106 
120 

106 
106 
106 
110 
107 

122 
128 
128 
136 
136 
136 

134 
134 
134 
134 
134 
>134 

126 
136 
134 
134 
133 

136 
136 
136 
149 
2 162 
164 

165 
165 

184 
203 
203 
203 



Penna. 
hem- 
lock, 
No. 1 

boards, 
Iby 
10-16 

f. o. b. 
mill 

(perM 

bd. ft.) 



$1.5800 $7.9167 $24.8300 

100 100 100 

2.5600 18.5000 32.6200 



234 131 

18.5000 32.0000 

234 129 



126 
133 
145 
145 
145 
139 

126 
120 
114 
114 
126 
139 

135 
143 
120 
126 
131 

145 
152 
152 
164 
208 
234 

234 
234 
234 
203 
208 
1234 

149 
202 
234 
217 
.201 

234 
234 
234 
234 
234 
2 234 

246 
246 
2 246 
208 
208 
208 



136 


234 


159 


234 


170 


246 


203 


208 


167 


231 



99 

99 
100 
100 
100 
103 
103 



99 
100 
102 
100 



South- 
em or 
yeUow 
pine, 
com- 
mon 
boards, 
No. 1, 
S-2-S 
Iby 10 
inches 
Ark. 
(per M 
bd. ft.) 



$13.8750 
100 
27. 5000 

198 
24. 0000 
173 

130 
130 
130 
117 
117 
117 

123 
123 
123 
133 
133 
133 

130 
117 
123 
133 
126 



New 
Eng- 
land 
spruce, 
ran- 
dom, 
2 by 10 
Boston 
(per M 
bd.ft.) 



106 
119 
129 
129 
121 

132 
132 
131 
1131 
129 
129 

129 
2 129 
137 
137 
137 
137 

131 
130 
132 
137 
132 



103 


137 


107 


137 


107 


137 


111 


191 


116 


191 


130 


191 


130 


184 


129 


184 


129 


184 


l59 


198 


129 


1198 


128 


198 



137 
191 
184 
198 
177 

2 202 
202 
202 
205 
205 

2 205 

213 
213 
213 
213 
213 
213 

202 
205 
213 
213 
208 



$24. 2600 

100 
46. 3700 

191 
45.0000 
185 

107 
110 
110 
110 
110 
108 

107 
108 
113 
114 
118 
' 130 

109 
109 
109 
121 
112 

130 
137 
144 
146 
146 
142 

138 
136 
151 



166 
164 

145 
137 
142 
165 
146 

163 
168 
181 
1191 
190 
188 



188 
188 

172 
190 

188 
188 
184 



1 Government control began during month 

2 Government revised price during month. 

125547—19 34 



•■ Prices fixed Au^st lO, 1918, retroactive to May, 1918. 



530 



HISTORY OF PRICES DURING THE WAR. 



RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. 
[Arranged to show relative points below which basic prices were pegsed-] 



Prewar base price 

Made equal to 

Market price when control began 

Found equal to 

Government price 

Found equal to 

1913— Months- 
January 

February 

March 

April 

May • 

June 

July 

August 

September 

October 

November 

December 

Quarters- 
First 

Second 

Third 

Fourth 

Year 

1914— Months- 
January 

February 

March 

April 

May 

Jime 

July 

August 

September 

October 

November 

December 

Quarters — 

First 

Second 

Third 

Fourth 

Year 

1915— Months- 
January 

February 

March 

April 

May 

June 

July 

August 

September 

October 

November 

December 

Quarters — 

First 

Second 

Third 

Fourth 

Year 



Chemicals group. 



Alcohol, 

wood, 
refined, 95 

per cent, 
New York 
(per gal ). 



$0.4558 
100 
1.3500 
296 
.7900 
173 



110 
110 
110 
108 
108 
108 

108 
99 
99 
101 
101 
101 



110 

108 
102 
101 

105 



99 



110 
110 



99 
99 
99 
106 

101 



Arsenic, 

white. 

New York 

(per lb.). 



1.0310 
100 

.1600 
516 

«0900 
290 



161 
153 
137 
133 
129 
113 

109 
109 
103 
103 
97 
101 



151 

125 
107 
100 

121 



93 
97 
97 
97 
97 
97 

97 
90 
161 
161 
145 
129 



95 
97 
116 
145 



129 
129 
129 
129 
129 
121 

121 
113 
121 
113 
113 
113 



129 
126 
118 
113 



Caustic 
soda, 76 
per cent 
spot. 
New York 
(per lb.). 



i.0181 
100 

.0490 
271 

.0350 
193 



100 
100 
105 
105 
103 
103 

103 
103 
96 
100 
100 
100 



102 
104 
101 
100 

102 



100 
100 
100 
100 
100 
100 

100 
100 
100 
102 
102 
102 



100 
100 
100 
102 



102 



112 
129 
129 

192 
262 
262 
290 
290 
290 



99 
124 
239 
290 



Nitrate of 
soda, 95 
per cent. 
New York 
(percwt.). 



$2.3183 
100 

4.4938 
194 

4.2250 
182 



112 
112 
113 
113 
113 
113 

110 
110 
106 
104 
101 
95 



113 
113 
109 
100 

109 



95 



82 
82 
82 
95 
99 
99 

101 
106 
101 
110 
125 
125 



82 



103 
120 



Sulphuric 

acid, 

60° Be., 

New York 

(per lb.). 



GOVERNMENT CONTROL OVER PRICES. 



531 



RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. 
[Arranged to show relative points below which basic prices were pegged.] 



Prewar base price 

Made equal to 

Market price when control began . 

Found equal to 

Government price 

Found equal to.... 



1916— Months- 
January . . 
February. 

March 

April 



Jime. 



July 

August 

September. 
October . . . 
November. 
December . . 



Quarters- 
First... 
Second . 
Third... 
Fourth. 



Year 

-Months — 
January . . 
February. 

March 

April 

May 

June 



July 

August 

September. 

October 

November. 
December . . 

Quarters- 
First 

Second 

Third 

Fourth 

Year 

1918— Months- 
January 

February... 

March 

April 

May 

June 



July 

August 

September. 

October 

November. 
December.. 



Quarters — 

First 

Second . . . 

Third 

Fourth... 



Chemicals group. 



Alcohol, 

wood, 

refined, 95 

per cent, 
New York 
(per gal.). 



Year. 



$0.4558 
100 
1.3500 
296 
.7900 
173 



121 
132 
143 
143 
143 
143 

143 
143 
143 
154 
165 
197 



132 
143 
143 
172 

147 



197 
219 
219 
219 
219 
219 

219 
219 
219 
241 
263 
1296 

212 
219 
219 

267 

229 

296 
296 
296 
199 
199 
199 

202 
201 
201 
201 
201 
201 

296 
199 
201 
201 



Arsenic, 

white. 

New York 

(per lb.). 



Caustic 
soda, 76 
per cent 
spot, 
New York 
(per lb.). 



$0.0310 
100 

.1600 
516 

.0900 
290 



145 
161 
177 
210 
210 
202 

198 
194 
194 
185 
194 
234 



161 
207 
195 
204 

192 

266 
339 
403 
548 
581 
581 

581 
548 
681 
516 
548 
532 

336 

570 
570 
532 

502 

290 
516 
1516 
290 
298 
298 

298 
298 
298 
290 
290 
290 

441 
296 
298 
290 



S0.0181 
100 

.0490 
271 

.0350 
193 



290 
845 
352 
339 
304 
276 

249 
193 
193 
214 
221 
262 



329 
306 
212 
233 

270 

242 
235 
235 

242 
318 
345 

387 
398 
497 
470 
428 
428 

237 
302 
427 
442 

352 

199 
320 
271 
1271 
249 
262 

214 
215 
235 
249 
235 
229 

264 
261 
222 
238 



Nitrate of 
soda, 95 
per cent. 
New York 
(percwt.). 



Sulphuric 

acid, 

60° Be., 

New York 

(per lb.). 



$2.3183 
100 

4.4938 
194 

4.2250 
182 



140 
147 
155 
147 
147 
134 

134 
134 
129 
125 
125 
129 



147 
142 
132 

127 

137 

139 
143 

158 
162 
164 
172 

179 
183 
198 
204 
201 
196 

148 
166 
185 
200 

175 

1194 
191 
194 
221 
222 
194 

2 213 
2 216 
2 208 
2 187 
2 190 
2 190 

193 
213 
213 



$0.0085 
100 

.0125 
147 

.0090 
106 



235 
235 
235 
235 

176 
176 

118 
118 
118 
118 
118 
118 



235 
196 
118 
118 

167 



118 
118 
118 
118 
118 
118 

118 
147 
147 
147 
147 
176 

118 
118 
138 
156 



176 
206 
206 
206 
147 
1147 

106 
106 
106 
294 
94 
94 

196 
167 
106 



I Government control began during month. 2 Government revised price during month. 



532 HISTORY OF PRICES DURING THE WAR. 

5. A COMPARISON OF CONTROLLED RAW-MATERIAL 
PRICES WITH THE PRICES OF THEIR UNCONTROLLED 
MANUFACTURED PRODUCTS. 

The theory underlying practically all of our Government regulation 
over prices was that stabilization among the prices of manufactures 
would result from a control simply of the basic raw materials. It 
was appreciated, of course, that for a rigid exercise of control, regula- 
tion must also be extended over the products of manufactures. 
But, by and large, the Government was content to fix maximum 
prices for the basic raw materials and leave their finished products 
to adjust themselves in price as they would. ^ 

It is of especial interest, in view of this prevailing method of price 
fixing, to note whether the price control of raw materials actually 
did operate to stabilize the prices of their primary finished products. 
Significant bases for that sort of inquiry may be had from a compari- 
son of the raw-material prices for copper, iron and steel, lead, wool, 
rubber, hides and skins, lumber, and crude petroleum, ^ which were 
controlled, with certain of their manufactures which were not. 
Such a comparison here has been facilitated by turning the actual 
prices for several controlled raw materials, and their corresponding 
imcontrolled products, into relative prices by making their respective 
prewar actual prices (July 1, 1913, to June 30, 1914) equal 100. 

The fluctuations of copper wire followed closely those of the 
highly controlled electrolytic copper. The prices of chains and saws 
did not rise as high as those of pig iron, but those of chains especially 
became more stable after control of pig iron began. The fluctuations 
of lead pipe were almost identical with those of lead. Woolen yarn 
and suiting prices followed the general rise in wool prices but seem 
to have been stabilized after control of wool set in. The effect of a 
control of calfskins upon the prices of shoes can scarcely be made 
out from a comparison of their respective market prices. 

1 The most notable exceptions to this common practice were wheat and iron and steel, the products of 
which were controlled in large part as well as the raw materials. 

3 Crude petroleum was stabilized informally by the industry but not fixed in the same sense that the 
other raw materials were. 



GOVERl^MElSrT CONTROL OVER PRICES. 



533 





534 



HISTORY OF PRK'ES DURING THE WAR. 





•lag? 




536 



HISTORY OF PRICES DURING THE WAR. 



RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR UNCONTROLLED 

MANUFACTURES. 



Prewar base price. 
Made equal to . 

1913— Months- 
January . . . 
February. . 

March 

April 

May 

June 



July 

August 

September. 
October . . . 
November. 
December . 



Quarters- 
First... 
Second . 
Third.. 
Fourth . 



Year. 



1914— Months- 
January . . 
February. 

March 

April 

May 

June 



July 

August 

September. 
October . . . 
November. 
December . 

Quarters — 

First 

Second 

Third 

Fourth 

Year 



1915— Months- 
January . . 
February. 
March — 

April 

May 

June 



July 

August 

September.. 

October 

November. . 
December . . 

Quarters — 

First 

Second 

Third 

Fourth 

Year 



Copper. 



Copj)er, 
electro- 
lytic, 
New 
York 
(per lb.). 



$0. 1492 
100 



112 
102 
100 
104 
105 
100 



105 
111 
111 

104 
97 



105 
103 
105 
104 



92 
98 
100 
115 
125 
132 

128 
115 
119 
120 
126 
136 

97 
124 
121 
127 

117 



Copper 
ware, 
base 
prices, 
New 
York 

(per lb.). 



Iron and steel. 



Pig iron, 
Mahon- 
ing or 

She- 
nango 
VaUey 
furnace 
(per gr. 

ton). 



Chains, 

traces, 

wagon, 

western 

standard 

straight, 

with 

ring, 

6*^8-2, 

New 

York 

(per 100 

pr.). 



Saws, 

crosscut, 

Diston 

No. 2, 

C-foot 

champion 

tooth, 

Phila. 

(per saw) 



$0. 1618 


$13.3183 


100 


100 


114 


123 


108 


122 


99 


121 


99 


119 


103 


114 


103 


109 


99 


108 


99 


106 


103 


105 


no 


104 


110 


98 


99 


95 


107 


122 


102 


114 


100 


106 


106 


99 


104 


110 


99 


94 


99 


99 


97 


98 


96 


98 


96 


98 


94 


98 


90 


98 


90 


98 


83 


98 


80 


96 


77 


94 


86 


94 


98 


97 


95 


98 


88 


98 


81 


95 


91 


97 


90 


94 


97 


94 


97 


94 


103 


94 


124 


94 


124 


95 


130 


96 


124 


106 


117 


HI 


117 


113 


117 


118 


130 


131 


95 


94 


117 


94 


124 


104 


121 


121 


114 


103 



$32.00 
100 



100 
100 
100 
ICO 
100 
100 

100 
100 
100 
100 
100 
100 



100 
100 
100 
100 

100 



100 
100 
100 
100 
100 
100 

100 
100 
100 
100 
100 
100 

"100 
100 
100 
100 

100 

100 
100 
100 
100 
109 
109 

109 
109 
109 

97 
97 
97 



100 
106 
109 
97 



$1.7820 
100 



100 
100 
100 
100 
100 
100 

100 
100 
100 
100 
100 
100 



100 
100 
100 
100 



100 
100 
100 
100 
100 
100 

100 
100 
100 
100 
100 
100 

100 
100 
100 
100 

100 

100 
100 
100 
100 
100 
100 

100 
100 
100 
100 
100 
100 

100 
100 
100 
100 

100 



Lead. 



Lead, 
pig, 
New 
York 
(per lb.). 



$0.0418 
100 



103 
104 
104 
105 
104 
104 

104 
111 
112 
105 
103 
97 



103 
104 
109 
102 

105 



92 
97 
101 
102 
142 

135 
111 
110 
110 
123 
128 

93 
115 
119 
121 

112 



Lead 
pipe. 
New 
York 
(per 
cwt.). 



$4.8725 
100 



101 
101 
101 
103 
106 
106 

106 
108 
111 
108 
103 
97 



101 

105 
108 
103 



93 



92 
96 
102 
131 

136 
124 
116 
111 
116 
123 



110 
125 
116 



GOVERNMENT CONTROL OVER PRICES. 



537 



RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR UNCONTROLLED 

MANUFACTURES. 



Copper. 



Copper, 
electro- 
lytic, 
New 
York 
(per lb.). 



Copper 
wire, 
base 
prices. 
New 
York 

(per lb.). 



Iron and steel. 



Pig iron, 
Mahon- 
ing or 
She- 
nango 
Valley 
furnace 
(per gr. 
ton). 



Chains, 
traces, 
wagon, 
western 
standard, 
straight, 

with 

ring, 
6J-8-2, 

New 

York 
(per 100 

pr-). 



Saws, 

crosscut, 

Diston 

No. 2, 

6-foot 

champion 

tooth, 

Phila. 

(per saw) 



Lead. 



Lead, 
pig, 
New 
York 
(per lb.), 



Lead 
pipe. 
New 
York 
(per 
cwt.) 



Prewar base price. 
Made equal to. 



-Months- 
January . . 
February. 

March 

April 

May 

June 



July 

August 

September. 
October . . . 
November. 
December . 



Quarters — 

First 

Second . . 
Third . . . . 
Fourth . . , 

Year 



1917— Months- 
January - - 
February. 

March 

April 

May 

June 



1918- 



July 

August 

September. 
October. .. 
November. 
December . 

Quarters — 

First 

Second 

Third 

Fourth.... 

Year 

-Months- 
January 

February. . 

March 

April 

May , 

June 



July 

August 

September. 
October . . . 
November. 
December . 



Quarters — 

First 

Second . . 
Third.... 
r ourth . . , 

Year 



$.0. 1492 
100 



162 
184 
184 
196 
200 
184 

172 
183 
189 
192 
216 
227 

176 
193 
182 
212 

191 

203 

236 
240 
216 
217 
218 

194 
182 
1 171 
158 
158 
158 

226 
217 
182 
158 



158 
158 
158 
158 
158 
158 

174 
174 
174 
174 
174 
170 

158 
158 
174 
173 



$0. 1618 
100 



145 
168 
181 
176 
195 
201 

201 

188 
190 
196 
196 
221 



165 
190 
193 
204 

188 



227 
227 
227 
227 
215 
202 

208 
196 
184 
184 
178 
171 

227 
215 
196 

178 

204 

167 
167 
167 
164 
164 
162 

175 
181 
181 
178 
178 
178 

167 
163 
179 
178 

172 



$13.3183 
100 



134 
133 
137 
136 
135 
135 

135 
135 
137 
149 

188 
225 

134 

135 
136 

188 

148 

225 
225 
242 
291 
312 
366 

394 
384 
1321 
248 
248 
248 

230 
322 
368 

248 

292 



248 
248 
248 
240 
240 
240 

240 
240 
240 
248 
248 
248 

248 
240 
240 
248 

244 



$32.00 
100 



100 
106 
119 
119 
134 
134 

134 

188 
188 
188 
188 



108 
129 
170 

188 

149 



188 

188 
188 
188 
188 
188 

188 
188 
238 
238 
238 
238 



188 
188 
204 
238 

204 



238 
238 
238 
238 
238 
238 

238 
238 
238 
238 
238 
238 

238 
238 
238 
238 



$1.7820 
100 



100 
100 
106 
106 
106 
106 

116 
116 
116 
116 
128 
128 



102 
109 
116 
124 



128 
141 
141 
141 
155 
155 

155 
172 
172 
172 
172 
172 

137 
150 
166 
172 



172 
172 
172 
172 
172 
202 

202 
202 
202 
202 
202 
202 

172 
182 
202 
202 



.0418 
100 



142 

150 
171 

183 
178 
166 

152 
149 
163 
167 
168 
180 



164 
176 
155 
172 



183 
207 
220 
222 
244 
267 

256 
253 
208 
161 
1 150 
153 

203 
244 
239 
154 

210 



162 
167 
172 
162 
163 
182 

192 
193 
193 
193 
193 
157 

167 
169 
192 
181 

177 



$4.8725 
100 



133 
143 
162 
181 
174 
163 

156 
146 
151 
156 
158 
166 

146 
173 
151 
160 

157 

176 
191 
206 
211 
230 
257 

257 
246 
226 
181 
156 
156 

191 
232 
243 
164 



161 
171 
176 
176 
176 
183 

191 
191 
191 
191 
191 
191 

169 

178 
191 
191 

182 



1 Government control of price began during month. 



538 



HISTORY OF PRICES DURING THE WAR. 



RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR UNCONTROLLED 

MANUFACTURES. 





Wool. 


Rubber. 


Hides and skins. 


Petroleum. 




Wool, 


Woolen 


Woolen 




Rubber 






Petro- 








dom.. 


cloths, 


Rubber 


tires. 


Cattle 




leum, 








Ohio, 


yarn. 


suit- 


crude, 


pneu- 


hides. 


Men's 


crude. 




Kero- 




Pa., 


weav- 


ings 


Ilevea, 


matic. 


packer. 


shoes 


Mid- 


Fuel 


sene, 




W. Va., 


ing, 
12-10 
cut, J 
blood 
grade 
Boston, 

(per 

lb.). 


Middle- 


first 


plain 


heavy 


viei 


conti- 


oU, 


refined 




un- 


sex, 


latex 


tread, 


native 


calf, 


ucnt 


TiUsa, 


for 




washed, 


15 oz. 


crepe. 


30 by 3i 


steers. 


blu- 


(Kans., 


Okla., 


export. 
New 
York, 
(per 
gal.). 




fine 


55-56 


New 


in.. 


Chi- 


cher. 


Okla.) 


(per 




delaine, 
Boston, 


m.,New 
York, 


York, 
(per 


Akron, 
Ohio, 


cago, 
(per 


(per 
pair). 


at 
wells, 


bbl.). 




(per 


(per 


lb.). 


(per 


lb.). 




(per 






lb.). 


yd.). 




tire). 






bbl.). 






Prewar base price.. 


$0.2317 


$0. 5725 


$1.4813 


$0.6123 


$13.0900 


$0. 1861 


$3. 1375 


$0. 9725 


$0. 7979 


$0. 0871 


Made equalto... 


100 


100 


100 


100 


100 


100 


100 


100 


100 


100 


1913-Months— 














' 








January 


122 


103 


106 


175 


115 


103 


99 


85 


135 


98 


February . . . 


119 


103 


106 


164 


115 


97 


99 


90 


135 


98 


March 


110 


103 


106 


149 


115 


97 


99 


90 


135 


98 


April 


110 


103 


106 


135 


104 


93 


99 


90 


135 


98 


May 


97 
97 


103 
103 


106 
106 


132 
121 


104 
104 


89 
94 


99 
99 


90 
90 


110 
110 


98 


June 


100 


July 


97 

97 


103 
103 


106 
106 


114 
112 


104 
104 


95 
100 


99 
99 


94 
102 


110 

94 


100 


August 


100 


September . . 


97 


103 


100 


96 


104 


101 


99 


105 


94 


100 


October 


97 


103 


100 


87 


104 


106 


100 


105 


100 


100 


November. . 


97 


103 


100 


93 


104 


106 


100 


105 


100 


100 


December. . . 


96 


103 


100 


91 


97 


105 


100 


105 


100 


100 


Quarters- 






















First 


117 


103 


106 


163 


115 


99 


99 


89 


135 


98 


Second 


101 


103 


106 


129 


104 


92 


99 


90 


118 


98 


Third 


97 


103 


104 


107 


104 


99 


99 


101 


99 


100 


Fourth 


97 


103 


100 


90 


102 


106 


100 


105 


100 


100 


Year 


103 


103 


104 


122 


106 


99 


99 


97 


113 


99 


1914 Months - 






















January 


9« 


103 


100 


97 


97 


97 


100 


105 


100 


100 


February . . . 


100 


103 


97 


102 


97 


98 


100 


107 


100 


100 


March 


100 


107 


97 


102 


97 


97 


100 


107 


100 


100 


April 

May 


101 


90 


97 


112 


97 


97 


100 


102 


100 


100 


106 


90 


97 


101 


97 


98 


100 


76 


100 


100 


June 


114 


90 


97 


93 


97 


99 


100 


76 


100 


98 


July 


119 


90 


97 


91 


97 


104 


100 


76 


72 


98 


August 


119 


90 


97 


139 


97 


110 


100 


76 


72 


95 


September.. 


114 


90 


100 


96 


97 


113 


102 


66 


72 


95 


October 


106 


90 


100 


95 


97 


114 


102 


56 


60 


95 


November. . 


110 


90 


100 


109 


97 


117 


104 


56 


60 


92 


December. . . 


110 


90 


100 


130 


97 


121 


104 


66 


GO 


92 


Quarters- 






















First 


99 


104 


98 


101 


97 


•97 


100 


107 


100 


100 


Second 


107 


90 


97 


102 


97 


98 


100 


86 


100 


100 


Third 


117 


90 


98 


109 


97 


109 


101 


74 


72 


96 


Fourth 


109 


90 


100 


111 


97 


117 


103 


56 


CO 


93 


Year 


108 


93 


98 


106 


97 


105 


101 


81 


83 


97 


191.5— Months- 






















January 


114 


90 


100 


119 


97 


124 


104 


56 


56 


92 


February . . . 


132 


90 


100 


100 


70 


126 


104 


56 


56 


89 


March 


140 


94 


106 


105 


70 


124 


104 


41 


44 


89 


April 

Mav 


127 


94 


106 


99 


70 


101 


104 


41 


47 


87 


127 
123 


94 
94 


106 
106 


98 
102 


70 
70 


111 

125 


104 
104 


41 
41 


47 

47 


87 


tp J^ 

June 


87 


July 


127 


94 


106 


105 


70 


138 


104 


41 


47 


86 


August 


132 


111 


106 


100 


70 


147 


104 


51 


66 


86 


Setember 


132 


111 


106 


97 


70 


142 


104 


76 


66 


86 


October 


182 


111 


106 


101 


70 


142 


104 


82 


78 


86 


November. . 


132 


111 


100 


122 


70 


141 


104 


82 


97 


89 


December. . . 


136 


111 


109 


143 


70 


138 


105 


102 


119 


94 


Quarters- 






















First 


129 


91 


102 


108 


79 


125 


104 


51 


52 


90 


Second 


126 


94 


106 


99 


70 


112 


104 


41 


47 


87 


Third 


130 


106 


106 


101 


70 


143 


104 


57 


60 


86 


Fourth 


133 


111 


107 


122 


70 


141 


104 


89 


98 


90 


Year 


129 


100 


106 


108 


72 


130 


104 


60 


64 


88 







GOVERl^MENT CONTROL OVER PRICES. 



539 



RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR UNCONTROLLED 

MANUFACTURES. 



WooL 



Rubber. 



Prewar base price. 
Made equal to. 

1916— Months- 
January... 
February. 

March 

April 

May 

June 

July 

August 

September 
October... 
November. 
December. 



Quarters- 
First... 
Second. 
Third.. 
Fourth. 

Year 



Wool, 

dom., 

Ohio, 

Pa., 

W. Va., 

un- 
washed, 

fine 

delaine, 

Boston, 

(per 

lb.). 



1917- 



-Months — 

January 

February . . 

March 

April 

MTay 

Jime 



July 

August 

September . 

October 

November . 
December. . 

Quarters — 

First 

Second 

Third 

Fourth 

Year 

1918— Months- 
January 

February . . 

March 

April 

May 

June 

July........ 

August 

September . 
October.... 
November. 
December. . 

Quarters- 
First 

Second 

Third 

Fourth 

Year 



$0.2317 
100 



140 
140 
145 
145 
145 
145 

149 
151 
155 
158 
170 
186 



142 
145 
152 
171 
152 



196 
211 
■220 
231 
240 
304 

317 
322 
326 
324 
324 
324 



209 
258 
322 
324 

278 



324 
324 
324 
324 
1324 
319 

324 
324 
319 
319 
319 
293 



324 
322 
322 
311 
320 



Woolen 
yam, 
weav- 
ing, 
12-16 
cut, 1 
blood 
grade 

Boston, 
(per 
lb.). 



$0. 5725 
100 



111 
111 
116 
116 
116 
116 

116 
116 
121 
121 
121 
129 



113 

116 
118 
123 
118 



135 
155 
172 
177 
181 
181 

190 
199 
199 
199 
225 
234 



154 
180 
196 
219 

187 



234 
242 
284 
301 
301 
301 

301 
301 
301 
301 
301 
301 



253 
301 
301 
301 

289 



Woolen 
Cloths, 
suit- 
ings 
Middle, 
sex, 
15 oz. 
55-56 
in. ,New 
York, 
(per 

yd.). 



$1.4813 
100 



109 
122 
129 
129 
129 
129 

132 
137 
141 
141 
147 
153 



120 
129 
137 
147 
133 



158 
173 
173 
182 
197 
213 

228 
243 
243 
243 
252 
252 



168 
197 
238 
249 
213 



255 
258 
258 
258 
276 
283 

283 
283 
283 
283 
283 
283 



257 
272 
283 
283 
274 



Rubber 
crude, 
Hevea, 

first 

latex 
crepe, 

New 
York, 

(per 

lb.). 



$0.6123 
100 



146 
140 
147 
136 
117 
105 

95 

95 

98 

102 

112 

129 



145 
119 



114 
119 



127 
140 
139 
134 
135 
118 

111 
106 
109 
104 
98 
91 



135 
129 
109 
98 
118 



100 

86 

91 

98 

1103 

103 

103 
103 
103 
103 
100 
100 



92 
101 
103 
101 

99 



Rubber 
tires, 
pneu- 
matic, 
plain 
tread, 
30 by 3i 

in., 
Akron, 
Ohio, 
(per 
tire). 



$13.0900 
100 



Hides and skins. 



105 
105 
105 
105 



85 
96 
99 
105 
96 



105 
105 
105 
116 
116 
116 

116 
116 
116 
116 
116 
116 



105 
116 
116 
116 
113 



Cattle 

hides, 

packer, 

heavy 

native 

steers, 

Chi- 
cago, 

(per 

lb.). 



$0. 1861 
100 



124 
128 
122 
120 
113 
144 

145 
141 
140 
143 
169 
180 



125 
132 
142 
164 
141 



180 
171 
164 
164 
169 
177 

177 
172 
177 
181 
189 
188 



172 
170 
176 
186 
176 



176 
157 
141 
146 
1167 
177 

174 
161 
161 
161 
156 
156 



160 
164 
166 
158 
161 



Men's 

shoes 
vici 
calf, 

bluch- 
er, 
(per 

pair). 



Petroleum. 



$3. 1375 
100 



107 
108 
110 
112 
115 
120 

120 
120 
120 
127 
127 
135 



108 
115 
120 
130 
118 



151 
151 
151 
151 
151 
151 

151 
151 
151 
151 
151 
151 



151 
151 
151 
151 
151 



151 
151 
159 
159 
159 
174 

180 
191 
205 
207 
207 
207 



154 
164 
192 
207 
179 



Petro- 
leum, 
crude. 
Mid- 
conti- 
nent 
(Kans., 
Okla.) 

at 
wells, 
(per 
bbl.). 



3. 9725 
100 



125 
133 
151 
158 

158 
158 

155 

106 

92 

92 

93 

117 



137 
158 
119 
101 
129 



143 
173 
173 
173 
173 
173 

173 
173 
204 
204 
204 
204 



165 
173 
184 
204 
182 



204 
204 
204 
229 
229 
229 

229 
1229 
229 
229 
229 
229 



204 
229 
229 
229 

224 



Fuel 

oU, 
Tulsa, 
Okla., 

(per 
bbl.). 



$0. 7979 
100 



128 
135 
144 
113 



81 
81 
81 
88 
141 
141 



136 

96 

81 

123 

109 



188 
188 
188 
188 
188 
172 

172 
172 
172 
226 
219 
219 



183 
172 
221 
191 



219 
219 
219 
251 
251 
251 

251 
235 
235 
235 
235 
235 



219 
251 
240 
235 

236 



Kero- 
sene, 
refined 

for 

export. 

New 

York, 

(per 

gal.). 



$0. 0871 
100 



99 
102 
102 
103 
103 
103 

103 
104 
102 
96 
96 
96 



101 

103 

103 

96 

101 



99 
105 
112 
118 
118 
118 

lis 

119 
119 
119 
128 
139 



105 

118 
118 
129 
118 



144 
144 
146 
152 
153 
173 

174 
175 
178 
178 
194 
194 



144 
160 
175 
189 
167 



Government control of price began during month. 



540 



HISTORY OF PRICES DURING THE WAR. 



6. A COMPARISON OF THE PRICES OF CONTROLLED 
MANUFACTURED GOODS WITH THE PRICES OF THEIR 
UNCONTROLLED RAW-MATERIALS. 

It was exceptional for the Government to initiate control within 
any family of commodities by a regulation of the finished-product 
prices only. Since raw-material prices, in the main, fluctuate more 
violently, the common practice was to begin control by regulating 
the raw material. The outstanding departure from this procedure 
dm-ing the war was the extension of price control over cotton goods, 
while at no time was any control exercised over raw cotton. 

There are given here relative prices for cotton, upland middling, 
comparable with others for cotton yarn, carded, white, Northern, 
mule spun, 22/1 cones. The actual prewar price (July 1, 1913, to 
June 30, 1914) for each was made equal to 100, and the monthly 
actual prices from January, 1913, through December, 1918, turned 
into relatives upon that base. 

COTTON YARN, CARDED, WHITE, NORTHERN MULE SPUN, 22/1 CONES. 

[Controlled.] 
[Prewar price of $0.2438 made equal to 100.] 



1913 


1914 


1915 


1916 


1917 


1918 




98 
100 
98 
100 
100 
98 
98 
98 
103 
109 
107 
107 

99 
100 
100 
107 

102 


98 
98 
98 
98 
94 
90 
94 
90 
82 
82 
72 
74 

98 
94 
89 
76 

89" 


78 
78 
70 
78 
76 
76 
76 
79 
82 
90 
94 
98 

75 
77 
79 
94 

81 


105 
105 
104 
110 
112 
115 
116 
118 
125 
135 
149 
170 

104 
112 
120 
151 

122 


160 
152 
148 
168 
174 
180 
205 
205 
238 
197 
205 
217 

153 

174 
216 
206 

187 


238 




249 




257 




281 




289 




292 


July 


1288 




287 




285 




285 




273 




242 




248 




287 




287 




267 


Year 


272 







1 Government control began. 



GOVERNMENT CONTROL OVER PRICES. 



541 



COTTON, UPLAND MIDDLING. 

[Uncontrolled.] 

[Prewar price of $0.1312 made equal to 100.] 



January.., 
February. 

March 

April 



June 

July 

August 

September. 

October 

November., 
December.. 



First quarter. . . 
Second quarter. 
Third quarter.. 
Fourth quarter. 
Year 



1913 



94 

91 

93 

94 

92 

103 

107 

104 



1914 



97 
98 
101 
100 
103 
103 
100 
91 
64 
53 
58 
58 

98 
102 
96 
58 

92 



1915 



95 

89 

91 

92 

98 

99 

99 

111 

121 

138 

153 

139 

92 
96 
110 
143 
110 



1917 



134 
124 
142 
155 
158 
194 
199 
197 
173 
214 
228 
233 

134 
168 
190 
224 



1918 



247 
243 
258 
242 
210 
232 
238 
263 
273 
248 
225 
232 

249 
229 
256 
236 

242 



The basis for a wider generalization, perhaps, may be had from 
the weighted index numbers representing 57 series of controlled cot- 
ton goods and 24 series of uncontrolled cotton in the raw-materials 
stage, which also follow as made up earlier in this chapter. 

WEIGHTED INDEX NUMBERS OF CONTROLLED COTTON MANUFACTURES AND 
UNCONTROLLED COTTON RAW MATERIALS. 

[Prewar average aggregates made equal to 100.] 



Month. 



CONTROLLED. 



January 

February. . 

March 

April 

May 

June 

July 

August 

September . 

October 

November . 
December.. 



First quarter... 
Second quarter. 
Third quarter.. 
Fourth quarter. 



Year. 



UNCONTROLLED. 



January 

February.. 

March 

April 

May .... 

June 

July 

August 

September . 

October 

November . 
December.. 



First quarter... 
Second quarter. 
Third quarter.. 
Fourth quarter. 



Year . 



1913 


1914 


1915 


1916 


1917 


1918 


103 


100 


83 


106 


158 


225 


103 


100 


84 


109 


157 


233 


103 


99 


85 


110 


161 


246 


102 


99 


87 


112 


169 


268 


101 


99 


89 


114 


172 


270 


100 


99 


89 


116 


184 


275 


99 


99 


91 


119 


193 


1279 


100 


97 


92 


124 


194 


283 


100 


94 


94. 


128 


200 


269 


102 


89 


99 


140 


206 


270 


102 


85 


102 


153 


206 


270 


102 


84 


104 


160 


211 


267 


103 


100 


84 


108 


159 


235 


101 


99 


89 


114 


175 


271 


100 


97 


93 


124 


196 


277 


102 


86 


102 


151 


208 


269 


101 


95 


92 


124 


184 


263 


100 


96 


54 


94 


141 


238 


98 


98 


61 


95 


138 


244 


97 


103 


61 


91 


131 


248 


97 


98 


67 


95 


148 


261 


95 


100 


75 


95 


156 


234 


95 


102 


71 


100 


167 


225 


95 


102 


71 


103 


203 


235 


95 


102 


67 


104 


200 


229 


97 


72 


70 


120 


192 


264 


110 


64 


92 


128 


192 


261 


107 


52 


95 


148 


224 


240 


100 


56 


93 


161 


228 


227 


98 


99 


59 


93 


136 


243 


96 


100 


71 


97 


157 


240 


96 


92 


69 


109 


198 


243 


105 


57 


93 


145 


215 


243 


99 


87 


73 


111 


176 


242 



1 Government control began. 



542 HISTORY OF PRICES DURING THE WAR. 

7. A COMPARISON OF CONTROLLED RAW-MATERIAL 
PRICES WITH THE PRICES OF THEIR CONTROLLED 
MANUFACTURED PRODUCTS. 

A study of the relative movements of important basic commodities 
which were regulated both in the raw-material and finished-product 
stages, shows the results of the more rigid controls. The important 
basic commodities so controlled were wheat, iron and steel, hides 
and skins, corn, sugar, cattle, and coal. There have bieen made ready 
for comparison the following combinations of raw materials and 
finished products of which all series were controlled: (1) No. 2 red 
winter wheat; standard patents wheat flour; and loaf bread; (2) iron 
ore, Mesabi, non-Bessemer, 51^ P^r cent; pig iron, basic, Mahoning 
or Shenango Valley Furnace; steel bars, steel sheets, Bessemer; and 
pipe, cast iron 6 inches; (3) cattle hides, heavy native steers; and, 
cattle hide leather, sole leather, hemlock packer slaughter, No. 1; 
(4) corn, yellow cash. No. 3; and corn meal, white, in bulk; (5) raw 
cane sugar, 96° centrifugal, duty paid; refined cane sugar, fine granu- 
lated; beet sugar granulated; (6) steers, choice to prime, heavy beeves; 
and steer rounds, No. 1 ; (7) bituminous coal, Pittsburgh No. 8 
Ohio; and Connellsville coke. 

The relative prices of wheat and flour held close together save during 
1918. Bread prices did not rise relatively as high either as wheat 
or flour prices, but behaved more like flour prices than wheat prices. 
Government control did not bring the pronounced drop in iron ore 
prices that it brought in pig iron prices, since iron ore prices were 
fixed near their market level and pig iron prices much below. The 
behavior of controlled raw and refined sugar prices was nearly 
identical. 



GOVERNMENT CONTROL OVER PRICES. 



543 





544 



HISTORY OF PRICES DURING THE WAR. 











1917 1 


1916 1 






^ 


L4J 


Xu-. 


100 


- 


— 




S60 

MO 


tJCLATlVC PRtCfiS or 






S20 


IRON 

ORE 

PIG 

>«x OIPC 








500 




;* 








J 




280 
260 
240 


JANUARY. 1SI3 "DCCCMBeRlSlO 
AVCCAGC QUarCD PQICU JULY 1915 "JUNC.lSl^-IO 


1 


r 




r 


F 


A r 


1913 1 1914 


1915 1916 1 


240 


uU44 


444^ 


iiiv. 


444^ -j 


220 










1 




220 










.:^ 




















r 

1 












r 




/ 




120 

100 








^1 

i 






ifn 




—1 


/ 


i 
j 






iop_ 






I'— X.. 


-+>' 














• — _- 












80 














ao 


60 


krr 


itrmtr 


Wm 


rtt 


w 


60 




1 1915 1 ID14 1 1013 1 1046 I 1917 


1910 


L_ 




Relative prices.— Iron: Ore, Pig, and Pipe.— By 
months, January, 1913, to December, 1918. (Aver- 
age quoted prices, July, 1913, to June, 1914=100.) 



Relative prices. — Coal and Coke.— By months, 
January, 1913, to December, 1918. (Average 
quoted prices, July, 1913, to June, 1914=100.) 



GOVEENMENT CONTROL OVER PRICES. 



545 




SflJ,-lgP 




125547°— 20- 



-35 



546 



HISTORY OF PRICES DURING THE WAR. 



RELATIVE PRICES OF CONTROLLED R.VW MATERIALS AND THEIR CONTROLLED 

MANUFACTURES. 





Wheat, 


lour, and bread. 


Iron ore, pig iron, steel bars, sheet steel, 
and pipe. 


Cattle, hides, 
and sole leather. 










Iron 
















Wheat, 

No. 2, 

red, 

winter, 

Chicago 

(per 

bu.). 


Wheat 
flour, 
stand- 
ard 
pat- 
ents, 
Minne- 
apolis 
(per 
bbl.). 


Bread, 
loaf. 

New 

York 

(per 

16-oz.). 


ore, 

Mesabi, 
non- 
Bes- 
semer 
5U per 
cent, 
lower 
lake 
ports 
(per 
gr.ton). 


Pig iron, 

basic, 

Ma- 
honing 
or She- 
nango 
Valley 
furnace 

(per 
gr. ton). 


Sheet 
bars, 
Bes- 
semer 
Pitts- 
burgh 
(per 
gr. ton). 


Steel, 
blue, 

an- 
nealed 
sheets, 

10- 
gange, 
Pitts- 
burgh 

(per 
cwt.). 


Pipe, 
cast- 
iron, 

6-inch, 
New 
York 
(per 

sh. ton). 


Cattle 
hides, 
packer, 
heavy, 
native 
steers, 
Chicago 

(per 

lb.). 


Sole 
leather, 
hem- 
lock, 
packer, 
slaugh- 
ter. 
No. 1, 
Clucago 
(per 
lb.). 


Prewar base price 


$0.9321 


$4.5699 


$0.0412 


$3. 3083 


$13.3183 


$22.6750 


$1.4983 


$22.2258 


$0.1861 


$0. 3192 


Madeeaualto 


100 


100 


100 


100 


100 


100 


100 


100 


100 


100 


1913— Months- 






















January.. 


120 


98 


103 


103 


123 


128 


113 


112 


103 


94 


February 


116 


99 


103 


103 


122 


132 


117 


111 


97 


94 


March 


111 


96 


103 


103 


121 


132 


117 


107 


97 


94 


April 


114 


101 


103 


103 


119 


125 


117 


106 


93 


94 


May 


113 


102 


103 


103 


114 


121 


117 


103 


89 


94 


June 


109 


106 


103 


103 


109 


119 


117 


103 


94 


91 


July 


95 


104 


103 


103 


108 


121 


117 


103 


95 


91 


August... 


93 


103 


103 


103 


106 


116 


113 


103 


100 


94 


Septem- 






















ber 


99 


100 


103 


103 


105 


110 


109 


103 


101 


94 


October.. 


99 


98 


103 


103 


104 


101 


105 


103 


106 


100 


Novem- 






















ber 


101 


98 


103 


103 


98 


95 


101 


103 


106 


100 


Decem- 






















ber...,. 


103 


98 


103 


103 


95 


93 


100 


100 


105 


103 


Quarters- 






















First 


116 


98 


103 


103 


122 


131 


116 


110 


99 


94 


Second. . . 


112 


103 


103 


103 


114 


122 


117 


104 


92 


93 


Third.... 


96 


102 


103 


103 


106 


116 


113 


103 


99 


93 


Fourth... 


101 


98 


103 


103 


99 


■ 96 


102 


102 


106 


101 


Year 


106 


100 


103 


103 


110 


116 


112 


105 


99 


95 


1914— Months- 






















January.. 


104 


98 


105 


103 


94 


91 


93 


99 


97 


103 


February 


103 


100 


104 


103 


99 


97 


93 


99 


98 


103 


March 


102 


101 


104 


103 


98 


97 


93 


99 


97 


103 


April 


101 


100 


104 


103 


98 


96 


93 


99 


97 


103 


May 


105 


101 


104 


86 


98 


93 


91 


94 


98 


102 


Jime 


96 


98 


109 


86 


98 


90 


90 


92 


99 


102 


July 


88 


101 


107 


86 


98 


88 


90 


92 


104 


100 


August... 


103 


121 


107 


86 


98 


93 


91 


92 


110 


100 


Septem- 






















ber 


119 


130 


107 


86 


98 


96 


93 


92 


113 


101 


October.. 


119 


126 


109 


86 


96 


91 


95 


90 


114 


101 


Novem- 






















ber 


' 123 


129 


109 


86 


94 


87 


93 


90 


117 


102 


Decem- 






















ber 


129 


130 


109 


86 


94 


86 


89 


90 


121 


102 


Quarters— 






















Fu-st 


103 


100 


104 


103 


97 


. 95 


93 


99 


97 


103 


Second. . . 


100 


100 


105 


92 


98 


93 


92 


95 


98 


102 


Third.... 


103 


117 


107 


86 


98 


92 


91 


92 


109 


100 


Fourth... 


124 


128 


109 


86 


95 


88 


93 


90 


117 


102 


Year 


108 


112 


106 


92 


97 


92 


92 


94 


105 


102 


1915— Months- 






















January.. 


149 


150 


115 


86 


94 


87 


87 


90 


124 


105 


February 


173 


169 


102 


86 


94 


87 


87 


90 


126 


105 


March 


164 


164 


141 


86 


94 


87 


87 


90 


124 


105 


April 


171 


169 


113 


86 


94 


88 


89 


97 


101 


102 


May 


168 


172 


115 


86 


94 


88 


90 


99 


111 


100 


June 


132 


144 


117 


86 


95 


90 


89 


100 


125 


100 


July 


125 


154 


119 


85 


96 


97 


88 


101 


138 


103 


August... 


lis 


138 


119 


85 


106 


106 


91 


105 


147 


108 


Septem- 






















ber 


115 


117 


109 


85 


111 


112 


101 


110 


142 


110 


October.. 


121 


121 


109 


85 


113 


115 


107 


114 


142 


114 


Novem- 






















ber 


121 


120 


109 


85 


118 


117 


127 


119 


141 


114 


Decem- 






















ber 


132 


136 


115 


85 


131 


135 


151 


124 


138 


114 


Quarters- 






















First 


162 


161 


119 


86 


94 


87 


87 


90 


125 


105 


Second... 


157 


162 


115 


86 


94 


89 


89 


99 


112 


101 


Third.... 


119 


136 


115 


85 


104 


105 


93 


105 


143 


107 


Fourth... 


125 


126 


111 


85 


121 


122 


128 


119 


141 


114 


Year 


141 


146 


115 


85 


103 


101 


99 


103 


130 


107 



GOVEKNMENT CONTROL OVER PRICES. 



547 



RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR CONTROLLED 

MANUFACTURES. 



Wheat, flour, and bread. 



Wheat, 

No. 2, 

red, 

winter, 

Chicago 

(per 

bu.). 



Prewar base price 
Made equal to 

1916— Months- 
January.. 
February 

March 

April 

May 

June 

July 

August... 
Septem 

ber 

October.. 
Novem- 
ber 

Decem- 
ber 

Quarters — 

First 

Second. . . 

Third... 

Fourth.. 

Year 

1917— Months- 
January.. 
February 
March. 

April 

May 

June 

July.... 
August.. 
Septem- 
ber 

October. 
Novem- 
ber 

Decem- 
ber 

Quarters- 
First.... 
Second. . 
Third.... 
Fourth... 

1918— Months— ' 
January. 
February. 
March. . . 
April 



June 

July 

August.. 

Septem- 
ber 

October., 

Novem- 
ber 

Decem- 
ber 

Quarters — 

First 

Second. . . 

Third.... 

Fourth... 
Year 



$0.9321 
100 

138 
135 
122 
130 
124 
112 
124 
158 

165 
180 

194 

185 

132 
122 
149 
187 
147 

204 
193 
212 
265 
319 
283 
250 
242 

234 
233 



233 

205 
291 
243 
233 
244 

233 
233 
233 
233 
233 
233 
241 
240 

240 
240 

240 

248 

233 
233 
240 
242 
237 



Wheat 
flour, 
stand- 
ard 
pat- 
ents, 
Minne- 
apolis 
(per 
bbl.). 



$4.5699 
100 

145 
141 
129 
136 
135 
126 
133 
166 

184 
203 

215 

190 

138 
133 
161 
203 
159 

202 
198 
211 
254 
326 
304 
279 



232 



Bread, 
loaf. 
New 

York 
(per 

16-oz.). 



Iron ore, pig iron, steel bars, sheet steel, 
and pipe. 



Iron 
ore, 
Mesabi, 
non- 
Bes- 
semer 
51J per 
cent, 
lower 
lake 
ports 
(per 
gr. ton). 



$0.0412 $3.3083 
100 100 



222 

203 
297 
271 
226 
249 

221 
225 
221 
219 
208 
215 
234 
223 

223 
223 



222 
214 
228 
223 
222 



109 
109 
109 
109 
109 
111 
111 
109 

111 
129 

132 

141 

109 
109 
110 
134 
115 

139 
141 
152 
155 
179 
183 
183 
183 

183 
183 

183 

1155 

144 
172 
183 
173 
168 

155 
155 
155 
189 
189 
189 
189 
189 

185 
185 

185 



155 
189 
187 
185 
179 



107 
107 
107 
107 
107 
107 
107 
107 

107 
107 

107 

153 

107 
107 
107 
122 
111 

153 
153 
153 
153 
153 
153 
153 
153 

1153 
153 



153 

153 
153 
153 
153 
153 

153 
153 
153 
153 
153 
153 
153 
166 

166 
174 

174 

174 

153 
153 
162 

174 
160 



Pig 
iron, 
basic, 
Ma- 
honing 
or She- 
nango 
VaUey 
furnace 

(per 
gr. ton). 



$13.3183 
100 

134 
133 
137 
136 
135 
135 
135 
135 

137 
149 

188 

225 

134 
135 
136 

188 
148 

225 
225 
242 
291 
312 
366 
394 
384 

1321 
248 



248 

230 
322 
368 
248 
292 

248 
248 
248 
240 
240 
240 
240 
240 

240 

248 

248 

248 

248 
240 
240 
248 
244 



Sheet 
bars, 
Bes- 
semer 
Pitts- 
burgh 
(per 
gr. ton). 



$22.6750 
100 

143 
150 
181 
198 
190 
185 
187 
203 

198 
212 

238 

259 

158 
191 
196 
236 
195 

280 
287 
300 
, 331 
414 
463 
463 
414 

1353 
260 



225 

289 
403 
410 
237 
335 

225 
225 
225 
225 
225 
225 
225 
225 

225 
225 

225 



225 
225 
225 
225 
225 



Steel, 
blue, 

an- 
nealed 
sheets, 

10- 
gauge, 
Pitts- 
burgh 

(per 
cwt.). 



$1.4983 
100 

170 
177 
190 
197 
200 
200 
194 
194 

194 
210 

225 

244 

179 
199 
194 
226 
200 

284 
300 
314 
360 
447 
534 
551 
534 

534 
501 

1296 

284 

299 
447 
539 
360 
410 

284 
284 
284 
284 
284 
284 
284 
284 

284 
284 

284 

270 

284 
284 
284 
279 
283 



Pipe, 
cast- 
iron, 

6-inch, 
New 
York 
(per 

sh. ton) 



Cattle, hides, 
and sole leather. 



$22.2258 
100 

130 
132 
134 
137 
137 
137 
137 
137 

139 
142 

160 

184 

132 
137 
138 
162 
142 

187 
187 
196 
233 
250 
273 
295 
295 

295 
270 

254 

1254 

189 
252 
295 
260 
249 

249 
249 
249 
249 
256 
276 
278 
278 

278 
305 

305 

305 

249 
260 
278 
305 
273 



Cattle 
hides, 
packer, 
heavy, 
native 
steers, 
Chicago 
(per 
15.). 



$0. 1861 
100 

124 
128 
122 
120 
133 
144 
145 
141 

140 
143 

169 

180 

125 
132 
142 
164 
141 

180 
171 
164 
164 
169 
177 
177 
172 

177 
181 



188 

172 
170 
176 
186 
176 

176 
157 
141 
146 
^167 
177 
174 
161 

161 
161 

156 

156 

160 
164 
166 
158 
161 



Sole 
leather, 
hem- 
lock, 
packer, 
slaugh- 
ter. 
No. 1, 
Chicago 
(per 
lb.). 



$0.3192 
100 

111 
114 
114 
117 
122 
122 
122 
122 

122 
127 

174 

188 

113 
121 
122 
163 
130 

190 
189 
188 
188 
187 
185 
185 
172 

166 
157 

160 

160 

189 
187 
174 
159 
177 

156 
152 
149 
149 
157 
165 
169 
1169 

171 
172 

174 

175 

149 
157 
170 
174 
163 



1 Government control of price began during month. 



548 



HISTORY OF PRICES DURING THE WAR. 



RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR CONTROLLED 

MANUFACTURES. 





Com and com- 
mcal. 


Raw 
cane 
sugar 


sugar, refined 
sugar, beet 
granulated. 


Steers and 
st«er rounds. 


Bitmninous 
coal and coke. 




Corn, 
cash, 
No. 3 
yellow, 
Chi- 
cago 

bu.). 


Corn- 
meal, 
white, 

in 
bulk, 
Terre 
Haute 
(per 
cwt.). 


Sugar, 
raw, 
96° 

centri- 
fugal, 
New 
York 
(per 
lb.). 


Sugar, 
refined, 
granu- 
lated, 
New 
York 


Sugar, 
stand- 
ard, 
beet, 
granu- 
lated, 
Chi- 
cago 
(per 
l6.). 


Steers, 
choice 

to 
prime, 
heavy 
beeves, 
Chi- 
cago 
(per 
cwt.). 


Steer 
rounds, 
No. 1, 
Chi- 
cago 
(per 
lb.). 


Coal, 
bitu- 
minous, 
Pitts- 
burgh, 
No. 8, 
Ohio, 
Colum- 
bus, 
and 
De- 
troit 
(persh. 
ion). 


Coke, 
Con- 
nells- 
ville 

furnace, 
f.o.b. 
ovens 




$0.6859 
100 

70 
71 

74 
81 
83 
89 

90 
108 
110 
102 
106 
100 

72 
■ 84 
104 
102 

90 

91 
90 
95 
99 
102 
104 

104 
118 
115 
107 
100 
94 

92 
102 
114 
101 
102 

104 
108 
105 
110 
111 
109 

114 
119 
112 
93 
93 
97 

106 
110 
114 
94 

107 


$1.6962 
100 

74 
75 
83 
94 
94 
97 

100 
107 
111 
102 
97 
98 

78 
95 
106 
99 
94 

95 
97 
96 
96 
97 
106 

105 
118 
115 
104 
99 
97 

96 
100 
113 
101 

102 

95 
100 

98 
100 
101 

96 

103 
100 
93 

84 
82 
90 

98 
99 
99 
86 
95 


$0. 0340 
100 

104 
102 
104 
100 

98 
98 

104 
109 
109 
102 
106 
99 

104 
99 
108 
103 
103 

99 
101 
88 
87 
94 
99 

97 
154 
170 
131 
115 
117 

96 
94 
141 
122 
113 

119 
139 
143 
139 
142 
144 

143 
140 
126 
122 
143 
146 

133 

142 
137 
136 

137 


$0.0413 
100 

109 
101 
101 
99 
99 
100 

108 
112 
110 
101 
102 
99 

104 
100 
110 
101 
104 

95 
95 
92 
90 
96 
101 

102 

157 
165 
144 
119 
117 

94 
96 
141 
127 
114 

lis 

134 
138 
140 
142 
142 

141 
133 
123 
120 
138 
143 

130 

142 
132 
1.34 
135 


$0.0426 
100 

109 
101 
101 
99 
99 
100 

108 
110 
109 
100 
101 
98 

103 
99 
109 
100 
103 

96 
96 
93 
91 
96 
101 

102 
156 
162 
143 
118 
117 

95 
96 
140 
125 

114 

118 
133 
138 
139 
140 
141 

140 
131 
122 
118 
129 
127 

130 
140 
131 

127 
132 


$9. 1022 
100 

99 
98 
98 
98 
95 
96 

99 
98 
100 
100 
98 
98 

98 
96 
99 
99 

98 

101 
101 
102 
102 
100 
101 

106 
110 
116 
115 
112 
107 

101 
101 
111 
111 
106 

101 
94 
95 
92 
95 

102 

109 
108 
107 
106 
109 
106 

97 
96 
108 
107 
102 


$0. 1295 
100 

97 
97 
95 
99 
103 
104 

108 
108 
104 
104 
99 
97 

96 
102 
107 
100 
101 

93 
90 
96 
93 
101 
108 

114 
117 
115 
107 
100 
98 

93 
101 
116 
102 

97 

90 

89 
89 
86 
96 
102 

104 
106 
105 
97 
98 
93 

89 
95 
105 
96 
96 


$1.0900 
100 

113 
98 
93 
97 
96 
94 

92 
99 
100 
106 
115 
100 

101 
96 
97 
107 
100 

98 
99 
99 
99 
97 
97 

95 
91 
91 
96 
102 
102 

99 
98 
92 
100 
97 

103 
105 
95 
94 
88 
90 

89 
94 
95 
98 
97 
100 

101 
91 
92 
99 
96 


$2.0625 




100 


1913— Months— 


178 




149 




124 




113 




104 




107 


July 


115 




121 


September 


119 


October 


105 


November 


93 




91 


Quarters- 
First 


150 




108 


Third 


118 


Fourth 


97 


Vear 


118 


1914— Months- 
January 


93 


February 


93 




91 


A^ril 


93 


May 


93 


June 


91 


July 


91 


August 


87 


September 


84 


October 


81 




75 


December 


79 


Quarters- 
First 


93 




93 


Third 


87 


Fourth 


78 


Year 


88 


1915— Months- 


79 


February 


76 




76 




79 


May - - - 


79 




79 


July 


85 




81 


September 


81 


October 


97 




115 




112 


Quarters- 
First 


77 




79 


Third 


82 


Fourth 


108 


Year 


87 







GOVERlsTMENT COE-TROL OVER PRICES. 



549 



RELATIVE PRICES OP CONTROLLED RAW MATERIALS AND THEIR CONTROLLED 

MANUFACTURES. 



Com and com- 
meal. 



Raw ' sugar, refined 
cane sugar, beet 
sugar, granulated. 



Com, 
cash, 
No. 3, 
yellow, 
Chi- 
cago 
(per 
bu.). 



Com- 


Sugar, 


meal. 


raw. 


white. 


9G° 


in 


centri- 


bulk. 


fugal, 


Terre 


New 


Haute 


York 


(per 


(per 


cwt.). 


Ib.j. 



Sugar, 
refined, 
granu- 
lated. 
New 
York 
(per 
lb.). 



Sugar, 
stand- 
ard, 
beet, 
granu- 
lated, 
Chi- 
cago 
(per 
lb.). 



Steers and 
steer rounds. 



Steers, 
choice 

to 
prime, 
heavy 
beeves, 
Chi- 
cago 
(per 
cwt.). 



Steer 
rounds. 
No. 1, 
Chi- 
cago 
(per 
lb.). 



Bituminous 
coal and coke. 



Coal, 
bitu- 
minous, 
Pitts- 
burgh, 
No. 8, 
Ohio, 
Colum- 
bus, 
and 
De- 
troit 
(per sh, 
ton). 



Coke, 
Con- 
nells- 
ville 
furnace, 
f.o.b. 
ovens 
(per sh. 
ton). 



Prewar base price. 
Made equal to. 

1016— Months- 
January... 
February.. 

March 

April 

May 

June 



July 

August 

September. 
October. . . 
November. 
December. 



Quarters- 
First... 
Second. 
Third.. 
Fourth . 

Year 



1917— Months- 
January.. 
February. 

March 

April 

May 

June 



July 

August 

September. 
October. . . 
November. 
December. 



Quarters — 

First 

Second.. 
Third... 
Fourth.. 

Year 



191S -Months- 
January.. 
February. 

March 

April 

May 

June 



July , 

August 

September. 

October 

November. 
December. 



Quarters- 
First . . - 
Second. 
Third.. 
Fourth. 

Year 



3. 6859 
100 

111 
108 
105 
111 
109 
106 

117 
125 
126 
141 
143 
133 

107 
109 
123 
139 
123 

144 
146 
164 
218 
240 
252 

301 
301 
301 
292 
1266 
244 

152 
235 
301 
265 
239 

240 
243 
228 
228 
216 
221 

234 
242 
226 
193 
189 
212 

236 
221 
234 
197 
222 



.6962 
100 



101 
102 
109 
104 
106 

117 
123 
123 
131 
148 
141 

100 
107 
121 
140 
117 

147 
149 
164 
221 
243 
243 

288 
328 
313 
302 
1299 
287 

154 
237 
310 
296 
248 

285 
321 
304 
315 
270 
262 

284 
262 
235 
200 
178 
191 

303 

281 
261 
189 
259 



.0340 
100 

137 
145 
164 
180 
189 
185 

186 
169 
159 
186 
186 
158 

148 
184 
172 
175 
170 

154 
149 
162 
184 
179 
177 

196 
216 
205 
1203 
203 
189 

156 
180 
205 
198 
185 

177 
177 
177 
177 
177 
177 

178 
178 
205 
214 
214 
214 

177 
17/ 
186 
214 



$0.0413 
100 

139 
145 
160 
171 
181 
178 

182 
169 
154 
171 

178 
168 

148 
177 
169 
172 



.0426 
100 

127 
141 
157 
169 
178 
179 

178 
165 
149 
166 
174 
164 

144 
176 
164 
168 



$9. 1022 
100 

104 
102 
106 
107 
111 
121 

118 
115 
119 
120 
126 
126 



16/ 
160 


163 
156 


166 


162 


171 


176 


197 


187 


192 


187 


183 


176 


180 


183 


198 


187 


199 


191 


198 


1 173 


198 


173 


195 


175 


166 


165 


191 


184 


193 


186 


197 


174 


187 


176 


180 


177 


177 


178 


177 


177 


177 


177 


177 


177 


177 


178 


178 


183 


178 


183 


205 


209 


214 


217 


214 


217 


214 


217 


178 


177 


177 


177 


186 


191 


214 


217 


189 


191 



$0. 1295 
100 



97 
103 
106 
117 

116 
118 
119 
111 
106 
102 



104 


91 


113 


108 


118 


117 


124 


105 


115 


106 


126 


100 


130 


106 


137 


113 


14^^ 


126 


145 


129 


147 


133 


149 


135 


159 


134 


179 


154 


181 


154 


171 


1146 


156 


139 


131 


107 


144 


130 


162 


142 


170 


146 


152 


131 


151 


135 


151 


132 


Iflli 


138 


177 


146 


192 


177 


196 


198 


199 


203 


204 


209 


211 


209 


211 


203 


214 


188 


218 


178 


151 


135 


187 


175 


205 


207 


214 


189 


190 


177 



$1.0900 
100 

96 
97 
95 
102 
102 
103 

103 
103 
123 
228 
425 
366 



102 
109 
340 
162 

442 
438 
335 
248 
374 
392 

269 
1269 
184 
184 
224 
224 

405 
338 
240 
211 
299 

224 
224 
224 
224 
224 
215 

219 
219 
219 
219 
219 
219 

224 
222 
219 
219 
221 



$2.0625 
100 

139 
127 
145 
137 
115 
127 

127 
127 
133 

152 
279 
279 

137 
126 
129 
236 
157 

352 
364 
412 
352 
339 
461 

594 
485 
1570 
291 
291 
291 

376 
384 
549 
291 
a 400 

291 
291 
291 
291 
291 
291 

291 
291 
291 
291 
291 
291 

291 
291 
291 
291 
291 



1 Government control of price began during month- 



550 HISTORY OF PRICES DURING THE WAR. 

8. A COMPARISON OF CONTROLLED PRICES AT WHOLE- 
SALE WITH CORRESPONDING CONTROLLED PRICES AT 
RETAIL. 

The great bulk of regulation over prices administered b}'' the Fed- 
eral Government during the war pertained to producer or wholesale 
prices. There was no real attempt, save in food and fuel, to control 
prices at retail. The task of controlling retail prices, infinitely more 
difficult than that of controlling wholesale prices, was undertaken in 
a comprehensive manner by the Food Administration after its whole- 
sale control was well underway. Since the consumer was more 
directly concerned with the effects of retail control, there attaches 
peculiar interest to the relative prices at which foods at wholesale 
and those at retail were held after control began late in 1917. There 
follows a tabulation of relative prices for 25 leading food commodities 
at wholesale and at retail, which were made strictly comparable by 
letting their respective prewar basis (average actual price for 1913) 
equal 100.^ 

1 These relative prices were made from representative actual retail prices, quoted at various cities through- 
out the United States, as compiled by the Bureau of Labor Statistics. 



GOVERNMENT CONTROL OVER PRICES. 



551 



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552 



HISTORY OF PRICES DURING THE WAR. 







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fi 






































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1 



GOVERNMENT CONTROL OVER PRICES. 553 

9. A COMPARISON OF WAR PRICES IN THE UNITED STATES, 
ENGLAND, FRANCE, AND CANADA. 

The world price revolution which followed close upon the heels of 
the war in Europe, and the widespread control over prices which the 
Governments exercised, make the price student eager to measure the 
relative successes of our Government and foreign Governments in 
stabilizing prices. There are many reasons why caution must be 
exercised while measuring the effects of regulation upon domestic and 
European prices. The paramount difficulty, which can never be 
entirely overcome or discounted, is that Europe went to war and 
began her control nearly tliree years ahead of the United States. 
The United States, which did not set maximum prices until the price 
level had reached a high point, had by far the easier control problem. 
There are, despite these difficulties, certain devices which help to 
measure the relative rises of prices here and abroad during their 
various control periods. 

It is not permissible statistically to judge the relative degrees of 
stabilization that were brought to various price levels, except by a 
comparison of identical prices. The difficulty of finding foreign 
quotations, not to mention that of weighting the few available, makes 
expedient the rejection of the Price Section index number for this 
country and the maldng anew of one to match each foreign index 
number constructed. There were compiled, as the basis for making 
American index nmnbers, 150 commodity prices for England; 44 for 
France; 36 for Italy; and 270 for Canada. These actual prices, after 
reducing them to their smallest monetary unit but without assigning 
weights, were turned into relative prices by letting the average pre- 
war (July 1, 1913, to June 30, 1914) actual price of each series equal 
100. They were then matched by a like number of corresponding 
price series for the United States which also were turned into relatives. 
The resulting set of index numbers for each country, made from the 
medians of relative prices, is strictly comparable with the corre- 
sponding set of index numbers made from corresponding prices in 
the United States. The comparison of prices in England and the 
United States, made more in detail by the separation of food, iron and 
steel, clothing, and chemical prices from the two index numbers, is 
much the most significant of these studies: 



554 



HISTORY OF PRICES DURING THE WAR. 



Listing in Detail of Each Series op Foreign Prices from Which Various 
Foreign Index Numbers Were Made, and for Which Identical Series of 
Domestic Prices Were Chosen to Make Strictly Comparable Index Numbers 
FOR THE United States. 

united kingdom. 

[150 commodities.] 



Acetone. 

Acid, muriatic Tw. 

Acid, acetic, 60 per cent. 

Acid, carbolic, crystals, 34/35°. 

Acid, nitric, 80°. 

Acid, oxalic. 

Acid, sulphuric, 168°. 

Acid, tartaric, powder. 

Alumina, sulphate of, pure. 

Ammonia, anhydrous. 

Ammonia, sulphate of. 

Aniline oil, pure. 

Arsenic, white, powdered. 

Bacon, Canadian, green sides. 

Barley, British Gazette price. 

Barium, sulphate of, native levigated. 

Beans, English. 

Beef, British. 

Benzol, 50/90 per cent. 

Bleaching powder. 

Brass sheets. 

Burlap, bags, Chilean oats and barley. 

Butter, British, first quality. 

Cabbages. 

Calcium, chloride of. 

Casein. 

Cattle, store, shorthorns, yearling. 

Cement, Portland. 

Cheese, Canadian. 

Coal, anthracite, best malting. 

Coal, Lancashire, best house. 

Coal, steam, best Lancashire. 

Coal, steam, smalls, best Cardiff. 

Cocoa, Grenada, good to fine. 

Coffee, Costa Rica, good to fine. 

Coke, furnace, best. South Wales. 

Copper, English selected. 

Copper, standard. 

Copper sheets, sheathing and rods. 

Copper, sulphate of. 

Copper wire. 

Copperas, gi-een, in bulk. 

Cotton, American, middling. 

Cotton, cloth, 32-inch printed, 116 yards, 

16 by 16, 32/50. 
Cotton cloth, 32-inch shirtings, 76 yards, 

19 by 19, 32's/40's. 



Cotton yarn, 60's twist, Egyptian. 

Cotton yarn, 40's weft. 

Creosote, ordinary good liquid. 

Ducks, London, live. 

Eggs, British, first quality. 

Flour, wheat. Town Household. 

Fowls, live. 

Fustic, Jamaica. 

Gambier. 

Glue, best bone (bone liquid glue). 

Glycerin, industrial, S. C, 1,260°. 

Hams, American, green, long cut. 

Hay, best. 

Hemp, manila. 

Hides, cattle, 50/59. 

Hides, cattle, 60/69. 

Hides, cattle, 70/79. 

Hides, cattle, dry and dry salted. Central 
American. 

Hides, cattle, salted, Australian. 

Hogs, porkers. 

Indigo, Bengal, good red violet. 

Iron, bars, unmarked, South Stafford- 
shire. 

Iron bars, Welsh ports. 

Iron hoops, ordinary bedstead. 

Iron, pig, Middlesborough, good marked 
bars. 

Lamb, Argentine. 

Lard, American, boxes. 

Lead, acetate of, white. 

Lead, carbonate of (white lead), pure. 

Lead, nitrate of. 

Lead, red. 

Lead, soft, foreign. 

Lime. 

Lime, acetate of, gray, 80 per cent. 

Logwood, Campeche. 

Lumber, Dantzig and Memel. 

Magnesium, sulphate of. 

Mutton, Argentine, frozen. 

Mutton, English. 

Oatmeal, Aberdeen. 

Oats, British Gazette price. 

Oil, coconut, crude. 

Oil, cottonseed. 

Oil, linseed. 



GOVERNMENT CONTROL OVER PRICES. 



555 



Onions, Valencia. 

Petroleum, American. 

Pork, British. 

Potassium, bichromate of. 

Potassium, chlorate of. 

Potassium, muriate of. 

Potassium, nitrate of. 

Potassium, permanganate of. 

Potassium, sulphate of, 90 per cent. 

Potatoes, English. 

Rice, Bassein. 

Rubber, Para, fine hard. 

Sheep, fat stock, Welsh. 

Shellac, T. N. orange, fair. 

Silk, Cossimbuzzar, raw. 

Silk, Italian. 

Silk, Japan. 

Silver, metal. 

Skins, calf, 12/16. 

Skins, calf, light. 

Skins, kip, first quality. 

Soda, ash, carbonated, 58 per cent (am- 
monia alkali) . 

Sodium, bicarbonate of, crystals. 

Sodium, borate of (borax), crystals. 

Sodium, hydrate of (75 per cent C. soda). 

Sodium, nitrate of, 95 per cent. 

Sodium, silicate of (liquid 100° Tw.). 

Sodium, sulphate of (salt cake). 

Sodium, sulphide of, cone. 

Steel, rails, heavy. 

Steel, sheets, doubles. 

Steel, sheets, galvanized, flat, annealed, 
18 g.. South Wales. 



Steel, strip, mild Siemens, for nails, 
hinges, etc. 

Sugar, cane (West Indian sirups). 

Sulphur, brimstone, best thirds. 

Tallow, imported. 

Tea, Congow. 

Tin, English ingots. 

Tin plates, Bessemer steel coke or Sie- 
mens (coke finish). 

Tobacco, Virginia leaf (in bond). 

Turpentine, American. 

Veal, British, first quality. 

Wheat, British Gazette price. 

Wood pulp, chemical, soda unbleached. 

Wood pulp, chemical, sulphite, bleached, 
good quality. 

Wood pulp, mechanical, 50 per cent 
moist, unwrapped. 

Wool, Cape firsts. 

Wool, good Victoria. 

Wool, domestic, Lincoln hogs. 

Wool, domestic, Scotch blackface. 

Wool, Shropshire hogs. 

Wool, tops, colonial, 40's prepared. 

Wool, tops, colonial, 50's. 

Wool, tops, colonial, 60's, super. 

Wool, tops, colonial, 70's. 

Wool, yarns, 2/48 white botany. 

Wool, yarns, 3/12 white scoured hosiery 
(40's). 

Wool, yams, 2/32's, worsted crossbred. 

Wool, yarns, 2/40's, worsted crossbred. 

Zinc, pig (spelter), ordinary foreign. 

Zinc, sulphate of. 



[44 commodities.] 



Acid, hydrochloric. 

Acid, sulphiu-ic. 

Ammonia, sulphate of. 

Barley. 

Beef, first to third quality, dressed. 

Butter, from all sources. 

Cocoa, Haiti. 

Coffee, Santos, 

Copper, ingots, for manufacturing of brass. 

Cotton, Louisiana ordinary. 

Flour, Corbell brand. 

Gasoline, mineral. 

Glycerin, lixivation. 

Glycerin, saponification.' 

Hay. 

Lard, American. 



Lead, various origins. 

Lime, chloride of. 

Mutton, first to third quality, dressed. 

Oats, black (or gray). 

Oil, colza. 

Oil, linseed. 

Oil, palm. 

Petroleum, refined. 

Pork, first to third quality, dressed. 

Potatoes. 

Rice, Saigon, importation. 

Rubber, fine, Para. 

Rye. 

Silk, raw, Cevennes, second class, 12/16. 
Soap, white, pure, olive oil. 
Soda, carbonate of. 



556 



HISTORY OF PRICES DURING THE WAR. 



Soda, caustic, salts of (for manufacturing). 

Soda, nitrate of. 

Straw. 

Sugar, refined, beet, first quality. 

Superphosphate. 

Tallow, native, fresh melted. 



Tin, English, from Cornwall. 
Tin, Sti-aits Settlements. 
Wheat, national. 
Wine, Rousillon, 10-11°. 
Wool, Buenos Aires. 
Zinc, of Silesia. 



[270 commodities.] 

A listing of the specific series which went into the making of this index niunber, 
which is of less importance for the purposes of this inquiry than those previous, may 
be had ])y reference to the index number made by the Canadian Department of Labor. 

The medians of relative prices of 150 identical commodities in 
England and the United States, show that English prices rose earlier 
and higher than American prices. While England had a more 
difficult control problem, because she started regulation before prices 
had adjusted themselves to the war pressure, the general rise of 
English prices was not stopped by regulatory measures. The level 
of American prices, after this country began control, shows a marked 
stability by comparison with the continued British rises. Food 
prices were held relatively much lower in the United States than in 
England, as were chemical prices. The prices of iron and steel, on 
the other hand, were stabilized on a somewhat lower level relatively 
in England than in the United States. The prices of clothing rose 
and fell relatively about the same in England and the United States 
though the rise and fall were both slightly earlier in this country 
than in England. 

The medians of relative prices of 44 identical commodities in 
France and the United States, show that French prices rose earlier 
and much higher than American prices. The American prices of 
these selected commodities, unlike those of the corresponding prices 
for France, turned downward early in 1918. The behavior of Cana- 
dian and American prices was curiously sijnilar, though Canadian 
prices rose slightly higher. 



GOVERNMENT GONTKOL OVER PEIOES. 



557 



|gi Mb. 






:^ 





558 



HISTORY OF PRICES DURING THE WAR. 




8 S 



"~i: 



-a 



<8 
n 

fl «§ o 

2 M " 

\S o2 

.2 _ CO >" 

it Si 

»-< ca-^ 

^ 4) m"o 

lO R H (9 




GOVERNMENT CONTROL OVER PRICES. 



559 









560 



HISTOKY OF PRICES DURING THE WAR. 



ACOMrARISON OF INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES, 
ENGLAND, FRANCE, AND CANADA. 

[Medians of relative prices of identical lists of commodities figured by makins the price from July 1, 1913, 

to June 30, 1914=100.] 











::^lass and series. 








Ml commodities. 


Food. 


Iron and steel. 


Clothing. 


Chemicals. 


Date. 


(150) 


(34) 


(9) 


(29) 


(55) 




Eng- 


United 


Eng- 


United 


Eng- 


United 


Eng- 


United 


Eng- 


United 




land. 


States. 


land. 


States. 


land. 


States. 


land. 


States. 


land. 


States. 


1913— Months- 






















January 


101 


101 


102 


94 


113 


114 


99 


105 


100 


100 


February.. . 


102 


101 


103 


99 


113 


115 


99 


105 


100 


100 


March 


101 


101 


105 


99 


112 


115 


99 


105 


100 


100 


April 


101 


101 


105 


100 


112 


113 


99 


102 


100 


ion 


May 


101 
101 


100 
100 


103 
103 


98 
97 


112 
111 


111 
111 


100 
101 


99 
99 


100 
100 


100 


June 


100 


July 


101 
100 


100 
101 


102 
102 


100 
99 


109 
105 


111 
109 


101 
100 


98 
98 


100 
100 


100 


August 


100 


September.. 


101 


101 


102 


101 


106 


103 


100 


100 


100 


100 


October 


101 


101 


101 


101 


101 


103 


101 


103 


100 


100 


November. . 


100 


100 


100 


100 


99 


100 


100 


102 


100 


100 


December. . . 


100 


100 


100 


99 


98 


97 


98 


99 


100 


100 


Quarters- 






















First 


101 


101 


103 


97 


113 


115 


99 


105 


100 


100 


Second 


101 


100 


104 


98 


112 


112 


100 


100 


100 


100 


Third 


101 


101 


102 


100 


107 


108 


100 


99 


100 


100 


Fourth 


100 


100 


100 


100 


99 


100 


100 


101 


100 


100 


Year 


101 


101 


102 


99 


108 


109 


100 


101 


100 


100 


1914— Months- 




January 


100 


99 


100 


100 


98 


■ 95 


98 


97 


100 


100 


February. . . 


100 


99 


100 


100 


98 


98 


98 


99 


100 


100 


March 


100 


100 


100 


100 


96 


98 


101 


101 


100 


100 


April 


99 


99 


98 


98 


98 


96 


101 


100 


100 


100 


May 


99 
99 


99 
99 


97 
98 


99 

. 98 


98 
96 


93 

92 


101 
102 


99 
100 


100 
100 


100 


June 


100 


July 


98 
100 


99 
100 


96 
102 


98 
102 


97 

97 


91 
95 


100 
99 


100 
100 


100 
100 


100 


August 


100 


September . . 


100 


100 


105 


103 


103 


95 


98 


100 


109 


100 


October 


102 


100 


103 


102 


104 


93 


101 


97 


119 


101 


November. . 


102 


100 


104 


103 


104 


93 


96 


100 


114 


lOL 


December. . . 


105 


100 


105 


101 


104 


90 


92 


100 


117 


102 


Quarters- 






















First 


100 


99 


100 


100 


97 


97 


99 


99 


100 


ion 


Second 


99 


99 


9? 


98 


97 


94 


101 


100 


100 


10( 


Third 


99 


100 


101 


101 


99 


94 


99 


100 


103 


IOC 


Fourth 


103 


100 


104 


102 


104 


92 


96 


99 


117 


101 


Year 


100 


100 


101 


100 


99 


94 


99 


99 


105 


IOC 


1915— Months- 




January 


107 


100 


110 


100 


104 


89 


90 


103 


121 


lOi 


February... 


111 


100 


113 


103 


112 


90 


99 


107 


123 


101 


March 


117 


101 


110 


104 


117 


91 


103 


112 


126 


lor 


April 


119 


102 


126 


100 


127 


91 


106 


104 


130 


111 


Mav 


124 
131 


102 
105 


123 
125 


99 
97 


127 
140 


91 
92 


106 
108 


108 
110 


137 
145 


115 


T "^ .... 
June 


lU 


Juiy 


130 
133 


111 
112 


120 
123 


99 
101 


143 
145 


93 
99 


116 
117 


115 
116 


150 

155 


12" 


August 


13 


September . . 


137 


110 


127 


97 


141 


103 


116 


117 


158 


14; 


October 


137 


113 


128 


100 


140 


110 


117 


118 


168 


14' 


November . . 


137 


116 


130 


99 


152 


120 


114 


119 


187 


16( 


December. . 


147 


123 


133 


102 


180 


129 


114 


120 


201 


16" 


Quarters- 






















First 


112 


100 


114 


102 


111 


90 


97 


107 


123 


10. 


Second 


125 


103 


125 


99 


131 


91 


107 


107 


137 


11' 


Third 


133 


111 


123 


99 


143 


98 


116 


116 


154 


IS 


Fourth 


140 


117 


130 


100 


157 


120 


115 


119 


185 


15; 


Year 


128 


108 


123 


100 


13R 


100 


100 


112 


150 


12- 







GOVERISTMEI^T CONTROL OVER PRICES. 



561 



A COMPARISON OF INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES, 
ENGLAND, FRANCE, AND CANADA— Continued. 

[Medians of relative prices of identical lists of commodities figured by making the price from July 1, 1913, 

to June 30, 1914=100.] 



Date. 



Class and series. 



Allcommodities. 
(150) 



Eng- United 
land. States. 



Food. 

(34) 



Eng- 
land. 



United 

States. 



Iron and steel. 
(9) 



Clothing. 
(29) 



Eng- 
land. 



United 


Eng- 


States 


land. 


147 


124 


15S 


126 


165 


127 


167 


128 


167 


130 


167 


139 


171 


139 


171 


138 


171 


148 


171 


153 


188 


161 


218 


167 


157 


126 


167 


132 


171 


142 


192 


160 


172 


140 


222 


168 


226 


168 


243 


170 


261 


175 


289 


184 


325 


190 


357 


196 


357 


200 


349 


201 


289 


206 


250 


212 


250 


230 


230 


169 


292 


183 


354 


199 


263 


213 


285 


191 


250 


236 


250 


242 


250 


245 


250 


249 


250 


243 


250 


243 


251 


258 


251 


223 


251 


223 


251 


230 


251 


205 


251 


205 


250 


241 


250 


245 


251 


235 


251 


213 


251 


234 



United 
States. 



Chemicals. 

(55) 



Eng- 
land. 



United 

States. 



1916— Months- 
January. . . 
February . 

March 

April 

May 

Jiuie 

July 

August 

September 
October. . . 
November . 
December. 

Quarters- 
First 

Second 

Third 

Fourth 

Year 

1917— Months- 
January... 
February. 

March 

April 

May 

June 

July 

August 

September 
October... 
November 
December. 

Quarters — 

First 

Second 

Third 

Fourth 

Year 

1918— Months- 
January. . . 
February. 

March 

April 

May....... 

June 

July 

August 

September 
October... 
November , 
December. 

Quarters — 

First 

Second 

Third 

Fourth.... 

Year 



125547°— 20- 



151 
158 
164 
166 
171 
172 

167 
167 
173 
177 
186 
196 



158 
170 
169 

186 

171 



198 
198 
206 
206 
214 
216 

214 
211 
215 
222 
226 
237 



201 
212 
213 
228 

214 



■ 238 
239 
239 
241 
241 
241 

242 
239 
245 
249 
245 
245 



239 
241 
242 
246 

242 



128 
132 
139 
145 
146 
145 

144 
149 
148 
154 
164 
176 



133 
145 
147 
165 

148 



181 
187 
195 
202 
206 
206 

205 
206 
206 
204 
207 
209 



205 
206 
207 

202 



209 
211 
207 
213 
208 
199 

202 
209 
209 
210 
210 
207 



209 
207 
207 
209 

208 



139 
137 
141 
150 
155 
153 

148 
151 
155 
157 
158 
166 



139 
153 
151 
160 

151 



172 
186 
188 
193 
203 
202 

198 
197 
197 
194 
201 
199 



182 
199 
197 
198 



204 
204 
203 
220 
216 
225 

226 
232 
234 
234 
227 
231 



204 
220 
231 
231 



108 
113 
111 
115 
114 
113 

115 
117 
123 
124 
129 
127 



111 
114 
118 
127 

117 



137 
146 
149 
165 
178 
169 

157 
155 
164 
170 
173 
187 



144 
171 
159 
177 



182 
195 
192 
199 
190 
186 

187 
200 
201 
206 
209 
208 



190 
192 



210 
219 
231 
225 

225 
225 
225 
225 

227 
234 



199 
225 
225 
229 

219 



240 
240 
210 
206 
218 
241 

241 
231 
231 
222 
222 
222 



230 
222 
234 
222 



222 
222 
222 
222 
222 
222 

222 
220 
218 
216 
216 
216 



222 
222 
220 
216 



123 
126 
132 
134 
136 
141 

142 
142 
143 
147 
160 
175 



127 
137 
142 
161 



179 
185 
189 
187 
194 
210 

216 
212 

209 
218 
240 
246 



184 
197 
212 
235 

207 



247 
250 
251 
239 
212 
232 

225 
203 
203 
203 
190 
185 



249 
228 
210 
193 



204 
207 
226 
230 
235 
255 

255 
261 
261 
255 
264 
255 



212 
240 
259 
258 

242 



255 
262 
286 
286 
293 
293 

289 
288 
289 
296 
302 
302 



268 
291 
289 
300 



202 
314 
312 
312 
326 
326 

326 
307 
321 
336 
300 
283 



309 
321 
318 
306 

314 



183 
208 
208 
250 
250 
250 

233 
216 

200 
190 
193 
192 



200 
250 
216 
192 

214 



192 
192 
205 
235 
240 
235 

229 
239 
239 

247 
244 
237 



196 
237 
236 
243 



240 
240 
240 
236 
247 
247 

213 
228 
230 
250 
251 
233 



240 
243 
224 
245 

238 



-36 



562 



HISTOEY OF PEICES DUEIXG THE WAE. 



ACOMP.VKISON OF INDEX NUMBERS OF WHOLESALE PIUCES IN THE UNITED STATES, 
ENGLAND, FIIANCE. AND CANADA— Contiaued. 

[ileliaus of relative prices of identical lists of commodities fiinared by making tlic price from July 1, 1013, 

to June 30, 1914=100.] 





All commodities class. 






Series 41. 


Series 270. 




France. 


United 

States. 


Canada. 


United 

States. 


1913— MoBths— 


102 
102 
101 
102 
102 
102 

100 
102 
102 
101 
100 
100 

102 
102 
101 
100 

101 

100 
100 
100 
98 
100 
100 

100 
98 
98 
99 
99 

104 

100 
99 
99 

101 

100 

105 
106 
113 
111 
107 
106 

114 
118 
127 
130 
141 
153 

108 
108 
120 
141 

119 


100 
100 
100 
100 
100 
100 

100 
101 
103 
103 

101 
99 

100 
100 
101 
101 

101 

99 
100 
100 

99 
100 

99 

97 
99 
108 
99 
97 
99 

100 
99 

101 
98 

100 

100 
100 
103 
101 
99 
100 

102 
102 
96 
98 
102 
116 

101 
100 
100 
105 

102 


101 
100 
100 
100 
100 
100 

99 
99 
99 
99 

100 

101 

100 
100 
99 
100 

100 

101 
101 
101 

101 
100 
100 

99 
100 
104 
102 
101 
101 

101 
100 
101 
102 

101 

102 
105 
107 
106 
109 
110 

111 
112 
111 
112 
117 
119 

105 
109 
111 = 
116 

110 


103 




102 




102 




101 


May 


100 




100 


July - 


100 




101 




102 




102 




102 




101 


Quarters- 
First. 


102 




100 


Tliird 


101 


Fourth . - 


102 




101 


191d— Months— 


100 




100 




99 


April 


98 
97 


June — 

July 


97 
97 




101 




101 




99 


November . 


98 




98 


First ... 


100 




97 


Third 

Fourth. . . 


100 

98 




99 




100 




100 


March 


100 




100 


May - 


100 




100 




102 




102 


September . 


102 




104 




107 


December. . 


111 


Quarters- 


100 




100 




102 


Fourth 


107 




102 







GOVEENMEISTT CONTROL OVER PRICES. 



563 



^ COMPARISON OF INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES, 
ENGLAND, FRANCE, AND CANADA— Continued. 

[Medians of relative prices of identical lists of commodities fisured by maldng the price from July 1, 1913, 

to June 30, 1914=100.] 



All commodities class. 



Series 44. 



France. 



United 
States. 



Series 270. 



Canada. 



United 
States. 



1916— Months- 
January.. . 
February . 
.March..".. 

April 

May 

Juno 

July 

August 

September 
October... 
November 
December. 

Quarters — 

First 

Second 

Third 

Fourth.... 

Year 

1917— Months- 
January. . . 
February. 

March 

April 

May 

June 

July 

August 

September 
October... 
November . 
December. 

Quarters- 
First 

Second 

Thu-d 

Fourth.... 

Year 

191S— Months- 
January... 
February . . 

March 

April 

May 

June 

July 

August 

September, 

October 

November . 
December. . 

Quarters — 

First 

Second 

Third 

Fourth 

Year 



160 
162 
165 
167 
170 
170 

161 
163 
172 

177 
183 
189 



162 
169 
165 
183 

170 



226 



127 
128 
129 
132 
134 
123 

125 
132 
134 
138 
151 
150 



128 
130 
130 
146 

134 



176 



238 


201 


191 


238 


212 


194 


247' 


219 


198 


265 


223 


198 


251 


210 


203 


257 


194 


207 


255 


209 


209 


293 


187 


209 


297 


206 


210 


297 


178 


213 


266 


179 


214 


297 


188 


213 


241 


211 


194 


261 


209 


203 


282 


201 


209 


287 


182 


213 



201 



127 
130 
131 
133 
135 
135 

133 
133 
135 
139 
148 
153 



129 
134 
134 

146 

136 



186 


150 


157 


187 


150 


162 


184 


165 


166 


208 


171 


170 


229 


179 


180 


238 


172 


182 


265 


179 


183 


256 


186 


182 


255 


174 


181 


227 


192 


180 


227 


195 


186 


245 


200 


189 


186 


155 


161 


225 


174 


177 


259 


180 


182 


233 


196 


185 



176 



205 



115 
118 
121 
123 
123 
122 

123 
125 
127 
132 
141 
144 



118 
123 
125 
139 

126 



148 
151 
156 
170 

178 
183 

189 
187 
186 
182 
183 
•182 



152 
177 

187 
182 



185 
187 
188 
191 
190 
189 

193 
196 
201 
201 
201 
203 



187 
190 

197 
202 



BOOK II 

GOVERNMENT REGULATIONS RELATING 

TO PRICES 



565 



1. INTRODUCTION. 



The substance of all known formal and informal regulations relating to 
prices, tliat were issued by the Government during the war, has been put here 
into compact form. The regulations compiled and digested make up Book II 
of the study on " Government Control Over Prices," 

The Government issued thousands of regulations during the war relating 
to production, conservation, curtailment, priority, transportation, and pur- 
chase which affected prices indirectly but are not here recorded. This digest 
does not comprehend other controls than those which pertain strictly to prices. 
An endeavor has been made even to cut away parts of regulations, where the 
whole regulation was not relevant to price control. 

The body of separate regulations that appear are classified alphabetically, 
under one or another of the following main commodity groups : Foods ; fuels ; 
metals and metal products ; textiles and fibers ; hides, skins and leather ; lumlier ; 
building materials ; chemicals ; rubber ; and paper. There remained two alterna- 
tive methods of arrangement each with its advantages — a classification of regu- 
lations under the Government agencies exercising them, and a classification 
chronologically by the dates of their issue. The former alternative proved not 
feasible since frequently the same commodity was controlled by various boards 
at different times. Its advantages, moreover, can be had by reference to the 
main part of this investigation where the commodity controls are discussed 
under the boards exercising them at the signing of the armistice. The latter 
alternative had only a slight advantage to recommend it. It should be noted 
that, although the regulations are listed alphabetically, it is possible to find 
quickly the date of each regulation and the Government agent exercising it. 

The Government has not heretofore attempted any compilation of war- 
time regulations over prices, and it is inevitable that this one will present slight 
omissions. The most serious of these are the many informal agreements per- 
taining to prices which commodity chiefs made with their industry, and of Avhich 
no records remain. The Government regulations which are printed here include 
all that were found in the official sources of price regulation, and many others 
that were discovered by correspondence and by searching through the files left 
over from the war. 

The compilers have not felt obliged to include all differential prices, which 
the industry calculated and printed with Government approval. These differ- 
entials represent simply prices figured to make various grades of goods sell 
in scale with the base prices fixed by the Government, 

567 



2. FOODS. 



The Congress passed the food and fuel control act (Public, No. 41, 65th Cong.) 
on August 10, 1917, and thereby gave the President power to bring under 
license control virtually all large dealers in foodstuffs.^ The President, by a 

* There follows in full a copy of the provisions of the food and fuel act of Aug. 10, 1917 
(Public, No. 41, 65th Cong., H. R. 4961), which relate to food control. 

An Act To provide further for the national security and defense by encouraging the 
production, conserving the supply-, and controlling the distribution of food products 
and fuel. 

Be it enacted ty the Senate and House of Representatives of the United States of 
America- in Conoress a^semhled, That by reason of the existence of a state of war, it is 
essential to the national security and defense, for the successful prosecution of the war, 
and for the support and maintenance of the Army and Navy, to assure an adequate supply 
and equitable distribution, and to facilitate the movement, of foods, feeds, fuel including 
fuel oil and natural gas, and fertilizer and fertilizer ingredients, tools, utensils, imple- 
ments, machinery, and equipment required for the actual production of foods, feeds, and 
fuel, hereafter in this Act called necessaries ; to prevent, locally or generally, scarcity, 
monopolization, hoarding, injurious speculation, manipulations, and private controls, 
affecting such supply, distribution, and movement ; and to establish and maintain govern- 
mental control of such necessaries during the war. For such purposes the instrumen- 
talities, means, methods, powers, authorities, duties, obligations, and prohibitions herein- 
after set forth are created, established, conferred, and prescribed. The President is 
authorized to make such regulations and to issue such orders as are essential effectively 
to carry out the provisions of this Act. 

Sec. 2. That in carrying, out the purposes of this Act the President is authorized to 
enter into any voluntary arrangements or agreements, to create and use any agency or 
agencies, to accept the services of any person without compensation, to cooperate with any 
agency or person, to utilize any department or agency of the Government, and to coordi- 
nate their activities so as to avoid any preventable loss or duplication of efforts or funds. 

Sec. 3. That no person acting either as a voluntary ur paid agent or employee of the 
United States in any capacity, including an advisory capacity, shall solicit, induce, or 
attempt to induce any person or officer authorized to execute or to direct the execution of 
contracts on behalf of the United States to make any conrtaet or give any order for the 
furnishing to the United States of work, labor, or services, or of materials, supplies, or 
other property of any kind or character, if such agent or employee has any pecuniary 
interest in such contract or order, or if he or any firm of which he is a member, or cor- 
poration, joint-stock company, or association of which he is an officer or stockholder, or in 
the pecuniary profits of which he is directly or indirectly interested, shall be a party 
thereto. Nor shall any agent or employee make, or permit any committee or other body 
of which he is a member to make, or participate in making, any recommendation concerning 
such contract or order to any council, board, or commission of the United States or any 
member or subordinate thereof, without making to the best of his knowledge and belief a 
full and complete disclosure in writing to such council, board, commission, or subordinate 
of any and every pecuniary interest which he may have in such contract or order and of 
his interest in any firm, corporation, company, or association being a party thereto. Nor 
.shall he participate in the awarding of such contract or giving such order. Any willful 
violation of any of the provisions of this section shall be punishable by a fine of not more 
than $10,000, or by imprisonment of not more than five years, or both : Provided, That the 
provisions of this section shall not change, alter or repeal section forty-one of chapter 
three hundred and twenty-one. Thirty-fifth Statutes at Large. 

Sec. 4. That it is hereby made unlawful for any person willfully to destroy any 
necessaries for the purpose of enhancing the price or restricting the supply thereof ; 
knowingly to commit waste or willfully to permit preventable deterioration of any neces- 
saries in or in connection with their production, manufacture, or distribution ; to hoard, 
as defined in section six of this Act, any necessaries ; to monopolize or attempt to monopo- 
lize, either locally or generally, any necessaries ; to engage in any discriminatory and 
unfair, or any deceptive or wasteful practice or device, or to make any unjust or unrea- 
sonable rate or charge, in handling or dealing in or with any necessaries ; to conspire, 
combine, agree, or arrange with any other person, (a) to limit the facilities for trans- 
porting, producing, harvesting, manufacturing, supplying, storing, or dealing in any 
necessaries; (b) to restrict the supply of any necessaries; (c) to restrict distribution 

568 



GOVERNMENT REGULATIONS RELATING TO PRICES. 569 

series of Executive orders and proclamations, put entire responsibility for food 
control under the United States Food Administrator, Herbert O. Hoover, and 
extended the list of foods requiring licenses from the Food Administration.^ 

1 There follow the Executive orders and proclamations issued from time to time, and 
which were the immediate authority from the President for the administration of control : 

EXECUTIVE ORDERS. 

Providing for organization of the United States Food Administrators, Aug. 10, 1917. 

Providing for organization of the Food Administration Grain Corporation, Aug. 14, 
1917. 

Directing Treasury Department to enforce sections 15 and 16 of food-control act, Sept. 2, 
1917. 

Providing for appointment of secretaries to Federal Food Administration without civil- 
service examination, Sept. 27, 1917. 

Providing for requisitioning of foods and feeds, Oct. 23, 1917. 

Amending civil-service regulations, Nov. 10, 1917. 

Authorizing United States Food Administration to find that fair profit is normal average 
prewar profit, Nov. 27, 1917. 

Designating Food Administration Grain Corporation as agency of United States to pur- 
chase wheat, and directing that capital stock be increased, June 21, 1918. 

Note regarding formation of the United States Sugar Equalization Board (Inc.), formed 
July 13, 1918. 

■ PROCLAMATIONS. 

License of wheat and rye elevators and millers, Aug. 14, 1917. 

License of importers, manufacturers, and refiners of sugar, sugar sirups, and molasses, 
Sept. 7, 1917. 

License of manufacturers and distributors of certain food commodities, Oct. 8, 1917. 

Licensing bakers, Nov. 7, 1917. 

License of arsenic industry, Nov. 15, 1917. 

Limiting alcoholic content of malt liquor, Dec. S, 1917. 

License of ammonia industry, Jan. 3, 1918. 

Licensing the importation, manufacture, storage, and distribution of feeds and certain 
other food commodities, Jan. 10, 1918. 

Conservation of wheat, Jan. 18, 1918. 

Licensing bakers not already licensed, and importers and distributors of green coffee, 
Jan. 30, 1918. 

Fixing guaranteed prices for 1918 wheat crop, Feb. 21, 1918. 

License of fertilizer industry, Feb. 25, 1918. 

Licensing packers of canned tuna and others. May 14, 1918. 

License of farm-equipment industry. May 14, 1918. 

License of stockyards, June 18, 1918. 

Fixing guaranteed prices for 1919 wheat crop, Sept. 2, 1918. 

License of dealers in live or dead cattle, sheep, swine, or goats, Sept. 6, 1918. 

Prohibiting manufacture of malt liquors, Sept. 16, 1918. 

Licensing operators of warehouses storing foods and feeds for hire, and others, Nov. 2, 
1918, 

of any necessaries; (d) to prevent, limit, or lesson the manufacture or production of any 
necessaries in order to enhance the price thereof, or (e) to exact excessive prices for 
any necessaries ; or to aid or abet the doing of any act made unlawful by this section. 

Sec. 5. That, from time to time, whenever the President shall find it essential to 
license the importation, manufacture, storage, mining, or distribution of any necessaries, 
in order to carry into effect any of the purposes of this Act, and shall publicly so 
announce, no person shall, after a date fixed in the announcement, engage in or carry 
on any such business specified in the announcement of importation, manufacture, storage, 
mining, or distribution of any necessaries as set forth in such announcement, unless he 
shall secure and hold a license issued pursuant to this section. The President is author- 
ized to issue such licenses and to prescribe regulations for the issuance of licenses 
and requirements for systems of accounts and auditing of accounts to be kept by 
licensees, submission of reports by them, with or without oath or affirmation, and the 
entry and inspection by the President's duly authorized agents of the places of business 
of licensees. Whenever the President shall find that any storage charge, commission, 
profit, or practice of any licensee is unjust, or unreasonable, or discriminatory and 
unfair, or wasteful, and shall order such licensee, within a reasonable time fixed in the 



570 HISTORY or PRICES DURING THE WAR. 

The whole body of regiUatious pertaining to foods issued by tlie Food Admin- 
istration fall under general license regulations (No. I) or special license regula- 

order, to discontinue the same, unless such order, which shall recite the facts found, 
is revoked or suspended, such licensee shall, within the time prescribed in the order, dis- 
continue such unjust, unreasonable, discriminatory and unfair storage charge, com- 
mission, profit, or practice. The President may, in lieu of any such unjust, unreasonable, 
discriminatory, and unfair storage charge, commission, profit, or practice, find what is 
a just, reasonable, nondiscriminatory and fair storage charge, commission, profit, or 
practice, and in any proceeding brought in any court such order of the President shall be 
prima facie evidence. Any person who, without a license issued pursuant to this sec- 
tion, or whose license shall have been revolted, knowingly engages in or carries on 
any business for which a license is required under this section, or willfully fails or 
refuses to discontinue any unjust, unreasonable, discriminatory and unfair storage 
charge, com.mission, profit, or practice, in accordance with the requirement of an order 
issued under this section, or any regulation prescribed under this section, shall, upon 
conviction thereof, be punished by a fine not exceeding $5,000, or by imprisonment for 
not more than two years, or both : Provided, That this section shall not apply to any 
farmer, gardener, cooperative association of farmers or gardeners, including live-stock 
farmers, or other persons with respect to the products of any farm, garden, or other 
land owned, leased, or cultivated by him, nor to any retailer with respect to the retail 
business actually conducted by him, nor to any common carrier, nor shall anything in 
this section be construed to authorize the fixing or imposition of a duty or tax upon 
any article imported into or exported from the United States or any State, Territory, 
or the District of Columbia : Provided further. That for the purposes of this Act a 
retailer shall be deemed to be a person, copartnership, firm, corporation, or association 
not engaging in the wholesale business whose gross sales do not exceed $100,000 per 
annum. 

Sec. 6. That any person who willfully hoards any necessaries shall upon conviction 
thereof be fined not exceeding $5,000 or be imprisoned for not more than two years, or 
both. Necessaries shall be deemed to be hoarded within the meaning of this Act when 
either (a) held, contracted for, or arranged for by any person in a quantity in excess of 
his reasonable requirements for use or consumption by himself and dependents for a rea- 
Bonable time ; (b) held, contracted for, or arranged for by any manufacturer, wholesaler, 
retailer, or other dealer in a quantity in excess of the reasonable requirements of his busi- 
ness for use or sale by him' for a reasonable time, or reasonably required to furnish neces- 
saries produced in surplus quantities seasonally throughout the period of scant or no pro- 
duction ; or (c) withheld, whether by possession or under any contract or arrangement, 
from the market by any person for the purpose of unreasonably increasing or diminish- 
ing the price : Provided, That this section shall not include or relate to transactions on 
any exchange, board of trade, or similar institution or place of business as described in 
section thirteen of this Act that may be permitted by the President under the authority 
conferred upon him by said section thirteen : Provided, however. That any accumulating 
or withholding by any farmer or gardener-, cooperative association of farmers or gardeners, 
including live-stock farmers, or any other person, of the products of any farm, garden, or 
other land owned, leased, or cultivated by him shall not be deemed to be hoarding within 
the meaning of this Act. 

Sec. 7. That whenever any necessaries shall be hoarded as defined in section six they 
fchall be liable to be proceeded against in any district court of the United States within the 
district where the same are found and seized by a process of libel for condemnation, and if 
such necessaries shall be adjudged to be hoarded they shall be disposed of by sale in such 
manner as to provide the most equitable distribution thereof as the court may direct, and 
the proceeds thereof, less the legal costs and charges, shall be paid to the party entitled 
thereto. The proceedings of such libel cases shall conform as near as may be to the pro- 
ceedings in admiralty, except that either party may demand trial by jury of any issue of 
fact joined in any such case, and all such proceedings shall be at the suit of and in the 
name of the United States. It shall be the duty of the United States attorney for the 
proper district to institute and prosecute any such action upon presentation to him of 
satisfactory evidence to sustain the same. 

Sec. 8. That any person who willfully destroys any necessaries for the purpose of en- 
hancing the price or restricting the supply thereof shall, upon conviction thereof, be fined 
not exceeding $5,000 or imprisoned for not more than two years, or both. 

Sec. 9. That any person who conspires, combines, agrees, or arranges with any other 
person (a) to limit the facilities for transporting, producing, manufacturing, supplying, 
storing, or dealing in any necessaries; (b) to restrict the supply of any necessaries; (c) 
to i-estrict the distribution of any necessaries ; (d) to prevent, limit, or lessen the manu- 
facture or production of any necessaries in order to enhance the price thereof shall, upon 



GOVERlSrMElSrT KEGULATIOIsrS RELATING TO PRICES. 571 

tions (Nos. II to XXVIII) / Tliese regulations, issued during the war in mimeo- 
graplied and printed loose-leaf form, i>ertain to prices, specifications, contracts, 

1 There follows a list showing dates of the various general and special license regulations 
issiaed by the Food Administration ; 

No. T. General license regulations : GoTerning all licenses for the importation, manufac- 
ture, storage, and distrihution of food commodities and feeds. 

SPECIAL, LICENSE REGULATIONS. 

No. II. Wheat millers and manufactureTS of mixed flotirs, effective July 22, 1918. 

No. III. A. Elevators and dealers handling wlieat, rye, corn, oats, and barley. B. Corn, 
oats, rye, and barley millers. Effective September 23, 1918. 

No. IV. A. Malsters. B. Near-beer manufacturers, effective September 23, 1918. 

No. V. A. Special xegtilations governing dealers in rongh rice. B. Special regulations 
governing rice millers and mamifacturers of rice flonr, effective July 29, 1918. 

No. VE. Manufacturers and xefiners of sugar, effective June 15, 1918. 

No. "^m. Canners of peas, tomatoes, corn, dried beans, salmon, sardines and tuna, and 
manufacturers of tomato catsup, tomato soup, and other tomato products, manufacturer.^ 
of condensed, evaporated, or powdered milk, effective June 15, 1918. 

No. VIII. Packers of dried fruits, effective June 15, 1918. 

No. IX. Dealers and brokers in cotton seed and peanuts and cotton ginners, crushers of 
cotton seed, peanuts, soya beans, palm kernel, and copra. Importers of peanuts, peanut 
oil, soya beans, soya-bean oil, palm kernels, palm-kernel oil, copra, copra oil, and palm oil, 
and dealers and brokers in such imported products. Refiners of and dealers and brokers 
in cottonseed oil, peanut oil, soya-bean oil, palm-kernel oil, and copra oil, effective July 1, 
1918. 

No. X. Special regulations governing manufacture of oleomargarine and other butter 
substitutes, effective December 4, 1918. 

No. XI. Wholesalers, jobbers, importers, retailers: Special rules applying to licensed 
nonperishable food commodities, effective June 15, 1918. 

No. XII. Brokers and auctioneers of licensed nonperishable food commodities, effective 
June 15, 1918. 

No. XIII. Manufacturers of bakery products, effective September 1, 1918. 

No. XIV. Dealers in glucose, refineiV sirups, maple sirup, sorghum, cane-juice sirup, 
centrifugal molasses, open-kettle molasses, West India molasses and blackstrap molasses, 
and manufacturers and misers of mixed molasses, effective November 7, 1918. 

No. XV. Distributors of fresh fruits and vegetables. 

No. XVI. Distributors of fresh fish and frozen fish. 

No. XVII. Salt-water fishermen. 

No. XVIII. Distributors of poultry, effective December 9, 1918. 

No. XIX. Distributors of eggs, effective November 11, 1918. 

No. XX. Manufacturers and distributors of butter, effective December 23, 1918. 

No. XXI. Manufacturers and distributors of cheese, effective June 12, 1918. 

No. XXII. Distributors of milk and cream. 

No. XXIII. Meat packers and manufacturers of lard, distributors of fresh meat. 

No. XXIV. Cold-storage warehousemen, effective August 26, 1918. 

No. XXV. Feeding stuffs, effective August 1, 1918. 

No. XXVI. Directions regarding the use of tin and other containers adopted by the 
United States Food Administration and the War Industries Board applying to manufac- 
turers and packers of baking powder, ground spice, powdered cocoa, chocolate, candy, cof- 
fee, coffee substitutes, tea, s-paghetti, pickles, hominy, condensed milk, salt, lard, and lard 
substitutes, macaroni, sirups, and molasses, effective October 1, 1918. 

No. XXVII. All public eating places, effective December 17, 1918. 

No. XXVIII. Special regulations governing licensees engaged in busines.s a« general stor- 
age warehousemen, effective December 1, 1918. 

conviction thereof, be fined not exceeding $10,000 or be imprisoned for not more than 
two years, or both. 

Sue. 10. That the President is authorized, from time to time, to requisition foods, 
feeds, fuels, and other supplies necessary to the support of the Army or the main- 
tenance of the Navy, or any other public use connected with the common defense, and to 
requisition, or otherwise provide, storage facilities for such supplies ; and he shall 
ascertain and pay a just compensation therefor. If the compensation so determined 
be not satisfactory to the person entitled to receive the same, such person shall be paid 
seventy-five per centum of the amount so determined by the President, and shall be 



572 HISTORY or prices during the war. 

conservation, and distribution. An endeavor lias been made in this digest, made 

entitled to sue the United States to recover such further sum as, added to said seventy- 
five per centum will make up such amount as will be just compensation for such neces- 
saries or fiitorage space, and jurisdiction is hereby conferred on the United States Dis- 
trict Courts to hear and determine all such controversies : Provided, That nothing In 
this section, or in the section that follows, shall be construed to require any natural 
person to furnish to the Government any necessaries held by him and reasonably 
required for consumption or use by himself and dependents, nor shall any person, firm, 
corporation, or association be required to furnish to the Government any seed necessary 
for the seeding of land owned, leased, or cultivated by them. 

Sec. 11. That the President is authorized from time to time to purchase, to store, to 
provide storage facilities for, and to sell for cash at reasonable prices, wheat, flour, 
meal, beans, and potatoes : Provided, That if any minimum price shall have been 
theretofore fixed, pursuant to the provisions of section fourteen of this Act, then the 
price paid for any such articles so purchased shall not be less than such minimum price. 
Any moneys received by the United States from or in connection with the disposal by 
the United States of necessaries under this section may, in the discretion of the Presi- 
defit, be used as a revolving fund for further carrying out the purposes of this section. 
Any balance of such moneys not used as part of such revolving fund shall be covered 
into the Treasury as miscellaneous receipts. 

Sec. 12. That whenever the President shall find it necessary to secure an adequate 
supply of necessaries for the support of the Army or the maintenance of the Navy, or for 
any other public use connected with the common defense, he is authorized to requisition 
and take over, for use or operation by the Government, any factory, packing house, oil pipe 
line, mine, or other plant, or any part thereof, in or through which any necessaries are or 
may be manufactured, produced, prepared, or mined, and to operate the same. Whenever 
the President shall determine that the further use or operation by the Government of any 
such factory, mine, or plant, or part thereof, is not essential for the national security or 
defense, the same shall be restored to the person entitled to the possession thereof. The 
United States shall make just compensation, to be determined by the President, for the 
taking over, use, occupation, and operation by the Government of any sucli factory, mine, 
or plant, or part thereof. If the compensation so determined be unsatisfactory to the 
person entitled to receive the same, such person shall be paid seventy-five per centum of 
the amount so determined by the President, and shall be entitled to sue the United 
States to recover such further sum as, added to said seventy-five per centum, will make x\p 
such amount as will be just compensation, in the manner provided by section twenty- 
four, pai-agraph twenty, and section one hundred and forty-five of the Judicial Code. The 
President is authorized to prescribe such regulations as he may deem essential for carrying 
out the purposes of this section, including the operation of any such factory, mine, or 
plant, or part thereof, the purchase, sale, or other disposition of articles used, manufac- 
tured, produced, prepared, or mined therein, and the employment, control, and compensa- 
tion of employees. Any moneys received by the United States from or in connection with 
the use or operation of any such factory, mine, or plant, or part thereof, may, in the 
discretion of the President, be used as a revolving fund for the purpose of the continued 
use or operation of any such factory, mine, or plant, or part thereof, and the accounts of 
each such factory, mine, plant, or part thereof, shall be kept separate and distinct. Any 
balance of such moneys not used as part of such revolving fund shall be paid into the 
Treasury as miscellaneous receipts. 

Sec. 13. That whenever the President finds it essential in order to prevent undue en- 
hancement, depression, or fluctuation of prices of, or in order to prevent injurious specu- 
lation in, or in order to prevent unjust market manipulation or unfair and misleading 
market quotations of the prices of necessaries, hereafter in this section called evil prac- 
tices, he is authorized to prescribe such regulations governing, or may either wholly or 
partly prohibit, operations, practices, and transactions at, on, in, or under the rules of 
any exchange, board of trade, or similar institution or place of business as he may find 
essential in order to prevent, correct, or remove such evil practices. Such regulations 
may require all persons coming within their provisions to keep such records and state- 
ments of account, and may require such persons to make such returns, verified under oath 
or otherwise, as will fully and correctly disclose all transactions at, in, or on, or under 
the rules of any such exchange, board of trade, or similar institution or place of business, 
including the making, execution, settlement, and fulfillment thereof. He may also require 
all persons acting in the capacity of a clearing house, clearing association, or similar insti- 
tution, for the purpose of clearing, settling, or adjusting transactions at, in, or on, or 
under the rules of any such exchange, board of trade, or similar institution or place of 
business, to keep such records and to make such returns as will fully and correctly dis- 
close all facts in their possession relating to such transactions, and he may appoint agents 



GOVEENMENT EEGULATIOJSTS RELATING TO PEICES. 573 

possible and approved by Mr. W. 0. Mullendore, of the legal section of the Food 

to conduct the investigations necessary to enforce the provisions of this section and all 
rules and regulations made by him in pursuance thereof, and may fix and pay the com- 
pensation Gl such agents. Any person who willfully violates any regulation made pur- 
suant to this section, or who knowingly engages in any operation, practice, or transaction 
prohibited pursuant to this section, or who willfully aids or abets any such violation or 
any such prohibited operation, practice, or transaction, shall, upon conviction thereof, be 
punished by a fine not exceeding $30,000 or by imprisonment for not more than four years, 
or both. 

Sec. 14. That whenever the President shall find that an emergency exists requiring 
stimulation of the production of wheat and that it is essential that the producers of 
wheat, produced within the United States, shall have the benefits of the guaranty pro- 
vided for in this section, he is authorized, from time to time, seasonably and as far iu 
advance of seeding time as practicable, to determine and fix and to give public notice of 
what, under specified conditions, is a reasonable guaranteed price for wheat, in order to 
assure such producers a reasonable profit. The President shall thereupon fix such guar- 
anteed price for each of the official grain standards for wheat as established under the 
United States grain standards Act, approved August eleventh, nineteen hundred and six- 
teen. The President shall from time to time establish and promulgate such regulations 
as he shall deem wise in connection with such guaranteed prices, and in particular gov- 
erning conditions of delivery and payment, and differences in price for the several stand- 
ard grades in the principal primary marliets of the United States, adopting number one 
northern spring or its equivalent at the principal interior primary markets as the basis. 
Thereupon, the Government of the United States hereby guarantees every producer of 
wheat produced within the United States, that, upon compliance by him with the regula- 
tions prescribed, he shall receive for any wheat produced in reliance upon this guarantee 
within the period, not exceeding eighteen months, prescribed in the notice, a price not 
less than the guaranteed price therefor as fixed pursuant to this section. In such regula- 
tions the President shall prescribe the terms and conditions upon which any such pro- 
ducer shall be entitled to the benefits of such guaranty. The guaranteed prices for the 
several standard grades of wheat for the crop of nineteen hundred and eighteen, shall be 
based upon number one northern spring or its equivalent at not less than $2 per bushel at 
the principal interior primary markets. This guaranty shall not be dependent upon the 
action of the President under the first part of this section, but is hereby made absolute 
and shall be binding until May first, nineteen hundred and nineteen. When the President 
finds that the importation into the United States of any wheat produced outside of the 
United States materially enhances or is likely materially to enhance the liabilities of the 
United States under guaranties of prices therefor made pursuant to this section, and 
ascertains what rate of duty, added to the then existing rate of duty on wheat and to 
the value of wheat at the time of importation, would be sufficient to bring the price 
thereof at which imported up to the price fixed therefor pursuant to the foregoing pro- 
visions of this section, he shall proclaim such facts, and thereafter there shall be levied, 
collected, and paid upon wheat when imported in addition to the then existing rate of 
duty, the rate of duty so ascertained ; but in no case shall any such rate of duty be fixed 
at an amount which will effect a reduction of the rate of duty upon wheat under any then 
existing tariff law of the United States. For the purpose of making any guaranteed price 
effective under this section, or whenever he deems it essential in order to protect the 
Government of the United States against material enhancement of its liabilities arising 
out of any guaranty under this section, the President is authorized also, in his discretion, 
to purchase any wheat for which a guaranteed price shall be fixed under this section, 
and to hold, transport, or store it, or to sell, dispose of, and deliver the same to any 
citizen of the United States or to any Government engaged in war with any country with 
which the Government of the United States is or may toe at war or to use the same as 
supplies for any department or agency of the Government of the United States. Any 
moneys received by the United States from or in connection with the sale or disposal of 
wheat under this section may, in the discretion of the President, be used as a revolving 
fund for further carrying out the purposes of this section. Any balance of such moneys 
not used as part of such revolving fund shall be covered into the Treasury as miscel- 
laneous receipts. 

SBC. 15. That from and after thirty days from the date of the approval of this Act no 
foods, fruits, food materials, or feeds shall be used in the production of distilled spirits for 
beverage purposes : Provided, That under such rules, regulations, and bonds as the Presi- 
dent may prescribe, such materials may be used in the production of distilled spirits 
exclusively for other than beverage purposes, or for the fortification of pure sweet wines 
as defined by the Act entitled "An Act to increase the revenue, and for other purposes," 
a-pproved September eighth, nineteen hundred and sixteen. Nor shall there be imported 



574 HISTORY OF PPaCES DUPiING THE WAR. 

Admiuistration, to show simply the rules relating directly to food prices. The 

into the United States any distilled spirits. T\''henever the President shall find that limi- 
tation, regulation, or prohibition of the use of foods, fruits, food materials, or feeds in the 
production of malt or vinous liquors for beverage purposes, or that rodiiction of th.- alco- 
holic content of any such malt or vinous liquor, is essential, in order to assure an adequate 
and continuous supply of food, or that the national security and defense -will'be subserved 
thereby, he is authorized, from time to time, to prescribe and give public notice of the 
extent of the limitation, regulation, prohibition, or reduction so necessitated. Whenever 
such notice shall have been given aJid shall remain unrevoked no person shall, after a 
reasonable time prescribed in such notice, use any foods, fruits, food materials, or feeds lu 
the production of malt or vinous liquors, or import any such liquors except under licens.- 
issued by the President and in compliance vrith rules and regulations determined by hir.i 
governing the production and importation of such liquors and the alcoholic content thereof. 
Any person who willfully violates the provisions of this section, or who shall use any 
foods, fruits, food materials, or feeds in the production of malt or vinous liquors, or who 
shall import any such liquors, without first obtaining a license so to do when a license is 
required under this section, or who shall violate any rule or regulation made under this 
section, shall be punished by a fine not exceeding $.5,000, or by imprisonment for not more 
than two years, or both ; Provided further. That nothing in this section shall be con- 
strued to authorize the licensing of the manufacture of vinous or malt liquors in any 
State, Territory, or the District of Columbia, or any civil subdivision thereof, where the 
manufacture of such vinous or malt liquor is prohibited. 

Sec. 16. That the President is authorized and directed to commandeer any or all dis- 
tilled spirits in bond or in stock at the date of the approval of this Act for redistilla- 
tion, in so far as such redistillation may be necessary to meet the requirements of the 
Government in the manufacture of munitions and other military and hospital supplies, 
or in so far as such redistillation would dispense with the necessity of utilizing products 
and matei-ials suitable for foods and feeds in the future manufacture of distilled spirits 
for the purposes herein enumerated. The President shall determine and pay a just 
compensation for the distilled spirits so commandeered ; and if the compensation so 
determined be not satisfactory to the person entitled to receive the same, such person 
shall be paid seventy-five per centum of the amount so determined by the President and 
shall be entitled to sue the United States to recover such further sum as, added to said 
seventy-five per centum, will make up such amount as will be just compensation for such 
spirits, in the manner provided by section twenty-four, paiagraph twenty, and section 
one hundred and forty-five of the Judicial Code. 

Sec. 17. That every person who willfully assaults, resists, impedes, or interferes with 
any officer, employee, or agent of the United States in the execution of any duty 
authorized to be performed by or pursuant to this Act shall upon conviction thereof be 
fined not exceeding $1,000 or be imprisoned for not more than one year, or both. 

Sec. 18. That the sum of $2,500,000 is hereby appropriated, out of any moneys in the 
Treasury not otherwise appropriated, to be available until June thirtieth, nineteen 
hundred and eighteen, for the payment of such rent, the expense, mcludiug postage, of 
such printing and publications, the purchase of such material and equipment, ana tne 
employment of such persons and m.eans, in the city of "Washington and elsewhere, as tho 
President may deem essential. 

Sec. 19. That for the purposes of this Act the sum of $1.50,000,000 is herebj appropri- 
ated, out of any moneys in the Treasury not otherwise appropriated, to be available 
during the time this Act is in effect: Provided, That no part of this appropriation shall 
be expended for the purposes described In the preceding section : Provided further. That 
itemized statements covering all purchases and disbursements under this and the pre- 
ceding section shall be filed with the Secretary of the Senate and the Clerk of the' 
House of Representatives on or before the twenty-fifth day of each month after the 
taking effect of this Act, covering the business of the preceding month, and said state- 
ments shall be subject to public inspection. 

Sec. 20. That the employment of any person under the provisions of this Act shall not 
exempt any such person from military service under the provisions of the selective draft 
law approved May eighteenth, nineteen hundred and seventeen. 

Sec. 21. The President shall cause a detailed report to be made to the Congress on the 
first day of January each year of all proceedings had under this Act during the year 
preceding. Such report shall, in addition to other matters, contain an account of all 
persons appointed or employed, the salary or compensation paid or allowed each, the 
aggregate amount of the different kinds of property purchased or requisitioned, the use 



GOVEEI^MEirT EEGULATIOISrS EELATIIffG TO PRICES. 575 

original issue numbers of all rules, and tlieir exact lieadings, liave been retained, 
but parts not relevant to prices are omitted. 

and disposition made of such property, and a ■statement of all receipts, payments, and 
exipeiiditures, together with a statement showing the general character, and estimated 
value of all property then on hand, and the Aggregate arncunt and cltaraeter ^of ail claims 
against the "United States growing out of this Act. 

Sec. 22. That if anj^ clause, sentence, pai'agraph, or part of this Act shall for any reason 
be adjudged by any court of competent jurisdictioii to be invalid, sueh judgment shall not 
afEect, impair, or invalidate the remainder thereof, but shall be confined in its oporatiou 
to the clause, sentence, paragraph, or part thereof, dii-ectly involved in the eontrovorsy an 
which such judgment shall have been rendered. 

Sec. 23. That words used in this Act shall fee construed to import the plural or the 
singular, as the case demands. The word "person," wherever used in this Act, shall 
include individuals, partnerships, associations, and corporations. When construing and 
enforcing the provisions of this Act, the act, omission, or failure of any ofBeial. agent, or 
other person acting for or employed by any partnership, association, or corporatioia within 
the scope of his employment or office shall, in every case, also be deemed the act, omission, 
or failure of such partnership, association, or corporation a.s well as that of the person. 

Seo. 24. That the provisions of this Act shall cease to be in effect when the existing 
state of war between tlie United States and Germany shall have terminated, and the fact 
and date of such termination shall be ascertained and proclaimed by the President; but 
the termination of tliis Act shall not affect any act done, or any right or obligation accru- 
ing or accrued, or any suit or proceeding had or commenced in any civil case before the 
said termination pursuant to this Act ; but all rights and liabilities under this Act arising 
before its termination shall continue and may be enforced in the same manner as if the Act 
had not terminated. Any offense committed and all penalties, forfeitures, or liabilities 
incurred prior to such termination may be prosecuted or punished in the same manner and 
with the same effect as if this Act had not been terminated. 

Sec. 26. That any person carrying on or employed in oommerce among the several 
States, or with foreign nations, or with or in tlie Territories or other possessions of the 
United States in any article suitable for human food, fuel, or other necessaries of life, 
wTio, either in his individual capacity or as an officer, agent, or employee of a corporation 
or member of a partnership carrying on or employed in such trade, shall store, acquire, 
or hold, or who shall destroy or make away witii any such article for the purpose of 
limiting the supply thereof to the public or affecting the market price thereof in such 
cojnjnerce, whether temporarily or otherwise, shall be deemed guilty of a felony and, 
upon conviction thereof, shall be punished by a fine of not more than |5,000 or by 
imprisonment for not more than two years, or botli : Provided, That any storing or 
holding by any farmer, gardner, or other person of the products of any farm, garden, 
or other land cultivated by him shall not be deemed to be a storing or holding within 
the meaning of this Act : Provided further, That farmers and fruit growers, cooperative 
and other exchanges, or societies of a similar character shall not be included within the 
provisions of this section : Provided further, Tliat this section shall not be construed to 
proliibit the holding or accumulating of any such article by any such person in a quantity 
not in excess of the reasonable requirements of his business for a reasonable time or in 
a <iuantity reasonably required to furnish said articles produced in surplus quantities 
seasonally throughout the period of scant or no production. Nothing contained in this 
section shall be construed to repeal the Act entitled "An Act to protect tra^Se and com- 
merce against unlawful restraints and monopolies," approved July second, eighteen Tiun- 
dred and ninety, commonly known as the Sherman Antitrust Act. 

Sec. 27. That the President is authorized to procure, or aid in procuring, such stocks 
of nitrate of soda as he may determine to be necesary, and find available, for increasing 
agricultural production during the calendar years nineteen liundred and seventeen and 
eighteen, and to dispose of the same for cash at cost, including all expenses connected 
therewith. For- carrying out the purposes of this section, there is hereby appropriated, 
out of any moneys in the Treasury not otlierwise appropriated, available immediately 
and until expended, the sum of $10,000,000, or so much tliereof as may be necessary, and 
th^ President is authorized to make sucn regulations, and to use such means and agencies 
of the Government, as, in his discretion, he may deem best. The proceeds arising from 
the disposition of the nitrate of soda shall go into the Treasury as miscellaneous receipts. 

Approved, August 10, 1917. 



576 HISTOEY OP PRICES DUEING THE WAKo 

GENERAL REGULATIONS. 

The following general rules correspond to general rules, series B, which became 
elTective, unless otlierwlse noted, on November 1, 1917 : 

Rule 1. Reports to be furnished. — It shall be the duty of each licensee to 
give to such representative as may be designated by the United States Food 
Administrator, whenever the said representative shall so require, any informa- 
tion concerning the conditions and management of the business of the licensee. 
Reports, wlien requested by said representative, shall be made on such blanks, 
to be furnished by the United States Food Administration, as the United States 
Food Administrator may designate, giving complete information regarding trans- 
actions in any commodities imported, manufactured, refined, packed, purchased, 
contracted for, received, sold, stored, shipped or otherwise handled, distributed 
or dealt with by the licensee, or on hand, in the possession or under the control of 
the licensee, and any other information concerning the business of the licensee 
that such representative may require from time to time. Whenever the said 
representative shall require it, the licensee shall furnish such information in 
writing under oath. 

Rule 2. Property and records to be open to inspection, — The authorized repre- 
sentative of the United States Food Administrator shall be at full liberty, dur- 
ing ordinary business hours, to inspect any and all property stored or held in 
possession or under the control of the licensee, and all records of the licensee. 
All necessary facilities for such inspection shall be extended to the said repre- 
sentative by the licensee, its agents and servants. 

Rule 3. Must keep records. — The licensee shall keep such records of his busi- 
ness as shall make practicable the verification of all reports rendered to the 
United States Food Administration. 

Note. — Records of " drop shipments " are to be included in the records of the whole- 
saler as well as of the manufacturer or retailer. 

Rule 5. Unreasonable profits prohibited. — The licensee shall not import, manu- 
facture, store, distribute, sell, or otherwise handle any food commodities on an 
un.iust, exorbitant, unreasonable, discriminatory, or unfair commission, profit, 
or storage charge. 

Notes. — Special profit regulations. — In addition to this general rule requiring that 
profits should be reasonable, the licensee in most lines of business will find special rules 
dealing more explicitly with the pi-ofits permitted in his business. 

Licensee performing two functions. — In cases where a licensee, in addition to his princi- 
pal business, performs another function customarily performed by a different type of 
licensee, as where a manufacturer distributes through a jobbing department directly to the 
retail trade, he will be permitted to make a reasonable charge for each service, provided — 

(a) That he keeps such separate accounts of his operations as to enable him to make 
the reports required of persons licensed to perform that function, and to enable such 
reports to be verified ; and 

(b) Conforms to the regulations of the Food Administration in respect to the supple- 
mentary function which he performs. 

In manj' cases, however, the licensee's service and his expense of operation will not be 
as great as that of persons engaged exclusively in a similar business, and In such case be 
will not be allowed to charge as great a margin as is permitted to such other licensee. 

Void-storage warehouse charges. — This rule prohibits cold-storage warehouse licensees 
from making unreasonable or discriminatory charges in 'handling or storing food com- 
modities. 

The United States Food Administration recognizes the principle that up to a certain 
point it ordinarily costs less per unit to handle large quantities than to handle small 
quantities, and large lots than small lots, of a particular commodity, and has no objection 
to licensees charging a lesser rate per unit for large quantities or lots than for small 
quantities or lots if the differentiation in rates is based on variation of cost in handling the 
particular commodity. 

Hereafter, the above-mentioned principle must be applied by cold-storage warehousemen 
in arranging any variations in rates or discounts for quantity contained in schedules of 
rates or amendments thereto that are filed. 

With respect to rate schedules now on file in which lower rates for large lot.? or 
discounts for quantity are stated, no objection has been or will be made to differentia- 
tiou'^ in rates unless they are obviously merely arbitrary or discriminatory or in effect 
constitute a preference to one or a few patrons, cr unless upon investigation they are 
found to be without reasonable justification. 

All rates must of course he contained in the schedule required to be filed with the 
United States Food Administration and must be clear, explicit, well defined, and intel- 
ligible. Every patron is entitled to know his exact classification and the specific rate he 
is to be charged. 

Application of maximum margins of profits to export transactions. — All sales made 
in the United States are governed by the margins of profit indicated by the Food Admin- 
istration except sales made by exporters who extend credit abroad or sell on letters of 
credit and actually ship the goods abroad, provided, however that where a manufacturer 
or dealer sells to an exporter for shipment on the exporter's own account, or for ship- 
ment as an agent for the buyer, such sales will not be governed by the margins pre- 
scribed by the Food Administration for domestic sales if the seller can show that the 
eoods are shipped abroad without any storage or resale in the United States. (Opinion 
A-125, Dec. 10, 1918.) 



GOVERE'MElirT RBGULATIOFS RELATING TO PRICES. 577 

Eule 6. Resales within same trade prohibited, when. — The licensee, iu selling 
food commodities, shall keep such commodities moving to the consumer in as 
direct a line as practicable and without unreasonable delay. Resales within 
the same trade without reasonable justiification, especially if tending to result 
in a higher market price to the retailer or consumer, will be dealt with as an 
unfair practice. 

Note. — Special resale regulations. — See pamphlets containing special regulations for ap- 
plication of this rule to particular businesses and commodities. 

Dealers in nonperishable commodities will find a full statement explaining what resales 
are reasonable in their business in the special license regulations applying to them under 
Rule A— 6. 

Resales in poultry, eggs, butter, cheese, coffee, and rice are dealt with by special regula- 
tion under the rules applying to dealers in those commodities. 

In cases of resale, any broljer concerned shares the same responsibility as the buyer and 
seller. 

Resales that may be permitted should be made subject to such measure of control as the 
Federal food administrator in the particular State deems it necessary to exercise. In 
some States, for example, the administrator has required the parties to a proposed resale 
to file with him affidavits or other evidence sufficient to establish the fact that the particu- 
lar lot of goods being resold bears but one wholesale profit between the manufacturer and 
the retailer. A similar principle applies to resales between retailers. 

Rule 7. Speculation prohibited. — No broker or other licensee shall buy or sell 
any food commodity for his own account unless he is also regularly engaged in 
and holds himself out to the trade as conducting the business of distributing 
such commodity otherwise than on a commission or brokerage basis, or unless 
he uses such commodities in manufacturing, provided that this rule shall not 
apply to sales on an exchange, board of trade, or similar institution. 

Rule 8. Sales to speculators forbidden. — No licensee shall knowingly sell any 
food conmiodity to a broker or other licensee who is not buying for personal 
consumption or engaged in using such commodity in manufacturing, or who 
is not regularly engaged in and holding himself out to the trade as conducting 
the business of distributing such commodity otherwise than on a commission or 
brokerage basis, provided that this rule shall not apply to sales on an exchange, 
board of trade, or similar institution. 

Note. — The regulation of exchange transactions is not a function of license regulations 
and under section 13 of the food-control act will be handled by special regulation from 
time to time. 

There is no general rule 9 in the present series. See special rules applying to your 
business. 

Rule 10. Unfair practices forbidden. — The licensee shall not buy, contract 
foi*, sell, store, or otherwise handle or deal in any food commodities for the pur- 
pose of unreasonably increasing the price or restricting the supply of such com- 
modities, or of monopolizing, or attempting to monopolize, either locally or gen- 
erally, any of such commodities. 

Rule 18. Secret rebates prohibited. — No licensee shall make any allowance or 
payment to the agent or employee of any exchange, association, or other person 
from whom he buys, or to whom he sells, or for whom he handles commodities 
on commis'iion without tlie permission of the principal of such agent. If such 
permission is not in writing, immediate written notice shall be sent to the Drin- 
cipal by the licensee on the account sales or otherwise, giving the amount of 
the payment and the name of the agent, exchange, or association to whom paid. 
(Rule issued Nov. 1, 1917, prohibited rebates "without written permission of 
principal." Amended to pi-esent form Apr. 4, 1918; repealed Dec. 16, 1918.) 

If general written permission is given by the principal for his agent to receive commis- 
sions from a particular broker or other person, written permission or notice is not required 
in case of each individual commission. 

Payments or allowances to an agent of the shipper by a licensee for any services what- 
ever which the agent renders to the licensee are not permissible without the permission 
of the shipper. 

The fact that a broker makes no charge to the owner for forwarding to another locality 
goods that he can not sell in his own field does not obviate the necessity of obtaining the 
permission of the owner to the receipt by the broker of an allowance or payment from 
the new consignee. 

Rule 19. Market quotations must not be misleading. — The licensee shall not 
issue, or make public, market quotations or make any statements to any person 
regarding the price at which food commodities are being sold, which quotations 
or statements can not be verified either from his own records or from the records 

125547°— 20 37 



578 HISTORY OF PRICES DURIJTG THE WAR. 

of other licensees, and shall not make any other misleading statements which 
tend to enhance the price of any food commodities. 

Notes. — This rule does not make the licensee responsible for distributing market re- 
ports published by reputable and established market news agencies bearing the name of 
the publishers. 

It is not necessary to inform a shipper that a quotation is subject to a charge for broker- 
age if it is the general understanding of the trade that such a quotation is subjeqt to 
such a charge. 

Rule 23 (as amended Dec. 3, 1918) , Combination sales prohibited. — No licensee 

dealing in food cuinniodities at retail shall make or ofler to make any combina- 
tion sales of any food commodity. 

A combination sale is (1) any sale or delivery of two or more commodities, 
or of two or more kinds or sizes of the same commodity, at a price effective 
only if they are bought at the same time; or (2) any sale or delivery of a 
commodity upon condition that the purchaser shall buy some other commodity, 
or some other kind or size of the same commodity. (Rule issued .Jan. 28. 1918, 
permitted sales of sugar witli corn meal, and wheat flour with substitutes. 
Changed Sept. 1, 1918, permitting only combination sales of wheat flour with 
substitutes. Dec. 3, 191S, all combination sales prohibited ; repealed Feb. 1, 
1919.) 

SPECIAL REGULATIONS. 

II. WHEAT MILLERS AND MANUFACTURERS OF MIXED FLOURS. 

PROFITS, PRICES, AND DIFFERENTIALS. 

Rule M. S. 11 (as amended Sept. 20, 1918). Wheat flour, mixed flour, and feed 
to be sold at reasonable advance over cost of wheat and packages. — The wheat 
miller shall sell flour and feed at not more than a reasonable advance over 
the average purchase price of the wheat from which it is manufactured, plus 
the cost of packages ; provided that if any such miller pays more for wheat 
than the customary market price in that locality, as evidenced by the fair 
guaranteed price basis established by the President's proclamation of February 
21, 1918, he shall not be permitted to include in his average purchase price, for 
the pui-pose of this rule, the excess over such customary market price. (Rule 
issued Nov. 1, 1917, allowed a profit of 25 cents per barrel on flour and 50 
cents per ton on feed. Dec. 25, 1917, differentials on various wheat mill feeds 
Indicated. May 2, 1918, differentials changed on wheat mill feed. Changed to 
present form July 22, 1918; repealed Dec. 19, 1918.) 

Note. — Fair price schedules. — The United States Food Administration will publish 
from time to time and furnish to any wheat miller a maximum fair price schedule for 
flour and feed established with relation to the guaranteed price basis for wheat. Any 
sales of wheat flour, mixed flour, whole wheat or graham flour, or wheat mill feed in 
excess of this fair price schedule will be regarded as a violation of the above rule, and 
any sale at a price at or below the fair price schedule will be regarded as a compliance 
with the .above rule. 

Mixed flours. — The above rule and fair price schedule apply to "mixed flour" and 
whole wheat and graham flour, as well as to wheat flour. Sales of mixed flour, whole 
wheat and graham flour will be considered to return an excessive proflt if made at a 
price in excess of the fair price schedule or of the licensee's current selling price of wheat 
flour. 

Soft wheat feeds. — The Food Administration will regard as reasonable the sale of soft 
winter wheat mill feeds at a price not more than .$2 in excess of the maximum fair price 
schedule for other wheat mill feeds ; provided that all shipments or deliveries of such 
mill feeds are made in packages which are plainly marked " soft winter wheat." 

Interest on arrival drafts. — Interest on arrival drafts on sales of flour and feed may be 
included in invoices as a separate item, and is chargeable over the fair price schedules 
where definite arrangements to that effect are made between buyer and seller. 

Self-rising wheat flour. — The Pood Administration will regard as reasonable the sale 
of self-rising wheat flour at a price not more than 50 cents per barrel over the licensee's 
maximum fair price schedule for 100 per cent straight grade wheat flour. 

Blenders. — The Food Administration will regard as reasonable a margin of 25 cents per 
barrel over average cost for blending wheat flours or for blending wheat flours with sub- 
stitutes, the cost to be considered as the average Invoice price delivered at the blending 
plant. To the above carload basis it will be considered reasonable that blenders add the 
selling margins covering various classes of sales, as per rule M. S. 14. 

Wheat screenings. — Any sales of wheat screenings in excess of the fair price schedule 
for bran will be regarded as a violation of rule M. S. 11 and cause for revoking the 
offender's license. (Aug. 24, 1918; canceled Dec. 3, 1918.) 



GOVERNMEISTT REGULATIONS RELATING TO PRICES. 



579 



Rule M. S. 12. Package charge. — In arriving at the per barrel package cost 
for the purpose of rule 11 the licensee shall use the current cost of two 98-pound 
cotton sacks of standard size and grade as quoted for lots of 1,000 bags, plus 
any freight or transportation charges. The charge for any other size or style 
of packages as furnished by mill or buyer shall be calculated on the basis of 
such 9S-pound cotton sacks, plus or minus the differential which will be indi- 
cated from time to time by the United States Food Administration. (Differen- 
tials for various sizes and kinds of wheat flour packages indicated Dec. 25, 1917 ; 
diiferentials changed Mar. 23, 1918; changed to present form July 22, 1918; 
repealed Dec. 19, 1918.) 

Rule M. S. 13. — Flour price schedule and differentials should be displayed in 
mill. The wheat miller shall cause to be displayed in his principal place of 
business and mills, warehouses, and agencies maintained, controlled, or oper- 
ated by him such flour price schedule and package differentials as may be fur- 
nished' to him from time to time by the United States Food Administration, and 
a schedule showing cost of sacks and other charges. He shall furnish copies of 
any such documents to buyers upon request. (Issued July 22, 1918; repealed 

Dec. 19, 1918.) 

PACKAGE DIFFERENTIALS. 

[Basis, 98 pounds cotton.] 




19.6, wood. 
98, wood . . 
98, cotton. 
140, jute... 
98, jute.... 
96, cotton . 
49, cotton. 

48, cotton . 
24|, cotton 
24, cotton. 
12J , cotton 
12, cotton. 
10, cotton. 
8, cotton . . 

7, cotton . . 
6, cotton . . 

6, cotton . . 
3|, cotton. 
3, cotton . . 

2, cotton . . 

49, paper. . 
48, paper. . 
24 J, paper. 
24, paper.. 
12J, paper. 
12, paper.. 
10, paper. . 

8, paper... 

7, paper... 
6, paper. . . 
5, paper... 
BJ, paper.. 

3, paper... 
2, paper... 



$0.60 over basis 

$1 .35 over basis 

Basis (2 to barrel) 

Same as basis 

80.05 over basis (2 to barrel) . . 
80.20 under basis (2 to barrel) 
80.20 over basis (4 to barrel) .. 

Same as basis 

$0.45 over basis (8 to barrel) .. 
$0.25 over basis (8 to barrel) .. 
$0.80 over basis (16 to barrel) . 
$0.60 over basis (16 to barrel) . 
$1.20 over basis (20 to barrel) . 
$0.90 over basis (24 to barrel) . 
$1.10 over basis (28 to barrel) . 
$1.05 over basis (32 to barrel) . 
$1.70 over basis (40 to barrel) . 
$1.55 over basis (56 to barrel) . 
$1.70 over basis (64 to barrel) , 
$2.65 over basis (96 to barrel) . 
$0.05 under basis (4 to barrel) 
$0.25 under basis (4 to barrel) 
80.05 over basis (8 to barrel) .. 
80.05 under basis (8 to barrel) 
80.25 over basis (16 to barrel) . 
$0.05 over basis (l6 to barrel) . 
80.50 over basis (20 to barrel) . 
80.15 over basis (24 to barrel) , 
S0.40 over basis (28 to barrel) , 
$0.55 over basis (32 to barrel) . 
$0.70 over basis (40 to barrel) . 
$0.85 over basis (56 to barrel) . 
80.95 over basis (64 to barrel) , 
81.60 over basis (96 to barrel) , 



$0.05 
.15 
.05 
.05 
.05 
.05 
.10 
.10 
.10 
.10 
.15 
.15 
.15 
.20 
.25 
.25 
.35 
.35 
.35 
.50 
.10 
.10 
.12 
.12 
.18 
.18 
.20 
.25 
.30 
.30 
.45 
.45 
.45 
.75 



Outside jute or cotton envelopes, $0.60 per barrel additional, 10 cents. 

Outside paper envelopes, $0.40 per barrel additional, 10 cents. 

All sales to be made basis 98-pound cotton. 

Where flour is sold on basis 98-pound cotton sacks and delivery is made in buyer's 
sacks, the invoice price shall be arrived at by deducting from the selling price the cur- 
rent cost of two 98-pound cotton sacks. To bulk price thus obtained shall be added 
charges over bulk price for packing flour in buyer's sacks as named above. 

Seller or buyer may not have option of shipping flour in cotton or jute sacks where 
either have been specified at time of sale, except as may be agreed to by buyer and seller 
at time of shipment. (Note to rule 12, effective Sept. 18, 1918.) 

Rule M.. S. 14 (as amended Sept. 20, 1918). Idaximum permissible margins 
over car-lot bulk on various classes of sales. — All sales of wheat flour and wheat 
mill feed shall be classified as follows, and the wheat miller shall not charge 



580 HISTORY OF PRICES DURING THE WAR. 

more than the maxinnini innrgiiis indicated for each class over his car-lot price, 
bulk, mill, cash, or draft terms : 

Class A. Sales to any buyer in carload lots, bulk, mill, cash, or draft attached 
to bill of lading. Basis. 

Class B. Sales to any buyer in mixed carloads of wheat flour, wheat-flour sub- 
stitutes, and feeds : Flour, not more than 25 cents per barrel over basis. Feed, 
not more than 50 cents per ton over basis. 

Class C. Sales of " consigned " flour to wholesale dealers from cars or docks, 
in carload lots (not delivered). 25 cents per barrel over basis. 

Class D. Sales of " consigned " flour to wholesale dealers, from cars or docks; 
in less than carload lots (not delivered), 35 cents per barrel over basis. 

Class E. Sales of flour to any buyer, other than individual consumer, less than 
carload lots (not delivered) and excepting sales as per Schedules " C " and " D," 
not more than 50 cents per barrel over basis. 

Class F. Sales of flour in less than carload lots to individual consumers (not 
including bakers or public-eating places) : Not more than $1.20 per barrel over 
basis. 

Class G. Sales of feed to wholesale dealers in less than carload lots and not 
less than 1 ton : Not more than $1 per ton over basis. 

Class H. Sales of feed to retail dealers in less than carload lots and not less 
than 1 ton : Not more than $2 per ton over basis. 

Class I. Sales of feed in less than ton lots to feed dealers : Not more than $3 
per ton over basis. 

Sales of feed to consumers. — Sales of feed to consumers must be made at not 
more than a reasonable margin over basis. The Federal food administrator of 
the State where the mill is located will indicate what margins will be considered 
reasonable. 

Notes. — Credit and delivery on flour. — Not more than 2.5 cents per barrel for delivery 
and credit may be charged in addition to the above margins where flour is delivered to the 
buyer's door, including all charges for credit, if credit is extended. Where credit is ex- 
tended without delivery, only the actual interest may be added. 

Brokerage. — Brokerage may not be added to the fair price schedule either on flour or 
feed. 

Credit and delivery charges on feed. — Not more than a reasonable cartage or trucking 
charge may be made whore mill feed is delivered to the buyer's door. Where credit is 
extended only the actual interest may be added. 

Cartage. — No charge for cartage or trucking on flour or feed to a station or dock at the 
town where the mill is located may be made. 

Only one margin over iasis permitted. — Not more than one of the margins over basis, as 
Indicated above, shall be added by the wheat miller on the sale of any lot of flour or feed. 

Rule M. S. 15. Permissible price differential for farina, purified middlings, 
semolina, or special granular macaroni flour. — Wheat-flour millers manufactur- 
ing' farina, purified middlings, semolina, or special granular macaroni flour, 
under the special permission of the United States Food Administration, flour 
milling section, Washington, D. C, may charge a price for such products not to 
exceed 40 cents per barrel above the licensee's fair price of 100 per cent straight- 
grade flour on date of sale. (Issued July 22, 1918 ; repealed Dec. 19, 1918.) 

Rule M. S. 16. Price differential on table bran. — Bran intended for human 
consumption, so-called table bran, may be sold at a reasonable advance over 
the licensee's fair price for bran. (Issued July 22,-1918 ; repealed Dec. 19, 1918.) 

Rule M. S. 17. Differentials and returns on wheat mill feed. — In selling wheat 
mill feed to the consumer at the mill door, if the purchaser desires to buy wheat 
mill feed in bulk and the sacks are emptied and left at the mill in undamaged 
condition, the miller shall not add to the purchase price any charge for sacks. In 
selling various grades of wheat mill feeds in carload lots, on terms of cash or 
draft attached to bill of lading, the miller shall sell same at a price not in excess 
of his car-lot price for mixed feed, bulk mill, plus or minus the following 
differentials : 

Shorts, standard middlings, gray shorts, gray middlings, flour middlings, or 
red dog, with or without screenings, 75 cents per ton over basis. Bran, with or 
without screenings, $1.25 per ton under basis. 

Note. — The wheat miller may make such separations of wheat mill feeds as his trade 
may demand, but if the total returns received by him from the sale of wheat mill feed 
manufactured from any given wheat exceeds the amount which the Food Administration 
considers to return a reasonable profit on an equal quantity of wheat mixed feed, i. e., 
the entire mill run of wheat mill feed, it will be considered that the miller has violated 
rule M. S. 11. 

Rule M. S. 19. Differential for reconditioning and blending. — The licensee who 
blends or reconditions flour not of his own manufacture shall not sell such flour 



GOVERNMENT REGULATIONS RELATING TO PRICES. 



581 



in carload lots at more than 25 cents pei- barrel over the purchase price; pro- 
vided that in making sales of the character of those described in rule 14 under 
classes B, C, D, E, and F, he may add not to exceed the additional margins pre- 
scribed therein for such sales. (Issued July 22, 1918 ; repealed Dee. 19, 1918. ) 

Note. — This rule does not apply to wheat millers mixing their own wheat flour with 
purchased wheat or substitute flours. Such mixed flour must be sold at not more than 
the licensee's price for wheat flour, in accordance with rule M. S. 11. 

Eule M. S. 20 (as amended Sept. 20, 1918). Custom and exchange grinding.— 
The wheat miller who receives wheat from farmers' wagons and grinds such 
wheat on a toll basis, or exchanges such wheat for flour and feed, shall charge 
not to exceed 35 cents per bushel for each 60 pounds of cleaned wheat so received, 
and on such basis he shall return to the farmer flour and feed In accordance with 
the following schedule : 



Test weight of 

of wheat per 

bushel. 


Number pounds 
flour returnable. 


Number pounds 

hard- wheat feed 

returnable. 


Number pounds 

soft-wheat feed 

returnable. 


Pound.i. 
158 

57 
. 56 

55 

54 

53 

52 

51 


44 

43J 

42J 

42 

41J 

m 
m 

39 


15 

m 

17 
171 
18i 

20 


14 

141 

15J 

16 

16J 

174 

18i 

19 



1 Or heavier. 



(Rules issued Mar. 20, 1918, limited farmer to 30 days' supply, and if sold 
without substitutes a certificate was required restricting him to 30 days' supply 
to be used only for human consumption by his own household. Changed as 
noted here July 22, except that millers were not required to do custom and 
exchange grinding. Sept. 20, 1918, millers were required to continue such grind- 
ing, as noted here. Repealed Dec. 3, 1918.) 

CONTRACTING AND SHIPPING. 

Rule M. S. 21 (as amended Sept. 20, 1918). Uniform contract prescribed. — The 
wheat miller shall not sell any wheat or mixed flour in quantities of more than 
50 barrels, or wheat mill feed in quantities of more than 5 tons, except by 
signed contract in the form prescribed below. He shall not contract to sell 
wheat flour, mixed flour, or wheat mill feed in any quantities without stipu- 
lating that the terms of the uniform Food Administration contract shall pre- 
vail. He shall fill out in every such contract covering flour the flour charge 
items appearing under " Method of calculating maximum delivered fair price," 
and in every such contract covering feed the feed charge items appearing 
thereunder, and shaU print under the item "Reasonable price schedule" the 
figures furnished to the miller by the United States Food Administration for 
that purpose. 

Note. — This rule requires the confirmation by written contract of every telegraphic 
or other order for flour of more than 50 barrels or more or feed of more than 5 tons, even 
though by reason of shortage in time the flour is shipped before the actual signing of 
the contract. Until such contract is signed it shall be understood that the trans- 
action is subject to the terms and conditions of the United States Food Administration 
contract. 

Orders taken by salesmen may be taken on regular mill contract forms, which may 
not show all details as listed in rule M. S. 21, but in such case the memoranda forms must 
bear notation as follows : " This order is taken subject to conditions of the uniform con- 
tract prescribed by the United States Food Administration, and buyer and seller hereby 
agree to execute such contract in writing on the United States Food Administration 
contract forms and with all prescribed details shown." 

Millers who have had their contract and invoice forms printed in accordance with the 
regulations issued on July 22, 1918, may use such contracts and invoices until ex- 
hausted, conforming in their charges to the minor changes now made. (Rule of Nov. 1, 
1917, provided contract for sales of 25 barrels or more of wheat or rye. July 22, 1918, 
same provision added for sales of 5 tons or more of wheat mill feed. Mixed flour added 
and changed to 50 barrels as noted here, Dec. 19, 1918.) 



582 



HISTORY OF PRICES DURING THE WAR. 



Contract No. 



CONTRACT FORM PRESCRIBED BY RULE 21. 
Date 



of 



.sell(s), and 
-buyTs), the 



of 



following commodities, on the terms and conditions stated below 
Time of /shipment \ 

iime or |f|eiiv,>ry / 

Destination 



?e^°^f~pay^iSiT::::::::::::::::::::::::::::::"--------r^t:t^ 

.Bank of- 



Prices named in this contract are based 
sale," (0) freight charge, and (d) package 


on (a) effective price schedule 
charge, as specified below : 


, (h) " class of 


Number 
packages. 


Size. 


Kind. 


Brand. 


Bulk price f. o. b. 
mill. 


Delivered price 
In packages. 















METHOD OP CALCULATING MAXIMUM DELIVERED FAIR PRICE. 
[Flour in 98-pound cotton sacks.] 



(o) Maximum fair price bulk mill as per schedule No. ■ 

(b) Maximum diflerential, if any, on sale of class — . . . . 

(c) Freight charge (including freight tax) 

Id) Cost of sacks (98-pound cotton for flour) 



Total. 



Flour per 
barrel. 



Feed per 
ton. 



fThe schedules note, and detailed terms and conditions below may be placed on reverse 
^ of contract form if desired.) 

MAXIMUM PERMISSIBLE MARGINS OVER BASIS ON VARIOUS CLASSES OF SALES. 



Class 

of 
sale. 


Mill sale to— 


How sold. 


Flour, 

per 
barrel. 


Feed, 
per 
ton. 


j^ 




Carload lots, bulk mill, cash or draft at- 
tached to B/L. 


None. 


None. 








B 




Mixed carloads of wheat flour, mixed flour, 
wheat flour substitutes and feeds . 


$0.25 


$0.5Ci 








C 




From cars or docks, car lots (not delivered) 
where flour has been forwarded "on con- 
signment." 


.25 








D 




From ears or docks, less than carload (not 
delivered) where flour has been forwarded 
"on consigimient." 


.35 








E 


Anyone other than con- 
sumer. 


Less carloads (except class C or D sales) (not 
deUvered). 


.50 








Individual consumers (ex- 
cept bakers and public eat- 
ing places) . 


Less carloads 


1.20 




F 




G 


Wholesale feed dealers 


Less carloads and 2,000 pounds or over 




1.00 






H 




Less carloads and 2,000 pounds or over 




2.00 








I 




Less than 1 ton 




3.00 











GOVEKlSrMEISrT REGULATION'S RELATING TO PRICES. 583 

Credit and delivery on flour.— Not more than 25 cents per barrel may be charged in 
addition to the above margins where flour is delivered to the buyer's dobr, including all 
charges for credit if credit is extended. Where credit is extended without delivery onlv 
the actual interest may be added. vicuvcLj- uuiy 

feed'°''^™^^'~"^^°'^^^'^^'^ ™^^' ^'^^ ^'^ ^^^^ *° ^^^ fair-price schedule either on flour or 

Credit and delivery on feed. — Not more than a reasonable cartage or truckine chare-.^ 

may be made where mill feed is delivered to the buyer's door. Whire credit is extendfd 

only the actual interest may be added. ^leuit is extenaea 

+nf ^'"i'^i?^-~;^° charge for cartage or trucking on flour or feed to a station or dock at the 
town where the mill is located may be made. 

Sales of teed to consumers must be made at not more than a reasonable margin over 
basis. The Federal food administrator of the State where the mill or warehouse is 
located will indicate what margin will be considered reasonable w<txenouse la 

07ily onemarff-m over carload basis permitted.—Not more than one of the margins over 
lot offlour'or #eed.° ^ '''' ' ''" ^^ ^*^'^'*^ ^^ *^^ "^^'^^ ^"^^^ on the sal? of any 

TERMS AND CONDITIONS. 

It is understood and agreed — 

(1) Food Administration regulatiotis.— That the buyer and seller shall conform to all 
regulations promulgated by the United States Food Administration. conrorm to all 

(2) Net tveights.— That the wheat flour and wheat mill feed covered by this contract 
is sold on the ba.sis of net weights when packed, and the determininnactor as to wei|ht 
shall be a moisture content not in excess of Government allowance weignc 

(3) Contract not subject to change.— Tha.t there are no conditions, representations 
or warrants, oral or otherwise, and that there shall be no assignment or cancellation 
tl L'o?iirrh^/lr?n^t?d\^e^rri>Tt1i*fs*^ctifct*'^* "" "^^"* "^^ -^--^tative has authUi°t^ 

shorter time is expressly orovided. -^ fceuer uniess a 

wise Uated'in'thii^coVtract!"^'' ^^""^ ^^^^ *^^ "^^* *"" ''°''*® ^" shipments unless other- 
(Q) Nonextension of time.— That there shall be no extension of the time of shinments 
or delivery under this contract except as herein specified snipments 

e iC^^ Jiuyers nonfulfillment of contract.— That if the buyer shall fail to file with the 
seller within 30 days of the date of confirmation of this contract shipping instructions 
permitting the seller to ship at his option within the remaining period of the contract 
then the seller may cancel thi.s contract and the buyer shall pay to the seller an entry 
charge of. 25 cents per barrel on flour and 50 cents per ton on feed, plus or minus the 
market difterence, provided that if such shipping instructions are received before the 
expiration of 60 days from the date of confirmation of this contract, and prior to any 
cancellation being sent, the seller's right to cancel shall cease. If the buyer shal! 
refuse to accept any shipment or delivery as specified hereunder or fail to perform any 
of the other terms of this agreement, then the seller may cancel this contract and the 
S.^'on^f" ?^'^ ^r,%l^^ ^fl^^'" tbe entry charge above provided, plus or minus the market 
difference. In addition thereto the seller may pursue such further remedies as the law 

(8) Seller's nonfulfillment of contract. — That if the seller shall fail except for the 
reasons specified in paragraph 9 of this contract to make any shipment or delivery as 
specified then the buyer may, at his option, cancel this contract at any time before actual 
shipment, and the seller shall pay to the buyer the sum of 25 cents per barrel on flour 
and 50 cents per ton on feed, plus or minus the market difference. The buyer may pursue 
such further remedies as the law may provide. puisue 

(9) Exceptions to seller's responsimUties.—Th&t if this contract can not be performed 
by the seller within the time specified, because of Government contracts not in contem- 
plation at the time of the^ contract, or because of fires, strikes, labor difficulties acts of 
carriers or other causes beyond the control of the seller, and if the seller notifies the 
buyer of such inability, stating the specific cause, as soon as he knows that such inability 
will prevent performance, and in any event on or before the date of shipment or delivery 
the seller shall not be responsible for failure to perform. In such event the buyer shall 
have the option of canceling the contract at the market difference, provided he exercises 
^V?,^ option withm 24 hours from the time when he receives notice of the seller's In- 
Tl'i} L ^'^ i,P1?*^^°^- ^.^^Z^*^^ ^P,*^^"^ 1^ °^* exercised, the contract time of shipment or 
delivery shall be extended until a reasonable time after the termination of seller's in- 

deilvp^.v ^ "Tf ?r*^' ^'^^ /'°* t° ^I^^""-"^ ^? o^.^y^ ^'^,y«"'> ^^^ original date of shipment or 
^fii,^ l^' ^^ }^^ ^^^ ^* such additional 30 days' period the buyer shall again have the 
^^^J'-^J'^ ^^^^'^} ^^ ^'^°^e provided, or the contract shall be similarly extended 
i-y.i}2L tK^ A^^??"^^^i^^*F f*^^ final paryrfie^it.— That where buyer specifies the bank 
through which draft is to be presented and to whom payment is to be made bv the 
''"•y?^'^ ^^r^ '',"y"^'' ^^^" ^"^ responsible for final payment to the seller. ^ 

(11) Package differentials.— That both buyer and seller agree to the.saipment or de- 
i&y„*i- i'T"'?^'^^'^^ °'^™*'*^ \" t'^'l contract on the basis of the package differentials In 
effect at date of sale as promulgated by the United States Food Administration. 

Seiferr 
By 



Bu\er. 
By 



584 



HISTORY OF PRICES DURING THE WAR. 



Rule M. S. 22. ITniforni invoice prescribed. — The wheat miller shall invoice 
all wheat flour and wheat mill feed, except sales to individual consumers, and 
except sales of 15 harrels or less of flour and 3 tons or less of mill feed, on an 
invoice form on the front or back of which shall be printed all information 
shown in this ruU' and in the form prescribeil, the schedule^ of " reasonable 
prices " to be in accordance with schedule which will be furnished any miller. 
He shall till out in every such invoice covering flour, the tlour charge items ap- 
pearing under " Method of calculating invoice price," and in every invoice cover- 
ing feed the feed charge items under such heading. 

The following items shall appear on front or back of every invoice : 

REASONABLE PRICE SCHEDULE (BULK MILL). 




(Here insert figures furnished you by Food Administration.) 

1 I I 



^oft wheat feeds. — The Food Administration will regard as reasonable the sale of wheat 
mill foods fontaining not less than 90 per cent soft winter wheat at a price not more than 
$2 in excess of the maximum fair-price schedule for other wheat mill feeds ; provided that 
nil shipments or deliveries of such mill feeds are made in packages which are plainly 
marked " Manufactured from soft winter wheat." 

Note. — The schedule of prices indicated above is based upon a determined wheat value 
as indicated by the Government reasonable price guarantee and a maximum permissible 
miller's charge. Any price in excess of that based on the schedules printed in this con- 
tract should be reported to the Federal food administrator for your State. (Issued .Tuly 
22, 1918 ; repealed Dec. 19, 1918.) 

MAXIMUM PERMISSIBLE MARGINS OVER BASIS ON VARIOUS CLASSES OF SALES. 



Class of 
sale. 


Mill sale to— 


How sold. • 


barrel. |perton. 


A . . 


An' e 


Carload lots, bulk mill, cash or draft attached 
to B/L. 


1 
None. 1 None. 










B 




Mixed carloads of wheat flour, mixed flour, 
wheat-flour substitutes, and feeds. 


1 
$0.25 j $0.50 








C 


Wholesale dealers 


From cars or docks, car lots (not delivered), 
where floar has been forwarded "on con- 
signment." 


.25 { 






i 
1 


]■> 


Wholesale dealers 


From cars or docks, less than carload (not 
delivered), where flour has been for\varded 
"on consignment." 


.35 








E 


Anyone other than consumer 


Less carloads (except class C or D sales) (not 
delivered). 


.50 


F . . 


Individual consumers (ex- 
cept bakers and public 
eating places). 


Less carloads 


1.20 












Wholesale feed dealers 


Less carloads and 2,000 pounds or over 




1.00 








H 




Less carloads and 2,000 pounds or over 




2.00 










I 




Less than 1 ton 




3.00 











Sales of feed to consume)-s must be made at not more than a reasonable margin over 
basis. The Federal food administrator of the State where the mill or warehouse is located 
will indicate what margin will be considered reasonable. 

Onli/ one margin over carload basis permitted. — Not more than one of the margins over 
carload basis, as indicated above, shall be added by the wheat miller on the sale of any 
lot of flour or feed. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 585 

Credit and- delhvei-y on, -flour. — Not more than 25 cents per barrel may be charged in 
addition to the above margins where flour is delivered to the buyer's door, including all 
charges for credit if credit is extended. Where credit is extended without delivery only 
the actual interest may be added. , ^ . . ^ , , -^v. 

Brokerage. — Brokerage may not be added to the fair price schedule either on flour or 
feed. 

Credit and delivery charges on feed. — Not hiore than a reasonable cartage or trucking 
charge may be made where mill feed is delivered to the buyer's door. Where credit is 
extended only the actual interest may be added. 

Cartage. — No charge for cartage or trucking on flour or feed to a station or dock at the 
town where the mill is located may be made. 

METHOD OF CALCULATING MAXIMUM FAIR INVOICE PRICE. 

[Flour, basis 98-pound cotton sacks.] 



Flour 
per barrel. 



Feed, 
per ton. 



(a) Maximum fair price bulk mill as per Schedule No. ■ 
Oa) Maximum differential, if any, onsaleofclass — - . 

(c) Freight charge (including fi'eight tax) 

(d) Cost of sacks (98-pound cotton for flour) 

Total 



Millars who have had their contract and invoice forms printed in accordance with the 
regulations issued on July 22, 1918, may use such contracts and invoices until exhausted, 
conforming in their charges to the minor changes now made. 

Rule M. S. 23. Change in destination or point of shipment. — Tlie wheat miller, 
in invoicing where change in destination is made at the request of the buyer and 
such change results in a freight rate other than that specitied in the original 
contract, sliall charge to the buyer any additional freight charge over, and credit 
to the buyer any lesser freight charge under, that specified in the contract. If 
the wheat miller makes a change in point of shipment from that originally 
named in the contract, such change of point of shipment shall not result in 
change of delivered cost to buyei*. In such case the bulk mill price and freight 
charge shown on the invoice must be identical with similar prices and charges 
shown in the original contract. (Issued July 22, 1918; repealed Dec. 19, 1918.) 

Rule M. S. 30 (as amended Nov. 12, 1918). Contracts must provide for delivery 
in 60 days. — The wheat hiiller shall not make any contract for the sale or 
delivery of wheat flour, mixed flour, or wheat mill feed for shipment or delivery 
more than 60 days after the making of such contract, provided that this rule shall 
not apply to contracts with the Federal, State, county, or municipal Govern- 
ments or with the Government of any nation at war with Germany. (Rule of 
Sept. 1, 1917, limited contracts for wheat flour to 30 days. Changed Sept. 1, 
1918, to 30 days' supply of wheat flour or mixed flour. Changed Sept. 20, 1918, 
to include wheat mill feed. Changed to 60 days as noted here Nov. 12, 1918 ; re- 
pealed Dec. 19, 1918.) 

III. WHEAT, CORN, OATS, RYE, AND BARLEY. 

A, SPECIAL LICENSE REGULATIONS GOVERNING OPERATORS OF ELE- 
VATORS WAREHOUSES, OR OTHER PLACES FOR THE STORAGE OF 
WHEAT, RYE, CORN, OATS, AND BARLEY, AND DEALERS IN WHEAT, 
RYE, CORN, OATS, AND BARLEY. 

Rules 1 to 3 relate to storage only. 

Rules 4 to 8 relate to dealings in wheat only. 

Rules 9 to 13 relate to dealings in corn, oats, barley, and rye. 

Rule 9. Grain to be sold at reasonable advance over cost, hedging considered. — 
The licensee shall sell corn, oats, rye, and barley at not more than a reasonable 
advance over the average cost of the stock of such commodity on hand or under 
the control of the licensee not at that time contracted to be sold. In arriving at 
the cost thereof he shall take into consideration the gain or loss from any hedg- 
ing transaction on any recognized grain exchange. (Issued Jan. 28, 1918.) 



686 HISTORY or prices during the war. 

B. -SPECIAL LICENSE REGULATIONS GOVERNING LICENSEES EN- 
GAGED IN THE BUSINESS OF MANUFACTURING CORN, OATS, RYE, 
OR BARLEY PRODUCTS. 

The manufacture and distribution of the following corn, oats, rye, and barley 
products are licensed : 

Bai-ley flour. Cerealine flakes. 

Rye Hour. Corn oil. 

Oatmeal. Corn sirup. 

Rolled oats. Glucose. 

Hominy. Corn sugar. 

Corn grits. Products and by-px'oducts of shelled 

Corn meal. corn, ear corn, oats, rye, and barley 

Corn flour. for use as feed, including grain 

Starch from corn. screenings. 
Oat flour. 

Note. — Any corn, oats, or l)arley millers who resell corn, oats, or barley without railling 
them must have a license to deal in these commodities and are subject to rules governing 
dealers therein. Any corn, oats, or barley miller buyini; any products of corn, oats, or 
barley and reselling them must have a license to deal therein, and are subject to the rules 
governing jobbers in such commodities. 

Rule 4. Unreasonable profits prohibited. — The licensee shall sell edible prod- 
ucts of corn, oats, rye, and barley at not more than a reasonable margin over the 
average cost to him of the corn, oats, rye, or barley from which such edible 
products are manufactured. In estimating such average cost he shall include 
all grain in his possession or under his control by contract or other arrangement, 
but he shall not include any grain which he has contracted to sell or the 
products of which he has contracted to sell. Provided, that in determining the 
cost of such grain he shall — 

(1) Add to the average purchase price the loss, and deduct from the average 
purchase price the gain, resulting from any hedging transactions on an estab- 
lished grain exchange in which the transaction is finally closed. The loss or gain 
on such transaction shall be calculated on the average price of all outstanding' 
hedging sales or purchases. 

(2) He shall deduct from the average purchase price the proceeds from the 
sale of feed or offal created in the milling oi^eration, or, if not sold, he shall 
deduct its current market value. 

Any average once calculated shall be taken as the basis for such averaged grain 
in all subsequent calculations. 

He shall keep records in such manner as to show how all averages and selling 
prices have been determined. (Rule issued Sept. 1, 1917, provided rye or rye 
products should not be handled on unjust or unreasonable profit. Rule of Nov. 
1, 1917. provided rye flour should be sold at not more than reasonable advance 
over cost. Issued July 20, 1918, as noted here ; repealed Feb. 1, 1919. ) 

Semmnniial profits. — The Food Administration will consider a net earning of more 
than 6 per cent upon the gross sales of any edible products of corn, oats, rye, or barley 
as shown at the end of any semiannual period, to be prima facie evidence of a violation 
of the rule which prohibits the taking of unreasonable profits (general rule 5). This 
limitation does not modify or abrogate the general principle contained in the Pood Admin- 
istration regulations that a licensee should not earn more than a reasonable net profit on 
his capital invested, nor does it change in any way the maximum margins which have 
been prescribed on individual sales. (Issued Sept. 1, 1918.) 

(New, Nov. 7, 1918.) Semiannual profits of wet corn millers. — The Food Administra- 
tion will consider a net earning of more than 6 per cent upon the gross sales of all prod- 
ucts or by-products of corn, whether such products or by-products are sold, pure or mixed 
with other commodities, by any licensee engaged in the milling of corn for the production 
of starch or glucose and other products from the manufacture of starch, to be prima facie 
evidence of a violation of the rule which prohibits the taking of unreasonable profits 
(general rule I — A — 5). This percentage will be calculated for each of the two semi- 
annual periods making up the licensee's fiscal year. The Federal income and excess-profits 
taxes may not be deducted as expenses or otherwise, but all other taxes may be consid- 
ered as expenses. This limitation does not modify or abrogate the general principle con- 
tained in the Food Administration regulations that a licensee should not earn more than a 
reasonable net profit on its capital invested. 



GOVEEISTME^^T REGULATIONS RELATING TO PRICES. 587 

Rule 5 (as amended Nov. 1, 1918). Profits on feeds. — The licensee shall not sell 
hominy feed, hominy meal, hominy chop, gluten feed, oil-cake meal, or other 
feed by-product of corn, hominy feed, rye feed, or oat feed, produced as a by- 
product of the manufacture of corn, barley, rye, or oat products at a price per 
pound in excess of the purchase price per pound of the grain from which it is 
manufactured. (Rule issued July 20, 1918, applied to hominy feed, hominy 
meal, hominy chop, barley feed, rye feed, or oat feed. Nov. 1, 1918, commodities 
added as noted here. Repealed Dec. 17, 1918. ) 

Rule 8. Package differentials on corn meal. — The licensee shall not sell corn 
meal, corn grits, hominy, corn flour, barley flour, or rye flour, except on the basis 
of the following differentials : 

Package differentials. — The following package differentials apply to all sales of buck- 
wheat flour : 

Basis of 100 pounds cotton or jute tags. 

Cents per 
100 pounds. 

50 pounds cotton over basis — 10 

25 pounds cotton do 20 

10 pounds cotton do 50 

5 pounds cotton do 75 

50 pounds paper under basis — 10 

25 pounds paper do 5 

10 pounds paper over basis — 15 

5 pounds paper do 30 

3 pounds paper do 45 

Extra charge for burlapping, baling, or double sacking, 35 cents per 100 pounds. 

(Rule issued May 22, 1918, fixed differentials for corn meal, corn grits, 
hominy. July 20, 1918, corn, barley, and rye flour added and differentials 
changed as noted here. Repealed Dec. 17, 1918.) 

C. SPECIAL LICENSE REGULATIONS GOVERNING LICENSEES EN- 
GAGED IN THE BUSINESS OF MANUFACTURING BUCKWHEAT 
PRODUCTS. 

(Effective Nov. 15, 1918.) 

Rule 1. Unreasonable profits prohibited. — The licensee shall sell buckwheat 
flour at not more than a reasonable margin over the average cost to him of 
the buckwheat from which such flour is manufactured. In estimating such 
average cost he shall include all grain in his possession or under his control 
by contract or other arrangement, but he shall not include any grain which he 
has contracted to sell or the products of which he has contracted to sell; 
provided, That in determining the cost of such grain he shall deduct from the 
average purchase price the proceeds from the sale of feed or offal created in 
the milling operation ; or if not sold, he shall deduct its current market value. 
Any average once calculated shall be taken as the basis for such averaged 
grain in all subsequent calculations. 

He shall keep records in such manner as to show how all averages and selling 
prices have been determined. (Repealed Jan. 10, 1919.) 

Note. — The Food Administration has determined that the sale of buckwheat flour at 
a gross margin in excess of $1.25 per 100 pounds bulk product over the cost of the 
buckwheat is unreasonable and excessive under the foregoing rule. These margins may 
therefore be regarded as maximum margins, but they do not in any way abrogate or 
modify the general rule that profits must not be excessive. 

The Pood Administration will further consider a net earning of more than 10 per cent 
on the first $25,000 of gross sales of buckwheat products and 8 per cent on all gross 
sales over $25,000 as prima facie evidence of a violation of the rule which prohibits 
the taking of unreasonable profits (general rule 5). This limitation does not modify or 
abrogate the general principle that a licensee should not earn more than a reasonable 
net profit on capital invested. 

Differentials on less than car-lot sales. — The following additional margins over the 
$1.25 maximum will be considered reasonable by the Food Administration on less than 
car-lot sales, but this does not modify in any way the 10 per cent and 8 per cent 
limitation of net profits. The additional margin should be calculated on car-lot price in 
sacks : 

(a) Less than car lots to wholesalers or flour mixers, not more than 4 per cent. 

(b) Less than car lots to bakers, hotels, or retailers, not to exceed 10 to 12 1 per 
cent in packages of 25 pounds or over; not to exceed 12 to 15 per cent in packages less' 
than 25 pounds. 

(Only one of the three foregoing additional margins may be added on any lot.) 



588 HISTORY OF PRICES DURING THE WAR. 

V. RICE. 

A. SPECIAL REGULATIONS GOVERNING DEALERS IN ROUGH RICE. 

Hule 1. Maximum margin over cost fixed, — The licensee shall not sell rough 
rice, except for seed, at an advance over the actual purchase price of tlie par- 
ticular rice sold in excess of 1 per cent of such purchase price plus the storage 
charge, insurance, and interest on the investment at the rate of 6 per cent per 
jiinuim. (Issued Nov. 1. 1917; repealed Jan. 10, 1919.) 

Rule 2 (as amended Oct. 31, 1918). Brokers and commission merchants' charges 
limited.— The licensee in acting as a broker in rough rice, or in receiving rough 
rice on consignment, shall not charge a commission of more than 1 per cent for 
selling such rice to any person except for seed purposes. 

If the licensee performs additional services these shall be included as separate 
items on the account sales, and a separate charge shall be made therefor, in no 
case to exceed an additional 11 per cent. (Issued July 29, 1918; amended Oct. 
31. 1918; repealed Jan. 10, 1919.) 

Rule 3. Resales prohibited. — The licensee shall not sell rough rice, except for 
seed, to any person other than a rice miller. (Issued July 29. 1918; repealed 
Jan. 6, 1919.) 

Rule 4. Amount of rough rice under control limited to 60 days' supply. — The 
licensee shall not keep on hand or have in possession or under control by con- 
tract or other arrangement any rough rice, except for seed purposes, in a quan- 
tity in excess of his reasonable requirements during the period of 60 days. 
(Issued Nov. 1, 1917, as to " any food commodities " ; repealed Jan. 6, 1919.) 

Rule 5. Contracts must provide for shipment within 60 days. — The licensee 
shall not make any contract for rough rice for delivery mOre than 60 days after 
the making of the contract, except for seed. (Issued Nov. 1, 1917, as to "any 
food commodities " ; repealed Jan. 6, 1919. ) 

B SPECIAL REGULATIONS GOVERNING RICE MILLERS AND MANU- 
FACTURERS OF RICE FLOUR. 

Rule 3. Clean rice not to be sold at more than reasonable advance over cost. — 

Any licensee engaged in the business of milling rice shall sell cleaned rice at 
not more than a reasonable advance over the cost of such rice without regard 
to the market or replacement value at the time of sale. (Issued Nov. 1, 1917; 
repealed June 16, 1919.) 

Note Brokers' commissions. — Brokers -will be considered by the Food Administration 

as making an unreasonable and exorbitant charge for negotiating the sale of rice or 
rice products in any case where the brokerage exceeds — ,^ . ., 

(a) Seven cents per 100 pounds on carload orders, except brewer s rice, sold m the 
followin<^ cities • New York ; San Francisco ; Charleston ; Savannah ; Jacksonville, Fla. ; 
St Louis; Chicago; Kansas City, Mo.; Galveston and Houston, Tex. ,^ . v, 

(6) Six cents per 100 pounds on any quantity of rice, except brewer's rice, sold in New 

(0) Eight cents per 100 pounds for carload orders, except brewer's rice, sold at any 
othei point except those designated in (a) and (ft). 

(fi) Six cents per 100 pounds on brewer's rice sold at any point and in any quantity, 
(e) Twenty-five cents per ton on rice bran or rice .polish at any point and in any 

(/) Six cents per 100 pounds on rice flour sold at any point and in any quantity. 

Rule 7. Maximum margins governing manufacturers of rice flour. — The 
licensee shall not sell rice flour at an advance of more than 75 cents per 100 
pounds over the purchase price of brev^^er's rice or screenings delivered at the 
mill. (Issued July 29, 1918; repealed June 16, 1919.) 

VI. SUGAR. 

A SPECIAL REGULATIONS APPLYING TO ALL MANUFACTURERS AND 
REFINERS OF CANE SUGAR AND BEET SUGAR. 

Rule 3. Prices shall conform to price list furnished.— The manufacturer shall 
furnish to the United States Food Administrator, Washington, D. C, and 
deliver to the trade a price list showing his selling price and all selling terms 
and differentials in force. After such price list or any subsequent price list is 
issued the manufacturer shall make no sales of suger except at the price, dif- 
ferentials, and terms shown in the price list then in force until he has mailed to 
the United States Food Administrator a new price list showing any change made 



GOVERNMENT REGULATIONS RELATING TO PRICES. 



589 



in said price, differentials, or terms and has received tlie written approval of 
the United States Food Adnainistrator to any change in differentials and to any 
addition to the list of new types of sugar or styles of packages: Provided, That 
every price list and contract to sell sugar shall include a stipulation that in 
case a change in the United States Food Administration regulations authorizes 
a higher price than that named in the contract or price list before the arrival 
of the sugar at destination, the refiner shall have the right to raise his price 
to such higher price, and that in case such change requires sales at a lower 
price than that named in the price list or contract before the arrival of the 
sugar at destination, the refiner shall be required to reduce his price to such 
lower price. (Issued Oct. 1, 1937 ; added to July 1, 1918 ; repealed Jan. 26, 1919.) 

Note.- — The issuance of price lists by manufacturers of beet sugar will not be necessary 
until August 1, 1918, and after that date it will be dispensed with in cases in which 
ihe manufacturer shall have entered into a proposed voluntary agreement with the 
United States Food Administrator prescribing other methods of supplying such infor- 
mation. 

Rule 4. Maximum brokerage fixed. — The manufacturer shall not pay any 
broker commissions in excess of one-fourth of 1 per cent on the value of raw 
sugar bought, or in the case of refined or semirefined sugar sold in excess of 5 
cents per hundred pounds, excepting, however that a higher commission may 
be paid for any special service if first approved by the United States Food Ad- 
ministrator. (Rules issued Oct. 1, 1917 ; limited brokerage on beet sugar to 5 
cents per 100 pounds cane sugar as noted here. Combined June 15, 1918, as 
noted here; repealed Jan. 26, 1919.) 

Rule 5. Double brokerage prohibited. — The manufacturer shall not allow or 
pay to any person any brokerage or commission on sugar or its by-products on 
which he knows a commission or brokerage to have already been paid. ( Issued 
Oct. 1, 1917; repealed Jan. 26, 1919.) 

B. SPECIAL REGULATIONS APPLYING TO REFINERS OF CANE SUGAR. 

Rule 2. Sugar to be sold at reasonable advance over cost. — The manufacturer 
shall sell his sugar at not more than a fair and reasonable advance over cost. 
(Issued Oct. 1, 1917; repealed Jan. 26, 1919.) 

Note. — The United States Food Administration will announce from time to time what 
advance it considers fair. 

Rule 3. Price of sirups and molasses. — The licensee shall not sell the follow- 
ing products, when manufactured from imported raw cane sugar, at prices to 
exceed those named below, which are based on the cost of imported raw sugar 
to the refiner. (Issued June 15, 1918; repealed Jan. 26, 1919.) 



Per gallon, 
in barrels. 



Per gallon, 
in bulk. 



Refiner's sirups, highest grade (fancy filtered) 

Refiner's sirups, medium grade (filtered) 

Refiner's sirups, low grade (unflltered) 

Blackstrap molasses 



Cents. 



Cents. 



The prices named are f. o. b. cars at primary markets or port of entry, for 
point of production if carrying same freight rate as from primary markets, 
net cash in 10 days without discount, and shall include brokerage and any profit 
taken by a distributor in tank cars direct from the refinery, but shall not 
include freight or tank-car charges. 

Note. — Any questions in regard to the grading of fancy, medium, and low-grade sinips 
■will be determined by the United States Food Administration committee on sirup 
valuations. 

Preference to domestic orders for sirup. — The Food Administration urgently requests 
that in accepting and filling orders for refiners' sirups preference be given domestic- 
customers over exporters. If this is not done voluntarily, it will be necessary to considei- 
regulations limiting the export of such shipments. 



590 HISTORY OF PRICES DURING THE WAR. 

C. SPECIAL REGULATIONS APPLYING TO PRODUCERS OF BEET 

SUGAR. 

Rule 2. Unreasonable profit prohibited. — The manufacturer shall sell beet 
sugar, beet molasses, ami beet pulp at not more than a fair and reasonable ad- 
vance over cost. (Issued June 15, 191S ; repealed Jan. 26, 1919.) 

NOTE.^ — ThP United States Food Administration will announce from time to time what 
advance it considers fair. Until further notice any sales of beet sugar at a price in excess 
of the selling price, at the same time and place of standard granulated sugar made from 
cane produced in the United States (including insular territories), will be considered evi- 
dence of a violation of this rule. 

Beet molasses. — Until further notice any sales of heet molasses at a price in excess of 
18 cents a gallon in bulk or 23 cents a gallon in barrels, f. o. b. factory net cash in 10 
days without discount will be considered evidence of a violation of this rule. This price 
shall inclucie brokerage and any profit taken by a distributor in tank cars direct from fac- 
tory, but shall not include freight or tank-car charges. 

Beet pulp. — The Food Administration will regard any sales of beet pulp at prices 
greater than those named below as a violation of the above rule : 

Beet pulp wet from factory or from silo within first 30 days after manufacture, 80 
cents per ton. 

Beet pulp out of silo after 30 days therein, $1.25 per ton. 

Dried pulp sacked, f. o. b. factory, $40 per ton. 

D. SPECIAL LICENSE REGULATIONS APPLYING TO MANUFACTURERS 
OF REFINED, SEMIREFINED, AND RAW SUGAR PRODUCED FROM 
SUGAR CANE GROWN ON THE MAINLAND OF THE UNITED STATES 
AND SOLD FOR DIRECT CONSUMPTION. 

Rule 2. IJnreasonable profits prohibited. — The manufacturer shall sell his 
sugar at not more than a fair and reasonable advance over cost. (Issued July 
31, 1918; added to Oct. 21, 1918; repealed Jan. 26, 1919.) 

Note. — The United States Food Administration will consider as a violation of the 
above rule any sale of direct consumption sugar at a price in excess of $9 per 100 
pounds f. o. b. seaboard points or points of production carrying the same freight rate 
as seaboard points, with the customary discounts, terms, and conditions, less the following 
differentials : 

Plantation granulated No differential. 

White clarified 10 cents per hundredweight. 

Off plantation granulated 10 cents per hundredweight. 

Off white 15 cents per hundredweight. 

Choice yellow clarified 15 cents per hundredweight. 

Prime yellow clarified 20 cents per hundredweight. 

Kettle 20 cents per hundredweight. 

Off yellow clarified ^ 30 cents per hundredweight. 

Seconds and thirds (first group) 80 cents per hundredweight. 

Seconds and thirds (second group) 90 cents per hundredweight. 

Seconds and thirds (third group) $1 per hundredweight. 

Seconds and thirds (fourth group) $1.10 per hundredweight. 

Seconds and thirds (fifth group) $1.20 per hundredweight. 

The differential on all grades of semirefined direct-consumption sugars not listed 
above shall be the differential indicated for sugars of equal grade ; or if of an inter- 
mediate gi-ade, at the differential of the listed grade next below ; and the differential 
on sugars, the grade and price of which can not be thus determined, shall be fixed by 
the said sugar committee. The above grades shall be determined with reference to the 
standard samples thereof as fixed by the New Orleans Sugar and Rice Exchange, with 
the approval of the United States Food Administration, and now on file with said ex- 
change In case of dispute regarding the grade, the final decision shall be made by the 
Louisiana sugar committee. The Food Administration will further consider as a viola- 
tion of the above rule any sale of raw sugar at a price delivered at customary Louisiana 
refining points in excess of $7.28 per 100 pounds for 96° test, and any sale of washed 
sugar (which is defined as any first sugar above the grade of raw sugar and below the 
grade of off yellow clarified, and having a color test of not less than 22 Dutch standard) 
at a price in excess of $7.68 per 100 pounds, with an addition of one-sixteenth cent per 
pound for ever.y degree or fraction thereof above 96° and a reduction of one-tenth cent 
per pound for every degree or fraction thereof below 96°. 



GOVERNMENT EEGULATIOlSrS EELATIlsTG TO PRICES. 591 

VII. CANNERS OF PEAS, TOMATOES, CORN, DRIED BEANS, SAL- 
MON, SARDINES, AND TUNA, AND MANUFACTURERS OF TOMATO 
CATSUP, TOMATO SOUP, AND OTHER TOMATO PRODUCTS; CON- 
DENSED, EVAPORATED, OR POWDERED MILK. 

A. SPECIAL REGULATIONS GOVERNING LICENSEES ENGAGED IN THE 
BUSINESS OP CANNING PEAS, CORN, TOMATOES, DRIED BEANS, 

SALMON, Sardines, or tuna, or manufacturing tomato 

SOUP, TOMATO CATSUP, OR OTHER TOMATO PRODUCTS. 

(The following special rules correspond to series B, and in so far as they 
apply to the canning of peas, corn, tomatoes, dried beans, salmon, or sardines 
became effective Nov. 1, 1917, unless otherwise noted. They became effective 
as to tomato catsup and other tomato products other than canned tomatoes on 
Feb. 28, 1918. They became effective as to canned tuna on June 15, 1918.) 

Rule 2. Manufactured products must be sold at not more than reasonable ad- 
vance over average cost. — The licensee shall sell goods manufactured and on 
hand for not more than a reasonable advance over the average cost of the sea- 
son's pack, without regard to the market or replacement value at the time of 
such sale. ( Issued Nov. 1, 1917, providing for sale at " not more than reasonable 
advance over cost of such goods"; changed Jan. 28, 1918, to present form; 
repealed Jan. 10, 1919.) 

The canned-goods division, under date of September 7, 1918, issued the fol- 
lowing announcement : 

TO CANNERS AND DISTRIBUTORS OF LICENSED CANNED VEGETABLES. 

\ 
In order to make clear the attitude of the Food Administration in regard to the rules 
and regulations governing canners and distributors of licensed canned vegetables, the 
following announcement is made in regard to canned corn, canned tomatoes, and canned 
peas: 

1. Future sales. — Before invoicing goods which were sold for future delivery, canners 
have been instructed to review their estimate of cost, and if it is determined at the time 
of shipment that the actual cost is lower than the estimated cost, prices must be revised 
by the canner so that the margin of profit will not exceed the maximums announced as 
reasonable. 

2. Revision of prices. — Revision of prices must occur before invoicing. It "would be 
impracticable to rebate throughout the channels of distribution in order to give the con- 
sumer the benefit of low^er prices ; therefore the canner's invoice price is the final price, 
and no revision after invoicing wilk be permitted, with this exception : 

If the direct customer of a canner will agree to accept delivery and withhold the goods 
from distribution, the canner will be permitted to bill at the time of shipment at the 
future contract price, pending the final determination of his cost at the end of his pack. 
In this case the purchaser must make payment on the basis of this invoice and in accord- 
ance with its terms permitting the canner to make final adjustment, if any, in the form 
of a rebate. The purchaser must in such cases await the canner's final price before 
invoicing these goods. 

3. Spot sales. — Canners who have made delivery in good faith at future contract prices 
and later find their costs are lower than anticipated must sell the balance of their 
pack at such prices as to insure their making no more than the maximum margins on the 
entire season's output. In these cases purchasers who have already received shipments at 
the contract price must be given the opportunity of purchasing such surplus at the lower 
price. This surplus must be offered to such purchasers pro rata up to a quantity equal 
to their future purchases. 



592 HISTORY OF PRICES DURING THE WAR. 

The canned foods and distribution division issued the following announcement, 
under date of October 22, 1918 : 

TO CANNERS AND DISTRIBUTORS OF LICENSED CANNED VEGETABLES. 

(Statement supplementing announcement of Sept. 9, 1918 — Revision of contract prices.) 

As many inquiries have been received with reference to the proper construction of the 
announcement made September 9, 1918, as to the revision of contract prices of canned 
corn, canned tomatoes, and canned peas, it is deemed advisable to make the following 
general statement : 

Where the packer's profits prove to be greater than those permitted by the rules of the 
Food Administration, he shall remit the excess to the purchaser, who shall credit the 
amount received by him upon the average cost of goods of the same grade and size of the 
same commodity then in his possession or invoiced to him. 

Attention is called to the fact that the rules permit, but do not require, that goods of 
dififerent brands be averaged. In a spirit of fairness to the packer, therefore, the pur- 
chaser should apply the reduction in cost first to goods then in his possession under 
packers's label, up to an amount in cents per dozen equal to the rebate, before applying 
the reduction in cost to goods under other labels. 

If the purchaser's stock of such goods is so small as to make this impracticable or the 
price ridiculous, he shall apply to the wholesale .section of the Food Administration for 
instructions. 

The packer shall make to the canned foods division of the Food Administration a state- 
ment giving the names of the purchasers to whom such payments are made, the amount 
of each payment, and stating the grade and size of the canned goods on account of which 
each payment is made. 

The purchaser shall also make a written statement to the wholesale section of the Pood 
Administration showing the amounts so received, from whom received, and how the same 
were credited. 

The wholesaler will not be permitted to make any rebate to the retailer on the price 
of any goods already delivered to the retailer. 

In this connection attention is called to the fact that the wholesaler can not sell at a 
price which will enable him to realize more than the prescribed margin of profit over the 
average cost, reduced as above provided for. The average cost is to be determined in the 
manner required by the rules and regulations. 

(Rules 6 to 11 apply to the canning of fresh vegetables and fish only.) 
Utile 6. ftuotations or sales before February 1 prohibited.— The licensee shall 
not quote for future packing or delivery or sell any canned peas, canned corn, 
canned tomatoes, tomato soup, tomato catsup, or other tomato products, canned 
salmon, canned sardines, or canned tuna before February 1 of the year in which 
such products are to be canned : Provided, That this rule shall not apply to sales 
to the Government of the United States. (Issuetl Nov. 1, 1917 ; repealed Jan. 10. 
1919. ) 

Note — This rule corresponds to special rule 1, series B, governing canners. It was 
amended to its present form January 28, 1918. " Shall not quote for future packing or 
delivery or sell " includes acceptance of orders subject to approval of price when named. 
This rule prohibits the acceptance of conditional orders or commitments of every kind. 

Rule 9. licensee must not buy commodities already sold.— No licensee shall 
buy or contract to buy any of the vegetables or fish required for the above- 
mentioned products if he has reason to believe that the seller has already con- 
tracted to sell the said materials to other persons. In buying vegetables or fish 
for such products he shall require the seller to state in writing, in the contract or 
otherwise, that he has not contracted to sell said vegetables or fish to others. 
(Issued Nov. 1, 1917; repealed Dec. 3, 1918.) 

Note. — This rule corresponds to special rule 5, series B, governing canners. 

The canned goods division issued the following announcement on November 1, 
3918: 

The Food Administration has been able to arrange for a sulficient quantity 
of tin plate to permit the packing of beans. Permission is herewith granted to 
canners of beans to pack during the months of November, December, and 
January a total quantity not in excess of a normal pack for these three months. 
Canners may use up all odd-sized tins now on hand, but additional purchases 
of tins smaller than No. 2 size will not be permitted. It is still necessary for 
all shippers selling beans to canners to secure permits before making sales. 
Canneis may not, however, contract for more than a three months' supply of 
cans or beans. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 



593 



ESTABLISHED PRICES— CANNED GOODS DIVISION. 

The canned goods division has prepared the following, which shows what has been 
done in establishing prices on commodities under its supervision : 

CANNED SALMON. 

Conferences were held with the State food administrators and fishermen on the coast 
and maximum prices were adopted which were as follows : 

RAW FISH. 



Alaska section. 



Kings 

(each). 



Reds 
(per fish). 



Cohoes 
(each). 



Dogs 
(each). 



PinJ:s 

(each). 



Bristol Bay 

Ilerendeen Bay 

Central Alaska 

Yukutat: 

Over 15 pounds.. . 

Under 15 pounds. 
Southeast Alaska 



S50.40 
.25 
.50 

.40 
.15 
1.09 



SO. 07 
M2 



.12 
.32 



mo4 

.08 
.05 



.09 



110.02 
.04 
.04 



.OU 
.06' 



Oregon : 

Columbia River- 
Chums 

Chinooks 

Then 

Silvevsides . 
Steelheads 
Rogue River — 
All grades . 
Chinooks _. 



1 Per pound. 



Cents. 

SI 

(1 3* 

\2 5" 

6J 
9i 



Washington coast streams. 



Grays Harbor .. 
Willapa Harbor 

Toholaa 

Noclips 

Queets River . . . 



Prices per pound. 



Chinooks. Cohoes. Chums. 



Cents. 
6i 
6} 
5f 
6i 
44 



Cents. 
6i 

6i 
44 



After reaching a basis for maximum prices to be paid to the fishermen, a committeee 
consisting of three State food administrators, Mr. Deming, who represented the division 
of coordination of purchase, and Mr. Warren, who represented the canned foods division, 
investigated packing costs in Alaska and the following maximum prices on the different 
grades were established. 

CANNED SALMON. 



Alaska salmon. 


No. 1 
tails (per 
dozen). 


No. 1 
flats (per 
dozen). 


Halves- 
flat (per 
dozen). 


Reds 


.12. 35 
2.25 
1.65 
1.60 


S2. 50 
2.40 
1.80 
1.75 


.«. 65 
1.65 
1.10 
1.10 


Medium reds 


Pinks 


Chums 





iTo Sept. 10. 
^To Sept. 20. 
3 80 cents per box to be paid for hauling to Noclips, including return of empty boxes. 

12.5547°— 20 38 



594 



HISTORY OF PRICES DURING THE WAR. 



Since the Alaska prices were established the following maximum prices have been estab- 
lished for salmon caught in Oregon waters and salmon caught in Washington waters : 

COLUMBIA RIVER AND OREGON COAST STREAMS. 



No. 1 
tails (per 
dozen). 



No. 1 
flats (per 
dozen). 



Halves 

(per 
dozen). 



Fancy ."spring chinooks 

Standard spring and No. 1 fall chinooks. 

Blue backs 

No. 2 fall chinooks 

Silver sides 

No. 3 chinooks and chums 



$3.15 
2.75 



2.30 
2.40 
1.75 



$3.25 
2.85 



2.40 
2.50 
1.85 



$2.00 
1.75 
2.00 
1.50 
1.60 
1.10 



rUGET SOUND AND WASHINGTON COAST STREAMS. 



Tails 

(per 

dozen). 



Flats 

(per 

dozen). 



Halves 

(per 
dozen). 



Fancy springs or chinooks . . . 
Standard springs or chinooks 

Cohoes 

Chums 



$3.15 
2.75 
2.40 
1.75 



$3.25 
2.85 
2.50 
1.85 



$2.00 
1.75 
1.60 
1.10 



CANNED SARDINES. 

Eastern. — The Maine State food administrator early in this year called a conference of 
the fishermen heavily interested, and a price of $25 per hogshead for raw fish was estab- 
lished as the maximum price to be paid by the packers. 

A little later a committee representing a very large proportion of the Maine sardine 
packers appeared before Mr. Munn and a voluntary maximum price was established of 
$6.50 per case for one-quarter oil canned sardine. Later the Canadian authorities adopted 
the American prices as maximum. 

Western.— The sardine situation has recently been handled in California by Mr. Munn 
in conferences held with the fishermen and packers, and the basis is as follows : 

Maximum prices for raw sardines : Per ton. 
Under 71 inches r $30 

Over 7i inches 15 

Based on these raw-fish prices, the following maximum canned sardine prices were 
approved : 



Oil (per 
case). 



Quarter round. 
One-half round 
Ones round . . . 

Ones oval 

One-half oval.. 




CANNED TUNA. 

The tuna situation was handled by conferences with the fishermen at which the maxi- 
mum prices for raw tuna were established as follows : 

One hundred and ten dollars per ton for Albacore and blue-fin tuna, and $100 per ton 
for all other tuna. 

Later the canners were gotten together and the prices on canned tuna were established 
as follows : 

Per doz. 

48/1's $3. 375 

48/Vs 1.90 

48/rs 1. 25 



GOVEKNMEIsTT KEGULATIOFS EELATING TO PKICES. 595 

CAN^-ED CORN, PEAS, AXD TOMATOES. 

It has been impossible to reach the grower. The canner, however, has been on the 
basis of maximum margins of profit as announced in Bulletin No. 38. issued by the canned 
goocis division on Mny 1, IQIS, which reads as follows : 

Based on the views of the Federal Trade Commission of reasonable profit and the 
Food Administration's valuation of reasonable crop hazard insurance, the following 
maximum margins in cents per dozen cans are announced for licensed canners between 
cost and selling price. Excess of these margins will be considered unreasonable under the 
food-control act. 

Cost shall not include income and excess profits taxes, interest on investment, interest 
on long-term notes, or crop hazards. 
Corn (per dozen cans) : ^^^. 

No. 2, standard jg 

No. 2, extra standard- 2o 

No. 2, fancy 1111111111111 30 

Peas (per dozen cans) : 

No. 2, substandard (average all sizes) ^- 

No. 2, standard (average all sizes) IZl 22 

No. 2, fancy (average all sizes) ~ oi 

_ NoTE.--Greater niargins on smaller sizes of peas, offsetting less margins on larp-Pi- 
sizes, will be allowed, provided the average does not exceed margin annoufced. ^ 

Tomatoes (per dozen cans) : p 

No. 2, standard ■_ ' 

No. 2J, standard I—ZIIIIIIIIIII 22 

No. 3, standard „„ 

No. 3, fancy ^ -IIIIIIIIIZIIIIIIII 31 

No. 10, standard " 

No. 10, fancy -------------II"IIiriII"]III"I 100 

XT ^'"J'^oT'''o™™ i^f margins on standard tomatoes a deduction of 5 cents oer do7en on 
^''^^■\^" h^^'^^'^H ^''''*''' per dozen on No. 10 shall be made for the subltandard |?ade - 

While profits shall be reasonable, the Food Administration adopts the gaieral princiDle' 
produc^t^on ^PO^'tant producing agencies, that profits must be sUcim to encourage 

These margins are believed to be ample to provide a fair stimulative profit to the can 
tSiellnc^dTnt'^^trtil'^as^^.;''"' '''^^""""' ""^' '^^^^^•'^^' ^'^^ '"^^ Peculfai^^L^cl^- 

as^uMeToS'^T'^V'do ^of clV^ng^^^ig^^ife^^ ""^'""" "^^'^-^^^ ^°^ --* ^^ --i<l-ed 
■ This industry, like all others subject to license, should be guided by the general nrin 
ciple that what would have been a satisfactory profit in the prewar period on an even 
market, under freely competitive , conditions, should be the standard to da v and n^ 
ftSi^ "" ^' "^ ^"'"^^ "''^"^^ ""^ ^"'^P*^ '^^ ^" invitation to exceed this f°rme? 

The practice of selling the pack, or a large proportion of it in acivanna ^f 4+c ^ 

tion is an outgrowth of conditions existing In this industry It is a safeennrd hSfw ''' 
farmers and for. canners, and the practice, propyiyS^ucted fn accordance' wf^^^^ 
«nlnn,^^^ regulatious of the Fopd Administrktion tends strongly to remove the din -eroS^ 
speculative features otherwise incident to the business. s .y tu lemove tne aangeious 

B. SPECIAL REGULATIONS GOVERNING LICENSEES ENGAGED IN THF 
F^wSSiLTn^'^''''^^''^''^''''' CONDENSED, EVAPORATeS.^'oR 

Rule 2. Goods must be sold for not more than reasonable advance over average 
cost.-The licensee shall sell condensed, evaporated, and powdered mUk f or nit 
more than a reasonable advance over the average cost of the seSon's D^ck 

Tlsuel No?'? %'^VZ-r'' 7 '^'^'rrt''' ^'^^^^^ ^^ t^« tim'e'of 'such salt 
(issued Nov. 1, 1917, providing for sale at "not more than reasonable advance 

10, 19m ) "'' ^ ^^'''"^'''^ **" ^'"'"^'^ ^^"'^ '^^^- 28- 1918 ; repeal^ Tn 

VIII. SPECIAL REGULATIONS GOVERNING LICEN^FFs? v^ir^n?^k 
KiSS? ?ilf I^ESS OF PREPARING OR PACKInIdRiI!) ^EACHis 
DRIED APPLES, DRIED PRUNES, OR DRIED RAISINS i^i^ACHES, 

^ Rule 2. New-crop fruits not to be bought or sold before July 15 —The 
licensee prior to July 15 of the year in which new-crop fruits are to be grown 
and packed shall not buy. contract to buy. offer for sale or have outstandin<^ anv 
S?^'?-^^ '^^^^' ^^^' commitment for sale of new-crop fruits no avaabfefo? 
spot delivery. A commitment shall include all tentative or conditloSar orders 



596 HISTORY OF PRICES DURING THE WAR. 

whether detinite prices are named or not. (Rule issued Mai". 30, 1918, forbade 
sales befi>re May 1. Changed to June 1 on Apr. 30, 1918 ; changed to July 15 
on May 24. 1918 ; repealed Jan. 10, 1919. ) 

Rule 4. Dried fruits must be sold at not more than a reasonable advance over 
cost. — The licensee shall sell his products for not more than a reasonable ad- 
vance over the cost of said products and without regard to market or replace- 
ment value at the time of said sale. (Issued Mar. 30, 1918; repealed Jan. 10, 
1919.) 

DRIED FRUITS. 

Rule VIII-A-2. — The canned goods and dried fuuits division has prepared 
the following, which shows what has been done in establishing prices on dried 
fruits. The dried fruit situation has been handled largely by Mr. Merritt, 
State food administrator for California, and his conferees. In each instance 
a large majority of the representative growers have been brought together and 
voluntary agreements have been reached covering the maximum prices. The 
dried fruit packers were then handled in the same way and adopted a maximum 
of profit of 4 per cent. 

The prices for dried fruits in California are as follows : 

PEACHES. 

Maximum price to grower, 11 cents, which includes 8 per cent gain in dip already 
agreed upon. 

Maximum price to trade. 

Cents. 

Choice yellow, bulk basis 113 

Fancy yellow, bulk basis 12J 

Choice muir, bulk basis _ 111 

Fancy muir, bulk basis 121 

(Add 1 cent per pound for 50's and IJ cents for 25's.) 

KATSINS. 

Bnyin-i price to (jroiccr. 

Cents. 
Muscat 5i 

celling price to trade. 

Faucy seeded ' $0. 0962 

Choice seeded ■ 09125 

Bulk seeded ^ . 08 

Loose 2 crown ^.075 

Loose 3 crown ^.08 

I'RUNES. 

Cents. 

40-50 bulk basis 1 10 

50-60 bulk basis 9 

70-80 bulk basis 81 

The Orpgon situation was handled by Mr. Ayer. The Oregon prices on prunes are as 

follows : 

Cents. 

40-50 bulk basis 10 

50-60 bulk basis 9 

60-70 bulk basis 9 

70-80 bulk basis 8| 



V 



DRIED APPLES. 



While dried apples are licensed, it has been found impossible to reach any general vol- 
untary agreement with the growers owing to the peculiar production feature, in that they 
are produced practically everywhere. We are, however, attempting to regulate the prof- 
its of packers on the 4 per cent maximum basis. 

1 Per lb. in 25-lb. boxes. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 597 

Rule VIII-A-2 is not to be construed as prohibiting the making of a contract whereby 
a pacljer or association agrees with a grower to market the grower's crop at the price pre- 
. vailing when the crop is marketed ; nor is the rule to be construed as affecting any such 
contracts that are already outstanding. (Opinion A-106, July 22, 1918.) 

Rule 5. Price lists and circulars to be mailed Food Administration. — Licensees 
quoting dried fruits for shipment in carload lots shall mail promptly to the 
dried-fruit division of the United States Food Administration, Washington D C 
all price lists and circulars relating to prices on dried peaches, apples, prunes! 
orraisms. (Issued Mar. 30, 1918; repealed Dec. 3, 1918.) 

^^'To""^^^^ ^' ^' *' ^^^ ^ correspond to special rules 1, 2, 3, and 4 series B suddIp- 
May 2I llm ^'^^^ "^"^ ^^' i''^^- ^""'^^ ^ ^°^ ^ ^''^ amended to iheh"^-esent form 

IX. DEALERS AND BROKERS IN, AND IMPORTERS OF CERTAIN 
VEGETABLE OILS AND THEIR RAW MATERIALS. 

A SPECL\L REGULATIONS GOVERNING LICENSEES DEALING IN COT- 
COTTO?f GINNERS^^'^^^^^' ^^^^^^^ ^^ SUCH COMMODITIES, AND 

Rule 3. Licensee must not pay higher prices for cotton seed' or peanuts' in 
one market than in another.— No licensee shall pay or offer to pay higher prices 
for cotton seed or peanuts in one market than he pays or offers to pay for cotton 
seed or peanuts of the same quality in any other market: Provided, Jwwever 
Ihat when zones are established as mentioned in the note to Rule B-8, he may 
pay varying prices in the several zones, but must pay the same price at all 
points in the same zone on the same day for cotton seed or peanuts of the same 
quality. (Issued July 1, 1918.) 

Rule 5. Cotton seed' or peanuts => to be sold at not more than reasonable 
advance over cost.— The licensee shall sell cotton seed and peanuts at not more 
than a reasonable advance over the actual cost to him of the particular cotton 
seed or peanuts, sold without regard to the market or replacement value at the 
time of sale. (Issued Nov. 1, 1917, making exception for licensees who could 
r^riuL? oTr ^ ?.■ P^^^^'^«^. ^°d manufacturing costs of particular com- 
licensee ) forbidding averaging costs, etc., of separate mills operated by a 

.'^PJ^-—-^fi(^ctyve July 1, 1918, and until further notice the United States; Food \r\ 
ministration will regard any sale of cotton seed at advances greater than those indlcafpri" 
^ rn ^'p,^^ l^^ P^^^^f P^ '^ *^' «"^^ ^«"°° seed as a violation of the above rule Z''*^''^^*"'^ 
f«HU,v«".*n^.f^^ ^^A ^^K""^ '^''"l^ ^^^'^ ^l»ere the licensee provider the necessary 
facilities and capita , and bears the expenses and risks incident to the business ^^ 
P" o?V'°'^i''*^'"^ ^ili^ery and loading of seed into cars at mills) business, ?3 

(2) Purchase and sale of cotton seed where the licensee onerates as iirinpin«i h,i<- 

(3) Any margin or commission in excess of 25 cents per ton to a licensee oneratin? 
a«*^,n'"rl\^a^?'' *'''a^' dealer, who buys and sells cotton seed in car lots wfll beTegarded 
as unreasonable. Any commission must be paid by either the seller or final buver ont of 
his spread or margin, and if any dealer in car loti takes a margin for such hand in^thP 
person who buys from him shall deduct such margin from his own perSibllsDrefdo? 
margin unless it has already been deducted by the original seller P^^^iissiDie spread or 

Rule 8. Unreasonable charges by ginners prohibited.— No licensee owning 
controlling, or operating a ginnery shall make any unreasonable charge for the 
service of cleaning seed cotton or separating the seed from the lint. (Issued 
Nov. 1, 1917 ; repealed May 31, 1919.) 

Note.- The Uriited States Food Administration may determine and announce a maxi 
mum charge that may be made by licensees for performing the service known as linnine 

Ginners shall keep a correct record showing the nami and address of ?ach oaftv for 
Z^T f^^""^ ^'^ ^•'"?°' tl»e amount of cotton ginned in each case and the Ictual charse 
made for each service. They must also keep a careful record showing the name and 
«^^''?.l-.o^^*'.'^'i^/^''iy ^'■"'^ ^^S,?" t^-^y purchased cotton seed^ogethT with the aimnt^v 



1 Repealed May 31, 1919. 2 Repealed Nov. 13, 1918. 



598 HISTORY OF PRICES DURING THE WAR. 

The charge for ginning should be the same whether or not the cotton or the cotton 
seed is purchased by the ginner. 

Ginners should gin as rapidly as possible consistent with good work all dry seed cotton 
tendered them, and upon demand they should return to the owner the cotton and cotton 
seed ginned by them. If cotton seed is purchased by the ginner, he becomes a dealer 
therein, and must be guided by the margins indicated under Rule 5, above. 

Rule 9. Maximum buying margin below carload market price prescribed. — A 

licensee who buys cotton seed in less than carload quantities for sale or ship- 
ment in carload quantities shall buy at a gross margin below the carload market 
price at railroad points, not to exceed $3 per ton. The cost of hauling from 
distant points to the railroad may also be deducted. (Rule issued Dec. 7, 1917, 
provided " No licensee shall sell any cotton seed in car lots at more than $2 per 
ton, exclusive of customary loading charge, over price paid for said cotton seed." 
Rule governing 1918 crop issued July 1, 1918, given here ; repealed May 31, 1919. ) 

B. SPECIAL REGULATIONS GOVERNING LICIDNSEES CRUSHING COT- 
TON SEED, PEANUTS, SOYA BEANS, PALM KERNELS, OR COPRA, 
AND DEALERS AND BROKERS IN THE RESULTING OILS. 

Rule 8. Commodities must be sold at not more than reasonable advance over 
cost. — The licensee shall sell the products of cotton seed, peanuts, and soya 
beans at not more than a reasonable advance over the average cost to the 
licensee of the cotton seed, peanuts, or soya beans from v^'hich such products are 
manufactured. A licensee who operates one or more cotton ginneries or crushing 
mills shall keep separate accounts and make reports to show separately the 
operations of each ; for the purpose of this rule each cotton ginnery or crushing 
mill shall be considered as a unit and the licensee shall not be permitted to 
average any costs, profits, or losses between such units. 

Note. — The United States Food Administration will divide the cotton-producing terri- 
tory of the United States into zones, and it will determine and announce basic yfelds of 
oil, meal, linters, and hulls from cotton seed for each zone, and differentials or spreads 
to represent the difference between the price paid for cotton seed and the total amount 
any licensee engaged in the business of crushing cotton seed may receive from the sale 
of the manufactured products of the cotton seed. The licensee will be permitted to 
sell all manufactured products in excess of the basic yields without reference to the 
established margin, provided that the price charged for such excess products shall not 
exceed the average price that will be indicated for the other products in said yield. 
(Issued Nov. 1, 1917; repealed May 31, 1919.) 

D. SPECIAL REGULATIONS GOVERNING REFINERS OF COTTONSEED 
OIL, PEANUT OIL, SOYA-BEAN OIL, PALM-KERNEL OIL, PALM OIL, 
AND COPRA OIL, AND DEALERS AND BROKERS IN SUCH REFINED 
OIL. 

Rule 5. Domestic oil to be sold at reasonable advance over cost. — The licensee 
shall sell cottonseed oil, peanut oil manufactured from domestic peanuts, and 
soya-bean oil manufactured from domestic soya beans at not more than a 
reasonable advance over the average cost to licensee of the crude oil from which 
such oil was refined.^ (The licensee may consider all refining plants operated 
by or controlled by such licensees as a single unit.' Licensees who control mills 
crushing oleaginous materials must credit all raw materials obtained from such 
crushing mills at the same price at which, they could purchase the same 
products in the open market at the time of transfer.) (Issued Jan. 28, 1918; 
repealed May 31, 1919.) 

Note. — The United States Food Administration will indicate from time to time what 
margins it considers fair. 

E. MANUFACTURERS AND DEALERS IN LARD SUBSTITUTES. 

(Issued Jan. 28, 1918; repealed May 31, 1919.) 

Rule 2. Licensees engaged in the manufacture and distribution of lard substi- 
tutes may consider all plants for the manufacture of lard substitutes operated 
by, belonging to, or controlled by the licensee as one unit for the purpose of deter- 
mining costs and profits. 

Rule 3. Licensees engaged in the manufacture of lard substitutes who own or 
control mills crushing cotton seed, peanuts, or other oleaginous materials must 

* Issued July 1, 1918 ; repealed as to all except " cotton seed " Feb. 1, 1919. 



GOVEENMEISTT KEGULATIONS RELATIllirG TO PEICES. 599 

credit all raw material obtained from such crushing mills at the same price'art 
which they could purchase the same products in the open market at the time of 
transfer. 

Rule 4. Licensees engaged in the manufacture of lard substitutes who own or 
control plants for the refining of vegetable oils must credit the refined oil received 
from said refining plants at the same price at which they could obtain the same 
product in the open market at the time of the transfer. 

Rule 5. Every licensee who owns or controls a plant for the manufacturing of 
lard substitutes shall be subject to such differentials and spreads for the cost of 
manufacture of crude material Into a finished product as may from time to time 
be determined and announced by the United States Food Administrator to return 
a fair profit to the licensee. 

Rule 6. No manufacturer engaged in the manufacture of lard substitutes shall 
without the written permission of the United States Food Administrator sell or 
offer to sell lard substitutes at higher prices in one market than he is selling or 
offering to sell the same quality or brand in any other market on the same day 
The price for sales in lots of 5,000 pounds or more, tierce basis for delivery at 
one time, net after deducting all discoiyits and allowances, shall be taken as the 
basis m making comparisons for the purpose of this rule. In comparing with 
this the selling price of lots of less than 5,000 pounds, tierce basis, for delivery 
at one time, li cents per pound will be deducted from the price actually charged 
In comparing the price of package and case goods, stated differentials will be 
determined by the United States Food Administrator from time to time for all 
manufacturers of lard substitutes. (Issued Mar. 23, 1918.) 

X. SPECIAL REGULATIONS GOVERNING MANUFACTURERS OF 
OLEOMARGARINE AND OTHER BUTTER SUBSTITUTES. 

Rule 1 (effective Dec. 4, 1918), Maximum margins for manufacturers. — The 
manufacturer shall not sell oleomargarine or other butter substitutes at a greater 
average advance over the cost of the raw material (in any period of two months 
beginning Dec. 1) than the sum of his actual manufacturing cost plus a profit 
not to exceed 10 per cent of the selling price to the wholesale trade. In no case 
shall the manufacturing cost be figured in excess of $6.30 per hundred pounds 
(Repealed Jan. 26, 1919.) 

Manufacturing costs shall include : 

1. Labor. 

2. Selling expenses. 

3. Advertising. 

4. Administrative expenses. 

5. Depreciation. 

6. Taxes, not including excess-profits tax and income tax. 

7. Miscellaneous manufacturing expenses, not including interest charges 
The cost of raw materials shall mean the cost, delivered, at plant of following • 

(a) Oils. 

(b) Milk. 

(c) Salt. 

(d) Package. 

(e) Color. 
if) Stamps. 

(g) Cartons and paper. 
(h) Supplies. 

Note. — The Food Administration does not recognize $6.30 per hundred Dounds a<4 a 
normal reasonable cost of manufacture, nor 10 per cent net profit as a normal reasonable 
net profit. These are maximum margins to cover the most expensive legitimate methods 
or opcraLioii. 

XL WHOLESALERS, JOBBERS, IMPORTERS, RETAILERS. 

A. SPECIAL RULES APPLYING TO LICENSED NONPERISHABLE FOOD 

COMMODITIES. 

Rule 5 (as amended Dec. 31, 1918). Must sell at reasonable advance over 
average purchase price.— The licensee, without regard to market or replace- 
ment value at the time of such sale, shall sell the following commodities at not 
more than a reasonable advance over the average purchase price of all lots of 



600 HISTORY OF PRICES DURING THE WAR. 

the same grade and size of the same commodity in liis possession or invoiced to 
him not contracted to be sold : 

Self-rising flour. ' Dried raisins. 

^ Cleaned rice. ^ Dried beans. 

^ Rice flour. ^ Dried peas. 

^ Oleomargarine. ^ Rye flour. 

^ Lard. * Barley flour. 

* Lard substitutes. ^ Oatmeal. 
*01eo oil. 'Rolled oats. 

* Cooking fats. 'Corn grits. 
' Condensed, evaporated, or powdered ' Corn meal. 

milk. ' ' Hominy. 
' Canne<l or cured beef, pork, or mut- ' Corn flour. 

ton. ' Cornstarch. 

' Canned peas. ' Corn oil, 

' Canned dried beans. ' Corn sirup. 

' Canned tomatoes. ' Glucose. 

' Canned corn. * Sirups. 

' Canned salmon. * Molasses. 

' Canned sardines. Maple sugar. 

' Dried prunes. Maple compounds. 

'Dried apples. 'Clarified, plantation- M^a shed, and 
' Dried peaches. open-kettle sugars. 

The licensee shall keep a record of the manner in which such average has been 
arrived at, and he shall take as the cost of all stock remaining on hand from 
lots already averaged the average cost previously arrived at. 

In selling commodities not yet invoiced to him he shall sell at not more than 
a reasonable advanc"e over the actual purchase price to him of all lots of the same 
grade and size of the same commodity purchased by him but not yet invoiced 
to him. 

(This rule corresponds to special rules 1 and 2, series B, governing wholesalers and 
retailers. See special rules H, following, for green coffee.) 

EXPLANATION. 

Note. — This rule prohibits speculation in licensed commodities. 

The following is an example of the method by which the average cost shall be deter- 
mined, taking flour as an example : 

Cost per 
Barrels, barrel. Total. 

Lot A 20 $10.50 $210.00 

Lot B 30 11.00 330.00 

Lot C 25 10. 75 268. 75 



75 808. 75 



Average cost per barrel 10. 78 

Reasonable advance . 50 



11. 28 



Suppose that 35 barrels are then sold at $11.28 and 15 barrels purchased at $11. The 
calculation for further sales will then be made as follows : 

Cost per 
Barrels, barrel. Total. 

Barrels remaining on hand from lot previously averaged 40 $10. 78 $431. 20 

Lot D (new purchase) 15 11.00 165.00 



55 596. 20 



Average cost per bai-rel 10.84 

Reasonable advance , . 50 



SeUng price 11. 34 

* Rule providing for sale of these commodities "at not more than reasonable advance 
over actual purchase price of particular goods sold," issued Nov. 1, 1917. Wheat flour 
and mixed flour and other commodities listed in rule issued June 15, 1918. Repealed as 
to wheat flour and mixed flour Dec. 31, 1918. Repealed as to all commodities, except lard 
and lard substitutes made from cotton seed, Jan. 10, 1919. Repealed as to lard Apr. 1, 
1919. ■ Repealed May 31, 1919, as to lard substitutes made from cotton seed. 



GOVEE]!^MENT REGULATIONS RELATING TO PRICES. 601 

Neither the Food Administration nor any other branch of the Government has pre- 
scribed uniform cost accounting' systems for either wholesale or retail food distributors. 
The Government has not, therefore, indicated how the licensee, in dealing with a com- 
modity covered by tbe reasonable profit rule, shall dispose of cartage, interest, or other 
special charges, but it does expressly forbid the employment of such charges with the pur- 
pose, or with the effect, of Increasing the licensee's profit above his own reasonable pre^ 
war level. 

The licensee shall not, in calculating cost, include accruals or payments of Federal in- 
come, coi-poration or excess profits taxes. 

A wholesaler who also does a retail business is not required to sell to both classes of 
customers at the same price ; and a, merchant, if he desires, may make prices in the case 
of cash sales, or sales upon which he does not have to perform the delivery service, differ- 
ent from his prices when credit is given or delivery made. The test is, Are the commodi- 
ties being sold at not more than a reasonable advance over the average price. 

Regarding special discounts to favored customers, see General License Regulations No. 
I, rule 5, relating to discriminatory charges. If the consumer does not get the benefit of 
the discount and the retailer retains it in addition to his allowed profit, then the retailer 
is selling at an unreasonable advance. The giving of special discounts to favored cus- 
tomers by wholesalers at least tends to cause the wholesaler to sell to other customers 
at a greater advance than he would if no special discounts to favored customers were 
given. The United States Food Administration intends to scrutinize all transactions in- 
volving sipecial discounts and rebates of every kind given by licensees. 

Under Rule XI-A-5 the licensee is not required to average the purchase price 
of commodities of different brands that are of a proprietary nature, even though 
the grade and size are the same. He may average, however, If he desires. 
(Opinion A-108, July 23, 1918.) 

Ai wholesaler or jobber in the commodities mentioned in rule A-5, Special 
License Regulations XI, who conducts branches in one or more localities should 
calculate his costs according to each locality and sell at not more than the 
maximum margins over delivered costs in each particular vicinity. (Opinion 
A-117, Aug. 26, 1918.) 

The Food Administration has determined, after careful consideration, that it 
will at present issue no regulations prohibiting the sale of foodstuffs at less than 
cost. Action will be taken, however, in cases where wholesalers or retailers are 
selling licensed foods at less than their purchase price plus railroad transporta- 
tion charges, with the result of stimulating the consumption of such foodstuffs 
and increasing the margin which the dealer can charge for other goods. Each 
case Avill be considered on its individual merits. It is considered most inadvis- 
able to attempt to limit sales at less than " cost," as ordinarily defined in busi- 
ness, because of the difficulty of calculating overhead expense per unit. The 
purchase price forms a simple test where the other elements of stimulating con- 
sumption and increasing profits in other licensed foodstuifs are present. 

It has been pointed out that there are many instances in which dealers may be 
compelled by the condition of the market or of the goods to sell at considerably 
less than cost, especially in the case of perishables, and the Food Administration 
does not regard the practice in such case as unfair (Oct. 10, 1918). 

MAXIMUM MARGINS ON SALES BY WHOLESALERS TO RETAILERS. 

Commodities. Maximum margins. 

Sugar 15-35 cents per 100 pounds. 

Wheat flour 50-75 cents per barrel. 

Lard, lard substitutes, bulk (packages of 50 pounds or over) 3^-2 cents per pound. 

Standard hams, bacon 1-2 cents per pound. 

All flours (except wheat) "i 

Lard and lard substitutes, in packages (less than 50 pounds) lQ_in 

Condensed, evaporated milk A^ P^^ *^®°*- 

Blackstrap molasses in barrels j 

Rice, hominy, grits, oatmeal, rolled oats, corn meal, beans, in 

bulk (packages of 25 pounds or over) 10-12| per cent. 

Rice, corn meal, hominy, grits, oatmeal, self-rising and pre- " 
pared flour, and rolled oats, all in packages 

Corn oil, corn sirup, sugarhouse sirup, mixed sugar and corn 
sirup, and cottonseed oil_ 

Standard and extra standard licensed canned peas, tomatoes, 
corn, and canned dried beans, and pink, chum, and red sal- 
mon, and all domestic sardines 

AH licensed dried prunes, apples, peaches, raisins 

Note. — Percentages should be figured on the wholesaler's selling price. The maximum 
margin on sugar has been increased to 35 cents per 100 pounds for wholesale grocers 
and food jobbers who actually perform, as to substantially all the sugar handled by 
them, the functions of buying, warehousing, selling, and distributing. But this maximum 
margin is not allowed where such service is not performed. Margins for sugar dealers 



,12-15 per cent. 



602 HISTORY OF PRICES DURING THE WAR. 

are not changed. Rye flour has been transferred to the 8-10 per cent classification. 
Prepared flours, sugarhouse sirup, and mixed sugar and corn sirup, have been placed 
in the 12-15 per cent classification. All domestic sardines and all grades of licensed 
dried fruits are now included within the 12-15 per cent classification. 

Any gross margins above delivered cost upon sales in unbroken cases to retailers in 
excess of the foregoing margins will be regarded as prima facie evidence of a violation 
of the statute and the regulations. 

In case the licensee breaks original packages he may add to his cost the actual cost 
of such repacking, in no case to exceed 5 per cent. 

It should be noted that the above differentials are maximum margins, which must 
not be exceeded by the wholesaler. 

Licensed commodities not covered by the above margins shall not be sold at a margin 
above delivered cost to the wholesaler — average purchase price plus freight to public 
railway terminal in jobber's city or town — of the particular goods sold which will yield 
any greater profit than the dealer customarily enjoyed on the same commodity in the 
prewar period on an even market under freely competitive conditions. 

High margiTis, even if customary during prewar period, are not justifiable now. Un- 
reasonable margins are not excused by lower margins on other transactions in the 
same commodity or in other commodities. 

The margins named are ample to include all ordinary carrying charges. If general con- 
ditions should later necessitate the carrying of goods for a longer period than usual, 
further consideration will be given to this feature. In determining the cost of dried 
fruit, the licensee may add to his purchase price not more than one-eighth cent per 
pound per month on dried fruit actually carried in cold storage between May 1 and 
November 1, not to exceed three-fourths cent per pound, on any particular lot of goods. 

Any change from the prewar custom in cash discount terms, cartage, or other charges, 
which tends to or results in increasing the margin of profit allowed, will be dealt with 
as an unfair practice. 

WHAT RESALES ARE JUSTIFIABLE. 

(The following applies to all licenses governed by the rules contained in this 
pamphlet. ) 

General rule 6 reads as follows : " The licensee, in selling food commodities, shall 
keep such commodities moving to the consumer in as direct a line as practicable and 
without unreasonable delay. Resales within the same trade without reasonable justifi- 
cation, especially if tending to result in a higher market price to the retailer or con- 
sumer, will be dealt with as an unfair practice." 

Service. — Any transactions that savor of trading in which a profit accrues to the 
dealer without corresponding service, are clear violations of the rule and will subject 
the offender to revocation of his license and to such other penalty as the law provides. 
A resale that is in keeping with one of the following principles will be considered lawful 
under general rule 6 : 

A. Continuous service. — The seller may customarily and continuously serve in less 
than carload lots wholesale grocers who are serving retail grocers, but who are unable 
for some sufficient and legitimate reason to purcha-se direct from the source of supply. 

B. Carload huying. — A wholesaler or jobber may enjoy the benefit of carload rates 
from distant points and sell to smaller wholesale grocers who are unable to buy the 
commodity in carload lots. 

C. Warehousing. — A wholesaler or jobber may continuously and customarily furnish 
cold storage or other warehousing service and sell to wholesale grocers who have not 
adequate facilities of that character. 

D. Surplus stocks. — A wholesaler may dispose of surplus stocks bought, not for 
speculation, but in good faith for the reasonably anticipated requirements of his busi- 
ness under the rules and regulations and which he finds himself unable to dispose of 
to his regular customers. The fact that such goods have not been warehoused by such 
wholesaler will be regarded as prima facie evidence that they were not bought in good 
faith. 

Only one resale permitted. — The distributor who purchases from a wholesaler or 
jobber must not, under any circumstances, resell the goods in question to a wholesaler 
or jobber, but must distribute directly to retailers or consumers. 

MAXIMUM MARGINS ON RESALES JUSTIFIED BY PERFORMANCE OF ACTUAL 
SERVICE SPECIFIED IN A, B, C, AND D, ABOVE. 

1. Seller's margins. — The margin of profit enjoyed by the wholesaler or jobber selling 
to another wholesaler or jobber shall in no case exceed one-half of the maximum margin 
named for the particular commodity in the wholesaler's list "above. These margins shall 
include all cartage, storage, interest, and other charges. 

2. Purchaser's margins. — The distributor who has thus purchased within the trade 
shall sell the goods so purchased at not more than the lower margin indicated in the 
list above. 

MAXIMUM MARGIN ON OTHER RESALES. 

3. On all other resales, such as accommodation sales, commonly known in the trade 
as " pick-ups," only one wholesale profit (as indicated by the above maximum margins) 
is allowed, but this one allowable profit may be divided between the wholesalers as they 
determine. 



GOVEKNMENT REGULATIONS EELATING TO PRICES. 603 

MARGINS FOR CLEAN RICE DEALERS IN SELLING TO WHOLESALERS. 
(As amended Nov. 25, 1918.) 

Where a rice dealer's business was established prior to August 10, 1917, the Food 
Administration will permit one such dealer to handle rice between the miller and the 
wholesale grocer, but no resale of rice between such dealers will be permitted Except 
in the case of such established business, it is considered that rice should be on the 
same basis as other manufactured cereal products so far as resale within the trade is 
concerned. All sales of rice made through any distributing company in which the mill 
is interested must be made at the original mill price except as specifically provided 
below for millers' selling agencies. 

Sales by established dealers referred to above at margins over cost greater than the 
following maximum margins will be considered a violation of the regulations : 

MAXIMUM MARGINS. 

1. Carload lots, including mixed cars, shipment direct from mill or reconslgned without 
unloading — not to exceed 2| per cent. 

2. Pooled cars, shipment direct from mill or reconsigned without unloading— not to 
exceed 4 per cent. 

3. Carload lots, including mixed cars, where de'aler unloads and bandies through a 
warehouse — not to exceed 4 per cent. 

4. Less than car lots, including pooled cars, where dealer unloads and bandies through 
a warehouse — not to exceed 6i per cent. 

In the first three cases mentioned any wholesale grocer buying from a dealer may 
take the same margin as if he had bought direct from the mill. In the fourth case the 
wholesaler is limited to a 10 per cent margin and may not resell to another wholesaler. 

MILLERS' SELLING AGENCIES. 

A company acting as a dealer which was established prior to August 10, 1917, may 
carry on its own business in accordance with the margins indicated above, although it 
is owned or controlled by a rice miller, provided that no larger proportion of rice Is 
sold by the miller through such company than the average proportion so sold during 
the next three preceding years. 

Where a miller maintains a branch office which receives rice in car lots on consign- 
ments from the mill, warehouses this rice, and distributes it in less than car lots to 
wholesale grocers, such branch office shall be permitted to add to the miller's maximum 
prices not more than 3 per cent for the service performed, provided that no larger 
proportion of the mill's product is thus sold through such branch house than the average 
proportion so sold during the next three preceding years. 

Note.— Where a selling company owned or controlled by a miller sells directlv to 
retailers in less than car lots, it may add a margin not greater than that added by o^hl? 
licensees performing similar services. ^ t-^-^i^ duueu uy orner 

(New, Nov. 16, 1918.) The maximum margin of from 8 to 10 per cent upon the sale 
of condensed evaporated milk does not apply to such milk when packed in barrels. 

Note.— Resales of cornstarch. — Issued October 31, 1918. The attention of the Fond 
Administration has been called to speculation and intertrading in bulk cornsta^-ch Atten- 
^T.J^ ''^"'''^, *^ tlie fact that the resale regulations applying to wholesalers of other 
frS'®i^PP\^ "', *'!." J° cornstarch in bulk or in packages (see Rule XI-A-5 Note) 
s'Sutd fnTs'ill^or^s'tarcL'^''^ Administration considers that a dealer in co'rnSS 
and bakei^s)"'^''"^^''*"'"'^'' "^'°^' <^°^'^^t^^'^^ i^i Jiis manufacture (including confectioners 

2. To retail grocers and consumers. 

3. To smaller wholesale" grocers under one of the following circumstances- 

+v,f^ C-o^i'^^MOMs seri-ice.— The dealer may customarily and continuously serve in less- 
f^^;T''*'''i ^?*^ ^'""S^?^^^^ grocers who are serving retail grocers but who Ire unabfe 

R Xw«"„^T°*-^''<^ legitimate reason to purchase direct from the source of supply 
poSts ^d sen Tfn^^itv^w'i X ""f y ^""^"y ^^^ ^^^^^* °f ^^^'l«ad rates from^d^stant 
carfoad^ts smaller wholesale grocers who are unable to buy the commodity in 

^+iH:..^o*'^?'''"*^'^^-~^ dealer may continuously and customarily furnish cold storaee or 
of tha^Sacter^ ""'^''^ ^""^ '^^^ *^ wholesal^ grocers who ha^e not adequate faSffties 

hu?\nV'£'t!lti''!o^tk^f<}^LT^^ ^'%^-^^ of surplus stocks bought, not for speculation. 
,.nLc oS^ ^ 1 4.- ^^ the reasonably anticipated requirements of bis business under th^ 
rules and regulations and which he finds himself unable to disDose of fn hi« r^oni^^ 
customers. The fact that such goods have not teen ^rehoused by such dealer wm fi 
^wlt-i ^^ P'V"^ Z^?**^ evidence that they were not bought in good faUh ^ 

Where cornstarch is used by manufacturers in any quantity there should he nof m«,-« 
than one dealer between the cornstarch manufacturer and the manufacturer usfng cT-k 



604 HISTORY OF PRICES DURING THE WAR. 

starch. The greater number of such sales- should be made direct without the interposition 
of any dealer. No manufacturer who purchases cornstarch can resell the same without 
the written permission of the United States Food Administrator, which will be given in 
proper cases on the condition that th(^ purchaser is not required to pay a total margin 
over the cornstai-ch manufacturer's price greater than that permitted to a single dealer 
plus actual freight. 

Margins and profits. — liiuler Rule XI-A-5 the Food Administration will consider any 
gross margins above delivered cost in excess of those listed below as prima facie evidence 
of a violation of the statute and regulations, and cause for revocation of a dealer's 
license. 

A. Where cornstarch is sold in car lots without warehousing, not to exceed 4 per cent. 

B. Where corastarch is sold in less than car lots to bakers, mixers, manufacturers, 
or retailers, not to exceed 8 to 10 per cent in bulk or barrels, not to exceed 12 to ir> 
per cent in packages. 

C. Where cornstarch is sold to a smaller wholesale grocer under the resale provisions 
given alx)ve in less than car lots, not to exceed 7i per cent in bulk. 

D. Where the dealer breaks original packages he may add to his cost the cost of the 
new package plus actual cost of repacking, in no case to exceed 5 per cent. 

Sale of lard substitutes. — The following ruling has been made by the law department 
in reply to an inquiry regarding jobbers' margins on lard substitute: 

" We }>eg to acknowledge your letter of September 28 in which you inquire whether it 
is against the Food Administration regulations for a wholesale jobber to sell lard sub- 
stitute at less than 24 J cents, tierce basis, which under the stabilized program he pur- 
chases at 23 cents. The Food Administration regulations provide a maximum margin 
for the wholesaler of li to 2 cents per pound over the purchase price delivered at rail- 
road station. A general stabilization program affecting lard substitutes and other cotton- 
seed products has now been adopted by the Food Administration for the purpose of 
eliminating speculation and reducing the margin between the producer of cotton seed and 
the consumer of lard substitutes, and this program has been approved by representalives 
of all interests concerned, who have expressed their desire to cooperate. In view of the 
circumstances surrounding this program, it will hereafter be considered an unfair practice 
for any jobber to sell lard substitutes or lard compound in lots of less than .5,000 pounds 
at a margin over his delivered purchase price less than IJ cents or IJ cents where the 
jobber purchases in lots of 30,000 pounds or more and receives a concession of J cent. 

" It should be pointed out that this action rests solely on the peculiar circumstances 
surrounding the cottonseed program. The reasons applying to lard substitutes do not 
apply to any other commodity handled by wholesale grocers ; and the policy of the Food 
Administration and its distribution division is decidedly opposed to the application of 
any similar principle to other commodities. 

" It should further be pointed out that the 2 cent maximum margin for jobbers applies 
on the actual purchase price. The jobber who purchases in lots of 30,000 pounds at 225 
cents must sell at not to exceed 241 cents." 

The maximum margins permitted on sales of nonperishables by wholesalers to retailers 
prescribed in the announcement of June 6, 1918, and in the note to Rule XI— A— 5 include 
local cartage, but does not include delivery charges incurred by the wholesaler in de- 
livering by truck to points to which shipment might be made by rail. The actual ex- 
pense of making such deliveries by truck may be charged by the seller to the parties to 
whom the sale is made after the price has been fixed by the seller in conformity with 
said rule A— 5 and announcement of June 6. In no case, however, shall the added charge 
be in excess of the freight charge. (Opinion A-113, July 26, 1918.) 

A brokerage may be paid to a broker in a permissible resale from one jobber or 
wholesaler to anothei- ; the brokerage must, however, be deducted from the profit of 
either the buyer or seller so that the price of goods in the course of further distribution 
shall not bear such brokerage. (Opinion A-118, Aug. 26, 1918.) 

MAXIMUM MARGINS ON SALES BY RETAILERS TO CONSUMERS. 
(Issued Nov. T, 1918.) 

The Food Administration has determined that any sales of food commodities at a 
gross margin above delivered cost in excess of those indicated below are unreasonable, 
and will be regarded as prima facie evidence of a violation of the statute and of the 
above regulation. Percentage may be calculated on the selling price. Delivered cost 
shall mean the cost at the railroad, steamboat, or other terminal in the retailer's 
town. Where the retailer is not located in a railroad or steamboat town he may include 
any hauling charge in the delivered cost. 

Tlie lesser margin indicated is not a minimum margin, but is a maximum margin 
for those whose cost of doing business is less, such as stores which do not perform 
the services of credit and delivery. Any change from the prewar practice in cash 
discount terms or other changes which tend to or result in increasing the margin of 
profit allowed will be dealt with as an unfair practice. 

The retailer may have the benefit of fractional costs on each transaction ; that is, 
he may calculate the total charge to a customer on any transaction as if fractional 
costs were not allowed, and if the result is a fraction, he may add thereto such fraction 
of a cent as may be necessary to make a price in even cents. The following table 
gives an example in the case of eggs, using the cash and carry margin of 7 cents 
per dozen : 



GOVEENMENT REGULATIONS EELATIISTG TO PRICES. 



605 



Amount of sale. 


Cost. 


Margin 
(cents). 


Total. 


Fraction 
added. 


Maximum 
selling 
price. 




$0.46i 
1.38J 


7 

14 
21 


$0. 53i 
1.06i 
1.59a 


4 
1 


$0.54 


2 dozen 


1.07 




1.60 







MAXIMUM MARGINS. 

Barley flour, original mill packages 18 to 22 per cent. 

Barley flour, broken mill packages O.OIJ per pound. 

Rye flour, original mill packages 18 to 22 per cent. 

Rye flour, broken mill packages O.OIJ per pound._ 

Corn flour, original mill packages IS to 22 per cent. 

Corn flour, broken mill packages 0.011 per pound. 

Rice flour 18 to 22 per cent. 

Corn meal, bulk 0.011 per pound. 

Corn meal, original mill packages 18 to 22 per cent. 

Hominy 18 to 22 per cent. 

Sugar, all kinds in bulk O.Oli per pound. 

Sugar, all kinds in refiners' original packages 0.01 per pound. 

Evaporated milk, unsweetened 18 to 22 per cent. 

Oatmeal and rolled oats, bulk O.Oli per pound. 

Oatmeal and rolled oats, original mill packages 20 to 25 per cent. 

Rice 20 to 25 per cent. 

Beans,, white or^ colored 20 to 25 per cent. 

Starch, edible ^ 1 20 to 25 per cent. 

Corn sirup, tins 20 to 25 per cent. 

Canned corn, peas, and tomatoes, standard grades 25 to 30 per cent. 

Canned salmon chums, pink, and red 25 to 30 per cent. 

Canned sardines, domestic 25 to 30 per cent. 

Dried fruit, raisins, prunes, and peaches 25 to 30 per cent. 

Lard, pure leaf, bulk 5 to 6 cents per pound. 

Lard, pure leaf, tins 18 to 22 per cent. 

Lard, substitutes, bulk 5 ta 6 cents per pound. 

Lard, substitutes, tins 18 to 22 per cent. 

Breakfast bacon, whole pieces 6 to 7 cents per pound. 

Heavy bacon, whole pieces 5 to 6 cents per pound. 

Hams, smoked, whole , 6 to 7 cents per pound. 

In quoting sliced ham and bacon add usual differential to cover actual shrinkage. 

" Original mill packages "' as used above means where retailer sells product in the 
same mill container as received by him. 

" Broken mill packages " means when retailer removes contents from original pack- 
ages and sells in smaller quantities. 

By other special regulations the retailer's maximum margins have also been fixed 
in accordance with the following list : 

Potatoes, white or Irish . 25 to 30 per cent. 

Onions 25 to 30 per cent. 

Eggs (whether sold in carton or not) 1- 7 to 8 cents per dozen. 

Cold-storage butter ^.-^ 6 to 7 cents per pound. 

Butter substitutes, oleomargerine, nutmargerine, etc 5 to 6 cents per pound. 

Note. — The maximum margins on wheat flour and mixed flour were removed December 
31, 1918. 

B. REFINED SUGAPv. 



Rule 1. Profit on sugar purchased from refiner. — No wholesale dealer in 
refined sugar who purchases such sugar from the producer or reflnej, direct 
or through a broker, shall sell such sugar at an advance over the refiner's list 
price at which he purchased sugar greater than the normal margin charged 
by wholesale dealers in refined sugar in the same locality, or such margin as 
may hereafter be established by the Food Adniinistration. (Issued Nov. 1, 
3917; repealed Feb. 1, 1919.) 

(This rule corresponds to special rule 1, series B, Governing Wholesale Dealers in 
Sugar.) 

Note. — This rule applies to plantation granulated sugar. 



606 HISTORY or PRICES DURING THE WAE. 

Rule 2. Profit on sugar obtained from other than refiner. — It will be con- 
sidered an unreasonable practice if two or more wholesale dealers handle the 
same sugar at a greater total margin than that prescribed by rule 1. No whole- 
sale dealer or other licensee who purchases refined sugar from any person other 
than the producer or refiner shall sell such sugar to a retailer or to a i^erson 
Tising such sugar in manufacturing at a price representing an advance over 
the producer's or refiner's list price on the day of such sale greater than the 
advance allowed by the preceding rule to a wholesale dealer in the locality 
where such sale occurs. (Issued Nov. 1, 1917; added to June 15, 1918; re- 
pealed Feb. 1, 1919.) 

(This rule corresponds to special rule 2, series B, Governing Wholesale Dealers In 
Sugar.) 

Rule 3. Retail sales must be made at not more than reasonable advance over 
cost. — The licensee shall sell sugar at retail at not more than a reasonable 
advance over the actual purchase price of the particular goods sold, without 
regard to the market or replacement value at the time of such sale. (Issued 
Nov. 1, 1917; repealed Feb. 1, 1919.) 

E. DRIED BEANS AND DRIED PEAS. " 

Rule 1 (as amended July 24, 1918). Future dealing in new crop beans 
prohibited. — The licensee shall not buy or sell new crop dried beans except for 
seed, or for the Federal, State, county, or municipal governments or for the 
Government of any nation at war with Germany, before September 1 of the 
year covering such new crop if grown in the United States of America, Japan, 
Manchuria, China, or Asiatic countries, or before June 1 if grown in South 
America, Porto Rico, or Mexico, (Rule issued Nov. 1, 1917, limited dealing in 
beans grown in the United States changed July 24, 1918, to include beans 
grown in countries noted here; repealed Dec. 3, 1918.) 

Note.— This rule does not prohibit a licensee fi-om guaranteeing a certain price for a 
crop to be planted ; however, sales against such an arrangement can not be made before 
September 1. 

Rule 2 (as amended July 24, 1918). Future dealing in new crop peas pro- 
hibited. — The licensee shall not buy or sell new crop dried peas grown in the 
United States of America, Japan. Manchuria, China, or Asiatic countries, 
except for seed, or for the Federal, State, county, or municipal governments 
or for the Government of any nation at war with Germany, before July 1 of 
the year covering such new crop. If grown in South America, Porto Rico, or 
Mexico such new crop shall not be sold before April 1. (Rule issued Nov. 1, 
1917, limited dealing in peas grown in the United States, changed July 24, 1918, 
to include peas grown in countries noted here ; repealed Dec. 3, 1918. ) 

Note. — While this rule permits the guaranteeing of a price for a crop, no sales can be 
made by the licensee before July 1. 

MAXIMUM MARGINS. . 

Under Special Rule XI-A-5 speculation in dried beans or dried peas is prohibited. 

(Eflfective Aug. 20, 1918.) The Food Administration will regard any sales of dried 
beans or dried peas at a gross margin above delivered cost (purchase price plus freight) 
in excess of the margins indicated in the following table as prima facie evidence of a 
violation of the statute and the rules. 

These margins are guides only. They do not change the rule's. The margins of profit 
are still limited to a reasonable advance over the average purchase price of the goods 
sold without regard to the market or replacement value, and a smaller margin may be 
considered reasonable where the licensee has a lower cost than customary by reason of 
his failure to perform any part of the services customarily performed by dealers of 
that class. 

High margins, even if customary during prewar periods, are not justifiable now. 
Unreasonable margins are not excused by lower margins on other transactions in the 
same commodity or in other commodities. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 



607 



Class. 



Services rendered. 



Maxi- 
mum 
margin. 



Interpretations. 



1. Importer. 



2. Elevator or clean- 
ing warehouse. 



3. Bean factor. 



Furnishes letter of credit and 
buys direct for import. 



Buys from grower, elevates, 
cleans, handpicks, and sacks. 



Buys from grower, elevates, re- 
cleans and sacks; does not 
handpick. 

Buys from retail elevator (or 
importer) and finances to 
destination. 

Buys from grower and has re- 
cleaned by railroad or public 
warehouse. 



Per cent. 
10 



12 



Importers who buy on c. i. f. terms or 
bank guarantee of payment after 
arrival of shipment, or who do not 
assume the direct risk of buying in 
foreign countries, fall in class 3 and 
are entitled only to maximum margin 
of profit lor that class.. 

The difference between the selling price 
and the actual cost on a handpicked 
or recleaned basis should be used in 
arriving at these margins. 

These margins have been determined 
by taking the average cost and ex- 
pense of operating in different sec- 
tions of the country. 

Elevators and warehouses which buy 
as agents for larger concerns and do 
not prepare for the market, are not 

I entitled to more than a reasonable 
commission for the services rendered, 
which must be included in the 
allowed margin of his principal. 



WHAT RESALES ARE JUSTIFIABLE. 

General rule 6. — The licensee in selling food commodities, shall keep such 
commodities moving to the consumer in as direct line as practicable and with- 
out unreasonable delay. Resales within the same trade without reasonable 
.iustification, especially if tending to result in a higher market price to the 
retailer or consumer, will be dealt with as an unfair practice. 

Service. — Any transactions that savor of trading in which a profit accrues 
to the dealer without corresponding service are clear violations of the rule and 
will subject the offender to revocation of this license and to such other penalty 
as the law provides. 

The handling of dried beans and dried peas by wholesale grocers, including 
those sometimes referred to as " bean jobbers " when such jobbers are not lo- 
cated in the bean-producing sections, and do not buy from or finance retail ele- 
vators, is dealt with in the circular of June 6, 1918, on " Maximum margins on 
sales by wholesalers to retailers and by merchandise brokers ; and justifiable 
resales for such dealers." The contents of this circular are also to be found in 
the note to Rule XI-A-5, effective June 15. The provisions regarding importers 
of beans in the circular of June 6 are superseded by this circular. 

Resales between bean factors, commonly known as bean jobbers, located in 
the bean-producing sections who buy from the retail elevators and finance such 
stock to destination are prohibited unless the sum of the gross profits obtained 
by such factors does not exceed the maximum reasonable profit for that group. 

Resales between elevators or cleaning warehouses are also prohibited unless 
the sum of the gross profits obtained by such warehouse does not exceed the 
maximum reasonable profit for that group. 

Elevators and importers may resell to bean factors, but the effect of the re- 
sale rule is : " 

(1) That imported beans shall in no event reach the wholesaler or mer- 
chandise broker class dealt with in the circular of June 6 at an advance of 
more than 5 per cent over the price received by the importer, plus freight. 

(2) That domestic beans shall reach ,the wholesaler or merchandise broker 
class dealt with in the circular of June 6 at an advance of not more than 5 per 
cent (or 7 per cent as the case may be), plus freight, over the price received 
by the elevator. 

It may be noted that by the provisions of the circular of June 6, after the 
beans reach the wholesale grocery or merchandise broker class, they must be 
sold direct to retailers, except in certain specified cases where one resale at a 
small margin is permitted. 

F. DRIED FRUITS. 

Rule 1. New-crop fruits that are not available for spot delivery not to be 
bought or sold before July 15, — The licensee, prior to July 15 of the year in 



608 HISTORY OF PRICES DURING THE WAR. 

which new-crop fruits are to be grown and packed, shall not buy, contract to 
buy, offer for sale, or have outstanding any contract of sale or any connnit- 
ment for sale of new-crop fruits not available for spot delivery. A commitment 
shall include all tentative or conditional orders whether definite prices are 
named or not. (Riile issued Mar. 30, 1918, forbade dealing in dried fruits 
before May 1 of year grown. Time changed to June 1, Apr. 30, 1918 ; changed 
to .July 15, May 24, 1918 ; canceled Jan, 10, 1919. ) 

Note. — This rule and the following rule correspond to rules 4 and 5, series B, Sup- 
plement 28, which became effective May 7, 1918, and were amended to their present 
form May 24, 1918. 

G. CANNED PEAS, CANNED CORN, CANNED TOMATOES, CANNED 
SALMON, AND CANNED SARDINES. 

Rule 1. Canned goods not to be quoted before February 1 — The licensee shall 
not quote for future delivery any canned peas, canned corn, canned tomatoes, 
canned salmon, or canned sardines before February 1 of the year when such 
products are to be canned. (Issued Dec. 20, 1917; canceled Jan. 10, 1919.) 

(This rule corresponds to special rule 3, series B,- governing wholesalers and retailers.) 

H. GREEN COFFEE. 

Rule 1 (as amended Dec. 5, 1918). licensees entitled to reasonable profit. — 
lyicensees in selling coffee, which is owned by any licensee, spot or afloat, on or 
before December 15, 1918, shall not take more than a reasonable profit over the 
cost of the particular coffee sold, provided that any sale of spot coffee shall be 
made at not more than a reasonable profit over the average cost of his entire 
stock of spot coffee. Each growth of coffee shall be averaged separately. Every 
invoice or contract covering the sale of coffee subject to this rule shall be 
marked : 

" The seller of tlie coffee covered by this invoice or contract hereby certifies 
that same has been sold subject to special rules 1, 2, and 8 of the Food Admin- 
istration." 

The licensee in arriving at the cost of such coffee shall include any gain or 
loss resulting from any actual hedging transaction on a coffee exchange. For 
the purpose of this rule, an actual hedging transaction on a coffee exchange 
shall only include transactions in which the sale or purchase made is finally 
closed or offset. 

In calculating the profit permitted by this rule the licensee shall not Include 
the gain or loss from more than one hedging transaction on the same lot or 
stock of coffee, but the position of this transaction may be switched from one 
month to another, provided that all profits or losses from any hedging transac- 
tion and all facts regarding the switching of any hedge from one month to an- 
other are included in the licensee's reports. 

The licensee shall keep any speculative account of the coffee exchange en- 
tirely separate from such hedging transactions, and the gain or loss resulting 
therefrom shall not be considered in determining the cost of his hedged stock of 
coffee. (First issued Feb. 7, 1918; amended June 15 to define hedging transac- 
tion more in detail ; amended July 24 and Sept. 11 with reference to coffee 
which might be averaged in figuring cost. Canceled Jan. 10, 1919.) 

Note.— The above rule applies only to coffee owned by any licensee, spot or afloat, on 
or before December 15, 1918. 

Rule 2 (as amended July 24, 1918). Importer limited to profit of 5 per cent. — 
For the purpose of rule 1 a reasonable profit for an importer shall not exceed 
5 per cent gross margin over cost, plus any brokerage or commission actually 
paid, and the usual ex ship or in store, and shipping charges actually incurred 
by the licensee on such coffee. If drafts against purchase are drawn in pounds 
sterling, only the actual amount paid shall be used in figuring the cost. 

For the purposes of this rule, an importer is one who buys coffee in the 
country of origin, or coffee in transit to this country, irrespective of terms 
or conditions of delivery, and who resells such purchase as shipped, in any 
position, as a whole or in divided quantities without selection of specified chops. 
A jobber dealing in the foregoing manner shall be considered an importer. 
(Issued Mar. 9, 1918, limiting profit to 2^ per cent; amended July 24, 1918, 



GOVERNMENT REGULATIONS RELATING TO PRICES. 609 

limiting profit to 5 per cent; made to apply only to coffee owned by licensee 
on or before Dec. 15, 1918, by note added Dec. 5, 1918 ; canceled Jan, 10, 1919. ) 
NoT33. — An importer's trausaction is one in which an invoice is sold practically as 
shipped. For example, a sale of 450 bags, more or less, out of an invoice of 500 bags, 
in order to enable the seller to obtain the profit allowed to jobbers, will be considered 
as a violation of the regulations. 

Eule 3 (as amended July 24, 1918). Jobber limited to profit of 7 J per cent. — ■ 
For the purposes of rule 1 a reasonable profit for a jobber shall be 7i per cent 
gross margin over cost, such cost and charges to be computed as prescribed in 
rule 2. A jobber, for the purpose of this rule, is one who customarily sells 
coffee in one or more chops to wholesalers, roasters, or other licensed green- 
coffee dealers. ( Issued Mar. 9, 1918, limiting profit to 5 per cent ; amended 
July 24, 1918, limiting profit to H per cent, made to apply only to coffee owned 
by licensee on or before Dec. 15, 1918, by note added Dec. 5, 1918 ; canceled Jan. 
10, 1919.) 

Note. — The prescribed margin of profit does not apply to sales of 25 bags or less. 

Rule 4 (as amended July 24, 1918). Eesales, with certain exceptions, for- 
bidden. — The licensee in selling green coffee shall keep it moving to the con- 
sumer in as direct a line as practicable and without unreasonable delay. 
Resales, especially if tending to result in a higher market price to the con- 
sumer, will be dealt with as an unfair practice. One resale from one importer 
to another is permissible, and on such resale the gross margin of profit stall 
not exceed 2^ per cent over cost plus such charges as are stated in rule 2. 
One resale from one jobber to another is permissible, and on such resale the 
gross margin shall not exceed 3| per cent over cost plus such charges as are 
stated in rule 2. ( Issued Mar. 9, 1918, limiting profit in sales between im- 
porters to 1^ per cent and between jobbers to 2^ per cent ; changed July 24, 
1918, to 2| per cent for importers and 3| per cent for jobbers ; made to apply 
only to coffee owned by licensee on or before Dec. 15, 1918 ; added Dec. 5, 1918 ; 
canceled Jan. 10, 1919.) 

Note. — More than one resale will be permitted only under very exceptional conditions. 
The Food Administration realizes that conditions may arise where sufficient justification 
may be found to warrant further resales. Such resales, however, can only be made with 
the permission of the Food Administration. Full consideration for the issuing of such 
permission will be given when sufficient justification can be shown. 

Rule 7. Must not charge more than the customary brokerage. — The licensee 
shall not charge, directly or indirectly, a commission or brokerage on the sale 
of green coffee in excess of that which ordinarily and customarily prevails, 
under normal conditions, in the locality in which the broker's business is con- 
ducted. ( Issued Mar. 9, 1918 ; canceled Jan. 10, 1919. ) 

Rule 8. Only one brokerage permitted. — Brokers shall not receive more than 
one brokerage on any sale, nor shall they receive an overage except where by 
force of circumstances they may have become principals through a misunder- 
standing or delay. When a broker closes out or sells coffee upon which he 
receives an overage he must send to the buyer, and enter in his reports to the 
Food Administration, full particulars regarding such transaction. In cases 
where first-hand dealers (i. e., importers, jobbers, or licensees holding green 
coffee on commission) employ one broker as their exclusive broker, and such 
goods are placed to the interior trade through a local broker acting there as 
the representative of the sole broker of the principal, the licensee under rules 
2, 3, and 4 may include under the item of brokerage such extra brokerage or 
commission as has been heretofore customary for the local broker. All invoices 
rendered by licensees to buyers of green coffee shall state the entire amount 
of brokerage paid, if any, on the transaction, and included in the price paid by 
the buyer. (Issued Mar. 9, 1918; canceled Jan. 10, 1919.) 

Note. — In the ^reen-co£fee trade it has been customary for brokers, representing 
exclusively first-hand dealers, to handle these accounts through outside brokers for the 
interior trade, and these first-hand dealers cover the cost to them of these outside 
brokers by an additional price, secured from the purchaser. As this custom has been 
long established, the Food Administration, pending further notice, will permit it to 
continue, but requires that the full amount of all commissions paid on a transaction 
shall be shown on the coffee invoices rendered by the seller to the buyer in every case. 

BOASTED COFFEE. 

Although roasted coffee itself has not been licensed, it must be carefully 
noted that all persons selling roasted coffee are subject to the food-control act 
of August 10, 1917, and that this law expressly forbids unreasonable or exces- 

125547°— 20 39 



610 



HISTORY OF PKICES DURING THE WAR. 



sive charges. If it is fonntl that the trade is violatiiifr this law as to reason- 
able profits upon roasted coftee. prompt action will be taken and the Food 
Administration will also find it necessary to place roasted coffee under license. 



J. SPECIAL REGULATIONS GOVERNING DISTRIBUTORS qF 
JIARGARINE OR OTHER BUTTER SUBSTITUTES. 



OLEO- 



Rule 1 (new, Oct. 25, 1918). Oleomargarine must not be sold at retail at more 
than reasonable advance over cost. — The Licensee dealing in oleomargarine or 
other l>utter substitutes at retail shall not sell at more tlian a reasonable ad- 
vance over cost without regard to market or replacement value at the time of 
sale. Cost shall include purchase price plus transportation charges, if any. 
The licensee may average the cost of all oleomargiue or other butter substitutes 
of the same kind and grade in liis possession at the point from which the sale is 
made which has not already been contracted to l)e sold, and may take such aver- 
age cost as the cost of any particular lot. ^^'hen new lots are added and a new 
average calculated the licensee shall include in the new averaging all stock 
remaining on hand of lots already averaged at the average cost of such lots 
previously determined. If tlie cost of any oleomargine or butter substitutes is 
averaged the cost of all such products must be averaged. When costs are aver- 
aged the licensee must keep a record of tlae manner in which such average has 
been arrived at. (Repealed Feb. 1, 1919.) 

Note. — The United States Food Administration will regard any advance in excess of 
5 cents (o 6 cents per pound over cost as unreasonable and as evidence of violation of 
tbe abovp rule. Tlie 5 cents per pound represents tlae maximum margin for stores con- 
ducted on tlie cash and carry or no service plan, while 6 cents per pound is the maximum 
margin for the extra service stores extending credit and delivery. 

In determining margins at 5 cents and 6 cents per pound on oleomargine with the 
fractional costs in favor of the dealer, tlie United States Food Administration has given 
due consideration to the rising costs of operation which must he met by the dealer. 

Retailer may have heneflt of fractional east on any transaction. — Retailers whose de- 
livered terminal costs figure in fractions may have the benefit of such fractional costs. 
For example, if oleomargine costs at terminal delivery 325 cents per pound, the selling 
price may be figured as follows : 

CASH AND CABSY STORES. 



Amount of sale. 



1 pound. 

2 pounds 

3 pounds 



Cost. 



Cents. 



321 
65 



Margin. 



Cents. 



Total. 



Cents. 
37 



Fraction 
added. 



Cents. 
1 

None. 



Maxnnum 
selling 
price. 



3R 

75 

113 



The maximum selling price for the extra service or credit and delivery stores would be 1 
cent per pound higher. 

Rule 2 (new, Oct. 17, 1918). The manufacture and sale of prints of oleomar- 
garine or other butter substitutes weighing less than 1 pound prohibited. — On 
and after January 1, 1919, no licensee sliall manufacture or sell units of oleo- 
margine or any other butter substitute in print form that weighs less than one 
pound, provided that this rule shall not prevent a retailer from cutting a unit 
weighing 1 pound or more, and selling a portion thereof to a consumer. (Re- 
pealed Nov. 25, 1918. ) 

L. CLEAN RICE. 

Rule 2. ftuotations of imported clean rice by the pound only. — The licensee 

shall quote, ))uv, and sell all imitorted clean rice by the pound only. (Repealed 
Feb. 1, 1919.) 

Note. — This rule applies to imported clean rico which is held for export. 

XIL BROKERS AND AUCTIONEERS OF LICENSED NONPERISH- 
ABLE FOOD COMMODITIES. 

A broker or auctioneer in a transaction concerning any licensed food com- 
modity is responsible for any violation by the principal of the regulations gov- 
erning such transaction. Brokers and auctioneers should, therefore, familiarize 
themselves with the .general regulations and any special regulations goveriiiBg 
principals for whom they act. 

A list of the speciiil rules issued will be found on page 3 of Pamphlet No. I 
(General License Regulations). 



GOVEENMENT EEGULATIOi^S EELATHsTG TO PEICES. 611 

Brokers and auctioneers in all licensed nonperisliable food commodities 
must also conform to the following brokers' rules : 

Rule 1. Commission or brokerage charges limited. — A licensee shall not charge 
directly or indirectly a commission or brokerage on the sale of food commod- 
ities in excess of that which ordinarily and customarily ijrevails under normal 
conditions in the locality in which the broker's, commssion merchant's, or 
auctioneer's business is conducted and in the particular branch of trade in 
question. 

Rule 2. Prompt remittance required. — The licensee shall remit promptly fol- 
lowing the sale of food commodities received on consignment for sale or dis- 
tribution, and shall render to the consignor an account showing the true sales 
and with charges only for services actually performed and expenses actually 
incurred by the licensee. (Issued Nov. 1, 1917, repealed Feb. 1, 1919.) 

Note. — A commission merchant can not divide his commission with the buyer unless 
he shows on the account of sales rendered to the consignor that he has done so. 

Rule 3. Charging of both brokerage and overage prohibited.— The licensee 
shall not charge or receive for himself, on the sale of any food commodities, 
both a commission or brokerage and an overage or profit. (Issued Nov. 1, 
1917; repealed Feb. 1, 1919.) 

Rule 4. Sales to self forbidden without written consent of principal. — The 
licensee shall not directly or indirectly sell consigned food commodities, or 
food commodities with the sale of which on commission he is intrusted, to 
himself or to anyone connected with his business without the written permis- 
sion of his principal. 

Riile 5. Only one brokerage on sugar permitted. — No licensee shall chai'ge a 
commission or brokerage on any sugar on which one brokerage or commission 
has already been charged. (Issued Nov. 1. 1917; repealed Feb, 1, 1919.) 

Rule 6 (as amended Aug. 15, 1918; effective Aug. 20, 1918). Commissions must 
not be split with buyer. — The licensee may split with other brokers' commis- 
sions or brokerage received on the sale of food commodities, but shall not split 
such commissions or brokerage with the buyer of the food commodities, or any 
employee of the buyer. (Issued Nov. 1, 1917, as to sugar; changed Aug. 20, 
1918, to cover " food commodities," as noted here ; repealed Feb. 1. 1919. ) 

NoTE.^The payment by a broker of charges incurred by him for telephone and tele- 
graph messages received by him from a buyer does not constitute the splitting of his 
commissions with the buyer. Money so paid out is an expense of the brokerage busi- 
ness. 

MARGINS FOE BROKERS WHO BUT AND SELL FOR THEIR OWN ACCOUNT. 

Subject to the provisions of general rules 6, 7, and 8 and the above rules governing 
commission merchants and brokers, brokers may in proper and necessary transactions 
buy and sell for their own account. Transactions of this kind should be confined to the 
smallest possible volume, and in every case must be justified by the necessity of com- 
pleting cars or dividing carloads among smaller buyers ; such merchants engaged in 
this business should be guided by the following-suggested margins, which are to be re- 
garded as maximum gross profits, but are not permitted unless corresponding service 
is rendered : 

Per cent. 
All fiour (except wheat and rye flour), hominy, grits, corn meal, oatmeal, rolled 

oats, beans, rice, etc 4 

Licensed cereals in packages, licensed canned goods, licensed dried fruits 5 

These margins shall be inclusive of any brokerage received. 

In every case where a broker sells for his own account any nonperishable goods that 
he has purchased from a particular principal, and has received, or is entitled to receive, 
a brokerage on such goods, he must deduct such brokerage before fixing his margin of 
profit as a jobber. 

XIV. SUGARS AND SIRUPS. 

A. SPECIAL REGULATIONS GOVERNING DEALERS IN GLUCOSE, RE- 
FINERS' SIRUPS, MAPLE SIRUP. SORGHUM, CANE JUICE SIRUP, 
CENTRIFUGAL MOLASSES, OPEN-KETTLE MOLASSES, WEST INDIA 
MOLASSES, AND BLACKSTRAP MOLASSES, AND MANUFACTURERS 
AND MIXERS OF MIXED SIRUPS AND MIXED MOLASSES. 

(Effective Nov. 7, 1918.) 

Note. — The following regulations do not apply to established wholesale grocers 
handling sirups or molasses through customary trade channels for the hcusehold and 
bakers trade. Such wholesale grocers are governed by Regulations No. XI and the 
margins and resale provisions there prescribed. These regulations do apply to all other 
dealers in pure sirups or molasses, whether sold in original packages or repacked ; and 
to all licensees who mix, blend, or process in any way sirups consisting in whole or in 
part of sirups, glucose, or molasses of any kind. 



612 iiiSTor.Y or prices during the war, 

Siile 1. Reasonable profits prescribed. — The licensee without regard to market 
or replacement value at the time ot such sale shall sell glucose, retiner's sirups, 
maple sirup, sorjihum, cane-juice sirup, centrifugal molasses, open-kettle mo- 
lasses, West India molasses, hlackstrap molasses, and all mixed sirups and 
mixed molasses at not more than a reasonable advance over the average purchase 
price of all lots of the same grade and size, of the same commodity or the in- 
gredients thereof, in his possession or invoiced to him not contracted to be 
sold. The licensee shall keep a record of the manner in which such average 
has been arrived at, and he shall take as the cost of all stock remaining on 
hand from lots already averaged the average cost previously arrived at. In 
selling commodities not yet invoiced to him he shall sell at not more than a 
reasonable advance over the actual purchase price to him of all lots of the 
same grade and size of the same commodity, or the ingredients thereof, pur- 
chased by him but not yet invoiced to him. (Issued Nov. 7, 1918; canceled 
Jan. 10, 1919.) 

Note. — }fa7-oin^ for rlcalcrs in pure refiners' sirups or r/lucof^e. — Under the above 
rule the Food Administration will considei' any grosis margins above delivered cost in 
excess of those listed below taken by dealers in pure refiners' sirups or glucose, as. 
prima facie evidence of a violation of the statute and this regulation. A violation of 
these margins will therefore be considered cause for the revocation of a dealer's license. 

(a) Where glucose or refiners' sirup is sold by a dealer in car lots (including mixed 
cars), not to exceed 5 per cent. 

(b) Where glucose or refiners' sirup is sold by a dealer in less than car lots to bakers, 
mixers, or manufacturers, not to exceed 12 to 15 per cent. 

(0) Where glucose or refiners' sirup is sold to a wholesale grocer under the provision 
of rule 2 .following, in less than car lots, not to exceed 7J per cent. 

{d\ Where the dealer breaks original packages he may add to his cost the cost of the 
new packages plus actual cost of such packing, in no case to exceed .5 per cent. 

The margins named are large enougli to include all ordinary carrying charges. If 
general conditions should later necessitate the carrying of goods for a longer period than 
usual, further consideration will be given to this feature. 

The above margins do not justify tlie taking of a profit greater than was taken by the 
licensee in prewar times. A large part of the commodities covered by this rule are 
dealt with in large quantities, and it is quite possible that dealers who handle them in 
such quantities will receive an unreasonable profit if they take the full maximum 
margin. In such cases they should continue to sell at somewhat lower margins. Dealers 
in refiners' sirups and glucose are also subject to the 6 per cent profit limitation 
following : 

Profits for dealers and mLrcrs of sirup, glucose, and molasses. — The Food Administra- 
tion will consider ,a net earning of more than 6 per cent upon the gross sales of pure 
and mixed sirups, glucose, and molasses by any dealer in sirups as above defined, or by 
any sirup mixer or blender, to be prima facie evidence of a violation of the rule which 
prohibits the taking of unreasonable profits (general rule 1— A-.5K This percentage will 
be calculated for the semiannual periods making up the licensee's fiscal year. The 
Federal income and excess-profits taxes may not be deducted, but all other taxes may be 
considered as expenses. The limitation does not modify or abrogate the general prin- 
ciples contained in the Food Administration regulations that a licensee should not earn 
more than a reasonable net profit on its capital invested. 

Blackstrap molasses and refiners' sirups prices. — The following maximum prices have 
heen named for refiners' sirups and blackstrap molasses sold by the refiner or dealer 
in tank cars and based on the cost of imported raw sugar and domestic beet manufacture : 



Per gallon 
in barrels. 



Per gallon 
in bulk. 



Refiners' sirups, highest grade (fancy filtered). 

Refiners' sirups, medium grade (filtered) 

Refiners' sirups, low grade (unfiltered) 

Blackstrap molasses 



Cents. 
55 
40 
30 
23 



Cents. 

50 
35 
25 
18 



The maximum prices named also apply to imported blackstrap. These prices arc f. o. b. 
cars at sealjoard point or point of production, net cash in 10 days without discount. They 
include brokerage, and if sirups or molasses are distributed in tank cars they include the 
margin allowed to dealer, so that no dealer may sell blackstrap molasses in tank cars at 
more than 18 cents plus freight and tank-car charges. Where blackstrap molasses or 
sirups are distributed in barrels, the dealer's margins named may be added to the maxi- 
mum price. 

Where sirups are distributed in packages smaller than barrels, the packer may add to 
the bulk price the actual cost of such packages. 

Utile 2. Sesale of glucose and refiners' sirups limited. — The licensee shall not 
resell pure glucose or pure refiners' sirups except (1) to a manufacturer, baker, 
or mixer using such article in his manufacture, (2) to a retail grocer or con- 
sumer, (3) to wholesale grocers under one of the following circumstances: 

A. Continuous service. — The seller may customarily and continuously serve in. less 
than carload lots wholesale grocers who are serving retail .grocers but who are unable for 
some sufficient and legitimate reason to purchase direct from the source of supply. , 



GOVERNMENT REGULATIONS RELATING TO PRICES. 613 

B. Carload buying. — A sirup dealer may enjoy the benefit of carload rates from distant 
points and sell to smaller wholesale grocers who are unable to buy the commodity in 
carload lots. 

C. Warehousino. — A sirup dealer may ' continuously and customarily furnish cold- 
storage or other warehousing service and sell to -wholesale grocers who have not 
adequate facilities of that character. 

D. ^Surplus stocks. — A sirup dealer may dispose of surplus stocks bought, not for 
speculation but in good faith, for the reasonably anticipated requirements of his business 
under the rules and regulations and which he finds himself unable to dispose of to his 
regular customers. The fact that such goods have not been warehoused by such dealer 
will be regarded as prima facie evidence that they were not bought in good faith. 

No person who purchases glucose or refiners' sirups from a dealer, except a 
wholesale or retail grocer buying under subdivisions (2) or (3) above, shall 
resell such glucose or sirup without the written permission of the United States 
Food Administration. (Issued Nov. 7, 1918; repealed Dec. 17, 1918.) 

Note. — Wholesale grocers purchasing from a dealer are forbidden to resell, except to 
retailers, manufacturers, or consumers, under the wholesale grocers' regulations (No. XI) 
and are limited to a margin of 12 per cent. 

Permission to resell will be given in proper cases upon the condition that no person 
from whatever source he buys shall sell glucose or refiners' sirups in bulk at an advance 
over the manufacturer's price of the particular lot sold greater than that permitted to 
a single dealer plus actual freight. 

Sirup mixers may sell their mixed sirups and molasses to any wholesale grocer. 

XV. SPECIAL REGULATIONS GOVERNING ALL DISTRIBUTORS OF 
FRESH FRUITS AND VEGETABLES. 

Rule 9. Terms to be included in every contract unless expressly agreed other- 
wise. — The licensee shall include in every contract for the sale of fresh fruits 
and vegetables to be shipped by a common carrier the following terms, and 
these terms shall be understood as included in every such contract between 
licensees, even though not expressly stated ; provided, however, that the said 
terms may be varied by express agreement in writing. (Issued Jan. 28, 1918; 
repealed Dec. 10, 1918.) 

TERMS OF CONTRACT. 

A. The seller shall be responsible for and reimburse the buyer for any failure of the 
goods to conform to the grade, quality, or condition specified in the contract of sale, 
except that all sales made f. o. b. point of origin shall be construed to mean that the 
buyer assumes all risks of damage in transit not caused by the shipper whether there 
is a bill of lading to the order of the seller or not. 

B. The shipment shall be deemed to have reached destination when placed on any 
railroad team track or private unloading track or where awaiting consignee's order 
for placing on such team or private unloading track. The burden of locating a ship- 
ment on such arrival shall be on the consignee, provided that the consignor has billed 
the shipment with proper instructions as to the railroad notifying the consignee. The 
failure of the railroad to notify the consignee will not be construed as releasing the 
■consignee from his obligations to the consignor, provided proper advice as to the car 
number has been given to the consignee by the consignor. But if the consignee uses 
every reasonable effort to locate a car and fails, he shall not be responsible for failing 
to learn of its arrival. 

Notes. — The rule issued as series B, special rule 13, effective January 28, 1918, is 
amended by the above rule. 

This rule applies to the sale of cars in transit, provided the seller advises the buyer 
that the car is: in transit, the date of shipment, and if possible, where it is located. 

Note to rules 3 to 9, inclusive. — The above rules have been prepared after con- 
ference with representatives of those engaged in the business of shipping and receiving 
perishable food commodities, and have been based on recommendations from them in 
order to meet a condition which has resulted in great waste of fresh fiiiits and vege- 
tables throughout the country. The rules are designed to prevent delay in unloading" 
the shipment of goods contrary to contract, and the resulting traffic congestion and 
food waste. 

It is essential that all licensees should cooperate in good faith with the Food Ad- 
ministration to avoid improper shipments, rejections, and disputes, and to arrange 
quickly for prompt release, handling, or unloading of the goods involved, and to sub- 
mit any dispute promptly to arbitration. It is strongly recommended that contracts 
for the sale of fresh fruits and fresh vegetables be definite as to the quality and grade 
of goods and ternis of sale and delivery, and be evidenced by a proper memorandum 
in writing. The Food Administration will consider the certificate of any food-products 
inspector of the Bureau of Markets of the United States Department of Agriculture 
as prima facie evidence of the condition of the goods. If no such inspector is available, 
great weight will be attached to inspection by expert bfiicials of trade organizations. 
Where no official inspectors are available, due weight will be given to the judgment 
of such unofficial experts as may have made inspection or are designated or approved 
by the Food Administration. 



614 HISTORY OF PRICES DURING THE WAR. 

In all cases submitted to arbitration or settlement wiievo the shipment is made, draft, 
bill of lading attached, the consignor should direct the bank holding his draft to retain 
the proceeds thereof and to distribute the same according to the result of the final 
determination. Thereupon the consignee should pay said draft and release the bill of 
lading. 

In the case of commodities where it is customary to assort or recondition, and where 
necessary to preserve food values and prevent waste, fresh fruits and vegetables should 
be assorted or reconditioned by the consignee upon the consignor's request to recondi- 
tion and his agreement to arrange for the payment of properly substantiated claims. 

B. ADDITIONAL SPECIAL REGULATIONS GOVERNING COMMISSION 
MERCHANTS, BROKERS, AND AUCTIONEERS DEALING IN FRESH 
FRUITS OR FRESH VEGET-ABLES. 

Rule 1. Commission or brokerage not to be unreasonable or discriminatory. — 

The licensee shall not charge dii-ectl.v or indirectly an unjust, luireasonable, 
diseriniinatorv, or unfair commission or lirokerage on the sale of fresh fruits 
or fresh vegetables. (July 10, 1918 ; repealed Dec. 10, 1918.) 

Note. — The Food Administration in enforcing this rule will insist that any proposed 
increase in rates be submitted to the local Federal food administrator and that the reason 
for any Increased rate over the prewar normal be justified to him, subject to the general 
supervision of the United States Food Administration before such increased ]-ate is put 
Into effect. 

This rule was formerly Included in series B, general rule 5, governing all licensees as 
issued November 1, 1917. 

Rule 2. Prompt remittance and proper account of sales to be rendered. — The 

licensee shall remit promptly following the sale of fresh fruits or vegetables 
received on consignment for sale or distribution, and shall render to the con- 
signor an account showing the true sales and with charges only for services 
actually performed, and expenses actually incurred by the licensee. (Issued 
Nov. 1, 1917, as to " food commodities " ; repealed Dec. 10, 1918.) 

Note. — This rule is in conformity with speeial rule 2, of series B, issued November 1, 
1917. 

From November 1, 1917, to April 16, 1918, the rule governing all commission merchants, 
brokers, and auctioneers which limited their charges to " * * * that which ordinarily 
and customarily prevails under normal conditions in the locality in which * * * 
their business is condticted * * * " applied to these dealers in perishables. 

XVI. DISTRIBUTORS OF FRESH FISH AND FROZEN FISH. 

C. ADDITIONAL SPECIAL REGULATIONS GOVERNING COMMISSION 
MERCHANTS AND BROKERS DEALING IN FRESH FISH OR FROZEN 
FISH. 

Rule 1. Commission or brokerage not to be unreasonable or discriminatory.* — 

The licensee shall not charge directly or indirectly an unjust, unreasonable, 
discriminatory, or unfair commission or brokerage on the sale of fresh fish 
or frozen fish. (Issued Aug. 24, 191S; repealed Dec. 17, 1918.) 

Note. — The Food Administration in enforcing this rule will insist that any proposed 
increase in rates be submitted to the local food administrator and that the reason for 
any increased rate over the prewar normal be justified to him, subject to the general 
supervision of the United States Food Administi-ation before such increased rate is put 
into effect. 

This rule was formerly included in series B, general rule 5, governing all licensees as 
issued November 1, 1917. 

Rule 2. Prompt remittance and proper account of sales to be rendered. — The 
licensee shall remit promptly following the sale of fresh fish or frozen fish re- 
ceived on consignment for sale or distribution, and shall render to the consignor 
an account showing the true sales and with charges only for services actually 
performed, and expenses actually incurred by the licensee. (Issued Nov. 1. 
1917, as to "food commodities"; repealed Dec. 17, 1918.) 

Note. — This rule is in conformity with special rule 2, of series B, issued November 
1, 1917. 

Rule 3. Agent not to /buy from principal unless noted on accotmt of sales. — 
The licensee shall not directly or indirectly sell consigned fresh fish or frozen 
fish or such conmiodities with the sale of which on commission he is entrusted, 

1 From Nov. 1, 1917, to Apr. 16, 1918, the rule governing all commission merchants, 
brokers, and auctioneers, which limited their charges to " * * * thatj which 
ordinarily and customarily prevails under normal conditions in the locality in 
which * * * their business is conducted * * * " applied to these dealers in 
perishables. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 615 

to himself or to auyoue couneeted with his business, unless he notes the facts of 
such transaction on the account of sales. (Issued Nov. 1, 1917 as to "food 
commodities"; repealed Dec. 17, 1918.) ' 

1 ■'i9i7'~'^'^^^ ^'^^^^ ^^ ™ conformity with special rule 4, series B, issued November 

Wlien a licensee sells to liimself or to anyone connected with his business he must 
clearly show on the account of sales that he himself bought the fish and also cWv 
show the quantity and at what price they were taken over. citariy 

RECOGNIZED FUNDAMENTALS APPLYING TO THE STORING AND DISTRIBUTION 

OF FROZEN FISH. 

Storcrs of frozen flsh, whether storing at the producing districts or in the dis- 
tributing markets, perform an important function in preserving the overproduction of 
the various seasonal varieties for consumption during periods of scant production— 
i. e., the 'winter months. 

They are a direct and potent aid in encouraging and fostering the production of the 
fisheries by enabling the various producing units to operate steadily and at full efficiency 

Broad differences in the first costs of frozen fish must prevail generally, affected as 
they are by the uncertainties surrounding production, influence of v^-ater temperatures, 
storms, feed conditions, and many other natural factors incident to the industry. 

The period of marketability is limited to the cold- weather months. The pack of any 
one variety must be sold in competition with the total pack of all kinds of frozen flsh 
throughout the country aggregating over a score of important varieties and many 
miscellaneous varieties. Marketing must also be carried on in competition with the 
daily supplies of fresh-caught fish, which fluctuate widely during the winter months. 

No satisfactory determination of total storage stocks and average costs on most of 
the varieties of frozen flsh can be reached until after the completion- of the fall runs. 

Storers of frozen fish and distributors must necessarily contend with these complex 
and uncertain factors. The business is so speculative in its nature and so variable in 
its results from season to season that ordinary methods of estimating margins of profit, 
whether upon particular varieties or the business as a whole are difficult of application* 

The practice of the original storers in selling portions of their pack of particular 
varieties m advance of the termination of the season of flush production is a natural 
outgrowth of the uncertainty. It is a safeguard both for producers and storers and 
tends to remove some of the speculative features naturally inherent to the industry. 

PRESENT POLICY OF REGULATIONS. 

The particular attention of the frozen-fish industry is called to general license regu- 
lations No. 1 (printed in a separate pamphlet) governing all industries licensed bv the 
United States Food Administration. 

(1) The reports required from all licensees will furnish a basis from which to survey 
the operations of all licensees during the season of 1918-19. 

As the .season progresses special reports will be requested whenever deemed advisable 
These will supplement our follow up of daily quotations in the principal distributing 
centers. ° 

(2) With the approach of winter certain staple varieties of frozen fish stored in 
heavy volume will be given special consideration, and the United States Food Adminis- 
tration hopes, if such action is deemed to be desirable and practicable, to announce 
maximum prices beyond which these particular varieties can not be sold to the retailer 
or supplier of hotels and institutions. Such maximum prices, when announced will be 
based on merchandise costs, with due allowance for reasonable margins of profit. 

Such maximums, when announced, must be accepted as guides only. They do no<- 
modify the rules and must not be regarded by storers or owners of relatively low-cost 
packs as an invitation to take unreasonable profits. 

Rule 5 of the general license regulations provides as follows : 

"The licensee shall not import, manufacture, store, distribute, sell, or otherwise 
handle any food commodities on an unjust, exorbitant, unreasonable, discriminatory or 
unfair commission, profit, or storage charge." 

We call attention to the fact that storers of frozen fish in districts favored by a 
heavy average production will have acquired their stocks at a much lower cost than 
storers where the runs of fish have been short and unfavorable. The United States 
Food Administration will expect the rapid pushing of all low-cost packs through the 
usual distributing channels early in the season, and under such conditions as will 
naturally bring about prices to the retailer and the supplier of hotels and institutions 
materially below any maximum prices which may hereafter be established. 



616 HISTORY OF PEICES DURING THE WAR. 

(3) Attention is Also called to general rule 6 regarding resales within t'ne trade. 
The aim of the United States Food Administration is to keep the supplies of the vai-ious 
varieties of frozen fish moving natiirally, freely, and as rapidly as possible into con- 
suming channels at the prevailing prices determined solely by an open unrestricted maiket 
in each distributing district and without local or general manipulation and without 
advantage being taken hy the trade of temporary emergencies creating artificial price 
conditions. 

August L'4, 1918. 

XVIIL DISTRIBUTORS OF POULTRY. 

^Effective Dec. 9, 1918.) 

A. SPECIAL REGULATIONS GOVERNING DISTRIBUTORS OF FRESH 

POULTRY. 

INTERTKADING EESTEICTED. 

General rule 6 provides as follows : 

" The licensee, in selling food commodities, shall keep such commodities mov- 
ing to the consitmer in as direct line as practicable and without unreasonable 
delay. Resales within the same trade without reasonable justification, espe- 
cially if tending to result in a higher market price to the retailer or consumer, 
will be dealt with as an unfair practice." 

The United States Food Administration recognizes the following classes of 
dealers in fresh poultry : 

1. Original packers and .shippers. 

2. Commission merchants and wholesalers. 

3. Jobbers and suppliers of hotels and institutions. 

4. Retailers. 

All trading in fresh poultry must contribute toward moving the poultry in a 
direct line to the consumer. Sales between dealers in any one of the classes 
mentioned above are prohibited, except as follows : Sales between wholesalers 
in different cities will, for the present, be permitted where necessary to 
.supply the reasonable requirements of the buyer's business, provided there is an 
actual shipment of the goods, and provided the movement between cities is in 
the direction of normal crop movement from producer to consumer. In addi- 
tion thereto, not more than two sales between dealers in class 2 may be made 
without obtaining the consent of the local Federal food administrator if such 
sales are neces.sary to supply the reasonable requirements of the buyer's busi- 
ness, but more than two sales between dealers in class 2 shall not be made 
without the written consent of the local Federal food administrator. One sale, 
and only one, between dealers in the same class other than class 2 may be 
made without obtaining the consent of the local Federal food administrator if 
such sale is necessary to supply the reasonable requirements of the buyer's 
Imsiness, but more than one such sale shall not be made without the written 
consent of the local Federal food administrator. 

In no case shall a dealer sell fresh poultry to any dealer in a class further 
removed from the consumer than the class in whicli the seller is included ; for 
example, a jobber shall not sell to a wholesaler, or a retailer to a wholesaler. 

No objection will be made to sales of fresh poultry that are made at a price 
that is less than or equal to the initial cost to the seller of the particular com- 
modities sold, nor are such sales to be counted as sales between dealers in the 
same class. 

Licensees will be expected to find out whether sales are justifiable by obtain- 
ing information as to the class in Avhich the seller and buyer are dealing, and 
Ihe location and class of the licensee from whom the seller purchased. This 
information should be placed on all confirmation of sales. 

B. SPECIAL REGULATIONS GOVERNING DISTRIBUTORS OF FROZEN 

POULTRY. 

DEFINITIONS. 

In the following rules the different kinds of dealers in frozen poultry are 
defined as follows: 

(c) An original packer or shipper is a person, firm, corporation, or association that 
assembles and packs the poultry for market or storage. 

(ft) A commission merchant is a person, firm, corporation, or association that solicits 
for sale or receives for sale, and sells food products on a commission basis, or that acts 



GOVERNMENT EEGULATIONS RELATING TO PRICES. 617 

as agent or representative of shippers, packers, and otlier distributors in tlie marketing 
of food products for a fixed package cliarge or on a percentage basis. 

(e) A wholesaler is a person, firm, corporation, or association other than the original 
packer or shipper that sells to jobbers or to suppliers of hotels and institutions. 

(d) A jobber is a person, firm, corporation, or association that sells or distributes 
to retailers. 

(e) A supplier of hotels and institutions is a person, firm, corporation, or associa- 
tion that sells to hotels, restaurants, clubs, dining-car or steamship companies, public 
or private institutions, or to retail dealers requiring specially selected stock and being 
furnished a service similar to that rendered to hotels and institutions. 

if) A retailer is a person, firm, corporation, or association that sells or distributes 
to constimers. 

iff) The original storer is the person, firm, corporation, or association that owns 
poultry -^-hcn first placed in a cold-storage warehouse. 

Notes. — (1) Where a licensee sells poultry within 30 days from the date of original 
storage, the buyer may also be considered the original storer to the extent that he 
may add to the maximum advance over cost allowed in selling as a wholesaler, jobber, 
etc., any part of 6 per cent over the first storer's cost not added by the first storer. 
In such cases the first storer who sells within 30 days must inform, the buyer what 
portion of 6 per cent over his cost he has added. 

(2) Where a definite lot of poultry is sold before it is placed in a cold-storage ware- 
house, and if title to this lot actually passes tO' the purchaser, or if title is retained 
by the seller merely as security for the purchase price, and thereafter the poultry is put 
in the warehouse, the purchaser will be considered the original storer, even though the 
poulti'y is carried and insured in the seller's name. 

Determination of costs. — Wherever in the following rules dealers in frozen poultry 
are limited in the advance over cost at which such poultry may be sold, " cost " shall 
be construed to include the purchase price, or in the case of the original packer or 
shipper the cost into storage, plus storage charges, interest on the goods in storage, 
and insurance on goods in storage incurred by the seller up to the time of sale, but 
not to include any other expenses. 

In determining cost the licensee may average the cost of all frozen poultry of the 
same kind and grade which have not already been contracted to be sold, and may 
take such average cost as the cost of any particular lot of that kind and grade. The 
licensee must keep a record of the manner in which such average has been arrived at 
and shall take as the cost of all stock remaining on hand from lots already averaged, 
the average cost previously arrived at. If the cost of any frozen poultry is averaged, the 
cost of all frozen poultry must he averaged. 

Notes. — (1) The maximum advances over cost specified in the following rules are 
not to be regarded as normal or so recognized by the Food Administration. They are 
intended only to prevent speculation and are purposely made wide to cover cases where 
methods of doing business are more expensive, to the extent that such methods are 
justified. Those maximum advances must not be exceeded in selling any specified lot 
of poultry, and the average advance over cost charged by any dealer must not be more 
than sufficient to return to him a reasonable profit on his investment in accordance with 
general rule 5, which is as follows : " The licensee shall not import, manufacture, store, 
distribute, sell, or otherwise handle any food commodities on an unjust, exorbitant, un- 
reasonable, discriminatory, or unfair commission or storage charge." 

(2) Profits on different sales can not be averaged. The licensee is limited on each 
transaction to the maximum profit permitted by the rule and regulations. 

(3) Where a dealer in the sale of poultry adds less than the maximum advance over 
cost permitted by the rules, the buyer is not, because of this fact, permitted to add to 
the maximum advance over cost allowed to him any part of the maximum advance 
allowed to the seller which the seller did not add. 

(4) The special rules regulating the profits of dealers in frozen poultry do not apply 
to poultry that is placed in a cold-storage warehouse, but which is removed from the 
cold-storage warehouse, for distribution for consumption, within 30 days after the date 
of the original entry of such poultry into the cold-storage warehouse. 

SPECIAL REGULATIONS. 

Rule 1. Purchase from dealer charging unreasonable margin prohibited. — No 

licensee shall knowingly purchase frozen poultry from a dealer who sells at 
a greater advance over cost than the maximum specified in the following rules. 
(Issued Mar. 2, 1918; repealed Jan. 8, 1919.) 

Rule 2. Maximum margins for original packer or shipper.— The original packer 
or shipper, storing in a cold-storage warehouse, shall not sell frozen poultry 
to wholesalers at an advance of more than 6 per cent over cost. In case frozen 
poultry is stored in the name of a commission merchant, the original storer 
shall be deemed to be the consignor for whom the commission merchant acts 
as agent. An additional advance not exceeding 5 per cent of cost may be 
charged by the original packer or shipper in selling to jobbers or suppliers 
of hotels and institutions. An additional advance not exceeding 10 per cent 
of cost may be charged in selling to retailers, or an additional advance not 
exceeding 15 per cent of cost may be charged if the packer performs the 
functions of a supplier of hotels and institutions, as heretofore defined. (Is- 



618 HISTORY OF PRICES DURING THE WAR. 

sued Mai'. 2, 191S ; margins slightly cliaiiged July 26, 1918; repealed Jan. S, 
1919.) 

Rule 3. Maximum commissions. — A commission mercliant shall not receive a 
commission of more than 5 per cent on frozen poultry consigned to hiin by 
shippers or packers. If a commission merchant acts as an agent for dealers 
other than shippers or packers for the distribution of surplus stocks, the 
selling price shall not exceed the maxinmm advance over cost to the consignor 
permitted to such consignor by the following rules, which advance sliall in- 
clude the commission for such sale. A commission merchant who takes to 
account consigned frozen poultry shall not receive any other pi-ofit beyond the 
amount of the commission before specified. 

A commission merchant shall require from consignors a statement of cost 
of goods and maximum selling price allowable under these rules. (Issued 
Mar. 2, 1918; repealed Jan. 8, 1919.) 

E,ule 4. Maximum, margin for wholesaler. — A wholesaler shall not sell frozen 
poultry at an advance of more than 5 per cent over cost. If a v\ holesaler also 
sells as a jobber, he shall not sell at an advance of more than 10 per cent over 
cost, as provided for jobbers in rule 5. The above maximum advances may be 
increased by not to exceed 6 per cent of cost in cases where the wholesaler is 
also the original storer in a cold-storage warehouse. (Issued Mar. 2, 1918; 
repealed Jan. 8, 1919.) 

Rule 5. Maximum margin for jobber. — ^A jobber shall not sell frozen poultry at 
an advance of more than 10 per cent over cost. The above maximum advance 
may be increased by not to exceed 6 per cent of cost in cases where the jobber 
is also the original storer in a cold-storage warehouse. 

Rule 6. Maximiim margin for supplier of hotels and institutions. — A supplier 
of hotels and institutions shall not sell frozen poultry at an advance of more 
than 15 per cent over cost. The above maximum advance may be increased by 
not to exceed 6 per cent of cost in cases where the supplier of hotels and insti- 
tutions is also the original storer in a cold-storage warehouse. 

Rule 7. Direct line of distribution defined. — A sale by any dealer in frozen 
poultry in any of the classes indicated below to a dealer in any succeeding 
class shall be considered to be in the direct line of distribution : 

Class 1 : Original packers and shippers. 

Class 2 : Commission merchants — wholesalers. 

Class 3 : Jobbers — suppliers of hotels and institutions. 

Class 4 : Retailers — hotels and institutions. 

Rule 8. Intertrading restricted. — All trading in frozen poultry shall serve to 
move the frozen poultry in the direct line of distribution to the CQusumer, and 
nothing contained in this or the preceding rule shall authorize any licensee to 
use any more indirect method of distribution of frozen poultry. One sale of 
any lot of frozen poultry between dealers in the same class may be made where 
necessary to supply the reasonable requirements of the buyer's business, pro- 
vided a report is made promptly to the local Federal food administrator. Such 
sales shall be made at an advance of not more than 5 per cent over cost, except 
when sold by the original storer, who shall sell at not more than 6 per cent over 
cost. If sold by a commission merchant to a \yholesaler, the commission shall 
not exceed 5 per cent. ' * 

Except for such sales, no licensee shall sell to another In the same or any 
preceding class of distribution without the written consent of the local Federal 
food administrator, which will be given only in extraordinary circumstances. 
Where such consent is given, the dealer shall not sell at an advance of more 
than one-fourth cent per pound over cost, nor in the case of a commission mer- 
chant selling to a wholesaler shall the commission amount to more than one- 
fourth cent per pound : Provided, Jiotvever, That nothing in this rule shall pre- 
vent sales at cost : Provided further, That nothing in tlws rule shall prevent 
sales for immediate delivery from one city to another for actual distribution to 
relieve exceptional local shortage, but a report of any such sale nuist be 
promptly made to the local Federal food administrator, with the reasons there- 
for. Such sales shall be made at a price not to exceed 5 per cent over cost ; or 
if sold by a commission merchant to a wholesaler, the commission shall not 
exceed 5 per cent : And provided further. That nothing in the rule shall prevent 
a commission merchant from acting as an agent for dealers other than original 
shippers and packers, as provided In rule 3. (Issued Mar. 2, 1918; added to 
.July 26, 1918; repealed Jan. 8, 1919.) 

Note. — Licensees will l^e expected to find out whether sales are justifiable by obtain- 
ing information as to the class in which the seller and the buyer arc dealing and the 
location and class of the licensee from whom the seller purchased. This information 
should be placed on all confirmations of sales. 



GOYEIIXMEXT EEGULATIOXS EELATIXG TO PEICES. 619 

Rule 9. Brokerage to be included in margins. — If brokers act as agents in anj"^ 
sale of frozen poultry under these rules, brokerage paid sliall not be added to 
tlie selling price of the goods. (Issued ]Mar. 2, 191S; repealed Jan. S, 1919.) 

C. ADDITIONAL REGULATIONS GOVERNING COaCillSSION MER- 
CHANTS, BROKERS, AND AUCTION'EERS DEALING IN POULTRY. 

Rule 1. Commission or brokerage not to be unreasonable or discriminatory. — ■ 

The licensee shall not charge, directly or indirectly, an unjust, exorbitant, 
unreasonable, discriminatory, or unfair commission or brokerage on the sale 
of poultry. (Issued July 10, 1918; repealed Jan. 8, 1919.) 

Note. — The Food Administration in enforcing this rule will insist that anr proposed 
increase in rates be submitted to the local Federal food administrator and that the 
reason for any increa.sed rate over the prewar normal be justified to liim, subject to the 
general supervision of the United States Food Administration, before such increased 
rates are put into effect. The rates to be charged by a commission merchant are more 
speciflcallv treated under B, rule 3, supra. 

Eule 2. Prompt remittance and proper account sales to be rendered. — The 
licensee shall remit promptly following the sale of poultry received on con- 
signment for .^ale or distribution and shall render to the consignor an account 
showing the true sales and with charges only for services actually performed 
and expenses actually incurred by the licensee. (Issued Nov. 1, 1917, as to 
"food commodities"; repealed Jan. S, 1919.) 

Note. — When a commission merchant receives a consignment of poultry and guaran- 
tees to the consignor a definite selling price, he must show on the account sales the 
actual price at which the goods are sold, together with services actuallv performed and 
expenses actually incurred, and as a separate item must show any sum paid to the 
consignor by reason of the commission merchant's contract of guaranty. Failure to do 
this will be considered a violation of the above rule and also a misstatement of the 
price at which commodities are being sold, in violation of general rule 19. 

Eule 3. Agent not to buy from principal unless noted on account of sales. — The 
licensee shall not, directly or indirectly, sell consigned poultry or poultry v\-ith 
the sale of which on commis.sion he is intrusted to himself or to anyone con- 
nected with his business, unless he notes the facts of such transaction on the 
account of sales. 

Note. — This rule is not intended to relieve the licensee from any legal obligation 
resting on him to obtain authorization from the shipper before taking' to account goods 
consigned to him or to obtain the ratification of such a transaction. 

From November 1, 191", to April 16. 1918, the rule governing all commission mer- 
chants, brokers, and auctioneers which limited their charges to " * * * that which 
ordinarily and customarily prevails under normal conditions in the locality in which 
* * * their business is conducted * * * •> applied to these dealers in perishables. 

Enle 15. Certificate of value to be furnished to cold-storage warehousemen. — 
The licensee storing poultry with a cold-storage warehouseman upon which the 
vrarehousemau either directly or indirectly loans money shall upon request of 
such warehouseman file with him a certificate stating the market value of the 
goods stored and shall make no false or misleading .statement in such certificate 
nor shall he fail to maintain the margin required by the regulations of the Food 
Administration on loans made by cold-storage warehousemen. (Issued Feb. 7, 
1918, as to " commodities 'required to be licensed " : repealed Jan. 8, 1919.) 

XiX. DISTRIBUTORS OF EGGS. 

INTERTRADING RESTRICTED. 

General rule 6 provides as follows: 

" The licensee, in selling food commodities, shall keep such commodities mov- 
ing to the consumer in as direct a line as practicable and without unreasonable 
delay. Resales within the same trade without reasonable justification, espe- 
cially if tending to result in a higher market price to the retailer or consumer. 
vnM be dealt with as an unfair practice." 

The United States Food Administrator recognizes the following classes of 
dealers in fresh eggs : 

1. Original packers and shippers. 

2. Commission merchants and whole.?alers. 

3. Jobbers and suppliers of hotels and institutions. 

4. Retailers. 

All trading in fresh eggs mu.5t contribute toward moving the eggs in a direct 
line to the consumer. Sales between dealers in any one of theclasses men- 



620 HISTORY OF PRICES DURING THE WAR. 

tioned above are prohibited except as follows : Sales between wholesalers iu 
different cities will for the present be permitted where necessary to supply the 
reasonable requirements of the buyer's business, provided there is an actual 
shipment of the goods, and provided the movement between cities is in the direc- 
tion of normal crop movement from producer to consumer. In addition thereto 
DOt more than two sales of any lot of fresh eggs between dealers in class 2 may 
be made without obtaining the consent of the local Federal food administrator if 
s-uch sales are necessary to supply the reasonable requirements of the buyer's 
business, but more than two sales between dealers in class 2 shall not be made 
without the written consent of the local Federal food administrator. One sale, 
and only one, between dealers in the same class other than class 2 may be made 
without obtaining the consent of the local Federal food administrator if such 
sale is necessary to supply the reasonable requirements of the buyer's business, 
but more than one such sale shall not be made without the written consent of 
the local Federal fot)d administrator. 

In no case shall a dealer sell fresh eggs to any dealer in a class further re- 
moved from the consumer than the class in which the seller is included ; for 
example, a jobber shall not sell to a wholesaler, or a retailer to a wholesaler. 

No objection will be made to sales of fresh eggs between dealers in the same 
class that are made at a price that is less than or equal to the initial cost to the 
seller of the particular commodities sold, nor are such sales to be counted as 
sales between dealers in the same class. 

Licensees will be expected to find out whether sales are justifiable by obtain- 
ing information as to the class in which the seller and the buyer are dealing and 
the location and class of the licensee from whom the seller purchased. This in- 
formation should be placed on all confirmations of sales. 

B. SPECIAL REGULATIONS GOVERNING DISTRIBUTORS OF COLD- 
STORAGE EGGS. 

In tlie following rules the different kinds of dealers in cold-storage eggs are 
delined as follows: 

(a) An original packer or shipper is a person, firm, corpoiation, or association that 
assembles and packs the eggs for market or storage. 

(&) A commission merchant is a person, firm, corporation, or association that solicits 
for sale or receives for sale and sells food products on a commission basis, or that 
acts as agent or representative of shippers, packers, and other distributors in the 
marketing of food products for a fixed package charge or on a percentage basis. 

(c) A wholesaler is a person, firm, corporation, or association, other than the origi- 
nal packer or shipper, that sells to jobbers or to suppliers of hotels and institutions. 

(f/) A jobber is a person, firm, corporation, or association that sells or distributes 
to retailers. 

(e) A supplier of hotels and institutions is a person, firm, corporation, or associa- 
tion that sells to hotels, restaurants, clubs, dining-car or steamship companies, public 
or private institutions, or to retail dealers requiring specially selected stock and being 
furnished a service similar to that rendered to hotels and institutions. 

(/) A retailer is a person, firm, corporation, or association that sells or distributes 
to consumers. 

(0) The original storer is the person, firm, corporation, or association that owns 
eggs when first placed in a cold-storage warehouse. 

Note. — (]) Where a licensee sells eggs within .SO days from the date of original 
storage, the buyer may also be considered the original storer to the extent that he 
may add to the maximum advance over cost allowed in selling as a wholesaler, jobber, 
etc., any part of G per cent over the first storcr's cost not added by the first storer. 
In such cases the first storer who sells within 30 days must inform the buyer what 
portion of 6 per cent over his cost he has added. 

(2 1 Where a definite lot of eggs is sold before it is placed in a cold-storage ware- 
house, and if title to this lot actually passes to the purchaser, or if title is retained 
by the seller merely as security for the purchase price, and thereafter the eggs are 
put in the warehouse, the purchaser will be considered the original storer even though 
the eggs are carried and insured in the seller's name. 

Wherever in the following rules dealers in cold-storage eggs are limited in the ad- 
vance over cost at which such eggs may be sold, " cost " shall be construed to include 
the purchase price, or in the case of the original packer or shipper- the cost into 
storage, plus storage charges, interest on the goods in storage, and insurance on goods 
in storage incurred by the seller up to the time of sale, but not to include any other 
expenses, except as hereinafter provided in the case of candled eggs. 



GOVERNMENT REGULATIONS EELATING TO PRICES. 621 

In selling eggs candled by tlie licensee the actual net candling loss may be included 
in tbe cost, but the expense of labor and materials in candling and all repacking ex- 
penses shall not he included. 

In determining cost licensees may average the cost of all lots of cold-storage eggs 
of the same grade which were originally stored in the same month and which have 
not already been contracted to be sold, and may take such average cost as the cost 
of any particular lot. The licensee must keep a record of the manner in which such 
average h^d been arrived at and shall take as the cost of all stock remaining on 
hand from, lats already averaged the average cost previously arrived at. If the cost 
of any cold-storage eggs is averaged, the cost of all cold-storage eggs must be averaged. 

Note. — (l) The maxim.um advances over cost specified in the following rules are 
jjot to be regarded as normal or so recognized by the Food Administration. They 
are intended only to prevent speculation and are purposely made wide to cover casea 
where the methods of doing business are more expensive, to the extent that such 
methods are justified. These maximum advances must not be exceeded in selling any 
specified lot of eggs, and the average advance over cost charged by any dealer must 
not be more than sufficient to return to him a reasonable profit on his investment In 
accordance with general rule 5, which is as follows : " The licensee shall not import, 
manufacture, store, distribute, sell, or otherwise handle any food commodities on an 
unjust, exorbitant, unreasonable, discriminatory, or unfair commission, profit, or storage 
charge."' 

(2) The special rules regulating the profits of dealers in cold-storage eggs do not 
apply to eggs that are placed in a cold-.storage warehouse, but which are removed from 
the cold-storage warehouse for distribution for consumption within 30' days after 
the date of the original entry of such eggs into the cold-storage warehouse 

(3) Profits on different sales can not be averaged. The licensee is limited on each 
transaction to the maximum profit permitted by the rules and regulations 

(4) Where a dealer in the sale of cold-storage eggs adds less than the maximum 
advance over cost permitted by the rules, the buyer is not because of this fact per- 
mitted to add to the maximum advance over cost allowed to him any part of the 
maximum, advance allowed to the seller which the seller did not add. 

Rule 1. Ptirchase from dealer charging unreasonable margin prohibited. — No 

licensee shall knowingly purchase cold-storage eggs from a dealer who sells at a 
greater advance over cost than the maximum specified in the following rules 
(Issued Mar. 2, 1918; repealed Feb. 14, 1919.) 

Rule 2. Maximum margins for original packer or shipper. — The original packer 
or shipper storing in a cold-storage warehouse shall not sell cold-storage eggs 
to wholesalers at an advance of more than 6 per cent over cost. In case cold- 
storage eggs are stored in the name of a commission merchant, the original 
storer shall be deemed to be the consignor for whom the commission merchant 
acts as agent. An additional advance not exceeding 4 per cent of cost may be 
charged by the original packer or shipper in selling eggs at mark or 7 per cent 
over cost in selling eggs candled by him to jobbers or suppliers of hotels and 
institutions. An additional advance may be charged in selUng to retailers not 
exceeding 5 per cent of cost if sold at mark (i. e., in original packages), and not 
exceeding 10 per cent of cost in selling eggs candled by him. An additional 
advance not exceeding 12 per cent of cost may be charged if the original packer 
performs the functions of a supplier of hotels and institutions, as heretofore 
defined. (Issued Mar. 2, 1918; margins slightly changed Julv 26, 1918, and 
Nov. 11, 1918 ; repealed Feb. 14, 1919. ) 

Rule 3. Maximum commissions. — A commission merchant shall not receive a 
commission of more than 4 per cent on cold-storage eggs consigned to him. The 
selling price of cold-storage eggs sold through a commission merchant shall not 
exceed the maximum advance over cost permitted to the consignor by these 
rules, which advance shall include the commission for the sale. A commission 
merchant who takes to account consigned cold-storage eggs shall not receive 
any other profit beyond the amount of the commission before specified. A com- 
mission merchant shall require from consignors a statement of cost of goods and 
maximum selling price allowable under these rules. (Issued Mar. 2, 1918: 
repealed Feb. 14, 1919.) 

Rule 4. Maximum margin for wholesaler. — A wholesaler shall not sell cold- 
storage eggs at mark at an advance of more than 4 per cent over cost or 7 per 
cent over cost if he candles the eggs. If a wholesaler also sells as a jobber, he 
shall not sell eggs at mark at an advance of more than 5 per cent over cost or 
eggs candled by him at more than 10 per cent over cost as provided for jobbers 
in rules 5 and 6. The above maximum advances may be increased by not to 
exceed 6 per cent of cost, in cases where the wholesaler is also the original 
storer in a cold-storage warehouse. (Issued Blar. 2, 1918; margins slightly 
changed Nov. 11, 1913; repealed Feb. 14, 1919.) 

Rule 5. Maximum margin for jobber of cold-storage eggs at mark. — A jobber 
shall not sell cold-storage eggs at mark (i. e., in original packages) at an 



622 HISTORY OF PRICES DURING THE WAR, 

advance of more than 5 per cent over cost. (Issued Mar. 2, 1918; repealed 
Feb. 14, 1919.) 

Rule 6. Maximum margin for jobber of candled eggs. — A jobber shall not sell 
eggs candled by him at an advance ot more than 10 per cent over cost. The 
maximum advance prescribed in rules 5 and 6 may be increased by not to exceed 
G per cent of cost in cases where the jobber is also the original storer in a cold- 
storage warehouse. (Issued jNIai'. 2, 1918; I'epealed Feb. 14, 1919.) 

Rule 7. Maximum margin fcr supplier of hotels and institutions. — A supplier 
of hotels and institutions shall not sell eggs candled and selected by him at 
more than 12 per cent over cost. This maximum advance may be increased by 
not to exceed 6 per cent of cost in cases where the supplier of hotels and insti- 
tutions is also the original storer in a cold-storage warehouse. (Issued Mar. 2, 
1918 ; repealed Feb. 14, 1919. ) 

Rule 8. Maximum margin for retailer storing eggs during 1918. — A retailer 
who is the original stort^r of eggs during 1918 shall not sell such eggs candled 
and selected by him at an advance of more than 21 per cent over cost. (Issued 
Mar. 2, 1918; margins changed Oct. 22, 1918; rei3ealed Feb. 14, 1919.) 

Note. — Jlaximiim mnrjrins for retailers on all sales of eggs other than those abovo 
specified will be iinnoiinceci separately. 

Rule 9, Direct line of distribution defined. — A sale by any dealer in cold- 
storage eggs in any of the classes indicated below to a dealer in any succeeduig 
class shall be considered to be in the direct line of distribution: 

Class 1. Original packers and shippers. 

Class 2. Commission merchants — Wholesalers. 

Class 3. .Jobbers — Suppliers of hotels and institutions. 

Class 4. Retailers — Hotels and institutions. 

(Issued »Iar. 2, 1918; repealed Felx 14, 1919.) 

Rule 10. Intertrading restricted. — All trading in cold-storage eggs shall serve 
to move the cold-storage eggs in the direct line of distribution to the consumer 
and nothing contained in this or the preceding rule shall authorize any licensee 
to use any more indirect method of distribution than he has been accustomed 
to use in the past in the distribution of eggs. One sale of any lot of cold-storage 
eggs between dealers in the same class may be made where necessary to supply 
the reasonable requirements of the biiyer's business. Such sales shall be made 
at an advance of not more than 2 per cent over cost, except when sold by a 
wholesaler or jobber who is also the original storer who shall sell at not more 
than 6 per cent over cost. Where a dealer buys cold-storage eggs from another 
dealer in the same class other than the original storer he must sell the eggs so 
bought at not more than the maximum advances over cost specified in the above 
rules minus 2 per cent. A licensee who does business both as a wholesaler and 
jobber may buy as a jobber with the intention of reselling to a retailer or of 
making the one permissible resale to other jobbers, or to suppliers of hotels or 
institutions. 

Except for such sales no licensee shall sell to another in the same or any pre- 
ceding class of distribiition without the written consent of the local Federal 
food administrator, which will be given only in extraordinary circumstances. 
Where such consent is given the dealer shall not sell at an advance of more than 
10 cents per case over cost, nor in the case of a commission merchant selling to a 
Avholesaler shall the commission amoimt to more than 10 cents per case : Pro- 
rided, however. That nothing in this rule shall prevent sales for immediate 
delivery from one city to another for actual distribution to relieve exceptional 
local shortage, but a report of any such sale must be promptly made to the 
local Federal food administrator, with the reasons therefor. Such sales shall 
be inade at a price not to exceed 4 per cent over cost. ( Issued Mar. 2, 1918 ; 
advance at which dealers may sell changed July 26, 1918, and Oct. 31, 1918; 
repealed Feb. 14, 1919.) 

Note. — Licensees will be expected to find out whether sales are justifiable by obtain- 
ma information as to the class in which the seller and the buyer are dealing and the 
location and class of the licensee from whom the seller purchased. This information 
should be placed on all conflrmations of sales. 

Rule 11. Brokerage to be included in margins. — If brokers act as agents in any 
sale of cold-storage eggs under these rules brokerage paid shall not be added to 
the selling price of the goods. (Issued Mar. 2, 1918 ; repealed Feb. 14, 1919.) 

Rule 16. Certificate of value to be furnished to cold-storage warehousemen. — 
The licensee storing eggs with a cold-storage warehouseman upon which the 
warehouseman either directly or indirectly loans money shall upon request of 



GOVERNMENT REGULATIONS RELATING TO PRICES. 623 

such warehouseman file with him a certificate stating the market value of the 
goods stored and shall make no false or misleading statement in such certificate 
nor shall he fail to maintain the margin required by the regulations of the Food 
Administration on loans made by cold-storage warehousemen. (Issued Feb. 7, 
1918, as to " commodities required to be licensed "; repealed Feb. M, 1919.) 

C. ADDITIONAL REGULATIONS GOVERNING COMMISSION MER- 
CHANTS, BROKERS, AND AUCTIONEERS DEALING IN EGGS. 

Rule 1. Commission or brokerage not to be iinreasonable or discriminatory. — 

The licensee shall not charge, directly or indirectly, an unjust, exorbitant, 
unreasonable, discriminating, or unfair commission or brokerage on the sale of 
eggs. (Issued July 10, 1918; repealed Feb. 14, 1919.) 

_ Note. — The Food Administration in enforcing this rule will insist that any proposed 
increase in rates be submitted to the local Federal food administrator and that the 
reason for any increased rate over the prewar normal be justified to him, subject to the 
general supervision of the United States Food Administration, before such increased 
rates are put into effect. 

The rates to be charged by a commission merchant are more specifically treated under 
B, rule 3, supra. 

Rule 2. Prompt remittance and proper account sales to be rendered. — The 
licensee shall remit promptly following the sale of eggs receiveil on consignment 
for sale or distribution and shall render to the consignor an account showing 
the true sales and with charges only for services actually performed and 
expenses actually incurred by the licensee. (Issued Nov. 1, 1917, as to "food 
commodities " ; repealed Feb. 14, 1919.) 

Note. — Where a commission merchant receives a consignment of poultry or eggs and 
guarantees to the consignor a definite selling price, he must show on the' account sales 
the actual price at which the goods are sold, together with services actually performed 
and expenses actually incurred, and as a separate item must show any sum paid to the 
consignor by reason of the commission merchant's contract of guarantv. Failure to do 
this will be considered a violation of the above rule governing comniission merchants 
and also a misstatement of the price at which commodities are being sold in violation of 
general rule 19. 

Rule 3. Agent not to buy from principal unless noted on account of sales. — The 

licensee shall not, directly or indirectly, sell consigned eggs or eggs with the 
sale of which on commission he is intrusted, to himself or to anvone connected 
mth his business, unless he notes the facts of such transaction on the account 
of sales. (Issued Nov. 1, 1917, as to "food commodities"; repealed Feb. 14 
1919.) 

• Note. — -This rule is not intended to relieve the licensee from any legal obligation 
resting on him to obtain cauthorization from thg shipper before taking to account goods 
consigned to him or to obtain the ratification of such a transaction. 

rrom November 1, 1917, to April 16, 1918, the rule governing all commission mer- 

cnants, brokers, and auctioneers which limited their charges to " * * * that which 

ordinarily and customarily prevails under normal conditions in the locality in which 

tbeir business is conducted * * * " applied to these dealers in perishables. 

D. ADDITIONAL SPECIAL REGULATIONS GOVERNING RETAILERS OF 

EGGS. 

Rule 1. Fresh or cold-storage eggs must not be sold at retail at more than 
reasonable advance over cost. — The licensee shall not sell fresh or cold-storage 
eggs at retail at more than a reasonable advance over cost Avithout regard to the 
market or replacement value at the time of the sale. Cost shall include purchase 
price and transportation charges, and where the retailer actually candles and 
grades eggs he may include in the cost the actual loss from such candling and 
grading. In the case of cold-storage eggs, cost shall include the follov/ing addi- 
tional items : 

1. Storage charges actually incurred. 

2. Insurance charges actually incurred. 

3. Interest on money invested at tb.e current rate while eggs are in storage. 
The licensee may average the cost of all lots of eggs of the same grade (and 

m the case of cold-storage eggs, all eggs of the same grade which were originally 
stored m the same month) in his possession at the point from which the sale is 
made which have not already been contracted to be sold, and may take such 
average cost as the cost of any particular lor. When new lots are added and a 
new average calculated, the licensee shall include in the new averaging all stock 
remaining on hand from lots already averaged at the average cost previously 
determined. If the cost of any eggs is averaged the cost of all eggs must be 



624 



HISTORY OF PRICES DURING THE WAR. 



averaged. When c^sts are avera,2:e(l the licensee nuist keep a record of the 
manner in Miiich such average has been arrived at. (Issued Oct. 22, 1918; re- 
pealed Feb. 14, 1919.) 

Note. — The Retail Section of the Distribution of Perishables of the United States Food 
Administration has determined that any advance over cost in excess of 7 cents to 8 cents 
a dozen is unreasonable and will be considered evidence of violation of the above rule. 

The 7 cents per dozen represents the maximum for stores conducting the cash and carry 
or no service plan, while the 3 cents per dozen is the maximum margin for the extra 
service stores extending credit and delivery. 

Retailer may have benefit of fractional cost on any transaction. — Retailers whose deliv- 
ered terminal costs figure in fractions may have the benefit of such fractional costs. For 
example, if egjis cost at terminal delivery 465 cents per dozen, the selling price may be 
figured as follows : 

CASH AND CARRY STORES. 



Amotmt of sale. 


Cost. 


Margin. 


Total. 


Fraction ^^^ 
^dd^<i- prife' 


1 dozen 


Cents. 
46J 

m 

13S} 


Cents. 

7 
14 
21 


Cents. 
53i 
106 J 
1591 


Cent. 

1 


SO. 54 


2 dozen 


1.07 


3 dozen 


1.00 







The maximum selling price for the extra service or credit and delivery stores would be 
1 cent per dozen higher. 

In determining margins at 7 cents and 8 cents per dozen on eggs with the fractional 
cost in the dealer's favor, the United States Food Administration has given due considera- 
tion to the rising costs of operation which must be met by the dealer. 

Margin for retailer who stored eggs during 1918. — The attention of any retailer who was 
the original storer of eggs during the season of 1918, is called to the fact that he is still 
governed by rule 8 of the special regTilations governing distributors of cold-storage eggs in 
respect to transactions in these eggs. 

SUPPLEMENT. 

TO LICENSEES WHO AEE KECEIVEES OP rOULTEY OR EGGS (EUTTER AND OTHER PRODUCE)^ 
ON CONSIGNMENT OB AS TUECHiASERS. 



A licensee in receiving goods shipped in to him acts in one of two capacities, either 
as an agent of the shipper in selling commodities or as a purchaser of the commodities 
from the shipper. Some licensees are engaged in both forms of business and confusion 
has arisen in tlie minds of shippers as to exactly how their shipments are to be handled. 
Licensees should be guided by the following principles : 

(1) If the licensee acts as an agent for the shipper in disposing of goods he must 
render an account sales showing the sales made for the account of the shipper, the 
amount deducted by him for compensation, and any other charges. In some cases It is 
the practice for commission merchants to take to their ,own account goods which are 
consigned to them as agents. Where an agent so takes to account this fact is required 
to be noted on the account sales by the regulations of the Food Administration. The 
shipper will then kiiow the nature of the transaction. This requirement is in addition 
to any obligation at common law resting on the receiver to obtain the consent of the 
shipper to such a transaction. Licensees who handle commodities for shippers for a 
certain compensation, even though not expressed in terms of percentage or called a 
commission, are none the less commission merchants, and must comply with the regula- 
tions governing commission merchants. 

(2) If the licensee is not acting as agent for the shipper and the intention is that 
the licensee shall purchase from the shipper, this matter should be clear to the shipper 
as well as the receiver of the commodities. The use of expressions by the receiver in 
connection with such a transaction which would lead the shipper to believe that the 
receiver is acting as an agent for the shipper is misleading and unfair. 

I'urchases are made under different arrangements as to price, more commonly in one 
of the following ways : 

(a) The receiver agrees to pay the shipper a definite price upon arrival. 

(6) The receiver agrees to pay the shipper a price having a definite relation to the 
market price on the day of arrival. 

(c) The receiver agrees to pay the shipper a price to be determined by the receiver 
on the day of arrival. 

Such agreements are not prohibited by the Food Administration. In the third case 
(c) it is clearly implied in the agreement that the price to be paid by the receiver shall 
not be arbitrary but shall be reasonable under all the circumstances and shall bear a 



GOVEKNMEIsrT REGULATIONS EELATIHG TO PRICES. 625 

proper relation to the market value. The Food Administration will so construe snch 
agreements and the parties should so understand them. 

Where a dealer is handling commodities in several different ways the only method 
of making clear the nature of any particular transaction is a written or oral definite 
understanding. Cases, however, have heen called to our attention where a licensee 
never does any commission business, always purchases shipments at a net price, and 
where the receiver is constantly receiving shipments from shippei-s with whom he 
has never had any prior negotiations. In such cases the nature of the business may 
be entirely clear to the shipper without a definite written agreement. The buyer should 
show by a memorandum of purchase exactly what the nature of the transaction is, 
including the purchase price and any deductions permitted by the contract of purchase, 
and he must not use any expression which will lead the shipper to believe that the 
transaction is an agency transaeKon. In order to avoid misleading statements the 
Food Administration has insisted that the licensee shall discontinue the use of the term 
" net return basis " to describe purchases. " Net return basis " implies that there is a 
gross return and that something has been deducted to reach a net return. It is an 
expression applicable to an agency transaction and not to a purchase. 

XX. BUTTER. 

A. SPECIAL REGULATIONS GOVERNING MANUFACTURERS AND 
DISTRIBUTORS OF BUTTER. 

Eiile 1 (amended Dec. 31. effective Jan. 6, 1919). Cold-storage butter to be sold 
at reasonable advance over cost. — The licensee dealing in cold-storage butter 
shall sell such butter without regard to the market or replacement value at 
the time of sale at not more than a reasonable advance over cost to him of 
the particular butter sold, provided that the licensee may average by weight 
the cost of all cold-storage butter of the same grade which has not already 
been contracted to be sold. The licensee shall keep a record of the manner in 
which such average has been determined. When new lots are added and a new. 
average calculated the licensee shall include in the new average all stock 
remaining on hand of lots already averaged at the average cost previously 
determined. If the cost of any cold-storage butter is averaged, the cost of all 
cold-storage butter must be averaged. 

Cost for the purpose of this rule shall include : 

1. Purchase price. 

2. Transportation charges, if any (not including drayage). 
8. Storage charges actually incurred on cold-storage butter. 

4. Insurance charges actually incurred on cold-storage butter. 

5. Interest on money invested at the current rate, while butter is in cold 
storage. 

6. Actual cost of printing if the butter is put in print form from tubs or 
cubes. 

Cost shall not include any allowance for shrinkage in weight, commissions, 
expenses of breaking packages and repacking, or other expenses than those 
herein listed. (Issued June 19, 1918, as to "cold-storage butter"; changed 
July 19, 1918, to apply to all butter; changed Jan. 6, 1919, to apply to cold- 
storage butter ; repealed Jan. 28, 1919. ) 

Note. — -In any case where a licensee owns his own cold-storage warehouse in which 
butter owned by him is stored more than 30 days lie may include in his calculation of 
cost a charge for warehousing equal to that ordinarily paid to a public warehouse 
for similar services. 

Reports to be furnished on demand. — The licensee must be prepared to furnish to the 
United States Food Administration or to the Federal food administrator of his State 
upon demand a full report on costs and margins charged or on the maximum prices 
charged in any given period for any grade of butter or any other information which may 
be considered necessary for the purpose of this rule. 

Maxirmim margins. — The Food Administration will consider the sale of any grade of 
butter by any dealer other than a manufacturer or retailer at an advance over cost, as 
hereinbefore defined, of more than the following margins as prima facie evidence of a 
violation of the food control act and the above rule : 

(a) One cent per pound on car lot sales. 

(i) One and one-half cents per pound on sales of less than n car lot, but amounting 
to 7,000 pounds or more. 

(c) Two cents per pounds on sales of less than 7,000 pound.?, but amounting to 
3,500 or more. 

125547°— 20 40 



626 



HISTORY or PRICES DURING THE WAR. 



(d) Two and OJie-balf cents per pound on sales of less than 3,500 pounds, but amount- 
ing to 700 pounds or more. 

(€) Throe rents per pound on sales less than 700 pounds but amounting to 100 pounds 
or more. 

(f) Three and three-fourths cents per pound on sales of less than 100 pounds. 

In addition to the selling margin, which normally should be considerably below the 
above maximum margins, and must in no case exceed such maximum margins, any dealer 
who carries butter in cold storage more than two full calendar months may add a margin 
of not more than 1 cent per pound, and an additional one-fourth cent per pound for 
each calendar month thereafter during which he carries the butter in storage. The 
total margin for carrying butter in cold storage shall not exceed 2 cents per pound. 

The following table indicates the method by which the dealer may calculate the maxi- 
mum amounts which may be added to selling margins where a dealer holds butter in 
storage more than two full calendar months. It should be noted that a calendar month 
does not mean 30 days. 



Month. 


May. 


June. 


July. 


Aug. 


Sept. 


Oct. 


Nov. 


Dee. 


Jan. 


Feb. 


Mar. 




1 

n 

li 

1| 

2 

2 

2 

2 

2 

2 

2 

2 






















1 
li 

^ 

2 
2 
2 
2 
2 
2 
2 




















1 

li 

14 

¥ 

2 
2 
2 
2 

2 


















1 

li 

14 

If 

2 

2 

2 

2 

2 
















1 

n 

14 

If 

2 
2 
2 
2 














1 

;i 

1:1 
2 
2 
2 




! 








1 

11 

n 
If 

2 

2 










1 

li 

li 

l| 

2 










1 

11 

1| 






May 


1 

li 

14 




Junu 


i 


July ■.... 


li 











Note. — The months in the column at the left indicate months in which the butter is 
sold- The figures indicate cents per pound- For example, a dealer storing butter in June 
and selling in October may add li cents per pound to his selling margin, which must in 
no case exceed the margins indicated under rule 1. 

The above maximum margins are not to lie regarded as fair normal margins or as so 
recognized by the Food Administration. They are intended to prevent speculation and 
are purposely made wide enough to cover cases where the methods of doing Imsiness are 
more expensive, to the extent that such methods are justified. These maximum advances 
must not be exceeded in selling any lot of butter and the prices charged by any dealer 
must not in any case be more than sufficient to return to him a reasonable profit on his 
investment. 

Licensees will be expected to sell l)utter in usual quantities to customers and where 
it appears that sales are being made in smaller quantities than customarily for the pur- 
])ose of charging larger margins than would be proper on larger sales such larger margins 
will not be considered justifiable. Larg;er margins are only proper for sales of smaller 
quantities Vi^here selling in s;nall quantities is the usual course of business involving a 
greater expense in operation. 

Where a licensee contracts to sell a quantity of butter to be delivei'ed in smaller 
quantities at future dates the dealer must be guided by the maximum margins indicated 
for sales of the quantity contracted to be sold and not" for sales of the amount of any 
delivery. 

Sales from lyrancJi houses. — Wlaere butter is transferred by any dealer to a branch 
bimse of such dealer in the same or another city such transfer shall not be made at an 
advance over cost of more than three-fourths of a cent per pound, regardless of quantity. 
In such case, howeTcr, when the transaction is in as direct a line of distribution as prac- 
ticable the branch house may figure the transfer price as its purchase price and may sell 
butter at an advance over cost on such basis not greater than the maximum margins indi- 
cated above. If the branch house transfers the butter to another branch house of the 
same dealer the total maximum margin added by both houses shall not be greater than 
the maximum margin allowed to the first branch house by this rule. 

ColJusive sales. — Any sale by a dealer to another dealer at a price higher than the 
price which the second dealer would have to pay in buying on the open market will 
be considered evidence of a collusive sale intended to defeat the purpose of rule 1 by 
increasing the purchaser's cost ajid the price which he may charge upon a rising 
market. 

Rule 2 (amended Dec. 31, to 'be eiTective Jan. 6, 1919). Manufacturer's mar- 
gins on sales of cold-storage butter. — The manufacturer in selling butter manu- 
factured and placed in cold storage by him shall be governed by rule 1, and the 
maximum margins indicated therewith, except that in hguring his cost as pro- 
vided in rule 1, he shall take instead of the purchase price the market quota- 
tion on the kind anil grade of butter placed in cold storage as quoted in a 



GOVERNMENT REGULATIONS RELATING TO PRICES. 627 

well-recognized daily commercial price current in tlie city where and on the 
day when the goods are placed in storage. In case there is no well-recognized 
daily price current in the city where the goods are stored then he may use the 
quotation given in a daily commercial price current in the large market nearest 
the place of storage. From this must be deducted the amount by which the 
freight from the point of manufacture to the place of storage is less than the 
freight from the place of manufacture to such large market. In case .the 
freight from the place of manufacture to the place of storage exceeds the 
freight from the place of manufacture to such large market, the excess may 
be added to the market quotation. (Rule issued June 19, 1918, provided meth- 
ods of computing purchase price of manufacturer who acts as wholesaler or 
jobber. Dec. 12, 1918. maximum margin on butter set at 5 cents per pound over 
cost of butter fat. Jan. 6, 1919, maximum margins indicated for cold storage 
butter. Repealed Jan. 28, 1919.) 

Rule 3 (amended Dee. 31, to be effective Jan. 6, 1919). Connnissions limited.— 
No licensee shall pay and no commission merchant shall receive a commission 
on cold-storage butter of more than the following: 

Car lot sales i cent per pound 

Sales less than car lot 1 cent per pound 

The licensee shall inform any commission merchant selling butter for him 
of the maximum permitted price at which such butter may be sold. 

The commission merchant shall not charge both a commission and also a 
profit on cold-storage butter. (Rule issued June 19, 1918, provided commission 
on cold-storage butter which wafi subsequently changed as to fresh a)id cold 
storage on July 19, 1918. Aug. 8, 1918, and Jan. 6, 1919; repealed Jan. 28, 1919.) 

Euie 4 (amended Dec. 31, to be effective Jan. 6, 1919). Intertradin^ restricted. — 
The licensee in selling cold-storage butter shall keep it moA'ing to the con- 
sumer in as direct a line as practicable and without uni'easonable delay. The 
direct line of distribution of butter is from a licensee in any of the following 
classes to a licensee in any succeeding class: 

Class 1. Manufacturers. 

Class 2. Wholesalers and jobbers. These include all persons, firms, corpora- 
tions, and .-issociations who distribute butter in any way, except at retail, and 
all manufacturers who perform services customarily performed by wholesalers 
and jobbers. 

Class 3. Retailers, hotels, restaurants, and institutions. 

Note. — Any transactions that savor of dealing- in which a profit accrues to the 
dealer without corresponding- service, are clear violations of the rule and will subject 
the offender to revocation of his license and to such other penalty as the law provides. 

The following types of sales between dealers will be considered justifiable, but sales 
other than those described between dealers in the same class will be considered as prima 
facie evidence of violation of geneTal rule 6, 

A. A sale by any dealer in butter to a dealer in any succeeding^- class will bo consid- 
ered as in the direct line of distribution. 

B. One sale, and only one sale, of the same goods between dealers in class 2 in the 
same city v>'ili be considered justifiable when necessary to supply the reasonable le- 
.luirements of the buyer's business, without the special consent of the local Federi:! 
Food Administrator, provided, however, tbat a second sale of the same goods between 
dealers in class 2 in the same city will be permitted without the consent of the local 
Federal Food Administrator if this sale is made at an advance over cost of not more 
than one-half of the margins indicated above, and provided that the seller notifies the 
buyer that this is a second sale. 

C. In addition to such resales as are otherwise indicated as justifiable, sales between 
dealers in class 2 in different cities will be considered justifiable, provided, that an actual 
delivery of the butter follows the sale, and that the shipment is for the purpose of 
obtaining supplies from primary markets for reasonable requirements of the purchaser's 
business ; provided further, that not more than three such sales of any lot of butter 
between dealers in class 2 shall be made without special permission ; and the third 
sale shall be made at an advance over cost of not more than one-half of the above 
margins. 

D. Any resale between dealers without any advance over cost will be considered as 
justifiable in addition lo such other resales as are permitted. 

(Rule Issued June 19, 1918, governed resales of cold-storage butter; changed 
July 19, 1918, to include all butter, and Jan. 6, 1919, to cold-storage butter; re- 
pealed Jan. 28, 1919.)- 



628 HISTORY OF PRICES DURING THE WAR. 

Eule 5 (amended Dec. 31, to be effective Jan. 6, 1919). The licensee making 
second sale in same class to notify buyer. — The licensee in class 2 as defined 
above who purchases cold-storage butter from another wholesaler or jobber in 
Kuch class, or from a manufacturer performing the services, or a wholesaler 
or jobber, and who resells to another dealer in class 2, shall notify such dealer 
of the prior sales of such butter within that class of which he has knowledge. 
(Issued June 19, 1918, as to cold-storage butter; changed July 19, 1918, to all 
butter ; changed Jan. G, 1919, to cold-storage butter ; repealed Jan. 28, 1919. ) 

Note — This information should be disclosed at the time of the transaction and should 
be placed by the seller upon the invoice in order that there shall he a permanent record. 

Rule 10. Certificate of value to be furnished to cold-storage warehousemen. — 

The licensee storing butter with a cold-storage warehouseman upon which the 
warehouseman either directly or indirectly loans money shall, upon request of 
such warehouseman, file with him a certificate stating the market value of the 
goods stored and shall make no false or misleading statement in such certificate 
nor shall he fail to maintain the margin required by the regulations of the Food 
Administration on loans made by cold-storage warehousemen. (Issued Feb. 7, 
1918, as to " commodities required to be licensed " ; repealed Jan. 28, 1919.) 

B. ADDITIONAL REGULATIONS GOVERNING BROKERS, COMMISSION 
MERCHANTS, AND AUCTIONEERS DEALING EITHER IN FRESH OR 
COLD-STORAGE BUTTER. 

Rule 1. Commission or brokerage not to be unreasonable or discriminatory. — 

The licensee shall not charge, directly or indirectly, an unjust, exorbitant, un- 
reasonable, discriminatory, or unfair commission or brokerage on the sale of 
butter. (Dec. 23, 1918 ; repealed Jan. 6, 1919.) 

Note. — The Pood Administration in enforcing this rule will insist that any proposed 
increase in rates be submitted to the local Federal food administrator, and that the 
reason for any increased rate over the prewar normal be justified to him, subject to the 
general supervision of the United States Food Alministration before such increased rates 
are put into effect. 

The rates to be charged by a commission merchant are more specifically treated under 
A, rule 3, supra. 

Rule 2. Prompt remittance and proper account sales to be rendered. — The 

licensee shall remit promptly following the sale of butter received on consign- 
ment for sale or distribution, and shall render to the consignor an account show- 
ing the true sales and with charges only for services actually performed and 
expenses actually incurred by the licensee. (Issued Nov. 1, 1917, as to "food 
commodities"; repealed Jan. 6, 1919.) 

Note. — Where a commission merchant receives a consignment of butter and guarantees 
to the consignor a definite selling price, he must show on the account sales the actual 
price at which the goods are sold, together with services actually performed and ex- 
penses actually incurred, and as a separate item must show any sum paid to the con- 
signor by reason of the commission merchant's contract ixf guaranty. Failure to do this 
will be considered a violation of the above rule governing commission merchants and 
also a misstatement of the price at which commodities are being sold in violation of 
general rule 19. 

From November 1, 1917, to April 16, 1918, the rule governing all cOhimission mer- 
chants, brokers, and auctioneers which limited their charges to " * * * that which 
ordinarily and customarily prevails under normal conditions in the locality in which 
* * * their business is conducted * * * " applied to these dealers in perishables. 

C. ADDITIONAL SPECIAL REGULATIONS GOVERNING RETAILERS IN 

BUTTER. 

The attention of all retail dealers in butter is called to Rule A-1 of the above 
regulations, which is headed : " Rule 1. Butter to be sold at a reasonable advance 
over cost.'' 

The United States Food Administration will regard any advance in excess 
of 6 to 7 cents per pound over cost (as defined in. rule 1) as unreasonable and 
as evidence of violation of rule 1. The 6 cents per pound represents the 
maximum margin for stores conducted on the cash and carry or no-service 
pjan, while 7 cents per pound is the maximum margin for the extra-service 
stores extending credit and delivery. 

Retailer may have 'benefit of fractional cost on any tranaaction. — Retailers 
whose delivered terminal costs figure in fractions may have the benefit of such 
fractional costs on any transaction. For example, if butter costs at terminal 
delivery 46^ cents per pound, the selling price may be figured as follows : 



GOVERNMENT REGULATIONS RELATING TO PRICES. 
CASH AND CARRY STORES. 



629 



Amount of sale. 



Cost. 



Margin. 



Total. 



Fraction 
added. 



Maximum 
selling 
price. 



1 pound . 

2 pounds 

3 pounds 



Cents. 



Cents. 



92* 
138| 



Cents. 
521 

1561 



Cents. 



$0.53 
1.05 

1.57 



The maximum selling price for tlie extra service or credit and delivery stores 
would be 1 cent per pound higher. 

In determining margins at 6 cents and 7 cents a pound on butter with the 
fractional costs in the dealer's favor, the United States Pood Administration 
has given due consideration to the rising costs of operation which must be met 
by the dealer. 

In addition to the above margins the retailer who carries butter in cold 
storage more than two full calendar months may add not more than 1 cent a 
pound and an additional one-fourth cent a pound a month for each calendar 
month thereafter during which he carries the butter in cold storage. The total 
amount for carrying butter in cold storage so added, however, shall not exceed 
2 cents per pound. 

The food administration will consider any sale of butter by a retail dealer 
at a greater margin than herein outlined as evidence subjecting the dealer to a 
revocation of his license or such other penalty as the law provides. 

XXI. CHEESE. 

A. SPECIAL REGI?LATIONS GOVERNING MANUFACTURERS AND DIS- 
TRIBUTORS OF ALL KINDS OP CHEESE. 

Rule 1. Cheese to be sold at reasonable advance over cost. — The licensee deal- 
ing in cheese shall sell cheese without regard to market or replacement value at 
not more than a reasonable advance over the cost of the particular cheese sold, 
provided that the licensee may average by weight the cost of all cheese of the 
same kind, shape, and grade which have not already been contracted to be sold. 
The licensee shall keep a record of the manner in which such average has been 
determined. When new lots are added and a new average calculated, the 
licensee shall include in the new averaging all stock remaining on hand of lots 
already averaged at the average cost of such lots previously determined. If the 
cost of any cheese is averaged, the cost of all cheese must be averaged. 
(Issued June 32, 1918; margins on different grades of cheese changed July 12, 
1918, and Aug. 2, 1918; repealed Jan. 6, 1919.) 

Cost for the purpose of this rule shall include: 

1. Purchase price. 

2. Transportation charges, if any (not including drayage). 

3. Storage charges actually incurred, provided that the cheese has been in 
storage more than 60 days. 

4. Insurance charges actually incurred, provided that the cheese has been iu 
storage more than 60 days. 

5. Interest on money invested at the current rate, provided that the cheese 
has been in storage more than 60 days. 

6. Actual cost of paraffining, if any, not to exceed one-fourth cent per pound. 

7. Actual cost of reboxing or dividing the type of American or Cheddar 
cheese, known as Twins or double or triple Daisies, into smaller units, but in 
no case exceeding one-half cent per pound. 

Cost shall not include any allowance for shrinkage in weight, commissions, 
expenses of breaking packages and repacking, or any other expenses than those 
herein listed. ' 

Note. — In any case where a dealer owns his own storage warehouse in which cheese is 
stored more than 60 days the dealer may include in his calculation of cost a charge for 
warehousing equal to that ordinarily paid to a public warehouse for similar services. 
Where cheese is carried in a private warehouse without refrigeration, refrigeration rates 
must not be charged. 

The dealer must calculate the actual cost of paraflBning and will not be permitted arbi- 
trarily to take one-fourth cent per pound as this cost. In cases where the cheese is 
reweighed after paraffining the increased weight must be taken into consideration in 
determining the cost. 



630 HISTORY OF PEICES DURING THE WAR. 

Reports to he furnished on demand. — The licensee must be prepared to 
furnish to the United States Food Administration or to the Federal food 
adiuinistrator of his State upon demand a full report on costs and margins 
charged or on the niaximuiu prices charged in any given period for any kind of 
cheese or any other information which may be considered necessary for the 
purpose of this rule. 

The maximum margins indicated by the Food Administration are not to be 
regarded as fair normal margins ox as so recognized by the Food Administra- 
tion. They tii-e intended only to prevent speculation and are purposely made 
wide enough to cover cases where the methods of doing business are more 
expensive, to the extent that such methods are justified. These maximum 
advances must not be exceeded in selling any lot of cheese, and the prices 
charged by any dealer must not in any case be more than sufficient to return 
to him a reas.inable profit on his investment. 

f^ales from branch houses. — Where cheese is transferred by any dealer to 
a branch house of such dealer in the same or another city such transfer shall 
not be considered a sale governed by the maximum margins indicated for 
sales. No advance over cost for such transfer will be allowed except where 
the main house actually handles the cheese, in which case advances over cost 
for transfer not greater than tliose indicated below will be permitted, provided 
the transaction is in as direct a line of distribution as practicable; and the 
branch house may figure the transfer price (see below) as its purchase price 
and may sell cheese at an advance over cost on such basis not greater than the 
luaximum margins indicated below. If the branch house transfers the cheese 
to another branch house of the same dealer, the total margin added by both 
branch houses must not be greater than the maximum margins indicated below. 

CoUusive sales. — Any sale by a dealer to another dealer at a price higher 
than the price which the second dealer would have to pay in buying on the 
open market will be considered evidence of a collusive sale intended to defeat 
the purpose of rule 1 by increasing the purchaser's cost and the price which 
he may charge upon a rising market. 

The price on the open market does not necessarily mean the price established 
by a dairy boai'd, especially when the dairy board does uot hold its meetings 
daily. 

Cost in the ease of imrehases of ungraded cheese. — The cost ox any grade 
of cheese must be figured on the purchase price of that grade. T\niere a dealer 
purchases ungraded cheese at one price per pound regardless of the grades 
contained in the lot he must not figure the purchase price per pound of any 
part of this cheese higher than the price per poimd actually paid for the 
entire lot. 

The growing practice due to present market conditions of buying cheese, 
particularly round Swiss, from the factory before it is sufficiently matured 
to permit "of the detenuination of the quality of the product increases ma- 
terially the speculative risk assumed by the buyer. It also results in lowering 
the standard of quality. The Food Administration is strongly of the opinion 
that this tendency should be stopped as uneconomical and believes that the 
installation of grades will do much to stabilize values in this protluct. Where 
dealers sell on grade they can reduce their speculative risk if they do not 
purchase the cheese until its quality can be reasonably determined. The above 
requirement as to figuring costs is intended to accomplish this result. 

MAXIMUM MARGINS. 

The Foofl Administration will consider the sale of any dieese of any of the follow- 
ing kinds by any dealer other than the manufacturer or the retailer at an advance 
over cost as hereinbefore defined of more than tlie following margins as prima facie 
CTidenco of a riolation of the food control act and the above rule. 

Licensees will be expected to sell cheese in usual quantities to customers and where 
it appears that sales are being- made in smaller quantities than customarily for the 
purpose of charging larger margins than would he proper on larger sales such larger 
margins will not be considered justifiable. Larger margins are only proper for sales 
of smaller quantities where selling in small quantities is the usual coarse of business 
involving a greater expense in operation. 

■SMiere a licensee contracts to sell a quantity of cheese to be delivered in smaller 
quantities at future dates the dealer must be guided by the maximum margins indi- 
cated for sales of the quantity contracted to be sold and not for sales of the amount 
of any delivery. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 631 

AMEEICAN OK ■ CHEDDAR CHEESE. 

{a) Three-fourths cent per pound on car-lot sales. 

(6) One and one- fourth cents per pound on sales less than a car lot but amounting 
to 7,000 pounds or more. 

(c) One and three-fourths cents per pound on sales less than 7,000 pounds but 
amounting to 4,000 pounds or more. 

(d) Two and one-half cents per pound on sales less than 4,000 pounds but amount- 
ing to 1,000 pounds or more. 

(e) Three cents per pound on sales less than 1,000 pounds but amounting to 100 
pounds or more. 

(/) Three and one-half cents per pound on sales less than 100 pounds. 

In addition to the selling margin, which normally should be considerably below 
the above maximum margins, a further margin may be added where American or 
Cheddar cheese is held in a warehouse for more than 30 days, of not to exceed one- 
fourth cent per pound per month for each and every month after the 30-day period 
during which the cheese is held in the warehouse by any licensee, but in no case 
shall the amount so added exceed 2 cents per pound and no further amount shall 
be added by any licensee after nine months from the date of original storage. 

Transfer margins. — The margins for transfer of American or Cheddar cheese to a 
branch house where the main house actually handles the cheese shall not exceed one- 
half cent per pound regardless of the quantity. 

HOUND OR TUB SWISS CHEESE- 

(a) One and three-fourths cents per pound on car-lot sales. 

{!)) Tv«-o and one-half cents per pound on sales less than a car lot but amounting 
to 6,000 pounds or more. 

(c) TTiree and one-half cents per pound on sales less than 6,000 pounds but amount- 
ing to 3,000 pounds or more. 

(d) Four cents per pound on sales less than '3,000 pounds but amounting to one 
tub or more. 

(e) Five cents per 'pound on sales less than one tub but amounting to 120 pounds 
or more. 

(f) Eight cents per pound on sales less than 120 pounds. 

In addition to the selling margin, which should normally be considerably below 
the above maximum margin, a further margin may be added where round or tub Swiss 
cheese is held in a warehouse for more than 30 days, not to exceed one-fourth cent 
per pound per month for eachi and every month after the 3.0-day period during which 
the cheese is held in the warehouse by the licensee, but in no case shall the amount 
so added exceed 2 cents per pound and no further amount' shall be added hy any 
licensee after nine months from date of original storage. 

Transfer margins. — The margins for transfer of round or tub Swiss cheese to a 
branch house where the main house actually handles the cheese shall not exceed 1 cent 
per pound regardless of quantity. 

BLOCK SWISS CHEESE. 

{a] One cent per pound on car-lot sales. 

(6) One and three-eighths cents per pound on sales less than a ear lot but amount- 
ing to 8,000 pounds or more. 

(c) Two cents per pound on sales less than 8,000 pounds but amounting to 1,500 
pounds or more. 

(d) Two and one-half cents per pound on sales less than 1,500 pounds but amount- 
ing to 750 pounds or more. 

(e) Three cents per pound on sales less than 750 pounds but amounting to 150 
pounds or more. 

(f) Four and one-half cents per pound on sales less than 150 pounds. 

In addition to the selling margin, which should normally be considerably below the 
above maximum margins, a further margin may be added where block Swiss cheese 
is held in a warehouse for more than 30 days, not to exceed one-fourth cent per 
pound per month for each and every month after thel 30-day period during which 
the cheese is held In the warehouse by any licensee, but in no case shall the amount 
so added exceed 2 cents per pound and no further amount shall be added by any 
licensee after nine months from the date of original storage. 

Transfer margins. — The margins for transfer of block Swiss cheese to a branch 
house where the main house actually handles the cheese shall not exceed three-fourths 
cent per pound regardless of quantity. 



632 HISTORY OF PRICES DURING THE WAR. 

BRICK, LIMBURGEK, AND MONSTER CHEESE. 

(a) One and one- fourth cents per pound on car-lot sales. 

(6) One and five-eigbtlis cents per pound on sales less than a car lot, but amounting 
to 6,000 pounds or more. 

(c) Two and one-half cents per pound on sales less than 0,000 pounds, but amounting 
to 2,400 pounds or more. 

(d) Three cents per pound on sales less than 2,400 pounds, but amounting to 600 
pounds or more. 

(e) Throe and one-half cents per pound on sales less than 600 pounds, but amounting 
to 120 pounds or more. 

(/) Five cents per pound on sales less than 120 pounds. 

In addition to the selling margin which should normally be considerably below the 
above maximum margins, a further margin may be added where brick, Limburger, or 
Munster cheese is held in a warehouse for more than 30 days, not to exceed three- 
eighths cent per pound for the first month after the 30-day period and one-fourth cent 
per pound per month for each of the following months thereafter during which the 
cheese is held in the warehouse by any licensee ; but in no case shall the amount so 
added exceed 11 cents per pound and no further amount shall be added by any licensee 
after six months from the date of original storage. 

Transfer margins. — The margins for transfer of brick, Limburger, or Munster cheese 
to a branch house where the main house actually handles the cheese shall not exceed 
three-fourths cent per pound, regardless of quantity. 

Rule 2. Manufacturers who perform services of dealer or assembler. — Any 
manufacturer who acts also as aii assembler, wholesaler, or jobber shall be 
.subject in sucli sales to the rules and margins governing assemblers, whole- 
salers, and jobbers, provided that instead of the purchase price as an assembler, 
wholesaler, or jobber he shall either — 

(1) Compute the cost of raw materials and the expense of manufacture; or 

(2) In the case of American or Cheddar cheese, take the price during the 
10 days after the cheese is manufactured on the shape and grade of cheese in 
the established primary market on the basis of which the cheese is usually 
sold by manufacturei'S. (Issued June 12, 1918; repealed Jan. 6, 1919.) 

Rule 3. Commissions not to be unreasonable. — No licensee shall pay, and no 
commission merchant shall receive, an unreasonable or exorbitant commission 
in connection with the sales of cheese. 

The licensee shall inform any commission merchant selling cheese for him of 
the maximum permitted price at which such cheese may be sold. (Rule issued 
June 12, 1918, provided commission of one-half cent per pound. Changed 
Aug. 2; 1918, to present form. Repealed Jan. 6, 1919.) 

Note. — " Ten days after the cheese is manufactured " means 10 days after the cheese 
is removed from the hoops and placed in the curing room. 

Under rule 1 the selling price may not be increased by reason of the payment of a 
commission. Commissions higher than those indicated below, will be considered prima 
facie unreasonable and exorbitant. 

(«) Maiviimim commissions. — In the case of American or Cheddar cheese one-half 
cent per pound on car lots and 1 cent per pound on less than car lots. 

(6) In the case of round or tub Swiss cheese IJ cents per pound on car lots and 1^ 
cents per pound on less than car lots. 

(e) In the case of block Swiss cheese 1 cent per pound on car lots and IJ cents per 
pound on less than car lots. 

(d) In the case of brick, Limburger, and Munster cheese 1 cent per pound on car lots 
and IJ cents per pound on less than car lots. 

It should be understood that the above are maximum commissions which may at times 
be in excess of reasonable commissions. 

Rule 4. Intertrading restricted. — The licensee in selling cheese shall keep it 
moving to the consumer in as direct a line as practicable and without unreason- 
able delay. The direct line of distribution of cheese is from a licensee in any of 
the following classes to a licensee in any succeeding class. (Issued June 12, 
1918 ; repealed Jan. 6, 1919. ) 

Class 1. Manufacturers. 

Class 2. Assemblers, wholesalers, and jobbers, including all licensees who 
receive cheese from manufacturers and grade and assemble cheese for sale, or 
who distribute it in any way except at retail, and all manufacturers who per- 
form the service customarily performed by an assembler, wholesaler, or jobber. 

Class 3. Retailers, hotels, restaurants, and institutions. 

Note. — Any transactions that savor of dealing in which a profit accrues to the dealer 
without corresponding service are clear violations of the rule and will subject the offender 
to revocation of his license and to such other penalty as the law provides. 



GOYEEJTMENT KEGULATIONS RELATING TO PRICES. 633 

The following kinds of sales between dealers will be considered justifiable, but sales 
other than those described between dealers in the same class will be considered as 
prima facie evidence of violation of the rule : -,.,,.,,, 

A. A sale by any dealer in cheese to a dealer in any succeeding clas^ wiU be con- 
sidered as in the direct line of distribution. . « - ^v. 

B One sale and only one sale of the same cheese between dealers in class 2 m the 
same city will be considered iustifiable when necessary to supply the reasonable require- 
ments of the buyer's business, without the special consent of the local Federal food 
administrator, provided, however, that a second sale of the same cheese between dealers 
in class 2 in the same city will be permitted without the consent of the local Federal 
food administrator if this sale is made at an advance over cost of not more than one- 
half of the margin indicated above, and provided that the seller notifies the huyer that 
"this Is 9 sGCond S3.16 

C In addition to such sales as are otherwise indicated as justifiable, sales between 
dealers in class 2 in different cities will be considered justifiable, provided that an 
actual delivery of the cheese follows the sale, and that the shipment is for the purpose 
of obtaining supplies from primary markets for the reasonable requirements of the pur- 
chaser's business ; provided further, that not more than three such sales ai'e made of any 
inf nf phpp«p without SDecial permission. .,, , .j j 

D \nvsal^ between dealers without any advance over cost will be considered as 
justifiable in addition to such other sales as are permitted. 

Rule 5. The licensee making a second sale in the same class to notify hnyer.— 
Tlie licensee in class 2 as cletined in rule 4 who purchases cheese Irom another 
assembler or dealer in such class or from a manufacturer performing the serv- 
ices of an assembler or dealer and 'who sells to another dealer m class 2, shall 
notify such dealer of the prior sale and of all other prior sales of such cheese 
Avithln that class of which he has knowledge. (Issued June 12, 1918; repealed 
Jan. 6, 1919.) 

Note__T1j5s information should he disclosed at the time of the transaction and should 
he placed by the seller upon the invoice in order that there shall he a permanent record. 

B ADDITIONAL REGULATIONS GOVERNING COMMISSION MER- 
■ CHANTS, BROKERS, AND AUCTIONEERS DEALING IN CHEESE. 

Rule 1. Commission or brokerage not to be unreasonable or discriminatory.— 

The licensee shall not charge, directly or indirectly, an unjust, exorbitant, un- 
reasonable, discriminatory, or unfair commission or brokerage on the sale of 
cheese. (Issued Dec. 9, 1918; repealed Jan. 6, 1919.) 

Note.— The Food Administration in enforcing this rule wijl insist that any proposed 
increase in rates be submitted to the local Federal food administrator and that the 
•eason for any increased rate over the prewar normal he .justified to him, _ subject to the 
llneral supervision of the United States Food Administration, hefore such increased rates 

^'''The*ri°tl*^ to^^he charged by a commission merchant are more specifically treated 
under A, rule 3, supra. 

Rule 2. Prompt remittance and proper account sales to be rendered.— The 
li^-ensee shall remit promptly folloAYin.e; the sale of cheese received on consign- 
ment for sale or distribution, and shall render to the consignor an account 
showing the true sales and with charges only for services actually performed 
aBd expenses actually incurred by the licensee. (Issued Nov. 1, 191 <, as to 
"food commodities"; repealed Jan. 6. 1919.) ^ j> ^ mu 

Rule 3. Agent not to buy from principal unless noted on account of sales. — ihe 
licensee shall not, directly or indirectly, sell consigned cheese, or cheese with 
the sale of which on commission he is intrusted, to himself or to any one 
connected with his business unless he notes the facts of such transaction on 
the account of sales.. (Issued Nov. 1 1917, as to " food commodities ' ; repealed 
Jan. 6, 1919.) 

From November 1, 1917, to April 16,. 1918 the rule governing all commission mer- 
chants, brokers,^and auctioneers which limited their chaises to **,*..}'^?^ ^^^? 
ordinarily and customarily prevails under normal conditions in the locality in which 
orainarny aui^ ^"^^gV^^gg i/ conducted * * « " applied to these dealers m perishables. 

C ADDITIONAL SPECIAL REGULATIONS GOVERNING RETAILERS IN 

CHEESE. 

The attention of all retail dealers in cheese is called to A, Rule 1 of the above 
regulations, headed : 

CHEESE TO BE SOLD. AT KEA SON ABLE ADVANCE OVEE COST. 

Under the above rule the retail section of the distribution of perishables of the 
United States Food Administration will consider the sale of American or 
Cheddar cheese at an advance in excess of 7 or 8 cents per pound over cost (as 



634 



HISTORY OF PRICES DURING THE WAR. 



defined in rule 1) as uureasonable and as evidence of violation of rule 1. The 
7 cents per pound represents the maxinuim margin for stores conducted on the 
casli and carry or uo service plan, while 8 cents per pound is the maximum for 
the extra service stores extending credit and delivery. Dealers whose delivered 
store-door cost flgures in fractions may have the benefit of such fractional cost. 

CASH AND CARRY STORES. 



Amount of s<ile. 



1 pound . 

2 potuids 

3 pouuds 



Cost. 



Cents. 

524 

962 



Cents. 



Total. 



Cents. 
1174 



Fraction 
added. 



Cents. 



Maximum 

selling 

price. 



Cents. 



34 
67 
118 



In determining margins at 7 and 8 cents per pound on cheese with the fractional cost in 
the dealer's favor, the United States Pood Administration has given due considoration to 
the rising costs of operation, which must be met by the dealer. 

In addition to the above margin a retailer who carries American or Cheddar cheese in 
a warehouse for more than 30 days may add not to exceed one-fourth cent per pound per 
month for each and every month after the 30-day period during vi'hich the cheese is held 
in the warehouse by him, Imt in no case shall the amount added exceed 2 cents per pound, 
and no further amount shall be added by the dealer after nine months from the date of 
original storage. 

Dealers should understand that if they average costs they must a,verage the cost of each 
grade and style separately. 

XXIV. REGULATIONS GOVERNING COLD-STORAGE WAREHOUSE- 
MEN. 

Rule 3. Schedules of rates to he filed. — Licensees shall submit on blanks to be 
furnished for that purpose a statement or schedule showing present rates and 
charges for storage and other service on each connnodity required to be 
licensed, together with all charges for labor, insurance on contents of ware- 
houses, and whether Included in storage rate, cartage, if any, and whether in- 
cluded in storage rate, interest, and all other charges not enumerated. (Such 
schedule shall be open to inspection at the office of the Food Administration 
in Washington, D. C, and information as to any particular rate included in 
any such schedule may be given by mail or telegraph by the representatives of 
the Food Administration having control of such schedules to persons who, in 
their opinion, have proper reasons for requesting such information. A copy of 
such statement or schedule shall be open to inspection at the office of the ware- 
houseman by whom it is filed.) (Issued Nov. 1, 1917; added to Aug. 26, 1918; 
repealed Feb. 14, 1919.) 

Note — Attention is called to general rule .5, which prohibits licensees from making 
unjust, esorbitant, unreasonable, discriminatory, or unfair storage charges. 

The fpct that a licensee files with the Food Administration his schedule of rates and 
charges under special rule 3 does not mean that the rates and charges in such schedule 
have^the approval of the Food Administration. If the Food Administration at any time 
has reason to believe that any such rates or charges are unjust, unfair, exorbitant, unrea- 
sonable, or discriminatory, the licensee will be called upon to justify such rates or 
charges. 

Rule 4. No rates to be charged other than those in schedules filed. — The licensee 
shall not demand, collect, or receive, directly or indirectly, from any patron or 
other person concerned any different sum for storage or other services per- 
formed than that shown on the schedule filed with the United States Food Ad- 
ministration, or make any charge for services or special allov/ance or rebate not 
shown on said schedule, unless he has filed with the United States Food Ad- 
ministration at least 30 days before the change in rate or charge becomes effec- 
tive an amendment to the schedtde showing such change in rate or charge. 
(Issued Nov. 1, 1917, providing for amendment to storage rates to be filed 5 
davs before change is effective ; changed to 30 days Jan. 28, 1918 ; repealed Feb. 
14,' 1919.) 

Notes — (1) By this rule a licensee is prohibited from storing licensed food com- 
modities at rates fixed by contract or other arrangement that differ from those specified 
in the filed schedule ; when amendments to any schedule are filed the new rates become 
effective 30 days after filing and at such time storing at the rates superseded hy the 
amendments must cease, any arrangement or agreement to the contrary notwithstanding. 



GOVERNMENT REaULATIONS RELATING TO PRICES. 635 

'2) General rule 5 prohibits cold-storage licensees from making unreasonable or dis- 
criininatorT charges in handling or storing' food commodities. ' . 

The United States Food Administration recognizes the principle that up to a certain 
point it ordinarily costs less per unit to handle large lots than small lots of a par- 
ticriar commodity and has no objection to licensees charging a lesser rate per unit for 
large lots than for small lots if the differentiation in rates is based on variation of cost m 
handling the particular commodity. ,. , , , -, ^ t. 

Hereafter the above-mentioned principle must be applied by cold-storage warehousemen 
IQ arranging any variations in rates contained in schedules of rates or amendments 
thereto that are filed. ^ . -, ^ ^. j-„ 

With respect to rate schedules now on file m which lower rates for large lots or dis- 
counts for quantity are stated, no objection has been or will be made to difCermtiations 
in rates unless they are obviously merely arbitrary or discriminatory, or in effect con- 
stitute a preference to one or a few patrons, or unless, upon investigation, they are tound 
to be without reasonable justification. , , , ■ ■, j. ■, n ■, -i +i,^ 

All rates must, of course, be contained in the schedule required to be filed wich the 
United States Food Administration and must be clear, explicit, well defined, and intel- 
ligible. Every patron is entitled to know his exact classification and the specific rare he 
is to be charged. 

Rule 5. Public cold-storage warehousemen not to lend more tlian 70 per cent of 
the value of stored goods. — The licensee shall not make any loan on licensed 
commodities stored with him, or incur liabilitj^ by indorsement, guarantee, or 
otherwise, in connection with any loan on licensed commodities stored with Mm, 
in excess of 70 per cent of the market value of such commodities on the date 
of said loan. A margin of not less than 30 per cent on each loan shall be 
maintained at all times. 

(Any advances made by the licensee on the goods upon which the loan is 
made, 'such as freight, cartage, or insurance, shall be included in the 70 per 
cent of the market value permitted above.) 

Loans upon licensed and unlicensed commodities shall in all cases be made 
separately. (Issued Nov. 1, 1917; added to Aug. 26, 1918; repealed Feb. 14, 
1919.) 

Notes. — (1) An advanced charge arises through the payment of money by the ware- 
houseman to some third person, or the assumption of an indebtedness by the ware- 
houseman, with reference to the goods upon which the loan is based. For example, a 
charge for insurance, freight, or cartage, or prior storage, which the warehouseman 
has paid or assumed to pay, is an advanced charge, and must be included in estimating 
the amount of the loan permitted by this rule. 

On the other hand, the indebtedness to the warehouseman making the loan for storage 
charges on the goods or interest on the loan, or any other item which does not repre- 
sent an advance by the warehouseman to or for the customer with reference _ to the 
goods stored, is not an advanced charge and need not be included in estimating the 
amount of the loan permitted by this rule. 

(2) A cold-storage warehouseman in releasing or delivering out any llcensea^ com- 
modities on which such loans as are mentioned in this rule have been made, shall, if sucn 
release or delivery would result in the margin on the loan being reduced to less than 
30 per cent, require and obtain before or at the time such release or delivery is made 
a sufficient payment so that the amount of the loan is reduced and the required m.argin 
of at least 30 per cent is at all times preserved. 

(3) \ combined public and private cold-storage warehouseman who sells on credit 
food commodities required to be licensed and transfers title theret9 and who taere- 
after stores such commodities which remain security for the unpaid portion ot the 
purchase price, is by extending credit in such a transaction indirectly making a loan 
on such commodities within the meaning of this rule, and he must not so extend credit 
for more than 70 per cent of the market value of such commodities. 

XXV. FEEDING STUFFS, 

Kule 7 (as amended, effective Oct. 1, 1918). Feed to be sold at reasonable ad- 
vance over average cost.— The licensee in any sale of feeding stuffs shall taKe no 
more than a reasonable profit for such sale over the average cost of his stock 
of any commodity on hand or under control not at that time contracted to be 
sold, and in arriving at the cost of grain he shall take into consideration the 
gain or loss resulting from any hedging transaction on a grain exchange. (This 
rule shall not apply to feeding stuffs (other than grain, hay, or seed) pur- 
rtiased by one- wholesale feed dealer from another wholesale feed dealer, and 
no such feeding stuffs so purchased shall be included in calculating the average 
cost above referred to.) (Issued Jan. 28, 1918; added to Oct. 1, 1918; repealed 
Jan. 10, 1919.) 

Note — This rule does not apply to wheat mill feeds, cottonseed products, rice polish, 
rice bran, or dried beet pulp, which are dealt with under Special Regulations C and u. 

Margins and profots for wholesale dealers in feeding stuffs. — The United States Food 
Administration considers that in sales of feeding stuffs at wholesale the advance on 
any individual sale should not in any case exceed the purchase price delivered at rail- 
road station, plus 15 per cent. The Food Administration will therefore consider any 
sale of feeding stuffs in excess of this advance as a violation of the foregoing rule. 
This margin will also apply to the sale of corn, oats, rye, or barley as feed, in assorted 
cars with other feeding stuffs but not in straight carload quantities, but will not apply 
to wheat mill feeds, cottonseed products, rice polish, rice bran, or dried beet pulp, for 



636 HISTOKY OF PRICES DURING THE WAR. 

which special margins have heeu prescribed. For margins applying on straight carload 
shipments of grain, see the grain dealers' rules No. III-A. 

Furthermore, the Food Administration will consider an annual net earning by any 
wholesale dealer in feeding stuffs of more than 4 per cent upon the total gross sales, if 
his gross sales of feeding stuffs amount to $100,000 or more per annum to be prima facie 
evidence of a violation of the rule which prohibits the taking of unreasonable profits. In 
the case of dealers who handle wheat mill feeds, cottonseed products, rice polish, rice 
bran, and dried beet pulp, as well as other feeds, the 4 per cent will be calculated on all 
sales. 

The maximum margin on individual sales is purposely made wide because of the 
speculative character of the products dealt with and the fluctuating prices which may 
prevail. As pointed out, the general average on all sales must not exceed 4 per cent 
advance over the cost of materials and overhead, nor must this 4 per cent limitation 
modify or abrogate the general principle contained in the Food Administration regula- 
tions that a licensee shall not earn more than a reasonable net profit on his capital 
Invested. 

Rule 8 (effective Oct. 1, 1918). Margins for wholesale dealer, on feeding stuffs 
bought from another wholesale dealer. — No wholesale dealer in feeding stuffs 
sliall sell any feeding stuffs which lie has purchased from another wholesale 
dealer, other than grain, hay, or seed, at an advance over the average cost to 
the dealer who bought direct from tlie manufacturer, greater than would be 
reasonable for the hrst dealer to charge if selling direct to a retailer. No 
wholesale dealer shall purchase feeding stuffs from another dealer without 
obtaining from him a written statement giving the average delivered purchase 
price paid by the dealer who purchased direct from the manufacturer for his 
stock of such commodity and the margin which he has added. (Repealed 
Jan. 10, 1919.) 

Note. — The Food Administration has considered the advisability of prohibiting all 
resales of feeding stuffs between wholesale feed dealers, but has decided, under the above 
rule, to permit such resales if the total margin charged by the wholesale dealers does not 
exceed the margin which would be considered reasonable if the product passed through 
the hands of one dealer only. 

Rule 9 (as amended Dec. 31, 1918). ITo resales unless cost and margin are stated 
on sales memorandum and invoice. — No wholesaler or jobber shall sell feed 
unless he states upon his contract or sales memorandum and npon the invoice 
the average delivered purchase price of his stock of such commodity on hand or 
under control at the time they are contracted to be sold, or in cases where he 
purchased feeding stuffs other than grain or seed from another wholesale feed 
dealer the average delivered purchase price paid by the dealer who bought 
direct from the manufacturer, provided, however, that this rule shall not apply 
to sales of wheat mill feeds. (Issued Oct. 1, 191S ; added to Dec. 31, 191S ; 
repealed Jan. 10, 1919.) 

Note. — Under the above rule the following notation should he made on the contract or 
sales memorandum and upon the invoice by every jobber of feed : 

" This invoice is sold on the basis of an average purchase price of )? per ton. 

I have added a gross margin of $ per ton." 

If the feed, other than grain or seed, has been purchased from another feed dealer, the 
following notation should be made : 

" This invoice is sold on the basis of an average purchase price (when bought from 
manufacturer) of •$ per ton. 

" The first dealer added a gross margin of $ per ton and freight of $ per 

ton. I have added a gross margin of $ per ton." 

C. SPECIAL REGULATIONS APPLYING TO WHEAT JIILL FEEDS. 

Note. — Wheat mill-feed prices. — All wheat millers should sell wheat mill feed on a 
fair-price schedule which is based on the Government wheat price and which is furnished 
to each mill. The rules require that upon request the mill furnish to any person a copy 
of its fair-price schedule as prescribed by the United States Food Administration. The 
purchaser is abetting a viola'tion of the milling rules if he pays more for feed than is 
permitted thereby. 

Rule 2 (as amended, effective Oct. 1, 1918). One commission not to exceed 50 
cents a ton permitted on consigned feed. — No licensee selling the above feeds as a 
commission agent for the sale of consigned wheat mill feeds making sale, 
delivery, and collection shall charge more than a reasonable commission, not 
to exceed 50 cents per ton ; and no licensee shall charge a commission on any 
of the above feeds on which a commission lias already been charged. (Rule 
issued Feb. 13, 1918, provided brokerage not to exceed 25 cents per ton on 
wheat mill feed and prohibited double brokerage; changed Oct. 1, 1918, as 
noted here, by addition of commodities; repealed Dec, 31, 1918.) 

Note. — Commission or brokerage must he paid out of the margin or price allowed 
by the regulations to the person paying the commission or brokerage and must not be 
added to price charged. 



GOVERNMEIirT REGULATIONS RELATING TO PRICES. 637 

Eule 3 (as amended, effective Oct. 1, 1918). Reasonable margins fixed for deal- 
ers. — No licensee buying and selling the above feeds as a wholesaler or jobber 
shall charge more than a reasonable advance over the bulk price at mill of 
the particular feed sold (plus freight and cost of sacks), such advance not to 
exceed the following: 

Shipment from mill or in transit, payment cash, demand draft, or sight 
draft, $1 per ton. 

Shipment from mill or in transit, sale on arrival, draft terms, $1.50 per ton. 

Sale ex-jobbers' warehouse, payment cash, sight draft or demand draft, 
$2.50 per ton. 

Sale ex-jobbers' warehouse upon arrival draft terms, $3 per ton. 

In making sales on credit not to exceed $1 per ton may be added to the 
margin which could be charged if sold on arrival draft terms. (Rule issued 
Feb. 13, 1918, applied only to wheat mill feeds; changed Oct. 1, 1918, as noted 
here, by addition of commodities; repealed Jan. 10, 1919.) 

C (a). SPECIAL REGULATIONS APPLYING TO RICE POLISH, RICE 
BRAN, AND DRIED BEET PULP. 

Note. — Rice feed- prices. — Under a uniform agreement witii the United States Food 
Adniinistrafor, all rice millers have agreed to sell rice polish at not to exceed $50 per 
ton, packed in customary manner, car lots, f. o. b. mills, and rice bran at not to exceed 
$36 per ton, packed in customary manner, car lots, f. o. b. mills. 

Beet pulp prices. — The United States Food Administration has fixed the following 
prices for beet pulp as returning a fair margin of profit to the beet-sugar manufacturers : 

Per ton. 

Wet beet pulp, bulk, mill $0. 80 

Wet beet pulp out of silo, bulk, mill 1. 25 

Dried beet pulp, sacked, f. o. b. factory, in car lots 40. GO 

Rule 1 (as amended Dec. 31, 1918). One brokerage not to exceed 25 cents a ton 
permitted. — No licensee selling the above feeds as a broker shall charge more 
than a reasonable brokerage, not to exceed 25 cents per ton. (Rule issued Feb. 
13, 1918, provided brokerage not to exceed 25 cents per ton on wheat, mill feed, 
and prohibited double brokerage ; changed Oct. 1, 1918, to include rice polish, 
rice bran, and dried beet pulp ; changed Dec. 31, 1918, as noted here — ^wheat, 
mill feed not included ; repealed Jan. 10, 1919. ) 

Rule 2 (repealed Dec. 31, 1918). One commission not to exceed 50 cents a ton 
permitted on consigned feed. 

Rule 3 (as amended, effective Oct. 1, 1918). Reasonable margins fixed for deal- 
ers. — No licensee buying and selling the above feeds as a wholesaler or jobber 
shall charge more than a reasonable advance over the bulk price at mill of the 
pfirticular feed sold (plus freight and cost of sacks), such advance not to ex- 
ceed the following : 

Shipment from mill or in transit, payment cash, demand draft or sight 
draft, $1 per ton. 

Shipment from mill or in transit, sale on arrival draft terms, $1.50 per ton. 

Sale ex-jobbers' warehouse, payment cash, sight draft or demand draft, $2.50 
per ton. 

Sale ex-jobbers' warehouse, upon arrival draft terms, $3 per ton. 

In making sales on credit not to exceed $1 per ton may be added to the 
margin, which could be charged if sold on arrival draft terms. 

Rule 4, No resales of wheat mill feeds if total margin exceeds that prescribed 
in rule 3. — No wholesaler or jobber shall sell v/heat mill feed to any person other 
than a retail dealer, manufacturer, or a consumer ; provided, that he may sell 
to another wholesaler or jobber if in making such sales he states to the buyer 
the price which was paid bulk mill for the particular wheat mill feeds sold in 
such case. Th.e buyer shall not sell such mill feed at more than the advances 
specified in rule 3 over the bulk mill price of the particular wheat mill feed 
fco purchased from another wholesaler or jobber. (Issued Feb. 13, 1918; see 
rule 4 following; repealed Oct. 1, 1918.) 

Rule 4 (repealed Oct. 1, 1918). No resales of wheat mill feeds if total margin 
exceeds that prescribed in rule 3. — Dealers in wheat mill feeds as well as other 
feeds are now governed as to resales by rules B — 7, 8, 9, which see above. 

D. SPECIAL REGULATIONS APPLYING TO DEALERS AND BUYERS IN 

COTTONSEED CAKE, COTTONSEED MEAL, COTTONSEED 

HULLS, PEANUT MEAL, AND SOYA-BEAN MEAL. 

Rule 1. To be sold at reasonable advance over cost of particular lot sold.— The 
licensee shall sell the above commodities at not more than a reasonable ad- 
vance over the actual cost of the particular commodity sold, without regard to 
the market or replacement value at the time of sale. (Issued Aug. 1, 1918; 



638 HISTORY OF PRICES DURING THE WAE, 

repealed as to all except cottonseed products Jan. 10, 1919 ; repealed as to cot- 
tonseed products May 31, 1919.) 

Note. — Until further notice tlio United States Food Administration will regard any 
resale of cottonseed meal or cake by jobber.s or wbolesalers at margius in excess of tbe 
followin;^: as unreasonable and in violation of the foregoing rule : 

Shipment from mill or In transit, payment cash, demand draft or sight draft, $1 per 
ton. 

Shipment from mill or in transit, fiale on arrival draft terms, .SL.'O per ton. 

Sale ex-jobbers' warehouse, payment cash, sight draft, or demand draft, where meal 
or cake is actually handled th.rough the wareho'uso, .'^2.50 per ton. 

Sale ex-jobbers' warehouse upon arrival draft terms where meal or cake is actually 
handled through the warehouses, $3 per ton. 

In making sales on credit except to other wholesalers not to exceed $1 per ton may be 
added to tbe margin which could be charged if sold on arrival draft terms. 

Eule 2. New crop cottonseed products not to be bought or sold before Au- 
gust 1. — The licensee sliall not buy or sell cottonseed meal, cottonseed cake, or 
cottonseed hulls, made or to be made from new-crop cotton seed, groAvn in the 
Ignited States before August 1 of the year in which such cotton seed is groAvn. 
(Issued Aug. 1, 1918; repealed Dec. 17, 1918.) 

Note. — Under special rule B-3 these products can only be bought or sold after August 
1, for GO days' delivery. 

Eule 3. Quotations based on protein or fat content. — Licensees who base quota- 
tions of cottonseed meal or cake upon either the protein or fat content, or 
combination thereof, shall not use any range of percentages, but shall state that 
the product offered contains not less than a definite percentage. (Issued Api-. 
4, 1818; repealed Dec. 17, 1918.) 

l^ote to rule 1. — Resales are forbidden by rule B-8 unless they divide the above margin. 

Under the stabilization program of the United States Food Administration based on 
the price of cotton seed at the average agreed upon by tbe producers and the Food Admin- 
istration, the following prices have been arranged for cottonseed meal, cake, and hulls : 

Cottonseed meal and screened cracked cake 43 per cent protein in any quantity — $57 
per ton in sacks, f. o. b. all points of manufacture in Texas. 

Cottonseed meal and screened cracked cake 40 per cent prolein in any quantity — $54 
per ton in sacks, f. o. b. all points of manufacture in Oklahoma. 

Cottonseed meal and screened cracked cake 36 per cent protein in any quantity— $51 
per ton in sacks, f. o. b. all points of manufacture in Imperial County, Calif., and $55 
per ton in sacks, f. o. b. all points of manufacture in Los Angeles County, Calif. 

Cottonseed meal and screened cracked cake 36 per cent protein in any quantity — $53 
per ton in sacks, f. o. b. all points of manufacture in Alabama, Arkansas, Florida, Georgia, 
Louisiana, Mississippi, Missouri, North Carolina, South Carolina, and Tennessee. 

Bulk, loose, or slab cottonseed cake shall be not less than $5 per ton, and bulk or loose 
cottonseed meal and screened cracked cake shall be not less than $4 per ton under the 
prices specified above. 

All cottonseed meal, screened cracked cake, bulk cake showing protein content other 
than above specified may be offered and sold at $1 for each unit protein over or under 
the percentages as shown above : Provided, Jwwever, if cottonseed meal or cake upon 
delivery is ascertained to be of lower protein content than justified by price charged, any 
refund must be made at the rate of $1.40 per unit protein. Bach shipment or delivery 
shall be considered separately and v/ithout relation to the whole contract. This rule 
must not be construed in any way as an exception to the pure food act of 1906 or any of 
the amendments thereto. 

Cottonseed hulls, bulk or loose, $20 per ton, f. o. b. ears at point of manufacture. 

Prices specified arc net to manufacturer. Terms of sale are upon the basis of cash, or 
its equivalent. 

All manufacturers are urged to give preference in , the sales of their products to 
producers and consumers. 

Under the Food Administration regulations manufacturers of cottonseed meal, cake, 
and hulls are not permitted, to the exclusion of consumers, to make sales of their 
l)roducts to firms, factories, or corporations in which the corporation or the officers of the 
producing mill may be interested, without the written consent of the Food Administration, 

G. SPECIAL REGULATIONS APPLYING TO MANUFACTURERS OF COM- 
MERCIAL MIXED FEEDS. 

PROFIT LIMITATION. 

Under rule B-7 prescribing a reasonable profit on the sale of feeding stuffs, 
the following announcement lias been issued applying to the manufacture of 
commercial mixed feeds : 

Margins and profit for mixed-feed manufacturers. — The United States Food 
Administration considers that in the manufacture and sale of ground or crushed 
grains or ground hay, and of all commercial mixed feeds, the advance on any 
individual sale should not exceed the cost of materials, manufacturings and over- 
head, plus 12A per cent. The Food Administration will therefore consider un- 
reasonable and as a violation of the foregoing rule any sale of such feeds in 
excess of this advance. 

Furthermore, the Food Administration will consider an annual net earning 
or more than 6 per cent upon the total gross sales of any such feeding stuffs if 
the dealers' gross sales amount to $100,000 or more per annum to be prima 
facie evidence of a violation of the rule which prohibits the taking of unreason- 
able profits. 



GOVEEK^MENT EEGULATIOjSTS EELATING TO PEICES. 639 

The maximum margin on individual sales is purposely made \yide because of 
tlie speculative character of the pi'oducts which enter into such manufacture 
and the rapidly fluctuating prices which may prevail. As pointed out, the gen- 
eral average on all sales must not exceed 6 per cent advance over the cost of 
materials, manufacture, and overhead, nor does this G-per cent limitation 
modify or abrogate the general principle contained in the Food Administration 
regulations that a licensee shall not earn more than a reasonable net profit on 
his capital iuA-ested. The manufacture of mixed feeds is a business which varies 
in many respects according to the type of feed, the expense of manufacture, and 
the rapidity of turnover. There are therefore some manufacturers to whom a 6 
per cent annual net profit may give an unreasonable return on their investment. 
In such case they are obliged to sell at a lower average return. 

One margin only. — Mixed feed manufacturers are not allowed directly or 
indirectly to take any feed dealer's margin on their mixed feed. On feed 
which they buy and sell without mixing or processing in any manner they may 
take only the feed dealers' margins, and not that permitted to mixed feed 
manufacturers. Feed manufacturers may not establish any jobbing department 
for feeds of their own manufacture in order to obtain additional profits. 

Blackstrap molasses. — The attention of feed manufacturers is called to the 
fact that refiners and manufacturers of sugar in the United States have been 
forbidden to sell blackstrap molasses in bulk at more than 18 cents per gallon, 
or in barrels, at more than 23 cents per gallon. The prices named are i. o. b. 
cars at primary markets or port of entry, or factory, net cash in 10 days with- 
out discount, and shall include brokerage and any profit taken by distributors 
in tank cars direct from the refiners, but shall not include freight or tank-car 
charges. 

Feed manufacturers should be able to buy blackstrap molasses at the above 
prices in tank cars, paying in addition thereto only the freight and tank-car 
charges. An additional margin of 10 per cent is permitted to dealers in barrels 
who handle such barrels through their warehouse. The same rules apply to 
imported blackstrap molasses. 

J. SPECIAL HEGULATIONS APPLYING TO RETAILERS OF FEED. 

Sule 1 (as amended Dec. 31, 1918). Margin over cost of particular feed pre- 
scribed on feeds whose price is stabilized. — No retailer of rice polish, rice bran, 
dried beet pulp, or cottonseed products shall charge more than a reasonable 
advance over the delivered price of the particular feeds sold. (Rule issue-d 
Oct. 1, 1918, included wheat mill feeds. Changed Dec. 31, 1918, as noted hero, 
Avheat mill feed not included. Repealed Jan. 10, 1919, as to all except cotton- 
seed products. Repealed May 31, 1919, as to cottonseed products.) 

Note. — Under the above rule the Food Administration will consider any margins iu 
excess of those indicated in the following schedule as unreasonable in case of rice feed, 
and dried beet pulp. These schedules are maximum, and do not justify charges In excess 
of those customarily charged in any particular district or case where the lower charges 
will insure a reasonable profit. 

1. Where one or more farmers purchase in advance of delivery, in full carloads, take 
delivery at car and pay cash when retail dealer is required to meet sight draft, $1 per 
ton, plus demurrage, if any. 

2. Where one or more farmers purchase in advance of delivery, in full carloads, take 
delivery at car and pay for it on delivery, $1.50 per ton, plus demurrage, if any. 

3. Where a farmer purchases and takes delivery at car a.nd pays for it on delivery in 
ton lots or more but less than car lots, $2 per ton. 

4. Where farmer purchases and takes delivery at car and pays for it on delivery in 
lots less than one ton, $2.50 per ton. 

5. Sale ex-warehouse in lots of one ton or more, $4 per ton. 

6. Sale ex-warehouse in lots of less than one ton, $5 per ton. 

7. One dollar may be added to the foregoing margins when sale is made on credit, 
or at dealer's option the legal rate of interest may he charged. 

8. One dollar shall be deducted from the margins prescribed in .5 and 6 when the 
retailer buys on 'credit and the .iobber's margin is thereby increased $1 a ton. 

Cottonseed products. — The above margins will also apply to the sale of cottonseed 
meal, cake, and hulls by retail feed dealers, except where different margins have been 
prescribed by the Federal food administrator of the State where the dealer'is located. 

Margins and profits for retail dealers in feeding stuffs. — The United States Food Ad- 
ministration considers that in sales of feeding stuffs at retail the advance on any indi- 
vidual sale should not in any case exceed the purchase price delivered at warehouse door, 
plus 15 per cent. Where delivery is made to the consumer, reasonable cartage charges 
may be added. The Food Administration will therefore consider any sale of feeding 
stuffs m excess of this advance as a violation of rule B-7. This margin also applies to 
the sale of corn, oats, rye, or barley at retail as feed, but not to wheat mill feeds, cotton- 
seed products, rice products, or dried beet pulp. Special margins for cottonseed products, 
rice products, and beet puli> are prescribed above. 

Futhermore, the Food Administration will consider an annual net earning bv any retail 
dealer of feeding stuffs of more than 6 per cent upon the total gross sales "if his gross 
sales of feeding stuffs amount to $100,000 or more per annum to be prima facie evidence 
of a violation of the rule which prohibits the taking of unreasonable profits This 6 per 
cent vrill be calculated on the sales of all feeding stuffs, including those specially listed 
above and also wheat mill feeds. 



3. FUELS. 



The basis for all of the formal regulations over fuel prices during the war lay 
in section 25 (commonly known as the Pomerene amendment) of the fcJod-and- 
fuel control act which was made law on August 10, 1917/ An informal control 

1 There follows in full the section of the food-and-fuel control act of August 10, 1917, 
which pertains to control over fuel prices : 

SBa 25. That the President of the United States shall be, and he is herehy, authorized 
and empowered, whenever and wherever in his judgment necessary for the efficient prose- 
cution of the war to fix the price of coal and coke wherever and whenever sold, either 
by producer or dealer, to establish rules for the regulation of and to regulate the method 
of production, sale, shipment, distribution, apportionment, or storage thereof among deal- 
ers and consumers, domestic or foreign ; said authority and power may be exercised by him j 
in each case thi-ough the agency of the Federal Trade Commission during the war or . 
for such part of said time as in his judgment may be necessary. . 

That if, in the opinion of the President, any &uch producer or dealer fails or neglects 
to conform to such prices or regulations, or to conduct his business efficiently under the 
legulations and control of the President as afoi'esaid, or conducts it in a: manner preju- 
dicial to the public interest, then the President is hereby authorized and empowered in 
evei-y such case to requisition and take over the plant, business, and all appurtenances 
thereof belonging to such producer or dealer as a going coucern and to operate or cause 
the same to be operated in such manner and through such agency as he may direct during 
the period of the war or for such part of said time as in his judgment may be necessary. 

That any producer or dealer whose plant, business, and appurtenances shall have been 
requisitioned or taken over by the President shall be paid a just compensation for the 
use thereof during the period that the same may be requisitioned or taken over as afore- 
said, which compensation the President shall fix or cause to be fixed by the Federal 
Trade Commission. < 

That if the prices so fixed, or if, in the case of taking over or requisitioning of the 
mines or business of any such producer or dealer the compensation therefor as deter- 
mined by the provisions of this act be not satisfactory to the person or persons entitled 
to receive the same, such person shall be paid seventy-five per centum of the amount so 
determined, and shall be entitled to sue the United States to recover such further sum as 
added to said seventy-five per centum, v^ill make up such amount as will be just com- ' 
pensation in the manner provided by section twentyfoui-, paragraph twenty, and section 
one hundred and forty-five of the Judicial Code. 

While operating or causing to be operated any such plants or business the President is 
authorized to prescribe such regulations as he may deem essential for the employment, 
control, and compensation of the employees necessary to conduct the same. 

Or if the President of the United States shall be of the opinion that he can thereby 
better provide for the common defense, and whenever, in his judgment, it shall be neces- 
sary for the efficient prosecution of the war, then he is hereby authorized and empowered 
to require any or all producers of coal and coke, either in any special area or in any 
special coal fields, or in the entire United States, to sell their products only to the 
United States through an agency to be designated by the President, such agency to regu- 
late the resale of such coal and coke, and the prices tb' roof, and to estaljlish rules for 
the regulation of and to regiilate the methods of production, shipment, distribution, ap- 
portionment, or storage thereof among dealers and consumers, domestic or foreign, and 
to make payment of the purchase "price thereof to the producers thereof or to the 
person or persons legally entitled to said payment. 

That within fifteen days after notice from the agency so designated to any producer 
of coal and coke that his, or its, output is to be so purchased by the United States as 
hereinbefore described, such producer shall cease shipments of said product on his own 
account and shall transmit to such agency all orders received and unfilled, or partially 
unfilled, showing the exact extent to which shipments have been made thereon, and there- 
after all shipments shall be made only on authority of the agency designated by the 
President, and thereafter no such producer shall sell any of said products except to the 
United States through such agency, and the said agency alone is hereby authorized and 
empowered to purchase during the continuance of the requirement the output of such 
producers. 

That the prices to be paid for such products so purchased shall be based upon a fair 
and just profit over and above the cost of production, including proper maintenance and 
depletion charges, the reasonableness of such profits and cost of production to be deter- 
mined by the Federal Trade Commission ; and if the prices fixed by the said commission 

640 



GOVEE]!irME]SrT KEGULATIONS RELATHsTG TO PRICES. 641 

was, however, previously exercised over anthracite prices in particular by the 
Federal Trade Commission and over bituminious prices by the coal production 
committee of the Council of National Defense. The President, by authority from 
the food and fuel control act, issued a provisional schedule of bituminous coal 
prices on August 21, 1917, another of anthracite coal prices on August 23, and 
also named Mr. Harry A. Garfield as United States Fuel Administrator on 
August 23, 1917. The whole body of fuel-price controls thenceforth were ad- 
ministered through the United States Fuel Administration at Washington. 

The United States Fuel Administration was concerned with distribution, 
production, conservation, and price regulation over domestic coal, but this 
inquiry pertains only to the price controls exercised by it. The price regula- 
tions which are tabulated here cover in full the field marked out by the legal 
division of the Fuel Administration, as compiled ofiicially by them in " general 
orders, regulations, and rulings of the United States Fuel Administration." 
They have been brought do-wn to date by assistance from the Fuel Adminis- 
tration, since the above official compilation covers only the rulings from 
August 23, 1917, to January 1, 1919. 

of any such product purchased by the United States as hereinbefore described be unsatis- 
factory to the person or persons entitled to the same, such person or persons shall be 
paid seventy-five per centum of the amount so determined and shall be entitled to sue 
the United States to recover such further sum as added to said seventy-five per centum 
will make up such amount as will be just compensation in the manner provided for by 
section twenty-four, paragraph twenty, and section one hundred and forty-five of the 
Judicial Code. 

All such products so sold to the United States shall be sold by the United States at 
such uniform prices, quality considered, as may be practicable, and as may be deter- 
mined by said agency to be just and fair. 

Any moneys received by the United States for the sale of any such; coal and coke 
may, in the discretion of the President, be used as a revolving fund for further carrving 
out the purposes of this section. Any moneys not so used shall be covered into' the 
Treasury as miscellaneous receipts. 

That when directed by the President, the Federal Trade Commission is hereby re- 
quired to proceed to make full inquiry, giving such notice as it may deem practicable, 
into the cost of producing under reasonably efficient management at the various, places 
of production the following commodities, to wit, coal and coke. 

The books, correspondence, records, and papers in any way referring to transactions 
of any kind relating to the mining, production, sale, or distribution of all mine operators 
or other persons whose coal and coke have or may become subject to this section, and 
the books, correspondence, records, and papers of any person applying for the purchase 
of coal and coke from the United States shall at all times be subject to inspection by 
the said agency, and such person or persons shall promptly furnish said agency any 
data or information relating to the business of such person or persons which said agency 
may call for, and said agency ia hereby authorized to procure the information in refer- 
ence to the business of such coal-mine operators and producers of coke and customers 
therefor in the manner provided for in sections six and nine of thei act of Congress ap- 
proved September twenty-six, nineteen hundred and fourteen, entitled " An act to 
create a Federal Trade Commission, to define its powers and duties, and for other 
purposes," and said agency is hereby authorized and empowered to exercise all the 
powers granted to the Federal Ti-ade Commission by said act for the carrying out of the 
purposes of this section. 

Having completed its inquiry respecting any commodity in any locality, it shall, if the 
President has decided to fix the prices at which any such commodity shall be sold by 
producers and dealers generally, fix and publish maximum prices for both producers of 
and dealers in any such commodity, which maximum prices shall be observed by all 
producers and dealers until further action thereon is taken by the commission. 

In fixing maximum prices for producers the commission shall allow the cost of produc- 
tion, including the expense of operation, maintenance, depreciation, and depletion and 
shall add thereto a just and reasonable profit. ' 

In fixing such prices for dealers the commission shall allow the cost to the dealer and 
shall add thereto a just and reasonable sum for his profit in the transaction. 

The maximum prices so fixed and published shall not be construed as invalidating any 
contract in which prices are fixed, made in good faith, prior to the establishment and 
publication of maximum prices by the commission. 

Whoever shall, with knowledge that the prices of any such commodity have been fixed 
as herein provided, ask, demand, or receive a higher price, or whoever shall, with knowl- 
edge that the regulations have been prescribed as herein provided, violate or refuse to 
conform to any of the same, shall, upon conviction, be punished by fine of not more than 
$5,000, or by imprisonmnt for not more than two years, or both. Each independent 
transaction shall constitute a separate offense. 

Nothing in this section shall be construed as restricting or modifying in any manner 
the right the Government of the United States may have in its own behalf or in behalf of 
any other Government at war with Germany to purchase, requisition, or take over any 
such commodities for the equipment, maintenance, or support of armed forces at any 
price or upon any terms that may be agreed upon or otherwise lawfully determined. 

125547°— 20 41 



642 



HISTORY OF PRICES DURING THE WAR. 



The formal coutrol over prices of coal and coke was discoutiuued by the 
Fuel Administration on January 31, 1919, and the orders governing the oil 
industry were set aside on May 15, 1919. 

Regulations affecting tlie prices of fuel are here arranged under the following 

heads in the sequence indicated: Anthracite coal, bituminous coal, coke, 

jobbers' margins and distributers' commissions, retail margins, and petroleum 

stabilization. 

ANTHRACITE COAL. 



The maximum prices of anthracite coal were provisionally lixed by order of 
the President on August 23, 1917. The prices named in that order, effective 
on September 1, 1917, were made applicable to the following specific producers : 
Philadelphia tS: Reading Coal & Iron Co. ; Lehigh Coal & Navigation Co. ; 
Lehigh & Wilkes-Barre Co. ; Hudson Coal Co. ; Delaware & Hudson Co. ; 
Scranton Coal Co. ; Lehigh Valley Coal Co. ; Coxe Bros. & Co. ; Pennsylvania 
Coal Co. ; Hillside Coal & Iron Co. ; Delaware, Lackawanna & Western Rail- 
road Co. ; Delaware, Lackawanna & Western Coal Co. ; Susquehanna Coal Co. ; 
Susquehanna Colleries Co. ; Lytle Coal Co. ; M, A. Hanna Coal Co. Other 
producers were not to exceed the scheduled fixed prices by more than 75 cents 
per ton. but any producer rescreening at Atlantic or Lake ports for shipment 
by water might increase the price by not more than 5 cents per ton. 

All anthracite prices, unless otherwise noted, were maximum prices per ton 
of 2,240 pounds, f. o. b. cars at mine. The anthracite prices scheduled do not 
include allowance for a wage increase under the President's order of Decem- 
ber 5, 1917. The increase of 35 cents per ton provided in that order should 
be added to all except the Arkansas prices after December 5, 1917. 

A digest of the prices contained in the President's order, and the later 
modifications and additions made by the Fuel Administrator, follows :* 

SCHEDULE OF ANTHRACITE BASE PRICES. 



Commodity. 


Date M^hen 
effective. 


Price 

fixed 

per ton. 


Commodity. 


Date when ?™| 

effective °^^'^ 
enecriA e. ^^j. ^^^^ 


White-ash grade: 


Sept. 1,1917 
do 


14.55 
4.45 
4.70 
4.80 
4.00 
3.40 

4.75 
4.65 
4.90 


Red-a.sh grade— Contd. 
Chestnut 


Sept. 1,1917 $4.90 
do 4.10 


Eeg 


Pea 


Stove 


do. . . . 


Do 


Oct. 1,1917 j 3.50 


Chestnut 


do 


Lykens Valley grade: 

Broken 




Pea 


...do 


Sept. 1,1917 5.00 
do 4.90 


Do 


Oct. 1,1917 

Sept. 1,1917 
do. 


Egg 


Red-ash grade: 

Broken 


Stove 


do 5.30 


Chestnut 


do 5.30 


Egg 


Pea ... . 


..do 4.35 


Stove 


do 


Do 


Oct. 1,1917 1 3.75 











1 Prices of all Arkansas anthracite, except slack, were subject to the following' reduc- 
tions per ton for the summer of 1918 : April, 90 cents ; May, 75 cents ; June, 60 cents ; 
July, 4.5 cents ; August, .30 cents ; September, 15 cents. Coal at docks on Lake Michigan 
or Lake Superior were subject to a general summer reduction of 30 cents per gross ton 
until September 1, 1918. Coal pi-ices at Lake ports were based on freight rates effective 
June 25, 1918, from the mines to Lake Erie ports. Virginia and West Virginia anthra- 
cite was subject to a summer reduction of 30 cents per net ton from April 1 to 
September 1, 1918. 



GOVERNMENT REGULATIOlSrS RELATING TO PRICES. 643 

SCHEDULE OF ANTHRACITE BASE PRICES— Continued. 



Commodity. 


Date when 

effective. 


Price fixed 
per ton. 


Commodity. 


Date when 
effective. 


Price fixed 
per ton. 


Bemice 
Tnines. 


Spadra 
field. 


Bemice 
mines. 


Spadra 
field. 


Arkansas mines: 
Grate 


Jan. 5, 1918 
do 


$7.30 
7.55 
8.30 
8.30 
6.30 
2.85 
2.50 
7.75 
8.00 
8.75 
8.75 


S6.80 
6.80 

■■'Tso 

4.80 

"'"'2.' 50 
7.25 
7.25 

"""'7." 75 


Arkansas mines— 
Continued. 
Pea 


May 15,1918 

do 

do 


$6.75 
2.85 
2.50 
8.75 
9.00 
9.75 
9.75 
6.75 
4.75 
2.50 




Egg 


$5.25 


Stove 

No. 4 


do 

do 


Buck 

Slack 


2.50 


Pea 


do 


Grate 




8.75 


Buck . 


do 

do 

May 15,1918 
do 


Ege 




8.75 


Slack 


Stove 






(Jrate 


No. 4 




9.25 


Egg.. 


Pea 




5.25 




. .. do 


Buck 






No. 4 


do 


Slack 




2.50 











Commodity. 


Date when 
effective. 


Price 

fixed 

per ton. 


Commodity. 


Date when 
effective. 


Price 

fixed 

per ton. 


Coal at Great Lake docks: 
Broken 


June 2.5,1918 
do 


$10.20 
10.10 

.10.35 
10.45 
8.80 

5.40 
5.75 
5.75 
4.60 


Virginia— Continued . 

Buckwheat 


July 22,1918 
do 


$1.55 


Egg 


Cixlm 


.90 


Stove 


do 


Briquettes 


do 


5.30 


Nut ■ 


do 


West Virginia: 

Egg 


Aug. 29,1918 
do 




Pea 


do 


5.40 


Virginia: 

Egg 


Jnlv 22,1918 
....Ido 


Stove 


5.75 


Nut 


do 


5.75 






... do . . . 


5.30 


Nut 


do 

do 


Pea and smaller sizes . . 


do 


4.60 


Pea 











Price fixed per ton. 


Commodity. 


Price fixed per ton. 


Commodity. 1 


Compa- 
nies. 


Individ- 
uals. 


Compa 
nies. 


Individ- 
uals. 


White-ash grade: 

Broken 


$5. 95 
5.85 
6.10 
6.20 
4.80 

6.15 
5.45 
6.30 


86. 70 
6.60 
6.85 
6.95 
5.55 

6.90 
6.20 
7.05 


Red-ash grade— Continued. 
Nut 


$6.30 
4.90 

6.40 
6.30 
6.70 
6.70 
5.15 


$7.05 


Egg 


Pea 


5. 65 


Stove 


Lykens Valley grade: 
Broken 




Nut 


7.15 


Pea 


Egg 


7.05 


Red-ash grade : 


Stove 


7.45 


Broken 


Nut 


7.45 


Egg 


Pea 


5.90 


Stove 







' Effective on coal mined on or after Nov. 1, 1918. 

Note.— The anthracite price schedule has been revised to meet increased labor costs and includes only 
the actual additional cost of a recent adjustment of anthracite wages. 

The sizes scheduled comprise 70.6 per cent of the total anthracite output. Remaining anthracite sizes, 
comprising 29.4 percent of the output are aearly stationary at existing quotations, and no price adjustment 
was made as to them. 

Under order of November 16, 1918, maximum prices for the different sizes of anthracite smaller than 
"pea,"f. o. b., mines, were made that for "pea" size less 50 cents per gross ton of 2,240 pounds. 

BITUMINOUS COAL. 

The maximum prices of bituminous coal at tlie mine were tentatively fixed 
for tlie entire country by order of the President on August 21, 1917. 

All bituminous coal prices were f. o. b. mine basis, per ton of 2,000 pounds, 
and do not include allowance for wage increase under the President's order 
of October 27, 1917. An increase of 45 cents per net ton, granted in that 
order, should be added to all prices, except those for coal mined in Alabama. 



644 



HISTORY or PRICES DURING THE WAR. 



In Alabama a separate and satisfactory wage agreeiueut was made between 
mine operators and mine worliers and approved bj' the Fuel Administrator, 
modifying tlie terms of the President's order of October 27, 1917. This agree- 
ment became effective February 6, 1918. On April 20 new terms were agreed 
upon in Alabama and the allowance of 45 cents per net ton, as of the order 
of October 27, 1917, became effective May 15, 1918. 

On May 24, 1918, there was a general order reducing all prices for bituminous 
coal, fixed to that date, by the sum of 10 cents for each net ton of 2,000 
pounds. 

A digest of the schedule of prices contained in the President's order and 
subsequent amendments made by the United States Fuel Administrator follow :* 

SCHEDULE OF BITUMINOUS BASE PRICES. 

[Prices fixed by the President on Aug. 23 , 1917.) 



District. 



Alabama : 

Big Seam 

Pratt. Jaeger, and Corona 

Cahaba and Black Creek. 

Arkansas 

Colorado 

Illinois 

Third vein 

Indiana 

Iowa 

Kansas 

Kentucky 

Jellico 

Maryland 

Missouri 

Montana 

New Mexico 

Ohio: 

Thick vein 

Thin vein 

Oklahoma 

Pennsylvania 

Tennessee: 

Eastern 

Jellico , 

Texas 

Utah 

Washington 

West Virginia , 

Wj'oming 



Run of 
mine. 



$1.9a 
2.15 
2.40 
2.65 
2.45 
1.95 
2.40 
1.95 
2.70 
2.55 
1.95 
2.40 
2.00 
2.70 
2.70 
2.40 

2.00 
2.35 
3.05 
2.00 

2.30 
2.40 
2.65 
2.60 
3.25 
2.00 
2.50 



Pre- 
pared 
sizes. 



S2. 15 
2.40 
2.65 

-2.90 
2.75 
2.20 
2.65 
2.20 
2.95 
2.80 
2.20 
2.65 
2.25 
2.95 
2.95 
2.65 

2.25 
2.06 
3.30 
2.25 

2.55 
2.65 
2.90 
2.85 
3.50 
2.25 
2.75 



Slack or 
screen- 
ings. 



P. 65 
1.90 
2.15 
2.40 
2.20 
1.70 
2.15 
1.70 
2.45 
2.30 
1.70 
2.15 
1.75 
2.45 
2.45 
2.15 

1.75 
2.10 
2.80 
1.75 

2.05 
2.15 
2.40 
2.35 
3.00 
1.75 
2.25 



MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL 

ADMINISTRATOR. 



District. 


Date when 
effective. 


Run of 

mine. 


Prepared 
sizes. 


Slack or 
screen- 
ings. 


.'Vlabama: 

Big Seam 


Oct. 1,1917 
. .do........ 


$2.15 
2.85 
2.35 
2.40 
2.40 
2.85 

2.85 


S2. 45 
3.10 
2.65 
' 2.75 
4.00 
3.10 

3.10 


$1.85- 


Cahaba, Black Creek, Brookwood, Blue Creek 


2.45 


l^ratt, Jaeger, Jefferson, Nickel Plate, and Coal City 


do 


2.05 


Corona 


.do 


2.05 




. ...do 


2.15 


.Sunlight Mining Co., in Walker County 


Dec. 1,1917 
Dec. 6,1917 


2.45 


Benoit Coal Miniag' Co. and Cordova Fuel Co., in 
Walker County 


2.45 



^ Temporary schedules were published for the summer months allowing reductions, as 
follows : 

1. Colorado: Domestic coal, domestic field — April, 70 cents; May, 50 cents; June, 35 
cents; July, 15 cents. Steam coal, Trinidad district — April, 40 cents; May, 30 cents; 
June, 20 cents ; July, 10 cents. 

2. Arkansas and Oklahoma : March, 75 cents ; April, 60 cents ; May, 45 cents ; June, 30 
cents : July, 15 cents. 

3. New Mexico : April, 50 cents ; May, 40 cents ; June, 30 cents ; July, 20 cents ; 
August, 10 cents. 

4. Texas : April, 75 cents ; May, 60 cents ; June, 45 cents ; July, 30 cents ; August, 15 
cents. 



GOVERlsrMEIsrT REGULATIONS RELATING TO PRICES. 



645 



MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL 
ADMINISTRATOR— Continued. 



District, 



Date when 
effective. 



Run of 
mine. 



Prepared 

sizes. 



Slack or 
screen- 
ings. 



Alabama— Continued. 

Linn mines of Monroe- Warrior Coal & Coke Co., to 
supply Macon, Ga 

Gilbert Coal Mining Co., Walker County, and the 
Mount Carmel seam 

Climax seam, in or about Maylene, Shelby County 

Big Seam, Upper Bench supersedes orders of Dec. 6 
and Dec. 20, 1917 

Cahaba Soutliern Coal Mining Co., Hargrove, Bibb 
County 

District 'No. 1, Big Seam group 

District No. 2, Cahaba group. Black Creek group 

District No. 3, Pratt group 

District No. 4, Helena and Harkness seams andcoal 
mined by No. 2 Belle Ellen mine in Youngblood seam 

District No. 5, mines in the Climax seam, in or about 
Maylene, Shelby County 

Montbvello Mining Co : 

Warrior Pratt Coal Co 

West Helena Coal Co 

Montovello Stroven Coal Co 

Yolande Coal & Coke Co 

Arkansas: 

Thin vein seam, Hartford, Greenwood, Midland, 
Hackett, and Denning 

Paris field 

Johnson, Franklin, and Sebastian Counties, except 
the Excelsior district 

Logan and Scott Counties and Excelsior district of 

Sebastian County, namely, mines on the Midland 

Valley Railroad north of Montreal Junction and 

east of Hackett and west of, but not at, Greenwood . . . 

Colorado: 

Walsenberg, Canon City, Routt, Garfield, Gunnison, 
Durango, Mesa, Pitkin, Montezuma, Delta, Mont- 
rose and Rio Blanca (domestic coal) 

Trinidad (steam coal) 

Do 

Northern field and El Paso (lignite) 

Do 

Domestic (domestic coal) , 

Lignite coal 

Florence, Fremont County, Williamsburg Slope Coal 

Co 

'Walsenberg district: Aztec Coal Mining Co., Caprock 
Fuel Co., Monument Valley Fuel Co., Caddell & 
Carlson, Premium Mining Co., Rugby Fuel Co., 
Gordon Coal Co., Black Canon Coal & Fuel Co., 
Geo. McNally Coal Co., Black Hawk Coal Co., 
Ideal Fuel Co., Green Coal Co., Minnequa Coal 

Co 

Nut 83. 65 

Canon City: Royal Gorge mine, Gibson Lumber & 

Fuel Co 

Nut - $3.65 

Canon City district: Radiant mine 

Walsenberg district: Ravenwood mine, Rapson Min- 

' ingCo., Cedar HillCoal&CokeCo., OakdaleCoalCo.. 

Trinidad district: Gray Creek mine, of the Victor Am. 
Fuel Co. , Empire mine of the Empire Mining Co 

Canon City district: Wolf Park Coal Co 

Reliance mine by Alliance Coal Co . : 

Temple Fuel Co .- 

G eorgia .- 

Illinois: 

McLean County Coal Co. , retail only 

Counties of Peoria, Fulton, and Tazewell 

Illinois (third vein) northern field (conditional) and 
Matherville field, Mercer County 

Moweaqua Coal Mining & Manufacturing Co., Mowea- 
qua, Christian County 

Assumption Coal & Mining Co . , Assumption, Christian 
County 

Spoon River Colliery Co., Ellisville (listed in the 
northern Illinois field) 

District No. 1: Mercer, Bureau, Kankakee, La Salle, 
Grundy, Will Putnam, Marshall, Li^'ingston, Wood- 
ford, and McLean Covmties 



Dec. 10,1917 

Dee. 20,1917 
Jan. 17,1918 



-do. 



Feb. 4, 1918 
Aug. 23,1918 

do 

do 



..do. 



do 

Oct. 7, 1918 
Oct. 18,1918 

do 

Nov. 6, 1913 
Dec. 15,^1918 



Oct. 1,1917 
Oct. 27,1917 

Mar. 29,1918 



.do. 



Oct. 10,1917 

do 

Mar. 11,1918 
Oct. 10,1917 
Nov. 22, 1917 
Mar. 11,1918 
do 



May 1,1918 



June 11,1918 

June 15,1918 
Aug. 20,1918 
do 



Aug 30,1918 
do 

Oct. 8,1918 
Nov. 18,1918 
Apr. 5,1918 

Oct. 27,1917 
Dec. 8,1917 



....do 

Feb. 13,1918 

do 

do 



Mar. 23,1918 



S3. 50 

2.85 
4.25, 

2.35 

2.85 
2.00 
3.00 
2.40 

2.45 

4.15 
3.65 
2.25 
3.00 
3.65 
3.00 



3.05 
3.70 



4.35 



3.00 
2.75 
2. .35 
2.45 
2.45 
2.25 
2.25 

2.25 



2.C5 



2.15 

3.00 
2.15 
2.15 
2.15 
3.25 



2.30 
2.65 
2.40 
3.00 

2.65 

2.C5 



S4.00 

3.10 

4..50 

2.65 

3.70 
2.30 
3.30 
2.60 

2.75 

4.40 
3.90 
2.50 
3.30 
3.90 
3.30 



3.40 
4.50 



4.60 



4.00 
3.25 
3.25 
3.50 
3.50 
3.50 
3.25 

4.25 



4.15 

4.15 

4.15 

4.15 

3.15 
4.15 
4.15 
3.40 
3.50 

4.00 
2.55 

2.90 

2.C5 
4.55 
2.90 

2.90 



S3. 10 

2.45 
Z.16 

2.05 

2.45 
1.95 
2.65 
2.00 

2.25 

2.05 
3.15 
2.00 
2.65 
2.65 
2.65 



2.40 
2.00 



2.40 



2.60 



■1.50 
2.00 
1.65 
1.00 
1.25 
1.25 
1.00 

1.25 



1.15 

1.40 

1.15 

1.15 

1.55 
1.15 
1.15 
1.55 
3.20 

1.70 
2.05 

2.40 

2.15 

2.15 

2.40 

2.40 



646 



HISTOEY OF PRICES DURING THE WAR. 



MODIFICATIONS TO THE PRESIDENT'S PRTOES MADE TiV TIIK UNITED STATES FUEL 
ADMINISTRATOR— Contiuucd. 



District. 


Date when 
effective. 


Rim of 
mine. 


Prepared 

sizes. 


Slack or 
screen- 
ings. 


Illinois— Continued. 

-District No. 2: Rock Ishuid, Ilcnry, Warren. Knos. 
Stai-k, Peoria, Hancock, McDoriough, Henderson, 


Mar. 23,1918 
do 


52. 40. 

\ 
2.00 

"■2. 00 
2.40 

^2.00 
2.25 
2.05 


92. CO 

2.20 

2.20 
2.60 

2.20 
2.50 
2.25 


$2.10 


— District No. 3: Menard, Logan, Dewitt. Champaign, 
VeiToilion, Sangamon, Macon, Pratt, Christian, 
Moidtrie, Shelby, (ireene, Macoupin and Mont- 
gomery Counties", and Madison County north of the 
latitudeof Alton; alsoall mines not includedlnother 


1.70 


— District No. 4: Bond, St. Claii", Monroe, andRandolph 
Counties, and Madison County south of the latitude 
of Alton, and Clinton, Washington, and Perry Coun- 
ties, not including mines along the line of Illinois 
Central Railroad tetween Vandaliaand Carhondale . . 
— District No. 5: Jackson County, not including mines 
onthelineof the Illinois Central Railroad between 
Carbondaleand Pu'"iuoLn 


do 

do., 


1.70 
2.10 


— District No. 0: Marion, Jetierson, Franklin, Wiiliam- 
son, Johnson, Hamilton, SaUne, "V^Tiite, Gallatin, 
and mines along the mainline of the Illinois Central 
Railroad between ^'andalia and Carbondals in Clin- 


do 


1.70 


Macon County 


May 1,1918 
Oct. 1,1918 

Jan. 6, 1919 

Oct. 1,1917 
May 1,1918 
do 


1.70 


Latham Coal & Mining Co. , Logan County -. 


1.75 


Searls Coal Co . , in Williamson County, passing through 


1.60 


Indiana: 

Brazil block 




2.95 
2.20 
3.25 
2.50 

2.40 

3.40 

3.10 
2.95 

3.40 
4.00 
4.50 

2.95 

3.95 
4. ,50 
3.65 


1.70 


Indiana 


2.00 
2.95 
2.30 

2.20 

3.15 

2.75 
2.70 

3.15 
2.55 
3.05 

2.70 

3.65 
3.50 
3.40 


1.79 


Brazil block 


1.70 


Essanbee Mine Co. , X'ermilion Count v 


Aug. 19, 1918 

Sept. 25,1918 

Oct. 1, 1917 

Mar. 11,1918 
Apr. 5, 1918 

Oct. 1,1917 
do 


2.00 


Atlas Mining Co. at Linton Summit mine, Greene 
County . . 


1.90 


Iowa: 

Appanoose, Wayne, Boone, and Webster Counties 

Counties 


2.90 
2.00 


Marion County 


2.45 


Kansas: 

Mines at Leavenworth take prices for Platte County, 
Mo. . . 


2.90 


Osage County 


2. .30 


Do 


Dec. 1, 1917 

Apr. 20,1918 
do 


2.80 


Cherokee and Crawford Counties, except shaft mines 
in Lightning Creek or upper thin vein and any min- 
mg operations in the State not covered by other rul- 
ings . 


2.45 


Shaft workings in the Lightning Creek or upper thin 
vein in Cherokee and Crawford Coimties 


2.45 


Osage, Franklin, and Linn Counties 


...do 


2.80 


Leavenworth County 


do". 


2.90 


Cherokee and Crawford Coimties 


Aug. 3,1918 
Nov. 6, 1917 

Oct. 11,1917 
Dec. 3, 1917 

Apr. 5,1918 
do 




Nut run or stoker coal $3.05 


3.55 

2.40 
2.65 

2.20 
2.65 

2.30 
2.30 


3.80 

2.65 
2.90 

2.45 
2.90 

2.55 
2.55 




Mill coal 2.95 




Kentucky: 

Whitley, Ivnox, Clay, and Bell Counties, Blue Gem 
district 


2.30 


McCreary, Pulaski, Rockca.stle, Jackson, Lee, Wolfe, 
Morgan, Lawrence, Johnson, Martin, Lainel, Whit- 
ley, Clay\ Omsley, Kjiox, Bell, Breathitt, Perry, 
Leslie, Harlan, Magoffin, Boyd, Carter, Pike, arid 
all of Floyd, Knott, and Letcher Counties excepting 
coal produced from the thick- vein Elkhom district 
in these three coimties 


2.15 


Wiiitley, Knox, Bell, and McCreary Counties, other 
than the Blue Gem district (conditional) 


2.40 


Harlan, Perry, and Letcher Counties and operations 
in Pike Coimty on the Le\dsa Fork of the Big Sandy 
River 


1.95 


East of the 85th degree of longitude except Harlan, 


2.40 


Thacker district; operations in Pike County on the 
watershed of the Tug Fork of the Big Sandy River 

Kenova district; operations in Pike and Martin Coun- 

Sandy River west of Williamson, on the Norfolk & 
Western Ry 


Apr. 20,1918 
do 


2.05 
2.05 



G0VEE5rMEK"T EEGULATIOE"S RELATIiSTG TO PRICES. 



647 



JdODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FITEL 

ADMINISTRATOR— Continued. 



District. 



Date when 
effective. 



Run of 
mine. 



Prepared 
sizes. 



Slack or 
screen- 
ings. 



Kentucky —Continued . 

Blue Gem coal produced in Knox and Whitley Coun- 
ties by operators who are members of the Tri-County 
Blue Gem Coal Operators' Association 

Wallen Jellico Coal Co., in Whitley Coimty 

Elldiom City Coal Co. and Guthrie Coal Co., in Pike 
County 

District No. 1, west of the 85th degree of longitude. . . 

District No. 2, Harlan, Letcher, and Perry Coimties, 
except the operations in Perry County included in 

district No. 3 

- Loony Creek Coal Co., Harlan County 

Reliance Coal & Coke Co., at the Glowmar mine in 
Perry County 

Blue Gem coal mined in Knox and Whitley Counties 
by operators who are members of the Tri-County 
Blue Gem Coal Operators' Association 

Clover Fork, Golden Ash, King Harlan, Lick Branch, 
Wilson Berger, East Harlan, R. C. Tway, White 
Star, Harlan Fox, WaUins Creek, Harlan Gas, 
Creech, Banner Fork. McComb, Bear Branch, Ken- 
tucky Harlan, Middleton, or Kentucky Coal Co. in 
Harlan Coimty 

Utility Gas Coal Co., Kanawha Kuox Coal Co., Ben- 
netts Fork Coal Co., J. B. Blue Gem Coal Co., J. B. 
Jellico Coal Co., J. B. Straight Creek Coal Co., Paige 
JelUco Coal Co., and Pine Ridge Coal Mining Co. m 
Bell County 

Spring Branch Coal Co., High Point Coal Co., Harlan- 
KeUioka Coal Co., J. L. Smith Coal Co., Adair Mm- 
ing Co.j Baileys Creek Coal Co., High Splint Coal 
Co., Wilson Berger Coal Co., and Black Mountain 
Coal Corporation in Harlan County 

Blue Gem Coal mined in Knox and Whitley Coimties 
by operators who are members of the Tri-County 

Blue Gem Coal Operators' Association 

Nut and slack through IJ-tuch bars |2. 55 

District No. 3: East of the 85th degree of longitude, 
excepting Harlan, Letcher, and Martin Counties; 
that part of Pilie County on the watershed of the Tug 
Fork of the Big Sandy River, and that part of Perry 
County included in district No. 2, but including the 
operations in Perry County of Hazard Coal Co. , Dia- 
mond Block Coal Co., ConevaCoal Corporation, Storm 
King Coal Co., C. H. McDonald Coal Co., Four Seam 
Block Coal Co., Daniel Boone Coal Co., Blue Grass 
Coal Corporation, Columbus Mining Co., No. 4 Coal 
Co.; and Walker's Branch Mining Co 

District No. 4, or Thacker: Operations in Pike Coun- 
ty on the watershed of theTug Fork of the Big Sandy 
River east of WilUamson on the Norfolk & Western 
R. R 

District No. 6, or Kenova: Martin County, and opera- 
tions in Pike Coimty on the watershed of the Tug 
Fork of the Big Sandy River west of Williamson on 

the Norfolk & Western R. R 

The following producers arQ not included: 

Blue Gem Coal produced in Knox and Whitley Coun- 
ties by operators who are members of the Tri-County 
Blue Gem Coal Operators' Association 

Coal produced in Whitley Coimty by the Wallen- 
Jelhco Coal Co 

Coal produced in Pike County toy the Elkhorn City 
Coal Co. and the Guthrie Coal Co 

Kentucky Block Camiel Coal Co. south of the Licking 
River in Morgan County 

Norton Coal Co., White Plains Coal Co., and B. D. 
WUUams Coal Co. in the Empire or Mannington 

seam, in Christian and Hopkins Coimties 

Maryland: 

The North Maryland Coal Mining Co. in Allegany 
County 

The upper Potomac, Cumberland, and Piedmont 
fields, comprising all coal mined in the State of 

Maryland and in parts of West Virginia. _ 

Michigan 

What Cheer Mining Co., Banner Coal Co.. BUss Coal 
Co., Robert Gage Coal Co., Beaver Coal Co., Consoh- 
dated & Wolverine Coal Cos 



Mav 1,1918 
Aug. 19,1918 



do 

Aug. 23, 1918 



do 

Oct. 5, 1918 

do 

Oct. 28,1918 



.do. 



.doi. 



do 

Dec. 7,1918 



Aug. 23,1918 



.do. 



.do. 



do 

....do 

do , 

Sept. 25, 1918 



do 

Dee. 3,1917 



Feb. 1,1918 
Oct. 27,1917 



Nov. 30,1917 



153.55 
3.25 



2.55 
1.90 



2.10 
2.55 



2.55 



2.00 



2.15 
3.30 



2. .55 



2.20 

3.45 
3.25 
2.55 
3.45 

2.35 

2.75 



2.40 
3.15 



3.40 



3.50 



2.80 
2.15 



2.35 
2.80 



2.80 
2.85 



2.40 
4.05 



2.80 
2.45 

2.45 

3.70 
3.50 
2.80 
3.50 

2.60 



2.65 
3.60 



3.95 



1 Announced Jan. 2, 1918. 



648 



HISTORY OF PRICES DUKHSTG THE WAR. 



MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL 
ADMINISTRATOR— Continued. 



District. 


Date when 
effective. 


Run of 
mine. 


Prepared 
sizes. 


Slack or 
screen- 
ings. 


Michigan— Continued. 

Hand V FJios 


Nov. 30, 1919 

do 

-do.. . 


.S3. 70 
4.55 


S4.25 
5. 05 
5. 55 

3.85 
4.15 
4.95 
5.45 

3.40 

3.40 

2.95 

3.40 

3.95 
3.65 


$2.55 
3.55 
3 55 


Caledonia mine, operated by the Robert Gage Coal Co. 
Flint mine, operated by the What Cheer Mining Co 


What Cheer Mining Co., Banner Coal Co., Bliss Coal 
Co., Robert Gage Coal Co., Beaver Coal Co., Consoli- 


Aug. 16,1918 
do 


3.30 
3.60 
4.45 
3.05 

3.15 

3.15 

2.70 

3.15 

3.65 
3.40 


2 50 




2 80 




do 


3 80 


Flint mine, operated by What Cheer Mining Co 


do 


3 80 


Missouri: 

Lafayette^ Ray, Clay, Platte, and Linn Counties 

Putiiara County and the Longwall thin vein seam in 
Randolph County.. . . . . . . 


Oct. 1,1917 
Oct. 27,1917 

Apr. 20,1018 
do 


2.90 
2 90 


Di.strict No. 1: Aiidram, Barton, Bates, Galloway, 
Ilem-y, Johnson, Monroe, Randolph, Ralls, St. Clair, 
Schuyler, ^'ernou, and Montgomery Counties; Adair 
County except operations of the Star Coal Co., and 
Macon Coimty east of New Cambi'ia, and mining 
operations not covered by other rulings 


2 45 


District No. 2: Boone, Clay, Cooper, Chariton, Carroll, 
Dade, Harrison, Linn, Lafayette, Putnam, Ray, 
and SulUvan Coimties, and Macon Coimty west of 
New Cambria, and the long wall thin-seam mines in 
Randolph Coimtv 


2.45 


C.nmdy Coimty, operations of the Star Coal Co. in 
Adair County and shaft workings in the Lightning 
Creek or upper thin vein in Barton, Bates, and Ver- 
non Counties 


do 


2.45 


Platte Coimtv 


do 


2.45 


Barton and Vemon Counties. . . 


Aug. 3, 1918 

Sept. 14,1918 
Oct. 27,1917 
Mar. 11,1918 
May 1, 1918 

Oct. 28,1917 

Nov. 26,1917 

.do 




Nut run or stoker coal $3. 05 


4.50 
2.70 
2.65 
2.70 

2.75 
3.05 
4.05 
3.00 
2.35 
3.05 
4.25 
4.05 
3.00 
4.05 

2.25 

2.25 
2.70 

3.75 
3.25 

2.00 

2. 35 

3.00 

2.10 
2..-0 

2.50 
2.25 

2.50 


5.00 
3.60 
3.30 
3.60 

3.25 
4.50 
5.05 
4.00 
3.25 
4.05 
5.05 
4.55 
4.00 
5.05 




Mill coal 2.95 




Moniteau and Morgan Counties 


2.45 


Montana 


1.50 


Do 


1.50 


Do 


l.OO 


New Mexico: 

Raton district 


2.00 


Gallup field 


2.00 


Cerrillos and Carthage fields. . . . 


3.55 


Sugarite and Monero fields 


. ...do 


2.00 


^ Raton district 


Apr. 1,1918 
do 


1.65 


Gallup field 


2.00 


Carthage field 


do 


3.55 


Cerrillos field 


-do 


.3.55 


Sugarite and Monero fields 


do 


2.00 


Cerillos field 


Aug. 30,1918 
Jan. 4,1918 

May 24,1918 
do 


3.55 


North Dakota: 

Lignite coal 


1.25 


Screened lump S2. 50 

f)-inch steam lump 2. 00 


$2. .50 
3.00 

4.00 
3.50 

2.25 

2.60 

3. 2.-. 

2.35 
2.75 

2. 75 
2. .50 

2.75 




Lignite coai, mined south of the twelfth standard par- 
allel . . 


1.25 


6-inch steam lump $2 




All coal mined north of the twelfth standard parallel . . . 


1.00 


6-inch steam lump 12. 50 


Nov. 6,1917 
Jan. 23,1918 

Mar. 23,1918 

June 29,1918 

....do 




Ohio: 

Deerfield or Palmyra field, Massillon field, and Jackson 
field. '.... 


3..''0 


Do 


3.00 


Jefferson, Harrison, Belmont, Carroll, and Monroe 
Countias 


1.75 


District No. ] : Meigs County, Cheshire and Addison 
TowTishi ps in Gallia County 


2.10 


District No. 2: Vinton, Jackson, Lawrence, Sciota, 
Pike, and Gallia Counties, except Cheshire and Ad- 
dison Townships in Gallia County 


2. .85 


District No. 3: Hocking and Athens Coimties, and Coal 
Township and the south half of Monroe Township 
Perry County 


do 


1.85 


The Bailey Run or No. 7 seam 


.do 


2.25 


gan County , except the township of H omer, and Perry 


do 


2. 25 


District No. 5: Guernsey and Muskingum Counties. . . 

District No. 6: Holmes, Tuscarawas, Carroll, Coshoc- 
ton Counties and the townships of Monroe, Franklin, 
Washington, and Freeport in Harrison County and 
the townships of Washington and Yellow Creek in 

Creek, Saline, Springfield, Ross, and Knox in Jeffer- 
son County 


do 

do 


2.00 
2.25 



GOVERisrMEiSrT kegtjlatiojsj's relating to prices. 649 

MnDT-RTPATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL 
MUiUJ' lOAiiw ADMINISTRATOR— Cdbtinued. 



District. 



Date when 
effective. 



Ohio— Continued. ^ .^ ,, ■. . 
District No. 7: Trumbull, Portage, Summit, Mahoning, 
■ Medina, Wayne, Stark, and Columbiana Counties, 
except the townships of Yellow Creek and Washing- 
ton 

District No. 8: Monroe County, Behnont County, ex- 
cept Warren Township; Harrison County, except 
Monroe, Franklin, Washington, and Freeport Town- 
ships; Jeflerson County, except Brush Creek, Saline, 

Ross, Knox, and Springfield Townships 

WajTie Mining Co., Guernsey County 

District No. 1 

District No. 2 - 

District No. 3: Hocking and Adams Counties, Coal and 
Monroe Townships in Perry County, and Homer 

TownshiD in Morgan County 

The Bailey Run or No. 7 seam 

District No. 4: Washington and Noble C ounties, Mor- 
gan County except Homer Township, and Perry 

County except Coal and Monroe Townships 

District No. 5: Muskingiun County 

District No. 6: Holmes, Tuscarawas, Carroll, and Cos- 
hocton Counties, Monroe, Franklin, Washington, 
and Freenort in Harrison County, and Washington 
and Yellow Creek Townships in Columbiana County, 
and Brush Creek, Saline, Springfield, Ross, and Knox 
Townships in Jefferson Comity, and operations in 
the 8-A vein in Flushing and Umon Townsliips in 

Belmont Coimty 

District No. 7 - - 

District No. 8: Monroe County and Belmont County, 
except Warren Township and operations in the 8-A 
vpin in Flushing and Union Townships, Harrison 
County except Monroe, Franklin, Washington, and 
Freeport Townships, and Jefferson County except 
Brush Creek, Sahne, Ross, Knox, and Sprtagfield 

Townships 

District No. 9: Guernsey County and Warren Town- 
ship in Belmont County 

Wayne Mining Co. , Guernsey County 

Southern Ohio Coal Co., Starr Township, Hocking 

County 

Wheeling and Liberty Townships m Guernsey Covmty 

(transferred from district No. 9 and district No. 6) 

Oklahoma: 

Le Flore and Haskell Counties 

Ocmulgee and Tulsa Counites 

Coal County 

Pittsburg and Latimer Coimties 

Le Flore and Haskell Counties (conditional) 

Okmulgee and Tulsa Counties (conditional) 

Coal County (conditional) 

Pittsburg and Latimer Counties (conditional) 

Le Fiore, HaskeU, Okmulgee, Tulsa, Rogers, and Coal 
Counties, and the Hartshom-Wilburton vein in Pitts- 
burg and Latimer Counties 

McAlester vein in Pittsburg and Latimer Counties 

Pennsylvania: 

O'DonneUBros., at Morris Run, Tioga County (condi- 
tional) 

Ajax Hocking Coal Co., in Clearfield and Somerset 

Counties (publication No. 2 and special order) 

Operations in the counties of Tioga, Lycoming, CUnton, 
Center, Huntingdon, Bedford, Cameron, Elk, Clear- 
field, Cambria, Blair, Somerset, Jeflerson, Indiana, 
Clarion, Annstrong, Butler, Mercer, Lawrence, and 
Beaver, and operations in Allegheny Countj^ from 
the lower end of Tarentum Borough north to the 
county Une, and in Westmoreland County from a 
point opposite the lower end of Tarentum Borough 
north along the Allegheny River to the Kliskiminitas 
River, and along the Kiskiminitas River eastward to 
the Conemaugh River, and contuiiung along the 
Conemaugh River to the county line of Cambria 

County 

Operations on the Baltimore & Ohio R. R. from the 
Somerset County line to and including Indian Creek 
and the Indian Creek Valley branch of the Baltimore 
&OhioR. R 



June 29,1918 



....do 

Aug. 20,1918 
Aug. 23,1918 
do 



.do. 
.do. 



-do. 
-do. 



.do. 
.do. 



Run of 
mine. 



-do. 



.do. 
.do. 



Oct. 8,1918 

Nov. 19,1918 

Oct. l,19ir 

do 

do 

do 

Nov. 30, 1817 

do 

do , 

do 



Mar. 29,1918 
do 



Dec. 8, 1917 
Nov. 13,1917 



Feb. 16, 1918 



Mar. 14,1918 



$3.00 



1.90 
2.50 
2.30 
2.95 



2.05 
2.45 



2.45 
2.20 



2.45 
2.95 



Prepared 
sizes. 



2.05 
2.50 

2.95 

2.20 

3.50 
3.10 
3.30 
3.50 
3.75 
3.35 
3.55 
3.75 



3.70 
4.25 



2.25 
2.75 



2.15 
2.75 
2.55 
3.20 



Slack or 
screen- 
ings. 



2.70 
2.45 



2.70 
3.20 



S2.85 



1.90 
2.25 
2.05 
2.80 



1.80 
2.20 



2.20 
1.95 



2.20 
2.80 



2.60 



2.15 


1.90 


2.30 


1.80 


3.75 


2.25 


3.20 


2.80 


2.45 


1.95 


4.30 


2.25 


3.90 


2.00 


4.10 


2.00 


4.30 


2.25 


4.55 


2.50 


4.15 


2.25 


4.35 


2.25 


4.55 


2.50 


4.60 


2.40 


5.10 


3.00 


2.50 


2.00 


2.60 


2.00 


1 

1 2.60 


1 2.60 



650 



HISTORY or PEIOES DUKING THE WAR. 



MODIFICATIONS TO THK PRESIDENT'S PRICKS MADE BY THE UNITED STATES FUEL 

AD MIlllSTR AT O R— Continued . 



District. 


Date when 
effective. 


Run of 
mine. 


Prepared 

sizes. 


Slack or 
screen- 
ings. 


Pennsyh-ania— Continued . 












Pittsburgh field, including the counties of Washington, 












Greene, Fayette, Westmoreland, and Allegheny, 












except (1) that portion of Allegheny County fi-om 
the lower end of Tarcntum Borough north to the 






















county line; (2) the territory in Westmoreland 












Coimty fi-om a point opposite tlie lower end of Tarcn- 












tum Borough north along the Allegheny Rircr to the 












KisMmmitas River and along the Kiskiminitas 












River eastward to the Conemaugh River and con- 












tinuing along the Conemaugh River to the cormty 












line of Cambria County; (3) operations on Indian 












Creek in Westmoreland Coimty; and (4) operations 












in the Ohio Pyle district of Fayette Coimty 


Mar. 


23, 1918 


S2.00 


S2.25 


$1.75 


Coal mined by the Fall Brook Coal Co. "in Tioga 












County 


June 


14, 1918 


2.50 


2.80 


2.30 


The coimties of AUeghony, Westmoreland, Fayette, 












Greene, and Washington, except (1) that portion of 












Allegheny Coimty from the lower end of Tarcn- 












tum Borough north to the countv line; (2) the ter- 












ritory in Westmoreland County from a point oppo- 












site the lower end of Tarentiim Borough north along 












the Allegheny River to the Kisldminitas River and 












along the Kiskiminitas River eastward to the Con- 












emaugh River and continuing along the Conemaugh 












River to the coimty line of Cambria Coimty; (3) op- 












erations on Indian Creek la Westmoreland Countv; 












and (4) operations in the Ohio Pyle district of Fay- 












ette County 


June 


29, 1918 


1.90 


2.15 


1.90 


Coal produced at the stripjping operation of the Graff 
Mining Co. in Westmoreland County (wage increase 














not to be added) 


Oct. 


1, 1918 


2.95 


2.95 


2.95 


Wilson Begler Coal Co., Beaver County 


Nov. 


19, 1918 


2.95 


3.20 


2.80 


Tennessee (eastern): 












Counties of Scott, Claiborne, Anderson, Morgan, and 












Campbell 


Oct. 


11,1917 


2.40 


2.65 


2.15 


Blue Gem district, Campbell County 


Nov. 


4, 1917 


3.55 


3.80 


2.30 


Coimties of Claiborne, Morgan, Anderson, Scott, and 




Campbell, other than the Blue Gem (conditional). . . 


Dec. 


3, 1917 


2.65 


2.90 


2.40 


Bledsoe, Marion, Gnmdy, and White Counties 


Dec. 


8, 1917 


2.40 


2.65 


2.15 


Cumberland County •. 


Jan. 


12, 1918 


2.40 


2.65 


2.15 


AU except Overton and Fentress Coimties 


Apr. 


5. 1918 


2.65 


2.90 


2.40 


Overton and Fentress Counties 


... .do.; 


2.20 


2.45 


L95 


Blue Gem coal produced in Campbell County by opera- 












tors who are members of the Tri-County Blue Gem 












Coal Operators' Association 


May 


1,1918 


3.55 


3.80 


2.40 


Bon Air Coal & Iron Corporation in the Bon Air mine, 












in White County . ^. 


JuQe 


19, 1918 


3.45 


3.70 


2.30 


T. M. Morrison Coal Corporation and the Lone Moun- 












tain Coal Corporation at Pennington Gap in Lee 












Countv 


do 


2.55 


2.80 


2.30 


White Oak Coal Co. , Fentress Countv 


Sept 


14, 1918 


2.56 


2.80 


2.30 


Sterling Coal & Coke Co., Reliance Coal & Coke Co., 




Brj'san Mountaiu Coal & Coke Co., Climax Coal Co., 












Mingo Coal & Coke Co. , and Fork Ridge Coal & Coke 












Co. , in Claiborne Coimty 


1 Oct. 


28, 1918 


2.60 


2.85 


2.30 


Coal mined in Campbell "Coimty by members of the 












Tri-County Blue Gem Operators ' Association 


Oct. 


29, 1918 


2.55 


3.70 


2.30 


Nut and slack through l^-inch bars $2.55 


Dec. 


7, 1918 


3.30 


4.05 


2.30 


Texas: 












Operators at Thurber and Strawn 


Nov. 


14,1917 


3.60 


4.40 


2.25 


Operators at Bridgeport 


do..'. 


4.25 


5.05 


2.25 


Counties of Young, Erath, and Palo Pinto 


Nov. 


16, 1917 


3.60 


4.40 


2.25 


Wise County 


do... 


4.25 


5.05 


2.25 


Lignite coal 


Mar. 


5, 1918 


1.40 




.85 


Screened, at least 15 per cent screenings out, $1.50. 












Lignite coal 


June 22,1918 


1.55 


1.75 


1.00 


All Texas bitmninous coal, except coimties of Erath, 




Palo Alto, and Yoimg 


d 






16, 1918 

4, 1918 

11,1918 


4.25 
3.40 
3.40 
4.25 
2.65 


5.05 
4.20 
4.55 
5.40 
3.30 


2.25 


Counties of Erath, Palo Pinto, and Young 


d 


2.25 


Do 


Aug. 
Sept. 
Mar. 


2.25 


Wise Countv 


2.25 


Utah 


1.50 


Virginia: 




Mines operated near St. Charles, Lee County, by the 
Darby Coal Mining Co., Black Mountain MmingCo., 
Virginia Lee Co., Old Virginia Coal Co., United Col- 
































lieries Co. (Inc.), Benedict Coal Corporatioii, and the 
Imperial mine of the Virginia Iron, Coal & Coke Co., 






















Roanoke 


/Oct. 
\Apr. 


11,1917 
20, 1918 


2.40 
2.66 


2.65 
2.90 


2.15 




2.40 



1 Announced Jan. 2, 1918. 



GOVERiS'MElSrT REGULATIOIs'S RELATING TO PRICES. 



651 



MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL 
ixLyjuLS! J.V. ADMINISTRATOR— Continued. 



District. 



Date when 
effective. 



Run of 
mine. 



Prepared 
sizes. 



Slack or 
screen- 
ings. 



27,1917 

21,1918 

7, 1918 



Feb. 28,1918 
Apr. 5, 1918 



Mar. 21,1918 



;Vpr. 2(3,1918 



May 24,1918 



June 1,1918 



Aug. 20,1918 
Aug. 19,1918 
....do 



S2.40 
3.30 
2.40 



2.50 
2.20 



2.00 



Oct. 28,1918 



Nov. 19,1918 
,1918 



do. 



Dec. 16,1918 



0) 



2.40 



$2.65 
3.55 

2.65 



2.75 

2.45 



2.25 



2.90 



2.90 



2.65 



2.15 
2.60 



2.15 



2.(.0 



1.90 
3.20 



2.40 



1.90 



2.10 



2.20 



2.40 
2.85 



2.80 



2.15 



2.03 



2.35 



2.45 



$2.15 
3.05 
2.15 



2.25 
1.95 



1.75 



2.40 



2.40 



Virginia— Continued. ^ , , ^ ._ /^ ^ 

Imperial mine of the Virgmia Iron, Coal & Coke Co., ot 

Roanoke Oct. 

Richmond Basin, Chesterfield and Henrico Counties . . . Jan. 

Extreme northern part of Buchanan County Feb. 

Clinch Valley No. 1 district or "Upper Clinch"; coal 

mining operations on the Norfolk & Western Ry., 

Hockman to Fumey, inclusive 

Lee, Wise, Dickinson Counties, and Russell County 

west of Finney, on the Norfolk & Western Ry 

Pocahontas district: Operations on the Norfolk & 

"Western Rv. and branches west of Graham, Va., to 

Welch, W.'Va., including Newhall, Berwuid, Cane- 
brake, Hartwell, and Beech Fork branches; opera- 
tions on the Virginian Railroad and branches, west 

of Rock to Herndon, W. Va. (confirmation of Presi- 
dent's prices) 

Darby Coal Mining Co. , Virginia Lee Co. , Old Virginia 

Coal Co., United Collieries Co. (Inc.), Benedict Coal 

Corporation, Imperial mine of the Vii'ginia Iron, 

Coal & Coke Co. , Roanoke 

Mines operated near St. Charles, Lee County, by the 

Cumberland Coal Co., the Penn Lee Coal Co., the 

Lecova Coal Co. , and the Wilma Coal Co 

Pocahontas district (as described in the order of the 

United States Fuel Administrator, dated Mar. 21, 

1918) -- 

Lee County: Mohawk Coal Mining Co., Keokee; 

Powell River Coal Co., Purcell; North ForkCoalCo., 

Pennington Gap 

Splash Dam Coal Corporation, and MeClure Coal 

Corporation, in Dickinson County 

T. M. Morrison Coal Corporation, Lone Mountain Coal 

Corporation, at Pennington Gap in Lee Coimty 

Black Mountain Mtning Co., Benedict Coal Co., 

Bondurant Coal Co., Darby Coal Co., United Col- 
lieries Co., and Old Virginia Coal Co., in Lee Cotmty. 
Chnehfleld Coal Corporation, Camper Coal Co., Kil- 

gore Coal Co., Stonegap Colliery Co., J. A. Esser 

Coke Co., Yellow Creek Coal & Coke Co., Glade^-ille 

Coal Co., Wise Coal & Coke Co., Norton Coal Co., 

Blackwood Coal & Coke Co., and Stonega Coal Co., 

in Wise County, and Stonega Coal Co., at Keokee 

mine in Lee County do. 

Roberts Coal Co. , in Wise Coimty do. 

Robert Fleming & Co., of Norton; Hawthorne Co., of 

Norton; John B . Guernsey & Co. , of Tacoma 

Emerald Coal Co., Obey Branch Coal Co., Pucketts 

Creek Coal Co. , in Lee County Dec. 

Bradley Coal Co., White Oak Coal Co., Hawthorne 

Coal Co. , Felton Coal Mining Co. , in Wise County . . 
Stone Gap Colliery Co., Norton Coal Co., J. A. Esser 

Coal Co., Kilgore Coal Co., in Wise County 

District No. 1: Operations not classified under other 

ditricts or covered by the proviso hereioafter set 

forth 

District No. 2: Operations in the Richmond Basm | 

within Chesterfield and Henrico Counties : do 

District No. 3: Clinch Valley No. 1 district or "Upper 

CUnch, ' ' tjeing coal-mining operations on the Norfolk 

& Western Ry. from Hockman to Finney, inclusive do . 

District No. 4: That portion of the Pocahontas district 

located in the State of Virginia, said Pocahontas dis- 
trict being more particularly described as comprising 

operations on the Norfolk & Western Ry. west of 

Graham, Va., to Welch, W. Va., also including oper> 

ations on the Vh-ginian Ry. aoid branches west ot 

Rock to Herndon, W. Va do . 

District No. 5: Lee, Wise, and Dickenson Counties and 

Russel County west of Finney on the Norfolk & 

Western Ry do . 

District No. 6: That portion of the Thacker district 

located in Virginia, being operations ui the extreme 

northern portion of Buchanan County do . 

Providing that the following prices shall ap_plytothe 

operations and operators hereinafter mentioned: 

1 Where slack or screenings passing through the accepted standard screens customarily used prior to 
Jan. 1, 1916, constituted not less than 55 per cent of the mine-run output of any mine, such slack or screen- 
ings may be sold at the run-of-mine price applicable at said mine at date of shipment. 



2.30 
2.15 



2.30 



2.30 



1.85 
2.30 



1.85 
2.30 



2.30 



1.65 
2.95 



2.15 



1.65 



1.85 



1.95 



652 



HISTORY OF PRICES DURING THE WAR. 



MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL 
ADMINISTRATOR— Continued. 



District. 



Virginia — Continued. 

Operations of Splash Dam Coal Corporation and Mc- 

Clure Coal Corporation in Dickenson Comity 

Operations of Cumberland Coal Co., Perm Lee Coal 
Co., Leecova Coal Co., Wilma Coal Co., Virginia Lee 
Co., Emerald Coal Co., Oliey Branch Coal Co., Puck- 
etts Creek Coal Co., Mohawk Coal Mining Co., Pow- 
ell River Coal Co., North Fork Coal Co., T. M. Mor- 
rison Coal Corporation, Lone Mountain Coal Corpo- 
ration, and Imperial mineofthe Vhginia Iron, Coal 

& Coke Co., of Roanoke, in Lee Coimty 

Operations of Black Mountain Mining Co., Benedict 
Coal Co^ Bondurant Coal Co., Darby Coal Co., 
United Colheries Co. (Inc.), and Old Virginia Coal 

Co., near St. Charles, Lee Coimty 

Operations of Stonega Coal & Coke Co. at Keokee, Lee 
Coimty; Clinchfield Coal Corporation, Camper Coal 
Co., Yellow Creek Coal & Coke Co., Blackwood Coal 
& Coke Co., Stonega Coal & Coke Co., Rol^ert Flem- 
ing & Co., and John B. Guernsey & Co., in Wise 

County 

Operations of Bradley Coal Co., Wliite Oak Coal Co., 

and Fclton Coal Mining Co., in Wise County 

Operations of Roberts Coal Co., Stone Gap Colliery Co. , 
Noitcn Coal Co^ Hawthorne Coal Co., J. A. Esser 

Coke Co., and Kjlgore Coal Co., in Wise County 

Washington: » 

IMerce and King Counties 

Screened coals — 
Bituminous — 

ICittitas County 

Lump andegg 

Special steam and gas 

Semibituminous — 

I^ewis and Thm'ston Counties 

Lump 

Lump nut 

Nut 

W^ashed coals — 
Bituminous — 

Kittitas County 

Pierce, King, Lewis, and Skagit Counties 

Lump nut 

Mixed steam 

Straight steam and gas : 

Sub-bituminous — 

King County 

Lump nut 

Pea 

Buckwheat 

Lewis County 

Lump 

Nut 

Pea 

Buckwheat 

West ^'irginia: 

Ajax Hocking Coal Co., m Mineral Coimty (Publica- 
tions 2, 4E , and special order) 

Davy-Pocahontas Coal Co., in McDowell County 

i^omeroy field 

Mineral, Grant, Tucker Counties and the extreme 
eastern and southeastern j)ortion of Preston County 
Kenova and Thacker fields in Mingo County, the ex- 
treme southern part of Wajme County, andtheex- 

treme northwestern part of McDowell "County 

Tug River district: Coal-mining operations on the 
Norfolk & Western Ry., west of Welch to Panther, 
including branches, exLcept NewhaU, Berwind, Cane- 
brake, and Hartwell 

Preston County, being part of the upper Potomac, 

Cumberland, and Piedmont fields 

Wayne County, being part of the Kenova and Thacker 

fields 

Pocahontas district: Operations on the Norfolk & 
Western Ry., and branches we.st of Graham, Va., 
to Welch, W. Va.. including Newhall, Berwind, 
Canebrake, Hartwell, and Beech Fork branches; 
also operations on the Virginian Railroad and 
branches, west of Rock to Hemdon, W. Va. 
(President's prices) 



Date when 
cSective. 



Run of 
mine. 



Dec. 10,1918 



.do. 



.do. 



.do. 
.do. 



do , 

Oct. 1, 1917 

Mar. 29, 1918 



Mar. 29, 1918 



Mar. 29, 
do.. 



1918 



Mar. 29, 1918 



Mar. 29, 
Mar. 29, 



1918 



Nov. 13, 
Nov. 22, 
Nov. 28, 



1917 
1917 
1917 



Feb. 1, 1918 



Feb. 



Feb. 28, 

do. 

Mar. 5, 



1918 



2.55 



2.60 



2.15 
2.55 

2.60 
3.25 



ings. 



2.75 
2.75 
2.35 

2.40 



» Preparations of coal mined in the State of Washington must 
approved by the State mine price board. 



, 1918 
conform 



$2.65 



2.40 
2.80 

2.85 
4.50 



3.95 
3.25 



3.95 
3.25 
3.00 



6.00 
5.25 



5.00 
3.50 
3.25 



3.95 
3.75 
3.00 
1.50 



2.60 
2.65 



2.40 

2. 40 2. 65 

2.40 ! 2.65 

2. 40 2. 65 



2. 00 2. 25 1. 75 

to reports submitted to and 



GOVEKWMEFT EEGULATI01*fS RELATING TO PRICES. 



653 



MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL 
ADMINISTRATOR— Continued. 



District. 



Date when 
effective. 



Run of 
mine. 



West Virginia— Continued. 

' No. 8 or Pittsburgh seam, in Hancock, Brook, Ohio 
and Marsliall Counties 

No. 10 district; Coal and coke and Gauley Districts; 
Taylor, Barbour, Lewis, Buckhannon, Randolph, 
Gihier, Braxton, Webster, and Greenbrier Counties; 
operations in Nicholas Coimty east of the mouth of 
the Meadow Branch of the Gauley River, and the 
coal and coke district in Kanawha and Clay Counties 
north of Charleston .- — 

Fairmont district; Monongalia, Marion, and Harrison 
Counties 



Thacker District: Operations in McDowell County, 
west of Panther on the Norfolk & Western Ry. and 
in Mingo County west along the Tug Fork of the Big 
Sandy River to WilUamson on the Norfolk & West-^ 
ern Ry ; v;-- ••;■,• " 

New River district: Fayette County south of Hawk's 
Nest on the Chesapeake & Ohio R. R., and Fayette 
and Raleigh Counties south of Paintsville on the 
Virginian R. R., and Wyoming County north of 
Herndon on the Virginian R. R 

Logan district: Logan County and operations in 

V Boone Coimty south of Danville on the Chesapeake 

& Ohio R. R., and Lincohi County south of Gill on 

the Chesapeake & Ohio R. R 

Putnam County 

Kenova District: Operations on the watershed of the 
Tug Fork of the Big Sandy River west of Wilham- 
son on the Norfolk & Western Ry. and Wayne 
County - --- 

Kanawha district: Nicholas County west of the mouth 
of the Meadow Branch of the Gauley River; Fayette 
County west of Hawk's Nest on the Chesapeake & 
Ohio R. R., and north of Paintsville on the Vir- 
ginian R. R., and operations in Raleigh and Boone 
Counties on the watershed of the Clear Fork Branch 
of Coal River, Boone County, north of Danville on 
the Chesapeake & Ohio R. R.; Kanawha County 
south of Charleston and LincoJn County north of Gill 
on the Chesapeake & Ohio R. R 

Mines operated near Richmond, Nicholas County by 
the Saxman Coal & Coke Co 

Pocahontas district: New River district, Tug River 
district (as described in the order of the Umted 
States Fuel Administrator, Mar. 21, 1918) 

Mason County 

Do -- 

Hancock, Brook, Ohio, and Marshall Counties 

Three Forks Coal Co., in the New River district 

Wyoming 

Do - 

Sub-bituminous— 

Egg run 

Nut run 



Mar. 23,1918 



Apr. 20,1918 
do 



.do. 



.do. 



.do. 
.do. 



.do. 



do 

May 24,1918 



June 1,1918 
June 29,1918 
Aug. 29, 1918 
June 29, 1918 
Dec. 7, 1918 
Oct. 1,1917 
Mar. 11,1918 

Mar. 23,1918 
do 



S2.00 



2.30 
2.15 



2.30 



2.35 



2.15 
2. .50 



2.30 



2.25 
2.80 



(0 
2.35 
2.30 
L90 
2.55 
2.50 
2.65 



Prepared 
sizes. 



2.55 
2.40 



2.55 



2.60 



2.40 

2.75 



2.50 
3.05 



2.60 
2.55 
2.15 
2.55 
3.50 
3.30 

2.15 
2.00 



Slack or 
screen- 
ings. 



$1.75 



2.05 
1.90 



2.05 



2.10 



1.90 
2.25 



2.05 



2.00 
2.55 



2.10 
2.05 
L90 
2.00 
1.25 
1.50 



' Where slack or screenings passing through the accepted standard screens customarily used prior to 
Jan. 1, 1916, constituted not less than 55 per cent of the mine run output of any mine, such slack or screen- 
ings may be sold at the run-of-mine price applicable at said mine at date of shipment. 



REVISION OF DESCRIPTION OF CERTAIN DISTRICTS IN WElST VIRGINIA A^ CONTAINED IN PRICE 
ORDER OF APRIL 19, 1918, ANNOUNCED JUNE 27, 1918. 

New River district : County of Fayette east of the Ganley River to Hawks Nest on the 
Chesapeake & Ohio Railroad, and east of a line drawn from Hawks Nest to Roseville on 
the Virginian Railroad, and the counties of Fayette and Raleigh, south of Roseville, and 
the county of Wyoming north of Herndon on the Virginian Railroad. 

Kanawha district : County of Nicholas west of the mouth of the Meadow Branch of 
the Ganley River, the county of Fayette west of the Ganley River and north of the 
Kanawha and west of a line drawn from Hawks Nest on the Chesapeake & Ohio Rail- 
road to Roseville on the Vira:inian Railroad and operations in the counties of Raleigh 
and Boone on the watershed of the Clear Fork Branch of Coal River, and the county of 
Boone north of Danville on the Chesapeake & Ohio Railroad, and the counties of Kanawha 
and Clay south of Charleston and the county of Lincoln north of Gill on the Chesapeake 
& Ohio Railroad. 



654 



HISTOKY or PRICES DURING THE WAH. 



District. 



Lump. 



Kun of 
pile. 



Screen- 
ings. 



Coal at docks on Lake Michigan or Lake Superior: 
From Oct. 30, 1917, to Apr. 30, 1918— 

Yougliiogheny, Fairmont, Greensburg, and Westmoreland County 

fields 

No. 8 seam, eastern Ohio fields 

Hocking and Pomero.v, Ohio, fields 

West Virginia splint and lilock fields 

Kentucky gas and steam and splint and Mock fields 

Smokeless coal fields 

From June 1, 1918, to Apr. 30, 1919— 

Youghiogheny, Fairmont, Greensburg, Westmoreland No. 8 seam, 

Ohio and Hocking, and Pomeroy fields 

Harlan , Thacker , Keno va, and Kanawha fields 

Pocaliontas, New River, and Tug Kiver fields 

From Sept. 26, 1918, to Apr. 30, 1919— 

Southwestern district in Pennsylvania, Fairmont and Panhandle 

districts in West Virginia, and districts 3,8, and 9 in Ohio 

Harlan, Thacker, and Kenova districts in Kentucky; Thacker, 
Kenova, Kiiuawha, Mason County districts in West Virginia; 

districts Nos. 1,2,4, 5, 6, and 7 in Ohio 

Pocahontas, New River, and Tug districts in West Virginia 



16.60 
6.40 
6.60 
6.85 
7.20 

'7.70 



5.80 
6.30 
6.30 



6.30 
6.30 



$6.40 
6.20 
6.40 
6,65 
7.00 
6.55 



0.00 

6.05 
6.05 



6.05 
6.05 



56. 20 
6.10 
6.20 
6. 55 
6.55 
6.55 



5.30 
5.80 
6.05 



5.30 



5.80 
0.05 



1 Lump and egg. 

Alsove prices are based on freight rates between mines and Lake Erie ports, effective June 1. 1918. 
By order of November 20, 1918, the sum of $1.05 per gross ton was added to these prices. 

Cannel coal. — On June 28, 1918, prices of cannel coal were fixed as for those 
of bituminous coal at the mine where the coal was produced, except that if the 
producer held a permit he might sell lump cannel coal at not to exceed $1 per 
net ton over the price for run-of-mine bituminous at the mine where such coal 
was produced. 

Mixture of cannel and bituminous coal. — On February 26, 1918, the following 
ruling was announced : " Where cannel and hituminous coals are mixed the 
maximum price for the mixture sTiall be the mine price for the bituminous 
coal in such mixture." 

On July 16, 1918, regulations became effective as follows : 

Section 1. The prices of cannel coal shipped on and after the effective date 
of this regulation are hereby fixed f. o. b. cars at the mine per net ton at not to 
exceed the applicable Government mine price for bituminous coal at the mine 
where such cannel coal is produced : Provided, hotverer, That if the producer of 
such cannel coal shall obtain from the United States Fuel Administrator a 
permit therefor lump cannel coal may be sold for a sum not to exceed $1 per 
net ton above the applicable Government mine price for run-of-mine bituminous 
coal at tlie mine where such coal is produced. 

Sec. 3. When cannel coal is loaded into box cars a charge of .50 cents ijer 
net ton in addition to the prices fixed in section 1 hereof may be made to cover 
the cost of labor and material necessary to load such coal into box cars. No 
.such charge shall be made on shipments In box cars of cannel coal mixed with 
bituminous coal. 

Sec. 4. When run-of-mine or prepared cannel coal is mixed with bituminous 
coal of any size the mixture shall be sold at a price not to exceed the Govern- 
ment mine price for bituminous screenings appUeable at date of shipment at 
the mine wliere such cannel coal is produced. 

Sec. 5. When cannel coal from which the lumps have been screened is mixed 
with bituminous coal of any size the mixture shall be sold at a price not to ex- 
ceed the Government mine price for bituminous screenings applicable at date of 
shipment at "the mine where such cannel coal is produced less 30 cents per net 
ton. 

Modified mine-run coal. — By order of July 3, 1918, effective July 5, 1918, maxi- 
mum prices of " modified mine-run " coal were to be the Government prices 
for screenings at the mine where such coal was produced, plus tlie following 
percentages of the margin or difference between the applicable Government 
mine prices for mine run and screenings at such mines, viz : 

Run of mine passed through 2-inch openings, 40 per cent of such margin. 

Run of mine passed through 3-inch openings, 75 per cent of such margin. 



GOVERXMEISTT EEGLTLATIONS EELATIK^G TO PRICES. 655 

Run of mine passed tlirough 4-incli opeaings, 90 per cent of sucli margin. 

Rim of mine passed tlu-ough 5-ineh openings, 95 per cent of such margin. 

Run of mine passed through 6-inch or larger openings shall take the appli- 
cable Government price for the run of mine. 

Sized screenings. — An order fixing the prices of sized screenings, effective 
August 1, 1918, was as follows : 

1. Special sizes — passing over a mesh one-half inch in size and over the appli- 
cable Government mine price for prepared coal at the mine where such screen- 
ings were produced. 

2. Special sizes— passing over a mesh over one-fourth inch and under one- 
half inch in size, the applicable Government mine price for run-of-mine coal 
at the mine where such special sizes were produced. 

3. Fine sizes — ^from sized coal passing through mesh one-half inch or smaller 
in size, the applicable Government mine price for standard screenings at the 
mine where such fine screenings are produced less 30 cents per net ton. 

4. If fine screenings or "carbon" passing through one-half inch or vSmaller 
mesh as the result of producing special-sized screenings are mixed with other 
coal whether the same be mine run, prepared, or standard screenings, the 
selling price of the mixture shall not exceed the applicable Government mine 
price for standard screenings at the mine where such mixture is produced less 
30 cents per net ton. 

Smithing coal.— T'ntil February 15. 1918, smithing coal sold at the prevailing 
market prices. After that date it sold at the going Government price for 
prepared sizes of bituminous coal applicable to the mine producing such coal. 

On April 25, 1918, provisions were made for extra charges for special 
preparation, packing in bags, or loading into box cars. 

By order effective June 19, 1918, crushed run-of-mine smithing coal produced 
by the Sequatchie Coal Co. at its New Etna mines in Marion County, Tenn., 
was to be sold at $3.80 per net ton f. o. b. cars at such mines plus 50 cents 
-per net ton if loaded in box cars and plus the actua:i cost of bagging, as 
provided in the order of April 25, 1918. 

Export and bunker coal. — Until December 13,- 1917, the prices of coal as fixed 
by the President and modified by the Fuel Administrator, applied to export and 
bunker coal. 

Under order of December 13, 1917, the maximum price of such coal was 
named as the price at the mine at the time such coal left the mine plus trans- 
portation charges from the mine to port of lading plus $1.35 per ton of 2,000 
pounds. To this price, so computed, the seller of the coal or such other agency 
as performed the actual work of bunkering or loading the vessel, could add 
the customary charges for storage, special unloading and other port charges. 

On February 25, 1918, certain revisions were made in the previous order as 
tfollowB : 

1. No coal can be invoiced at the excess price provided in this order, except 
by the operator or dealer who actually loads it into foreign vessels, and only 
after the coal has been so loaded. 

2. After, and only after, such excess price has been collected in accordance 
with paragraph 1, all or such part of it as has been agreed upon beforehand 
may be paid to the dealer or dealers from or through whom the coal was ob- 
tained. 

3. In -setting the price of coal for foreign bunkering or export purposes, no 
jobber's margin or other commission in addition to the $1.35 per ton provided 
in the order shall be added to the price of the coal. 

4. The phrase " deliver to vessels for foreign bunkering purposes," mentioned 
above, is hereby held to mean coal put in the bunkers of any vessel sailing 
fi-om a tidewater port for any port outside the United States and Alaska, 
excepting naval vessels or Army transports. 

5. Coal shipped to possessions or dependencies of the United States, when 
consigned to any department of the United States Government, shall not take 

• the excess price provided by this order. 



656 HISTOEY OF PRICES DURIK^G THE WAR. 

Coal from wagon mines. — Under date of October 6, 1917, regulations were 
issued for prices of coal delivered direct to tlie consumer from tlie mine by 
wagon or truck: 

Coal delivered direct to the consumer from the mine by wagon or truck 
(whether from wagon mines or other mines) shall be sold at not more than 
the prices fixed by the President and the Fuel Administrator plus the actual 
cost of hauling. 

Coal bought by a railroad for its own use as fuel from a wagon-mine hauling 
to such railroad shall be sold at not more than the prices fixed by the President 
and the Fuel Administrator plus the actual cost of hauling. 

No charge for hauling may be made by an operator of a wagon mine or paid 
by the purchaser of the coal on coal shipped by rail, except where such ship- 
ment is made in box cars, in which case an additional charge not to exceed 75 
cents per ton may be made. In all other cases the price of wagon-mine coal on 
board cars shall not exceed the price prescribed by the President and the Fuel 
Administrator for coal at the mine. 

The first paragraph of the above ruling was amended on November 10, 1917, to 

read as follows: 

Coal sold at a mine to be delivered direct to the customer by wagon or truck 
may be sold at a price f. o. b. mines to be fixed by the local fuel administration 
committee in the community in which coal is delivered for consumption, subject 
to the approval of the State fuel administrator. Such local committee shall also 
in such cases fix the haulage rates to be charged where the coal is delivered by 
the mine operator. 

Specially prepared coal and coal not properly picked or cleaned. — On March 

11, 1918, provision was made for the sale of coal not conforming to requirements 
for preparation : 

Inspectors are authorized to condemn at the mines any coal loaded in railroad 
cars which, in their judgment, is not properly prepared, and any inspector find- 
ing unmerchantable coal shall immediately notify the district representative and 
the operator by wire or in person and in writing, giving the car numbers and 
initials of any and all ears so rejected and stating the facts on which such action 
Avas based. A copy of such notice shall be immediately mailed to the United 
States Fuel Administration, department of inspection, and to the district repre- 
sentative. If the district representative approves the inspection report, he 
shall so notify the operator at once, in which case, unless the operator unloads 
and reprepares the rejected coal, the consignee shall be permitted to deduct 50 
cents per ton from the authorized price for the grade of coal with which the 
car is loaded : Provided, however, The consig-nee, after examining the coal may, 
at his option, pay and the operator may receive the full authorized price. 

This regulation was revoked and a new one established on June 1, 1918 : 

If any such inspector shall find that any coal is about to be shipped which, in 
his opinion, does not conform to the requirements of section 1 hereof, said in- 
spector is hereby authorized to condemn such coal. The district representative, 
if he approves of such condemnation, shall immediately give notice of his ap- 
proval to the operator producing such coal, confirming such notice in writing, 
and thereupon such operator shall have the following options: 

To take such steps as may be necessary, after unloading the same, if in railroad 
cars or barges, to make the same conform to the provisions of section 1 hereof to 
the satisfaction of the inspector condemning the same; or 

To ship such coal and invoice the same with a deduction of 50 cents per net 
ton from the applicable Government mine price or from the contract price if 
such coal has been sold under contract and the contract price differs from said 
Government price. 

An increased price was allowed for specially prepared coal in a regulation 
effective April 1, 1918 : 

Picl-ed, spiralized, nnd irashed coal. — When coal, in addition to being screened 
into sizes, has been picked upon tables or loading booms, or has been cleaned 
by means of spiral or other mechanical separators or washers, in such manner, 
that the fuel value and the cost of preparation are substantially increased and 



goverjStmeitt eegulatioe"s eelatuvTG to pkices. 657 

tlie total output substantially decreased through removal of waste and impuri- 
ties, said coal may be sold, but only for shipment loaded on board cars at the 
mine on or before July 31, 1918, at an increase in price of not to exceed 20 cents 
per net ton above the applicable Government selling price at the date of ship- 
ment for the respective grades, defined as " run of mine " and " prepared sizes," 
that are actually picked, spiralized, or w^ashed, if the producer thereof has, in 
the manner provided in Sections III and IV of this regu^lation, obtained a 
temporary permit for making such additional charge. In cases where the above 
maximum of 20 cents is not sufficient, in the opinion of the United States Fuel 
Administrator, to compensate for this work a special temporary permit authoriz- 
ing a larger increase to such amount and under such circumstances as the 
United States Fuel Administrator may deem proper, may in the discretion of 
the United States Fuel Admintrator be issued as hereinafter in Sections III and 
IV provided. 

This order, too, was revoked and a new one became effective June 1, 1918. 

Mechanical preparation. — No special allowance will be made for the ordinary 
method of cleaning or picking coal employed in any district, but a special allow- 
ance will be made for coal mechanically washed or extraordinarily cleaned or 
picked in such manner that the fuel value of the coal has been substantially in- 
creased by the removal of waste and impurities. 

COKE. 

The price of coke, under regulations announced November 9, 1917, were to be 
understood as the maximum price per ton of 2,000 pounds f. o. b. cars at the 
plant where it was manufactured. 

GENERAL ORDERS IN REGARD TO COKE. 

APRIL 1, 1918. 

That all cases of sale of coke, manufactured east of the 94th meridian, to 
consumers located west of the 115th meridian, where the seller assumes the 
responsibility for the quality and delivery of such coke, and extends credit to, 
and carries the account of, the purchaser in accordance with the usual trade 
practices, there may be added 5 per cent to the established price of the coke 
f. o. b. cars at the point of manufacture. 

APEIL 26, 1918. 

(1) The maximum price of coke sold and delivered for export to foreign 
countries, or to a possession or dependency of the United States, shall be the 
price prescribed for such coke at the ovens at the time such coke left the ovens, 
plus transportation charges from the ovens to the port of loading, plus 60 cents 
per ton of 2,000 pounds. 

(2) To this price, computed as above, the seller of the coke or such other 
agency as performs the actual work of loading the vessel may add the cus- 
tomary and proper charges, if any, for unloading from railroad cars into ships, 
for towing, elevation, trimming, railroad and ship demurrage, and other port 
charges. 

(3) The additional 60 cents per ton of 2,000 pounds herein authorized may 
not be added to the price of coke as figured above where the coke is delivered 
solely by rail to foreign countries. 

(4) No coke- shall be sold and delivered for export to foreign countries, or to 
a dependency or possession of the United States by ocean transportation before 
the vendor has secured a permit from the United States Fuel Administration 
authorizing the sale. Applications for such permits should be made to the coke 
division of the United States Fuel Administration and should contain, first, the 
name of the consumer and the destination of the coke ; second, the tonnage to be 
shipped. 

(5) The 5 per cent provided for in the order of March 26, 1918, for coke 
manufactured east of the 94th meridian and delivered to customers located west 
of the 115th meridian, may be added to the established price for all coke ex- 
ported from the Pacific coast in addition to the 60 cents allowed in this order. 

Paragraph 4 of this order was revoked on December 19, 1918. 

125547°— 20 42 



658 



HISTORY OF PRICES DURING THE WAR. 



Beehive coke. — Tlio luaxiimnn pi-iccs for various grades of beehive coke made 
in the districts west of the INIississippi River, except as modified, were to bear 
the same ratio to the established price of the coal from which the coke was 
made as the average contract prices of the same gnules of coke had to the 
average prices of coal during the years 1912 and 1913. 

The expression " 72-hour selected foundry coke " was to cover only coke 
selected in accordance with the usual trade practice for foundry use, and the 
prices named for 72-hour selected foundry coke were in no case to be charged 
for any shipments to blast furnaces for smelting iron or other metal. 

To these base prices, as tabulated, there was to be added the freight rate 
from the plant where the competing beehive coke was produced, except that 
tliere should be added, in addition, for coke manufactured in New England, 7 
cents for each 5 cents above 60 cents in the freight rate charges per ton (2,240 
pounds) of coal for water transportation on the coal used in the manufacture 
of such coke. 



District. 



Beehive coke east of the Mississippi River, base prices 

Modifications. 
Alabama: 

From coal mined iu Black Creek, Brookwood, and 

Blue Creek districts 

MauuIactLired by Empire Coal Co. at Empire 

From coal mined in Big Seam district 

Coke made from coal mined in the Big Seam district. . 

New Castle Coal Co 

United States Cast Iron Pipe & Foundry Co 

From coal mined from the Nickel Plate seam 

U.S. C. S. & F. Co., if coke is made from Black Creek 

coal 

Coke made from coal mined from the Black Creek, 

Blue Creek, and Brook wood districts 

Empire Coal Co 

Coke made from coal mined in the Nickle Plate district . 

Empire Coal Co. at Empire 

Coke made at the plant of the Newcastle Coal Co., at 

New Castle, JefJerson County 

Coke made from coal mined from the upper bench of 

the Big Seam - 

Coke from washed coal District No. 1 , except the New- 
castle Coal Co - 

Prepared sizes above f inch $8. 30 

Prepared sizes below ^ inch 6. 00 

Breeze 3. 50 

Yolande Coal & Coke Co., and District No. 2, except 

the Empire Coal Co 

Prepared sizes above f inch $10. 05 

Prepared sizes below ^ inch 7. 75 

Breeze 4. 38 

Newcastle Coal Co. and district No. 3, except the Gulf 
State Steel Co. at Savre, and the Yolande Coal & 

CokeCo ." 

Prepared sizes above | inch §9. 15 

Prepared sizes below ^ inch 6. 85 

• Breeze 3.93 

Empire Coal Co 

Prepared sizes above J inch $10. 80 

Prepared sizes below 5 inch 9. 50 

Breeze 5. 23 

Gulf State Steel Co. at Sayre 

Prepared sizes above f inch $9. 80 

Prepared sizes below f inch 6. 50 

Breeze 4. 25 



Colorado 

Georgia: 

Durham Coal & Coke Co 

Walker County 

Kentucky: 

Marrowbine Mining Co. at Lookout, Pike County 

Pike County, except at the plant of the Marrowbine 
Mining Co 

Hopkins County 



Date when 
effective. 



Nov. 10,1917 



Jan. 30,1918 

....do 

....do 

Feb. 15,1918 

....do 

....do 

Mar. 20,1918 



Mar. 30,1918 



....do 

Feb. 15,1918 
Mar. 20,1918 
Apr. 15,1918 



June 28,1918 
Aug. 14,1918 
Sept. 3,1918 



.do. 



-do. 



.do. 



/Apr. 15,1918 

\May 8, 1918 

Dec. 31,1917 

Feb. 1.5,1918 

July 1,1918 

July 29,1918 

Nov. 18,1918 



48-hour 

blast 

furnace. 



$6.00 



8.00 
8.25 
6.75 
0.75 
7.50 
8.50 
7.00 



8.00 
8.25 
7.00 



72-hour 
selected 
foimdry. 



8.50 
7.00 



7.85 



10.50 



8. 50 



8.00 
8.75 



6.50 
7.25 



$7.00 



8.00 
8.25 
0.75 
6.75 ; 
7.50 \ 
8.50 I 
7.00 , 

8.75 



8.25 
7.00 
8.75 

8.25 

9.50 

8.00 



9.75 



8.85 



10. 50 



9.50 



8.00 
8.75 



Crushed 
over 
1-inch 
size. 



$7.30 



8.00 
8.25 
6.75 



7.00 



9.80 
8.00 



7.50 
8.25 



GOVERNMENT REGULATION'S RELATING TO PRICES. 



659 



District. 



Modificat ions — C on tinued 
New Mexico 

Oklahoma: 

McCurtain Coke Co., for coke f. o. b. Panther on the 
main line of the Fort Smith & Western R . R 

Howe plant of the Howe-McCartain Coke Co 

Pennsylvania: 

Taylor and McCoy at Glen White, Blair Coimty 

Indiana County: Coke made from -vyashed coal taken 
exclusively from the lower bench of coal from the 
upper Fremont seam, if the ash exceeds 10 per cent 
or if the sulphui' exceeds 0.9 per cent 

If the ash is less than 10 per cent and the sulphur is less 
than 0.9 per cent 

Cambria County 

Sewanee Fuel & Iron Co., Lone Rock ovens at Tracy 

City 

Coalraont 

Cumberland County 



Utah. 

Virginia: Wise and Lee Counties 

Washington 

West Virginia: 

Babcock Coal & Coke Co., Scotia Coal & Coke Co., Fire 
Creek Coal & Coke Co., all in Fayette County 

New River district on Chesapeake & Ohio R. R. run- 
ning from Thurmond north as far as Elmo and on the 
Chesapeake & Ohio R. R ., and Kanawha, Glen Jean 
and Eastern Railroads running from Thurmond as 
far southwest as McDonald 

Preston Comity 

Flat Top or Pocahontas district 

Coke made at Meridan, Barbour County. ■ 

Tucker County • 

Kanawha district, Fayette County 

Nicholas Coimty 

New River district 

Marion and Harrison Coimties 

Barbour and Randolph Counties 

Preston County ■ 

Monongalia County 

Austed • 

New River district 

Do 

Logan County 

Taylor County 



Date when 
effective. 



Apr. 26, 1918 



Feb. 15, 1918 
May 13, 1918 

Dec. 31, 1917 



Mar. 1,1918 



do , 

Mar. 20, 1918 



Dee. 31, 1917 
Apr. 26,. 1918 
June 25, 1918 
July 9,1918 
May 13,1918 
Mar. 30, 1918 



Dec. 31, 1917 



Feb. 15, 
Mar. 1, 

do.. 

do.. 

Mar. 20, 
Mar. 30, 

do.. 

Feb. 15, 
Apr. 26, 

do.. 

Mar. 30, 
Apr. 15, 
June 25, 
June 26, 
July 12, 
Aug. 14, 
Nov. 18, 



1918 
1918 



1918 
1918 



48-hour 

blast 
furnace. 



73-hour 
selected 
foundry. 



1918 i 
1918 



1918 
1918 
1918 
1918 
1918 
1918 
1918 



S8..50 



10.75 
10.75 



8.50 
7.25 



8.25 
7.25 
7.25 
8.50 
7.25 
10.00 



8.00 
6.75 
8.00 
6.75 
7.00 
6.50 
7.75 
8.00 
6.25 
6.75 
6.75 
6.25 
7.00 
8.00 
8.00 
6.75 
6.75 



Crushed 
over 
1-inch 
size. 



$9. 50 



1L75 
1L75 



8.50 
8.25 



8.25 
8.25 
8.25 
9.50 
8.25 
11.00 



8.00 
7.75 
8.00 
7.75 
8.00 
7.50 
7.75 
8.00 
7.25 
7.75 
7.75 
7.25 
8.00 



8.00 
7.75 
7.75 



$8.00 



1 Any grade. 

Note.— The following classifications and prices were announced July 8, 1918: 

The maximum price for crushed coke over J-inch size shall be the maximum price for 72-hour selected 
foimdry coke, plus 30 cents. *" , ^ ,.,-.„,», i 

The maximum price for all prepared sizes of clean dry screened coke under f-mch size shall be 851 less 
than the price for blast-furnace coke made at beehive ovens where such coke is produced. 

The maximum price for breeze shall be one-half the price established for blast-furnace coke made m 
beehive ovens where such breeze is produced. j ^ , 

The maximum price for mixed sizes of properly screened and cleaned beehive or by-product coke, 
suitable for domestic purposes, shall be %l less than the maximum Government price for selected foundry 
coke, f. o. b. cars at the same point, effective July 25, 1918. This was modified on Sept. 30, 1918, and all 
coke as described above and reclaimed from accumulated breeze piles shall be 15.50. 

BY-PRODUCT COKE. 



District. 



By-products coke, base prices Nov. 19, 1917 



Date when 

effective. 



Mar. 20, 1918 
Sept. 1, 1918 
do 



Modifications. 
Alabama: 

Coke madef rom coal mined in the Nickel Plate district. 

From washed coal 

All by-product coke made in Alabama 

Prepared sizes above | inch $8. 25 

Prepared sizes below | inch 6. 75 

Breeze 3.88 

Tennessee: Chattanooga Mar. 1, 1918 

Washington Mar. 30, 1918 



Run of 
oven. 



$6.00 



7.00 
5.70 
7.75 



8.25 
10.00 



Selected 
foundry. 



$7.00 



7.00 
6.70 
8.75 



9.25 
11.00 



Crushed 

over 
1 inch in 

size. 



S6.50 



8.75 



660 



HISTORY or PRICES DURING THE WAR. 



Order of July S, 1918. 

The niaxinuiin price for crushed coke over 3-inch sizes, produced by any by- 
product oven plant, was to be the maximum price for run of oven colce, plus 50 
cents. 

The maximum price for all prepared sizes of clean dry screened coke under 
3-inch size, was to be .$1 per ton less than the Government price for run of oven 
coke made in by-product ovens where such coke was produced. 

The maximum price of breeze was to be one-half the Government price for 
run of oven coke made in by-product ovens where such coke was produced. 

Order of July 24, 1918. 

The maxinmm price for mixed sizes of properly screened and cleaned by- 
jn-oduct coke suitable for domestic purposes, Avas to be $1 less than the maxi- 
mum Government price for selected foundry coke f. o. b. cars at the same point. 

Order of September 1, 1918. 

Thirty cents was thereafter to be deducted from all prices for by-product 
coke as previously published, except in the State of Washington. 

Gas coke. — Under the original orders regulating the sale of coke, the maxi- 
mum price of gas coke sold for industrial or metallurgical use was to be as 
that of the Government price for the corresponding grade of coke produced iu 
by-product ovens. 

Gas coke sold for household purposes was to be sold at the Government 
price established for anthracite coal in the same locality. 

On July 8 an order was issued for more definite control of gas coke prices. 



district. 



Date when 
effective. 



Base 
price. 



July 9,1918 

do 

....do 

....do 

Aug. 1,1918 

do 

....do 

....do 



Localities whore anthracite coal is not obtainable: 

Run of retorts 

Screened above j|-inch size 

Screened and sized about J-inch size , 

Screened and sized between § and f inch 

Run of retorts 

Screened above -3 -inch size 

Prepared sizes above 3-inch size 

Prepared sizes below f-inch size 

Colorado, except at Colorado Springs: 

Run of retorts 

Screened over J inch 

Prepared sizes above f-inch .*. ' do 

Prepared sizes below 3-inch " 1 do 

Run of retort Nov. 27, 1918 

Run of retort, screened over 3-inch screen do 

Prepared sizes above 3-inch ! do 

Prepared sizes below f-inch L .'. . .do 

Colorado Springs ! 

Indiana, at Rvansville: 

Run of retort Nov. -1, 1918 

Run of retort, screened over 3-inch screen ' 

Prepared sizes above |-inch ' 

Prepared sizes below 3-ineh | 



Sept. 30,1918 
do 



«5. .50 
6.00 
6.50 
4.50 
5.50 
fl. 00 
6.50 
4.50 

5.50 
6.00 
6.50 
4.50 
6.00 
6.50 
7.00 
5.00 



(') 



7.45 
7.95 
8.45 
6.45 



I Prices as scheduled, plus 50 cents per ton. 



Where anthracite coal was obtainable, Ihe maximum prices of various grades 
of gas coke were to be as follows : 

Screened and sized above f inch, the same price as that established for stove 
anthracite in the same locality. 

Run of retorts screened about f inch, 25 cents less than the price of stove 
anthracite. 

Run of retorts not screened, 75 cents less than the price of stove anthracite. 

The maximum price of breeze was to be one-half the Government price for 
run of retorts coke unscreened, made in gas retorts where such breeze was pro- 
duced. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 661 

An order of August 1, 1918, superseding tlie above, provided that the maxi- 
mum price for screened and sized above f inch should be the same as the 
Government price for the stove anthracite f. o. b. cars at the mines in that 
district, vfhich took the lowest freight rate to the plant where the coke was 
produced, plus that freight rate. 

Other grades were priced as before, with the addition of said freight rate. 

CHARCOAL. 



Commodity. 



Lump in bulk 

Lump in bags 

Screenings in bags. 



Date when 
effective. 



July 9, 191S 

do 

do 



Price 

per 

bushel. 



Cents. 
30 
32 
20 



Note.— These prices are per bushel of 20 pounds f. o. b. cars at point of shipment. 

An order of August 13, 1918, permitted the completion, at the contract price, of contracts for the sale of 
charcoal, entered into prior to July 8, 1918. 

JOBBERS' MARGINS AND DISTRIBUTORS' COMMISSIONS. 

An Executive order of the President of August 23, 1917, established the first 
margins for jobbers along with the President's prices for anthracite coal: 

The following regulations shall apply to the intrastate, interstate, and for- 
eign commerce of the United States, and the prices and margins referred to 
herein shall be in force pending further investigation or determination thereof 
by the President. 

jobbers' margins. 

1. A coal jobber is defined as a person (or other agency) who purchases 
and resells coal to coal dealers or to consumers without physically handling it 
on, over, or through his own vehicle, dock, trestle, or yard. 

2. For the buying and selling of bituminous coal a jobber shall not add to 
his purchase price a gross margin in excess of 15 cents per ton of 2,000 pounds, 
nor shall the combined gross margins of any number of jobbers who buy and 
sell a given shipment or shipments of bituminous coal exceed 15 cents per 
ton of 2,000 pounds. 

3. For buying and selling anthracite coal a jobber shall not add to his pur- 
chase price a gross margin in excess of 20 cents per ton of 2,240 pounds when 
delivery of such coal is effected at or east of Buffalo. For buying or selling 
anthracite coal for delivery west of Buffalo a jobber shall not add to his pur- 
chase price a gross margin in excess of 30 cents per ton of 2,240 pounds. 
The combined gross margins of any number of jobbers who buy and sell a 
given shipment or shipments of anthracite coal for delivery at or east of 
Buffalo shall not exceed 20 cents per ton of 2,240 pounds, nor shall such com- 
bined margins exceed 30 cents per ton of 2,240 pounds for the delivery of 
anthracite coal west of Buffalo ; provided that a jobber's gross margin realized 
on a given shipment or shipments of anthracite coal may be increased by not 
more than 5 cents per ton of 2,240 pounds when the jobber incurs the expense 
of rescreening it at Atlantic or lake ports for transshipment by water. 

Additional regulations were announced by the United States Fuel Adminis-. 
tration on October 6, 1917. 

REGULATIONS CONCERNING JOBBERS. 

Operators who maintain their own sales department, whether in their own 
name or under a separate name, and dispose of coal directly to the dealer or 
consumer shall not charge any jobber's commission. A jobber must be entirely 
independent of the operator in fact as well as in name in order to be entitled 
to charge a jobber's commission. 

Free coal shipped from the mines subsequent to the promulgation of the 
President's order fixing the price for such coal shall reach the dealer at not 



662 HISTORY OF PRICES DURING THE WAK. 

more than the price tised by the Pres^iiileiU's order plus only the prescribed 
jobbers' commission (if the coal has been purchased through a jobber) aud 
transportation charges. 

A jobber who had already contracted to buy coal at the time of the Presi- 
dent's order fixing tlie price of sucli coal and who was at that time already 
under contract to sell tlie same may till his contract to sell at the price named 
therein. 

A jobber who at the time of the President's order fixing the price of the 
coal in ■ question at the mine had contracted to buy coal at or below the 
President's price and at that time had no contract to sell such coal shall not 
sell the same at a price higher than the purchase price plus the proper jobber's 
commission as determineil by the President's regulation of August 23, 1917. 

A jobber who at the time of the President's order fixing the price of the 
coal in question was under contract to deliver such coal at a price higher than 
a price represented by the price fixed by the President or the Fuel Adminis- 
trator for such coal plus a proper jobber's commission as determined by the 
President's regulation of August 23, 1917, shall not fill such contract with coal 
purchased after the President's order became effective and not contracted for 
prior thereto at a price in excess of the President's price plus the proper 
jobber's connnission. 

A jobber who at the date of the President's order fixing the price of the coal 
in question held a contract for the purchase of coal without having already 
sold or contracted to sell such coal shall not sell such coal at more than the 
price fixed by the President or the Fuel Administrator for the sale of such 
coal after the date of such order plus the jobber's commission as fixed by the 
President's regulation of August 28, 1917. 

Every jobb(>r of coal or coke in the United States shall file with the Federal 
Trade Connnission, Washington. D. C, on or before October 2-5, 1917. a state- 
ment showing (1) his name: (2) post-office address; (3) date of the establish- 
ment of his business; (4) names of stockholders, members, and partners of 
the jobbing concern; (5) financial interests of stockholders, members, and 
partners of the jobbing concern in any mine producing coal. Any jobbing 
concern which may be established after the issuance of this regulation shall 
immediately upon its organization file a similar statement with the Federal 
Trade Commission.'' 

On March 15, 1918, the President issued a proclamation licensing all persons 
engaged in the business of distributing coal and coke except those exempted by 
Congress. Licenses were requiretl by April 1, 1918, and licenses included job- 
bers, brokers, selling agents, purchasing agents, wholesalers or dealers in any 
capacity. 

A license board M^as appointed by the Fuel Administration, and regulations 
governing licenses were elfective April 1, 1918.^ 

RETAIL PRICES. 

Local committees were organized for determining the proper basis for sales 
by retail dealers. 

Retail gross margins were established by the Fuel Administrator on October 
1, 1917. 

On and after the 1st day of October, 1917, in making prices and sales to 
consumer, the retail gross margin (as hereinafter defined) added by any retail 
dealer to the average cost (determined as hereinafter provided) of any size 
or grade of coal or coke for each class of business shall not exceed the average 
gross margin added by such dealer for the same size or grade for each class 
of business during the calendar year 191.5. plus 30 per cent of said retail gross 
margin for the calendar year 1915 : Provided, however. That the retail gross 
margin added by any retail dealer shall in no case exceed the average added 
by such dealer for the same size, grade, and class of business during .Tuly, 1917. 

By this oi'der retailers are required to fix a retail gross margin which may 

^ Modifications of those regulations issued from time to time appear in pp. 444-451; 
of the General Orders, Regulations, and Rulings of the Fuel Administration. 

2 General Orders, Regulations, aud Rulings of the Fuel Administration, pp. 452—467. 



GOVEKNMENT REGULATIONS EELATinSTG TO PRICES. 663 

be less than but shall not in any instance exceed the margin added by them iu 
1915 plus 30 per cent thereof. 

Definition of retail gross margin. — The retail gross margins of the diftereat 
classes of retail coal and coke dealers are defined as : 

(1) The difference between the price charged by a retail coal or coke dealer 
to consumers and the average cost of coal or coke to such retailer, free on 
board railroad cars at his railroad siding, yard, pocket, or trestle, when such 
coal or coke is received by him by rail. 

(2) The difference between the price charged by a retail coal or coke dealer 
to consumers and the average cost of coal or coke to such retailer free along- 
side his wharf, pocket, or water yard, when such coal or coke is received by 
him bj^ water. 

(3) The difference between the price charged by a retail coal or coke dealer 
to consumers and the average cost of coal or coke to such retailer at whole- 
salers' pockets, trestles, railroad sidings, mines, tipples, dumps, docks, yards, 
or wharves/ 

PETROLEUM. 

There wiis never any Government regulation of i>etroleum prices, but those 
prices were stabilized through the cooperation of the Petroleum War Service 
Committee with the Oil Division of the Fuel Administration, 

The chief of the oil division in a letter to the chairman of the War Industries 

Board, under date of April 25, 1918, made the following statement : 

<* 
" The petroleum war service committee, as a result of an extended conference 
with me on the subject of prices, have requested that prices of petroleum prod- 
ucts be fixed^in the same way that steel prices were fixed. If this be done, it 
will greatly simplify the matter of allocation of purchases." " 

The matter was referred to the price-fixing committee and some discussion 
of it appears in the minutes of the price-fixing committee for July 15, 1918, but 
no action was ever taken.* 

The petroleum war service committee finally worked out a stabilization policy 
acceptable to the oil division. 

This plan of August, 1918, was effective on contracts entered into after May 
17, 1918, and was to continue in force until November 1, 1918, or thereafter. 
This plan applied to certain petroleum producing districts : 

For the Appalachian division: 1. That the large purchasing companies con- 
tinue to purchase crude oil at their posted market price, and that all other 
purchasers who now pay a premium for crude oil be hereafter permitted to pay 
a premium not to exceed 10 cents per barrel above the posted prices for the 
various grades of ci'ude oil. 

2. That all producers are requested to make monthly sales of their crude oil. 

The Mid-continent division : 1. That the large purchasing companies continue 
to purchase crude oil at their posted price in the Mid-continent field, and that 
all other purchasers who now pay a premium for crude oil be permitted hereafter 
to pay up to a maximum premium above posted market prices as follows : 

For Gushing crude, a maximum premium of 75 cents per barrel. 

For Yale and Inay, a maximum premium of 50 cents per barrel. 

For Garber crude, a maximum premium of $1.50 per barrel. 

For Billings crude, a maximum premium of 75 cents per barrel. 

For Kay County crude, a maximum premium of 75 cents per barrel. 

For Healdon crude, a maximum premium of 30 cents per barrel. 

For all other crudes for the whole Mid-continent division, including Kansas, 
Oklahoma, and northern Texas, a maximum premium not to exceed 25 cents 
per barrel with the strict understanding that in no district in which premiums 
are being paid of less than 25 cents per barrel, will the United States Fuel 
Administrator permit the paying of a higher premium than is now in effect. 

1 Detailed regulations appear in pp. 199-204 of the General Orders, Rules, and 
Regulations. 

2 Minutes of War Industries Board and letter in correspondence files. 

3 Minutes of price-fixing committee, Vol, VI, July 15, 1918. 



664 



HISTOEY OF PRICES DURIIsTG THE WAR. 



Gulf coast and noi-thern Louisiana division : 1. That the large purchasing 
companies in the Gulf coast territory he requested to estahlish a posted price 
for crude oil effective as of August 1, 1918, of $1.80 per barrel, and continue 
to pav said price until November, 1918; and tliat a maximum premium be es- 
tablished above the posted price of 10 cents per barrel, with the strict under- 
standing that in no district in which premiums are l>eing paid of less than 10 
cents per barrel, will the United States Fuel Administrator permit the paying 
of a higher premium than is nuw in effect. 

2. That the large purchasing companies establish a differential of 25 cents 
per barrel below the posted price of Gulf coast oil for northern Louisiana heavy 
oil below 32d. gravity, and that a premium of 10 cents per barrel be permitted 
on this grade of oil ;' that on light crude oil a premium of 25 cents per barrel 
be permitted, with the strict understanding that in no case where premiums 
of less than 10 cents and 25 cents per barrel, respectively, have been paid, will 
the P\iel Administrator permit the paying of higher premiums than are now 
in effect.' 

The Fuel Administrator fixed the price of certain petroleum products to pur- 
chasing agents of allied Governments on purchases from May 20, 1918, to July 

19, 1918 : 

F. O. B. GULF PORTS. 



Fuel oil, British Admiralty specifications, 150 Abel flasli 

Fuel oil, United States Navy specifications 

Standard white refined l^erosene, 135 fire test, minimum gravity 44° Baum6 . 

Gasoline, United States Navy specifications 

Aviation naphtha, British specifications, 302° F. final boiling point 




F. O. B. NORFOLK, BALTIMORE, PHILADELPHIA, AND NEW YORK. 



Fuel oil. United States Navy specifications 

Standard white refined kerosene, 135 fire test, minimum gravity 44° Baum6. 

Gasoline, United States Navy specifications 

Aviation naphtha, British specifications, 302° F. final boiling point 

Mexican reduced oil, 14/16 gravity for bunker purposes 



7.50 

8.25 

23.50 

32.00 

6.00 



4. METALS AND METAL PRODUCTS. 



The formal fixing of maximum prices in tliis group began on September 21, 
1917, when the price of copper was fixed by the War Industries Board. Fol- 
lowing this date price fixing was extended, first, by the War Industries Board, 
and after April, 1918, by the price-fixing committee, to cover other metals and 
their products. 

A detailed summary of the Government regulations pertaining to the fixed 
price of aluminum, copper, iron, and steel, lead, manganese ore, nickel, platinum, 
quicksilver, silver, and zinc is presented in the following schedules : 

ALUMINUM. 

In the fall of 1917 the Aluminum Co. of America agreed to accept direct and 
indirect Government orders at the current price of 30 cents, base. If the price 
were fixed later at a lower point, the United States Government would receive 
the difference between this contract price and the fixed price. 

On March 2, 1918, the War Industries Board and the producers agreed upon 
a maximum base price of 32 cents per pound f. o. b. United States producing 
plant for 50 tons and over of ingot of 98 to 99 per cent. 

The conditions accompanying the agreement were: 

First, the producers of aluminum will not reduce the wages now being 
paid; second, aluminum shall be sold to the public in the United States and 
to the Allies at the United States Government price; third, they will take 
the necessary measures, under the direction of the War Industries Board, for 
the distribution of aluminum to prevent it from falling into the hands of 
speculators who might increase the price to the public; and, fourth, they will 
pledge themselves to exert every effort necessary to keep up the production 
of aluminum so as to insure an adequate supply so long as the war lasts. 

After an investigation by the price-fixing committee and the Federal Trade 
Commission of the costs of producing aluminum, the following announcement 
was made on May 28, 1918 : 

The President has approved an agreement made between the producers of 
aluminum and the price-fixing committee of the War Industries Board (after 
investigations by this committee in conjunction with the Federal Trade Com- 
mission as to the cost of production) that the new maximum base price for 
aluminum, effective June 1, 1918, to September 1, 1918, shall be 33 cents per 
pound f. 0. b. United States producing plants, for 50 tons and over, of ingot | 
of 98 to 99 per cent. Differentials for sheet, rod, and wire will be increased 
by approximately 12^ per cent ; differentials for alloys will remain as here- 
tofore, i. e., those approved by the price-fixing committee of the War Industries] 
Board on March 3, 1918. 

The new prices will be effective on deliveries made during the period from 
June 1. 1918, to September 1,' 1918, on contracts made during said period; 
and furthermore, the new prices will be effective on deliveries made during 
said period on existing contracts which specify that the price shall be that in 
force at the time of delivery. Deliveries made during the period June 1, 1918, 
to September 1, 1918, on other contracts shall be at the price stated in such 
contracts, except that on existing " direct and indirect Government contracts " 
containing a provision that refund is to be made of the difference between the 
price stated in the contract and the " Government fixed price, if, as, and when 

I Quoted from the Plan to Stabilize Prices and Maintain Uninterrupted Plow of Crude, issued by the 
national petroleum war service committee, New York City, Aug. 18, 1918. 

665 



666 



HISTORY OF PRICES DURING THE WAR. 



made," such difference shall be refunded on deliveries made during the period 
from June 1, 1918, to September 1, 1918, on presentation of proper proof that 
the purchasing Government gets the benefit of the refund. 

The conditions are as formerly : First, the producers of aluminum will not 
reduce the wages now being paid ; second, aluminum shall be .sold to the United 
States Government, ^o the public in the United States, and to the allied 
governments at the same maximum base price; third, they will take the neces- 
sary measures, under the direction of the War Industries Board, for the 
distribution of aluminum to prevent it from falling into the hands of specu- 
lators who might increase the price to the public; and, fourth, they will pledge 
themselves to exert every effort necessary to keep up the production of 
aluminum so as to insure an adequate supply so long as the war lasts. 

The prices of June 1, 1918, were continued on September 1, 1918, and re- 
mained effective until March 1, 1919. 

The following prices represent the ofhcial scheduled issued by the nonferrous 
metals section of the War Industries Board: 

ALUMINUM. 
[Prices in cents per poimd.] 



98 per cent grade 

94 per cent grade 

98 per cent grade (srannlated). 

94 per cent (granulated) . . 

No. 12 alloy 



Ingot. 



Mar. 6-May 31, 1918. 



1-ton 
lots. 



32.20 
31.40 
32.40 
31.60 
32.40 



15-ton 
lots. 



32.10 
31.30 
32.30 
31.50 
32.30 



50-ton 
lots. 



32.00 
31.20 
32.20 
31.40 
32. 20 



June 1, 1918-Mar. 1, 1919. 



1-ton 
lots. 



33.20 
32.40 
33. 40 
32.60 
33.40 



1.5-ton 
lots. 



33. 10 
32.30 
33.30 
32.50 
33.30 



.50-ton 
lots. 



33.00 
32.20 
33.20 
32.40 
33.20 



r. 0. b. producing plant (extras): 



Cents per 
pound. 

For guaranteed 99 per cent (above the price of 98 per cent) 20 

For shipment from warehouse (plus freight from producing plant) 50 

For 500 pounds to 1,999 pounds 1 

For 50 pounds to 499 pounds 3 

For less than 50 pounds 5 

FLAT SHEET. 
[Prices in cents per pound.] 





Mar. 6-May 31, 


1918. 


June 1, 


1918-Mar. 


1, 1919. 


Gauge. 


1-ton 

lots. 


15-ton 
lots. 


50-ton 
lots. 


1-ton 
lots. 


15-ton 
lots. 


50-ton 
lots. 




40.40 
41. 40 
43. 40 
45.40 
48.40 
46.40 
48. 40 
47.40 
50.40 
49.40 
52.40 
52.40 
56.40 
54.40 


40.20 
41.20 
43.20 
45. 20 
48.20 
46.20 
48.20 
47.20 
50.20 
49.20 
52.20 
52.20 
56. 20 
54.20 


40.00 
41. 00 
43.00 
45.00 
48.00 
46.00 
48.00 
47.00 
50.00 
49.00 
52.00 
52.00 
56.00 
54.00 


42.40 
43.50 
45. 80 
48.00 
51.40 
49.20 
51.40 
50.30 
53.70 
52.50 
65.90 
5.5.90 
60.40 
58.20 


42.20 
43.30 
45.60 
47.80 
51.20 
49.00 
51.20 
50.10 
53.50 
52.30 
55. 70 
55.70 
60.20 
58.00 


42.00 


Nos 19 and 20, ,3 to 60 inches 


43.10 


(3 to 30 inches 

Nos. 21 to 24, inclusive! 30 to 4-8 inches 

148 to 60 inches 

»T «. T n-fS to 30Lncbes 


4.5. 40 
47.60 
51.00 

48.80 


Nos. 25 and 26|^o^°^^^8^j^^]^^ " " ; ; 


51.00 




49.90 


JN 0. z/'i 3Q (0 48 inches 


53.30 


■NT oqJ'^ to 30 inches 


52.10 


'^°- -^^30 to 48 inches 

kT on f 3 to 30 inches 


55. ,50 

55.50 


N°- 29(30 to 48 toches ..:::.:.:::::..:::; 


60.00 


No 30, 3 to SOinclies . ... 


57.80 







F. o, 



b. Producing plant (extra): 

For guaranteed 99 per cent 

For shipment from warehouse (plus freight from producing plant). 

For 600 pounds to 1,999 pounds 

For 50 pounds to 499 pounds 

For loss than 50 pounds 



Per pound. 

$0.20 

1.00 

01 

03 

05 



Note.— Grades 3S and 98 per cent. 



GOVEElSiMElSrT KEGULATIONS RELATIIsTG TO PRICES. 



667 



FLAT SHEET CIRCLES. 



Nos. 18 
Nos. 19 

Nos. 21 

Nos. 25 

No. 27. 

No. 28. 

No. 29. 
No. 30, 



and heavier, 3 to 60 inches, 
and 20, 3 to 60 inches - 



(3 to 30 inches. 
3<^30to' 



and 26. 



to 24, inelusive<^30to 48 inches. 

(48 to 60 inches. 

p to 30 inches.. 
• "ISO to 48 inches. 

/3 to 30 inches.. 
\30 to 48 inches - 

/3 to 30 inches-. 
••• \30 to 48 inches. 

/3 to 30 inches.. 

\30 to 48 inclies . 

3 to 30 inches 



42.40 
43.40 
45.40 
47.40 
50.40 
48.40 
50. 40' 
49.40 
52.40 
51.40 
54.40 
54.40 
58.40 
56.40 



42.20 
43.20 
45.20 
47.20 
50.20 
48.20 
50.20 
49.20 
62.20 
61.20. 
64.20 
54.20 
68.20 
56.20 



42.00 
43.00 
45.00 
47.00 
50.00 
48.00 
50.00 
49.00 
52.00 
51.00 
64.00 
54.00 
58.00 
66.00 



44.70 
45.80 
48.00 
60.30 
53.70 
51.40 
53.70 
52.50 
55.90 
54.80 
68.20 
68.20 
62.70 
60.40 



44.50 
45 60 
47.80 
50.10 
53.50 
61.20 
53.50 
52.30 
65.70 
54.60 
58.00 
58.00 
62.50 
60.20 



41.30 
45.40 
47.60 
49.90 
53.30 
51.00 
53.30 
52.10 
55.50 
54.40 
57.80 
67.80 
62.30 
60.00 



F. o. b. producing- plant (extras) : Per pound. 

For guaranteed 99 per cent .^0.20 

For shipment from warehouse (plus freight from producing plant) 1. 00 

For 500 pounds to 1,999 pounds . 01 

For 50 pounds to 499 pounds . 03 

For less than 50 pounds ,05 

Note. — Grades 38 and 98 per cent. 

17-L. FLAT SHEET. 



Nos. 18 and heavier, 3 to 40 inches 

Nos. 19 and 20, 3 to 24 inches 

Nos. 21 to 24, inchisive, 3 to 24 inches . 

Nos. 25 and 26, 3 to 24 inches 

No. 27, 3 to 24 inches , 

No. 28, 3 to 24 inches , 

No. 29, 3 to 24 inches , 

No. 30, 3 to 24 inclies 



59.40 
60.40 
62.40 
65.40 
66.40 
68.40 
71.40 
73.40 



59.20 
60.20 
62.20 
66.20 
66.20 
68.20 
71.20 
73.20 



69.00 
60.00 
62.00 
65.00 
66.00 
68.00 
71.00 
73.00 



63.80 
64.90 
67.20 
70.50 
71.70 
73.90 
77.30 
79.50 



63.60 
64.70 
67.00 
70.30 
71.50 
73.70 
77.10 
79.30 



63.40 
64.50 
66.80 
70.10 
71.30 
73.50 
76.90 
79.10 



F. o. b. producing plant (extras) : Per pound. 

For shipment from warehouse (plus freight from producing plant) $1. 00 

For 500 pounds to 1,990 pounds__ . 01 

For 50 pounds to 499 pounds . 03 

For less than 50 pounds . 05 

Note. — These prices include tempering. If untempered sheet is ordered, deduct 6 cents 
from above prices. 

COILED SHEET. 



Gauge. 



Mar. 6-May31, 1918. 



1-ton 
lots. 



• 15-ton 
lots. 



50-ton 
lots. 



June 1, 191S-Mar. 1, 1919. 



1-ton 
lots. 



15-ton 
lots. 



50-ton 
lots. 



Nos. 12 
Nos. 18 
Nos. 21 
Nos. 23 
No. 25, 
No. 26, 
Nos. 27 
Nos. 29 
Nos. 31 
No. 33, 



to 17, 3 to 18 inclies... 
to 20, 3 to 16 inches- . . 
and 22, 3 to 15 inches . 
and 24, 3 to 14 inches - 

3 to 13 inches ... 

3 to 13 inches 

and 28, 3 to 12 inches . 
and 30, 3 to 12 inches, 
and 32, 3 to 12 inches . 
3 to 12 inches 



$37. 40 



$37.20 



S37. 00 



$39. 00 



S38. 80 



S38. 60 



-.; 38.40 38.20 38.00 40.20 40.00 ' 39.80 

! 39.40 39.20 39.00 41.30 41.10 40.90 

I 41.40 41.20 41.00 43.60 43.30 43.10 

4.3.40 43.20 43.00' 45.80 45.60 45.40 

I 45.40 45.20 45.00 48.00 ■:7.80 47.60 

5. b. producing plant (extras) : Poi- pound 

For guaranteed 99 per cent ^o 26 

For shipment from warehouse (plus freight from producing plant) I 1 00 

For 500 pounds to 1,999 pound.s ." 01 

For 50 pounds to 499 pounds '. 03 

For less than 50 pounds .05 



F. 



Note. — Grades .SS and 98 per cent. Coiled sheet wider than th 
limits of equipment) takes the price of flat sheet of the same gauge 



above (if within the 
xnd width. 



668 



HISTORY OF PRICES DCTRING THE WAR. 



COILED SHEET CIRCLES. 



Nos. 12 
Nos. 18 
Nos. 21 
Nos. 23 
No. 25, 
No. 26, 
Nos. 27 
Nos. 29 
Nos. 31 
No. 33, 



to 17, 3 to 18 inches \] 

to 20, 3 to 16 inches 

and 22, 3 to 15 inches \\ $39. 40 

and 24, 3 to 14 inches j | 

3 to 13 inches 

3 to 13 inches 

and 28, 3 to 12 inches 

and 30, 3 to 12 inches 

and 32, 3 to 12 inches 

3 to 12 inches 



40.40 
41.40 
43.40 
45.40 
47.40 



839.20 


S39.00 


841.30 


$11.10 


40.20 


40.00 


42.40 


42.20 


41.20 


41.00 


43.50 


43.30 


43.20 


43.00 


45.80 


45.60 


45.20 


45.00 


48.00 


47.80 


47.20 


47.00 


50.30 


50.10 



$!0. 90 



42.00 
43.10 
45.40 
47.60 
49. 90 



F. o. b. producing plant (extras) : Per pound. 

For guaranteed 99 per cent $0. 20 

For shipment from warehouse (plus freight from producing plant) 1.00 

For 500 pounds to 1,999 pounds .01 

For 50 pounds to 499 pounds .03 

For less than 50 pounds , .05 

Note. — Grades 3S and 98 per cent. Coiled sheet circles wider than the above (if 
within the limits of equipment) take the price of flat sheet circles of the same gauge and 
diameter. 

WIRE. 



Gauge. 


Spools 
(pounds) . 


Mar. 6 to May 31, 
1918. 


June 1, 
Mar. 1 


1918, to 
, 1919. 


On 

spools. 


In coils. 


On 
spools. 


In coils. 




50 

50 

•35 

20 

20 

10 

10 

10 

10 

5 or 2 

5 or 2 

5 or 2 

1 

1 

i 


$0.44 

.47 

.50 

.57 

.63 

.75 

.84 

.96 

1.08 

1.29 

1.49 

1.74 

2.09 

2.49 

3.44 

4.49 


$0,415 
.44 
.465 
.515 
.565 
. .665 
.74 
.84 
.94 


$0. 465 

.499 

.533 

.611 

.689 

.714 

.815 

1.050 

1.1S5 

1.421 

1.646 

1.928 

2.321 

2.771 

3.840 

5.021 


$0. 437 


Nos. 11 and 12 


.465 


Nos. 13 and 14 ; 


.493 


Nos 15 and 16 


.549 


Nos. 17 and 18 


.606 


Nos. 1 9 and 20 


.718 


No. 21 


.803 


No 22 . 


.915 


No. 23 


1.028 


No 24 




No 25 






No 26 






No 27 






No. 28 






No. 29 - 






No 30 













F. o. b. producing plant (extras) : Per pound. 

For guaranteed 99 per cent $0. 20 

For shipment from wai^house (plus freight from producing plant) 1.00 

zzziiiiiizziiiizzirmiiiiiiiiiiiii . 03 

. 05 

. 05 



For 500 pounds to 1,999 pounds- 

For 50 pounds to 499 pounds 

For less than 50 pounds 

Straightened and cut to length __ 

Note. — Grade 98 per cent. 

STEEL METALLURGY ROD. 



[Prices in cents per pou 


nd.] 










Mar. 6-May 31, 1918. 


June 1-Mar. 1, 1919. 




1-ton 
lots. 


15-ton 
lots. 


50-ton 
lots. 


1-ton 
lots. 


15-ton 
lots. 


50-ton 
lots. 


1 inch, 98 to 99 per cent rolled 


33.20 
32.40 


33.10 
32.30 


33.00 
33.20 


34.30 
33.40 


34.20 
33.30 


34.10 


1 inch, 94 to 98 per cent rolled 


33.20 







o. b. producing plant (extras) : Per pound. 

For guaranteed 99 per cent (above the price of 98 per cent) $0. 20 

For shipmejit from warehouse (plus freight from producing plant) 1. 00 

For 500 pounds to 1,099 pounds . 01 

For 50 pounds to 499 pounds . 03 

For less than 50 pounds • — . 05 



GOVERNMENT EEGULATIONS RELATING TO PEICES. 669 

ROD. 



Mar. 6-May 
31, 1918. 



June 1, 1918- 
Mar. 1, 1919. 



f to I inch, 98 per cent rolled and drawn 

I to 1 inch, advancing by 32ds 

1 to 2f inches, advancing by 16ths [-98 per cent rolled. 

2f to Si inches, advancing by 8ths 



S40. 00 
41.00 



S48. 80 
43.10 



F. o. b. producing plant (extras) : Per pound. 

For guaranteed 99 per cent $0. 20 

For shipment from warehouse (plus freight from producing plant) 1.00 

For SOU pounds to 1,999 pounds . 01 

For 50 pounds to 499 pounds . 03 

For less than 50 pounds . 05 

Note. — Price includes straightening and cutting to length. 

COPPER. 

At the request of the President, the War Industries Board on September 21, 
1917, in conference with the producers of copper, fixed the maximum price of 
copper at 23.5 cents per pound. This price was made to apply to sale of copper 
to the United States and allied Governments and to the American public. 

The agreement was subject to the follov/ing conditions : First, that the pro- 
ducers of copper will not reduce the wages now being paid ; second, that they 
will sell to the United States Government, to the public in the United States, 
and to the allied Governments at not above the maximum price ; third, that they 
will take the necessary measures, under the direction of the War Industries 
Board, for the distribution of copper to prevent it from falling into the hands 
of speculators, M-ho might increase the price to the public ; and fourth, that they 
will pledge themselves to exert every effort necessary to keep up the production 
of copper so as to insure an adequate supply so long as the war lasts. 

The following summary table indicates the changes in the fixed price of cop- 
per made from time to time by the War Industries Board and the dates at which 
those changes were made : 



Price per pound (cents). 


Date when effective. 


Date oi revision. 


23.5 


September 21, 1917 . . 


January 23, 1918. 
June 1, 1918. 


23.5 


January 23, 1918 


23.5 


Junel, 1918 


August 15. 1918. 
Do. 


261 


July 2, 1918 


26 2 


August 15, 1918 


November 1 1918 


26 . . . .... 


Nnvp.mhfir !. 1918 


January 1, 1919. » 


«r 



' F. o. b. ears or lighters at refinery if shipped from eastern refineries; f. o. b. New York if shipped from 
western refineries. 

2 P. 0. b. cars or lighters at eastern refineries; f. o. b. ears or lighters at Pacific coast refineries for Pacific 
coast destinations; f. o. b. cars or lighters New York if shipped to eastern or interior destinations frcm 
Pacific coast refineries or from refineries in the interior of tlie United States. 

s Price control was discontinued on this date. 

On June 5, 1918, a schedule of differentials was announced. The schedule 
follows : , . 

DifferentiaU of June 5, 1918. 



Listed rectangular cakes : 

801 to 1,500 pounds $3. 50 

1,501 to 3,300 pounds 4. 50 

3,301 to 4,800 pounds 6.00 

Bowl cakes 3. 00 

Ingots . 1. 00 

Round cakes 3. 00 



Slabs .$1. 50 

Wire bars, 300 to 500 pounds 2. 50 

Wedge bars or cakes 3. 50 

Billets : 

4 and 5 15. 00 

6 12. 00 

7 and 8 10.00 



These differentials were recommended by the nonferrous metals section of the 
War Industries Board and approved by price-fixing committee. 



670 



HISTORY OF PRICES DURING THE WAR. 



IRON AND STEEL. 

The first price agreement between the War Industries Board and representa- 
tives of the iron and steel industry was announced on September 24, 1917. 
Maximum prices of iron ore, coke, pig iron, steel bars, shapes, and plates were in 
that agreement fixed to become immediately effective and to be subject to 
revision on January 1, 1918. 

On October 11 and again on November 5. 1917. schedules of ])asie maximum 
prices on additional intermeiliate and finished iron ami steel products werc^ 
announced. Maximum prices of other products in this group became effective 
with the issue of schedules on November 13, November 20, and December 22, 
1917, and on January 7, 1918. The prices of all iron and steel products not 
specifically mentioned in these schedules were to be fixed by the industry in 
conformity with those already announced. 

These price schedules carried with them the following stipulations: First, 
there shall be no reduction in the current rate of wages ; second, the fixed 
prices shall apply to purchases by the United States and Allied Governments 
and by the American public; and, third, every effort shall be exerted by the 
industry to maintain a high level of production. 

^XJast-steel slugs. — On September 25, 1918. a maximum price of IJ cents per 
pound f. 0. b. Pittsburgh was announced for cast steel slugs. This price 
continued until December 31, 1918. 

Steel rails. — On December 3, 1918, the price-fixing committee fixed the fol- 
lowing prices for steel rails to apply to orders placed by the War and Navy 
Departments : 

Bessemer rails, $55 per gross ton f. o. b. mill. 

Basic rails, $57 per gross ton f. o. b. mill. 

These prices pertained to contracts already made by War and Navy Depart- 
ments and were not to affect contracts made subsequent to December 3, 1918. 

The price schedules below include all original base prices and all changes in 
base prices as issued by the American Iron and Steel Institute in January, 
August, and November, 1918. All schedules of differentials, extras, discounts 
from published lists, classifications, and announcements by the committee on 
steel and steel products of the Iron and Steel Institute are not here included, but 
they can be found in the pamphlets issued by the American Iron and Steel Insti- 
tute in January. August, and November, 1918. 



Commodity. 


Date or 
period. 


Price fixed. 

• 


Iron ore - »: 




Lower Lake ports. 

$5.05 per gross ton. 

$0.45 per ton additional. 

$0.25 per ton additional. 

Increases are due to increased 
freight rates, and are subject to 
cliange with further changes in freight 
rates. 

S6 per net ton. 

$33 per gross ton, f. o. b. furnace. 

$34 per gross ton. 

$33 per gross ton, f . o. b. furnace. 

$32 per gross ton, f. o. b. furnace. 

$33 per gross ton. 

$32.50 per gross ton. 


Mesabi Range, non-Bessemer 


Sept. 24, 1917 
July 1, 1918 
Oct. 1,1918 

■ 
Sept. 24, 1917 
do 


Do 


Do 


Coke, Connellsville 


Pig iron: 

No. 2 foundry 


Basic 


Oct. 1, 1918 
Sept. 24, 1917 
Apr. 1, 1918 
Oct. 1, 1918 
do 


Standard Bessemer 


€lianges in basing points 


do 


Viiginia, Tennessee, and Birmingtiam 
districts and tlie scattering districts 
south of the Ohio and Potomac Eivers. 
including furnaces at St. Louis but not 
those bordering on tho Ohio River. 

Eastern district; i. e., from all blast fur- 




F. 0. b. Birmingham. 




F. 0. b. Pittsburgh. 
F. 0. b. furnace. 


naces located' east' of the Alleghany 
Mountains and north of tho Potomac 
River. 
From all other producing districts or 




furnaces. 







GOVEKNMEjSTT REGULATIOlSrS EELATING TO PRICES. 



671 



Commodity. 



Date or 
period. 



Price fixed. 



Iron and steel scrap 

No. 1 heavy melting scrap 

Do 

No. 1 railroad wrougiit 

Cast-iron borings and macliine-sliop turnings . 
Iron products: 

Iron bars, base sizes 

Cast-iron water pipe, 6-inch and larger, class 
B or heavier. 



Nov. S, 1917 
Apr. 1,1918 
Nov. 5,1917 
do 



Nov. 13,1917 



Dec. 22,1917 



Rolled tie plates 

Iron . .'. 

Steel (see Steel products). 

Standard railroad spikes : . 

Iron 

Steel products: 

Blooms, billets, slabs, and sheet bars. 



Oct. 
Dec. 
June 
Oct. 
Dee. 
June 
Oct. 
Dec. 



1, 1918 

22. 1917 

25. 1918 
1, 1918 

22. 1917 

25. 1918 
1,1918 

22, 1917 



Dec. 22,1917 



Oct. 11,1917 



Blooms and billets, 4 by 4 inches and 



Blooms and billets smaller than 4 by 4 
inches. 

Slabs 

Sheet bars 

Shell bars 

3 to 5 inches 

Over 5 to 8 inches 

Over 8 to 10 inches : 

Over 10 inches 

Forrfng steel 

Billets, blooms, and slabs 

Forging ingots (basic or acid opeu-hearth 
steel). 

Up to and including 36 inches diameter, 
with carbon not over 0.25, cast in chilled 
molds. 
Steel bars and small shapes (under 3 inches, 
including shell steel). 

Rail steel bars (rolled from old steel rails) 

Steel bands, hoops, and strips , 

Bands 

Hoops 

Hot-rolled strip steel 

Steel structural shapes 

3-inch and over 

Steel plates 



Oct. 1L1917 



Nov. 13,1917 
i)ec.""22,"i9i7 



Sept. 24,1917 

Dec. 22,1917 
Mav 21,1918 



Light rails (45 pounds per yard and under).. 
Including 10 per cent lengths, down to 
and including 24 feet. 

Splice joints complete for light rails 

8-pound section 

Ranging to— 

45-pound angle bars 

Rolled steel angle splice bars 

Standard sections T rails, 50 pomids per 
yard and heavier. 

Rolled tie plates 

Steel 

Skelp 

Grooved skelp 

Universal skelp 

Sheared skelp 

Steel pipe 

|-inch to 3-inch black 



Sept. 24, 1917 

Sept." 24,' 1917 

July 1, 1918 
Nov. 20,1917 



Dec. 22,1917 



Dec. 22,1917 
Dec. 22,1917 



Oct. 11,1917 
Nov."5,"i9i7 



Boiler tubes 

Special skelp— 

Base sizes 

Other sizes 

Seamless steel tubes 

Round billets, base sizes .... 
Cold-roUed and cold-dra%vn steel. 



Nov. 13,1917 



Cold-rolled strip steel 

1^ inch and wider, 0.100 inch and thicker, 
hard temper, in coils under 0.20 carbon. 



Nov. 13,1917 
Nov. '5,' 1917 
Nov. 20,1917 



F. 0. b. consuming point. 
130 per gross ton. 
129 per gross ton. 
$35 per gross ton. 
•1520 per gross ton. 

S3.50 per 100 pounds. 

Per net ton of 2,000 pounds, without 

penaltv. 
.1549-| 
S55VF. o. b. Birmingham. 

scoJ 

$55. 35i 

S62. 70 >¥. o. h. New York. 



35. 35-) 

52. 70 ^F. o. 

37. 70 J 



iS54 351 

$6L8()>F. o. b. Chicago. 
$66. SO-' 

F. o. b- maker's mill. 
$3. 75 per 100 pounds. 

F. o. b. cars Pittsburgh. 
S4. 50 per 100 poimds. 



F. 0. b. Pittsburgh or Youngstown, 

Ohio. 
S47. 50 per gross ton. 

$51 per gross ton. 



$50 per gross ton. 
$51 per gross ton. 
F. 0. b. Pittsburgh. 
$3.25 per 100 pounds, 
$3.50 per 100 pounds. 
$3.75 per 100 poimds. 
$4 per 100 pounds. 
F. 0. b. Pittsburgh. 
$60 per gross ton. 
F. o. b. maker's mill. 

$73 per gross ton. 



$2.90 per 100 pounds f. o. b. maker's 

mill. 
$3 per 100 poimds f. o. b. maker's mill. 
F. 0. b. Pittsburgh. 
$3.50 per 100 pounds. 
Do. 
Do. 
F. o. b. Pittsburgh or Chicago 
$3 per 100 poimds. 
$3.25 per 100 pounds f. u. b. Pittsburgh 

or Chicago. 
F. o. b. Pittsburgh. 
F. o. b. maker's mill. 
$3 per 100 pounds. 



F. o. b. maker's mill. 
$0.16 per complete joint. 

$1 per complete joint. 
F. o. b. maker's mill. 
$3.25 per 100 pounds for 25 gross tons or 

more. 
F. o. b. maker's mill. 
$3.25 per 100 pounds. 

82.90 per 100 pounds. 
$3.15 per 100 pounds. 
$3.25 per 100 poimds. 

Discount of 52 and 5 and 2i per cent 
from manufacturers' published 
standard list. 

F. o. b. Pittsburgh. 

$3.40 per 100 poimds. 
$3..55 per 100 pounds. 
F. 0. b. Pittsburgh. 
$3.25 per 100 poimds. 
Discount of 17 per cent from list pub- 
lished in pamphlet. 

$6.50 per 100 pounds. 



672 



HISTORY OF PRICES DURING THE WAR. 



Commodity. 



Date or 
period. 



Trice fixed. 



Steel product s— Continued . 

Ilot-rollcd trip steel 

Finished 

Unfinisliod, for cold rolling 

Sheets (Bessemer and opeu-heartli) 

No. 28 black sheets 

No. 10 blue annealed 

No. 2.8 galvanized 

Tin plate, coke base (Bessemer and open- 
hearth grades). 

Standard steel cut nails 

20d to 6d 

Cut tacks, brads, shoe finders' goods, etc. (to 
the jobtjing trade). 

Net base 

Steel wood screws 

Chain 

^inch common steel-proof coil chain, self- 
colored or blacked. 

1-ineh base 

Boat spikes, base sizes , 

Standard railroad spilces 

Steel, i\ by 4} inches and hea\ner, 200 
kegs or more '(200 pounds each). 

Less than 200 kegs 

Iron (see iron products). 

Standard railroad track bolts 

Standard button head, oval neck, 3J 
inches and larger, by J inch and larger, 
with United States standard square 
nuts and rolled threads, 200 kegs or 
more (200 pounds each). 

Less than 200 kegs 

Bolts, nuts , and rivets 



Nov. 20,1917 
Nov."5,'i9i7 



Nov. 5,1917 
Dec. 22,1917 
Nov.'26,i9i7 



Nov. 20,1917 

'Nov.'26,"i9i7 

May 21,1918 
Nov. 13,1917 
Dec. 22,1917 



Large rivets .^ 

Boiler 

Horse and mule shoes 

Extra swaged, extra light, light, medium, 
heavy, long heel, short heel, city pat- 
tern, and snow shoes, also mule shoes 
No. 2 and larger. 

Calks 

Toe- 
Blunt, medium, fiat, and square pat- 
tern — 

200-ton lots and over 

Less than 200 tons to carloads, in- 
clusive. 

Less than carloads 

Sharp pattern — 

200-ton lots and over 

Less than 200 tons to carloads, in- 
clusive. 
■CT J Less than carloads 

Blunt and medium pattern — 

200-ton lots and over 

Less than 200-tons to carloads, in- 
clusive. 

Less than carloads 

Shai-p pattern— 

200-ton lots and over 

Less than 200 tons to carloads , in- 
clusive. 

Less than carloads 



Dec. 22,1917 



/Nov. 13,1917 
\May 21,1918 

do 

July 16,1918 



July 16,1918 



Tool steel. 



High speed- 
High speed 

Tungsten finishing steel. 

Carbon — 

Nonshrinkable 

Special 

Extra 

Regular 



Wire and wire products 

Wire rods, No. 5 common 

AVire , plain 

AVire products- 
Barbed \vire, standard two-point and four- 
W point hog and cattle pattern, painted. 
Ire nails, 20d to 60d, common 

Wire rope 



. o. b. Pittsburgh. 

:.50 per 100 poimds. 

i.50 per 100 pounds. 

. o. D. Pittsburgh. 

i per 100 poimds. 

.25 per 100 pounds. 

i.25 per 100 pounds. 

.75 per 100-poimd base box f. o. b. 

Pittsbirrgh. 

. 0. b. Pittsburgh. 

': per 100 pounds. 



$8.80 per 100 pounds. 
Discounts from standard list, 
r. o. b. I'ittsburgh. 
.!;8 per 100 pounds. 

$7.50 per 100 pounds. 

$5.25 per 100 pounds f. o. b. Pittsburgh. 

F. 0. b. cars, Pittsburgh. 

$3.90 per 100 pounds. 

$1 per 100 pounds, extra. 

F. o. b. cars Pittsburgh. 
S4 .90 p3r 100 pounds. 



$1 per 100 pounds , extra. 

F. 0. b. Pittsburgh. 

S4.65, base. 

$4.40, base. 

$4.50, base. 

Per 100 pounds, f. o. b., Pittsburgh. 

$5.75. 



Per 100 pounds f. o. b., Pittsburgh. 



$5.50. 

$5.75. 



Oct. 11,1917 
Nov. 5,1917 



Nov. 13,1917 

/....do 

\Aug. 28, 1918 



$5.90. 



$6.00. 
$6.25. 



$6.40. 



$6.00. 
$6.25. 

$6.40. 

$6.50. 
$6.75. 

$6.90. 

Mill shipments f. o. b. point of ship- 
ment and net without discount. 

82 per pound. 
$0.65 per pound. 

$0.35 per pound. 

$0.23 per pound. 

$0.18 per pound. 

$0.15 per pound. 

Add 1 cent to each of above prices 
when shipped from maker's ware- 
house stocks. 

F. 0. b. Pittsburgh. 

$57per gross ton. 

$3.25 per 100 pounds. 

S3 .65 per 100 pounds. 

$3. .50 per 100 pounds. 
Discounts or additions applying to 
standard list. 



GOVERNMENT -KEGULATIONS RELATING TO PRICES. 673 

LEAD. 

The price of lead was never formally fixed, but was regulated by informal 
agreements between the War Industries Board and the lead producers. 

On December 17, 1917, a price of 7.75 cents per pound f. o. b. East St. Louis, 
to be effective from that date until the end of March, 1918, was agreed upon 
by the nonferrous metals section of the War Industries Board and the lead 
producers' committee. 

On April 8, 1918, it was agreed with the approval of the price-fixing com- 
mittee that the price of lead in any month should be the average monthly price 
f . 0. b. East St. Louis, quoted by the Engineering and Mining Journal in that 
month. Where the price f. o. b. New York was lower than the price at East 
St. Louis, 7i cents per 100 pounds w^as to be deducted from the East St. Louis 
price. 

On June 14, 1918, the lead producers' committee agreed that no pig lead other 
than Government purchases should be sold at more than 7i cents per pound 
f. o. b. East St. Louis. The Engineering and Mining Journal considered no 
sales as made at a higher figure in computing its monthly average price at East 
St. Louis. It was further decided regarding this agreement : 

1. It should go into effect at once for an "indefinite period. 

2. Further contracts should be as slated and existing contracts modified to 
conform to the agreement. 

3. Other lead producers should be urged to become parties to the agreement. 
The same agreement was extended again in August, 1918, until November 30, 

1918, when the agreement expired, and was not renewed.* 

MANGANESE ORES. 

The price of manganese was not fixed formally. A schedule of prices adopted 
by the American Iron and Steel Institute was approved by the ferro alloys 
division of the War Industries Board. Since manganese was not bought 
directly by the United States Government, these prices pertained to purchases 
by producers of steel. 

The prices listed below became effective May 29, 1918, and were discontinued 
on December 31, 1918. 

The following schedule gives domestic metallurgical manganese ore prices per 
unit of metallic manganese per ton of 2,240 pounds for manganese ore produced 
and shipped from all points in the United States west of South Chicago, 111. 
This schedule does not include chemical ores as used for dry batteries, etc. The 
prices are on the basis of delivery f. o. b. cars South Chicago and are on the 
basis of all-rail shipments. When shipped to other destination than Chicago 
the freight rate per gross ton from shipping point to South Chicago, 111., is to be 
deducted to give the price f. o. b. shipping point. 

Schedule for metallic manganese ore containing when dried at 212° F. — 
Per cent. Per unit. 

35 to 35.99, inclusive $0.86 

36 to 36.99, inclusive ± . 90 

37 to 37.99, inclusive .94 

38 to 38.99, inclusive . 98 

39 to 39.99, inclusive__- 1. 00 

40 to 40.99, inclusive 1. 02 

41 to 41.99, inclusive 1. 04 

42 to 42.99, inclusive 1. 06 

43 to 43.99, inclusive--. - 1. 08 

44 to 44.99, inclusive= : 1. 10 

1 Report of nonferrous metals section to Mr. Baruch. 
125547°— 20 43 



674 



HISTORY OF PRICES DURING THE WAR. 



Schedule for metallic manganese ore containing ivhen dried at i^l;i F.° — Continued. 
Percent. Per unit. 

45 to 45.99, inclusive $1.12 

46 to 46.99, inclusive 1. 14 

47 to 47.99, inclusive 1. IG 

48 to 48.99, inclusive 1. 18 

49 to 49.99, inclusive 1. 20 

50 to 50.99, inclusive 1.22 

51 to 51.99, inclusive 1. 24 

52 to 52.99, inclusive 1. 26 

53 to 53.99, inclusive 1.28 

54 to 54.99, inclusive 1. 30 

ADDITIONS TO UNIT PRICES. 

For manganese ore produced in tlie United States and shipped from points 
in the United States east of South Chicago 15 cents per unit of metallic manga- 
nese per ton shall be added to above unit prices. 

Above prices are based on ore containing not more than 8 per cent silica and 
not more than 0.25 per cent phosphorus, and are subject to — 

Silica premiums and penalties. — For each 1 per cent of silica under 8 per cent 
down to and including 5 per cent premium at rate of 50 cents per ton. Below 
5 per cent silica, premium at rate of $1 per ton for each 1 per cent. 

For each 1 per cent in excess of 8 per cent and up to and including 15 per cent 
silica there shall be a penalty of 50 cents per ton ; for each 1 per cent in excess of 
15 per cent and up to and including 20 per cent silica tliere shall be a penalty of 
75 cents per ton. 

For ore containing in excess of 20 per cent silica a limited tonnage can be 
used, but for each 1 per cent of silica in excess of 20 per cent and up to and 
including 25 per cent silica there shall be a penalty of $1 per ton. 

Ore containing over 25 per cent silica subject to acceptance or refusal at buyer's 
option, but if accepted shall be paid for at the above schedule with the penalty 
of $1 per ton for each extra unit of silica. 

All premiums and penalties figured to fractions. 

Phosphorus penalty. — For each 0.01 per cent in excess of 0.25 per cent of phos- 
phorus there shall be a penalty against unit price paid for manganese of one- 
half cent per unit, figured to fractions. 

In view of existing conditions, and for the purpose of stimulating production 
of domestic manganese ores, there will be no penalty for phosphorus so long as 
the ore shipped can be used to advantage by the buyer. The buyer reserves the 
right to penalize excess phosphorus as above by giving 60 days' notice to the 
shipper. 

The above prices to be net to the producer ; any expenses, such as salary or 
commission to buyer's agent, to be paid by the buyer. 

Settlements to be based on analysis of ore sample dried at 212° F. The per- 
centage of moisture in ore sample as taken to be deducted from the weight. 

On August 17, 1918, the United States Railroad Administration announced the 
following schedule of freight rates on manganese ore, establishing rates lower 
than the prevailing rates carried in current tariffs : 

MANGANESE ORE, CARLOAD, PER TON OF 2,000 POUNDS. 
[Minimum carload weight, 60,000 pounds.] 



From stations in — 



Group D.i 



Group 2.2 



Groups B 
andC.3 



Group A.< 



Oregon 

Washln^on. 
Califorma. . . 

Montana 

Arizona 

Colorado 

Nevada 

Utah 

New Mexico 



$11.00 
U.OO 
11.00 
8.00 
9.00 
7.00 
10.00 
9.00 
7.00 



$12. .50 
12.50 
12.00 
9.50 
9.00 
7.00 
11.00 
10.00 
7.00 



$12. 50 
12.50 
12.50 

9.50 
10.50 

8.50 
11.50 
10.50 

8.50 



$15.50 
13.50 
13.50 
10.50 
11.50 

9.50 
12.50 
11.50 

9.50 



* Group D: Chicago, Indiana Harbor, and Erie. 

2 Group 2: Points in Alabama and Tennessee taking Group C rates. 

3 Groups B and C: Youngstown, Pittsburgh, Buffalo, and points in Ohio. 

* Group A: Points in .seaboard territory, including Goshen, Graham, Reusens, and Roanoke, Va. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 675 

NICKEL. 

On January 4, 1918, a resolution was adopted by the War Industries Board 
stating that it was not necessary at that time to fix the price of nickel/ 

On April 2, 1918, however, an agreement was made with the International 
Nickel Co. to supply the Government requirements for nickel at the following 
rates : 

Cents per pound. 

Electrolytic nickel , 40 

Shot nickel 88 

Ingot nickel . 35 

These prices were to be effective for the duration of the war and were re- 
moved on January 1, 1919. 

PLATINUM METALS. 

The control over the supply and prices of platinum metals was exercised 
through a series of requisition orders issued by the Ordnance Department and 
administered by the chemicals division of the War Industries Board. The first 
ordnance requisition order, No. 510, issued on "February 23, 1918, applied to 14 
firms dealing in platinum, including refiners, jewelers, and dental supply firms. 

Under date of May 1, 1918, a second requisition of the War Department was 
issued through the platinum section of the War Industries Board. This super- 
seded the order of February 23, 1918, and was to cover all purchases to July 1, 
1918. About 900 dealers were affected by this second order. 

After conference with the Secretary of War, the platinum section announced 
the following prices for Government purchases of platinum metals : 

Per troy ounce. 

Blatinum r ^ $105 

Iridium 175 

Palladium 135 

On June 21, 1918, the third of the series of requisitioning orders, covering 
1,555 firms, was issued. The order became effective June 30, 1918, and con- 
tinued so until January 1, 1919. The prices of May 1, 1918, were maintained. 
In this order the prices of all platinum metals were fixed except when the 
metal was contained in articles of jewelry where the value of the labor exceeded 
20 per cent of the value of the metal. 

The control over platinum metals was terminated on December 1, 1918. 

QUICKSILVER. 

The War Industries Board, in conference with the producers of quicksilver, 
agreed upon the following prices for Government supplies of quicksilver. The 
prices were effective from April 18, 1918, to January 1, 1919. 



Price.2 


Place of delivery. 


Mine. 




fSan Francisco 


California, Oregon. 




\Mare Island Navy Yard 








$105 per flask 


Marathon, Tex 


Texas. 









1 On May 20, 1918, the matter of fixing the price of nickel was again considered, but 
it was deemed inadvisable " because of the present capacity being strained to fulfill 
contracts maturing with the next two years. It was requested and agreed to by the 
producers that pending a definite settlement of this subject no contract should be 
extended or future contracts made without first consulting the price-fixing committee." 
(P. P. C. Min., Vol. IV, May 20, 1918.) 

1 For deliveries at New York or Brooklyn, 75 cents per flask was added to the prices 
here given. 



676 HISTORY 0F PRICES DURING THE WAR. 

SILVER. 

The following letter was sent by Secretary McAdoo to Senator Pittman, of 
Nevada, who introduced a bill into Congress providing for the use of silver lying 
idle in the Treasury, The bill was approved by Congress on April 23, 1918. 

Hon. Key Pittman, 

United States Somte. 

]My Dear Senator : I have examined the draft of a bill embodying the ideas 
Avhich have been discussed between us for the utilization of the silver now lying 
unused in the Treasury of the United States. I venture to recapitulate briefly 
the puiiioses to be accomplished by the bill and the reasons which, in my judg- 
ment, require its enactment. 

The annual production of silver has varied in recent years, having fluctuated 
from 160,000,000 ounces to 226,000,000 ounces per annum, according to the esti- 
mate of the Director of the Mint. Production for the year 1916 amounted to 
156,600,000 ounces, and for the year 1917 is estimated to be approximately 
160,000,000 ounces. The decline in production during recent years has been 
partly due to conditions in IMexico, as the result of which Mexican mines have 
not been operated to their full capacity. 

The price of silver has varied from about 48* cents per fine ounce, at which 
price it sold during August, 1915, to $1.18 per fine ounce during September, 1917. 
Apart from industrial requirements, estimated at about 100,000,000 ounces per 
annum, silver is used by all nations for subsidiary coinage, and by India and 
other oriental countries for major .coinage. In China uncoined silver circulates 
as money. 

The European War has greatly enlarged the demand for silver. European 
countries engaged in the conflict have required unusual quantities of silver coins 
for their armies and for the civil population. Buying power of oriental coun- 
tries has been greatly enlarged, and as the importation of commodities has been 
limited owing to war needs of the belligerents, that buying power has been 
exercised to acquire silver. 

China and India are two oriental countries that absorb the largest amounts of 
silver. The products of India are wheat, jute, burlap, etc. The demand for 
Indian products has been unusual. Jute bagging is used for sugar, grain, and 
fertilizer bags ; also as outside wrappers for cotton and other products. It is 
also used for trench bags and for packing many articles of military' necessity. 
No article has been found that will serve as a substitute. 

The Orient is willing to accept silver in place of gold for commodities fur- 
nished by them, and it is to the interest of the United States and its allies 
that foreign trade balances should, as far as possible, be settled in silver rather 
than in gold. The gold in this country and in the hands of its allies is needed 
as a base for the enormous credit structure it is necessary to erect in the 
process of placing Government loans, and every ounce of silver that can be used 
in the settlement of foreign balances Is so much -gained. It is better to settle 
trade balances by shipping silver than to make arrangements for stabilizing 
exchange, where these are possible, as they are not in the Orient, because these 
exchange arrangements, whatever their form, always mean a deferred demand 
for gold, while the settlement of foreign balances in silver is a definite settle- 
ment calling for no future adjustments. Further, the unprecedented business 
activity in this country has caused an unusual demand for silver for subsidiary 
coinage, the needs of the United States for this purpose during the present year 
being greater than ever before, amounting, as they do, to approximately 
21,250,000 ounces. 

There are now in the Treasury of the United States approximately 490,000,000 
standard silver dollars, containing approximately 375,000,000 ounces of fine 
silver. Against these standard silver dollars there are outstanding silver 
certificates, and so long as these silver certificates remain outstanding a corre- 
ponding amount of silver dollars must be held for their redemption. 

The proposal is now made to borrow from the Treasury for the purposes 
stated above a portion of the silver so held in the Treasury, but only upon the 
cancellation from time to time of a corresponding amount of outstanding silver 
certificates. The silver having been so borrowed and used, the Secretary of the 
Treasury is required to repurchase from time to time, at the fixed price of $1 
per fine ounce, an amount of silver equal to the silver so borrowed and used, 
and to recoin the silver into standard silver dollars, thus in time replacing in 
the Treasury the silver so withdrawn. In this way the large mass of silver, 



GOVERNMENT EEGULATIONS RELATING TO PRICES. 677 

Which is serving no useful active purpose, now can be made available for a 
direct war purpose. There is no intention of making any permanent change in 
the status of the silver certificates. 

The proposition is, in brief, to retire silver certificates ; to borrow from the 
Treasury the silver for use for the war purposes above set forth ; and then, as 
silver from time to time in the future comes on the market, to replace the silver 
so borrowed by purchase in the market at the fixed price of $1 per fine ounce 
and to replace the borrowed silver by coining the new silver acquired for that 
purpose into standard silver dollars. There is no limit of time within which 
this must be done. 

The cost of producing silver, like the cost of producing all other commodi- 
ties, has greatly increased. Labor is receiving very much higher wages than 
during normal times. Machinery is more expensive, and the chemicals and 
other supplies needed in the production of silver are all correspondingly higher 
in price. The price at which the silver is to be rebought has been fixed in the 
proposed bill at $1 per ounce. This price was arrived at after an examination 
by the Director of the Mint into the cost of producing silver in a number of 
different mines, and the Director of the Mint is of the opinion that $1 per 
fine ounce under all the conditions at present prevailing is a fair price. The 
silver released through the retirement of silver certificates will be sold by the 
Secretary of the Treasury for the war purposes stated, at a price that will 
permit him without loss to rebuy at the price of $1 an ounce the silver thus 
sold. 

The proposed measure is unquestionably in the interest of the country as a 
whole for the prosecution of the war. It proposes no permanent change in our 
existing currency arrangements. What is proposed is a temporary change, 
consisting of the active use for war purposes of the silver now lying inert in 
the Treasury. The bill provides within itself the steps necessary to reverse 
that position and to replace and recoin the silver. 

The arrangement proposed is purely a temporary arrangement, and the 
pressing needs of the United States require, in my opinion, its prompt enact- 
ment into law. 

Sections 5, 6, 7, and 8 seem to me the best way of dealing with the con- 
traction of the circulating medium which would otherwise be brought about 
through the cancellation of silver certificates. This is accomplished by au- 
thorizing an issue of Federal reserve bank notes in small denominations in 
order to fill the void occasioned by the retirement of silver certificates, and 
provides for the prompt retirement of those Federal reserve bank notes as 
silver certificates are from time to time reissued. There may well be differ- 
ences of opinion as to the best method of counteracting such contraction. If 
no method of meeting the contraction be provided, the contraction will be auto- 
matically relieved through the issue of legal-tender notes in denominations of 
ones and twos, Federal reserve notes taking the place of the legal tender notes. 
This would be perhaps the easiest way of meeting the situation were it not 
for the fact that Federal reserve notes are now secured by gold reserve of over 
60 per cent, and the issue of additional Federal reserve notes without a corre- 
sponding addition to the gold reserve would reduce the percentage of reserve. 
Federal reserve bank notes, on the other hand, require a reserve of but 5 per 
cent, and as there is absolutely no reason why a larger reserve for Federal 
reserve bank notes should be provided, it seems to me unwise to reduce the 
percentage of reserve under Federal reserve notes. 

My reason for stating that the Federal reserve bank notes, the issue of 
which is contemplated under the bill, require no greater reserve than 5 per 
cent is that those notes in small denominations will merely take the place in 
the pockets of the people of the silver certificates now carried by them, and 
are thus extremely unlikely to be presented for redemption. If and to the 
extent that they are presented for redemption, it will be a demonstration that 
these notes are not needed in the circulation, and the means for their prompt 
retirement is furnished by the deposit as security for these Federal reserve 
bank notes of short-time certificates of indebtedness or the one-year conversion 
notes of the United States. Whenever, therefore, these Federal reserve bank 
notes are presented for redemption it will only be necessary to let the maturing 
obligations held against them run off. The popular and well-founded feeling 
against a bond-secured currency therefore does not apply to the present issue, 
because (1) the issue is strictly temporary in its nature, (2) the security 
behind the issue automatically provides for the redemption of the issue, (3) no 
artificial value is given to any long-time bonds by the circulation privilege and 
no vested interest is created in the circulation privilege, which, if created, 
it might prove burdensome for the Government or the banks to abate. 



678 HISTORY OF PRICES DURING THE WAR. 

If the method, suggested for dealing with the replacement of the silver certifi- 
cates that may be retired does not commend itself to yon as the best manner of 
meeting the situation. I should be glad to discuss any modifications that may 
be thought advisable. 

Cordially, yours, W. G. McAdoo.* 

On August 15, 191S. the Treasury Dei)artment authorized the following 
statement : 

Under the authority of the act of Congress approved April 23, 1918, silver 
has been sold by the Secretary of the Treasury at a price which will permit 
the Treasury from new purchases of a corresponding amount of silver at the 
price of $1 per fine o"unce to recoiu the silver purchased into silver dollars 
without loss. In order to provide for the various items of expense involved it 
was found necessary to fix the price for which silver was sold at $1.01^ per 
fine ounce, and it was made a condition of sale that the purchaser should not 
pay a higher price for silver in other markets than in those of the United 
States, 

LIMITS LICENSE FOR EXPOKT. 

Up to the present time the Federal Reserve Board has freely granted licenses 
for the export of silver. In order, however, to conserve the use of silver, export 
licenses for silver will hereafter be granted only for civil or military purposes 
of importance in connection with the prosecution of the war and only in cases 
where the exporter certifies that the silver to be exported has been purchased 
at a price which does not directly or indirectly exceed $1.01^ per ounce 1,000 
fine, at the point where silver is refined in the United States, or at the point of 
importation in the case of imported silver. 

ADDITIONAL EEQITIREMENTS. 

Applications for licenses to export silver should also state from whom the 
silver was purchased, the point at which silver was delivered to purchaser, for 
whose account and by whose order, and for what purpose the silver is to be 
exported." 

These restrictions were removed by the Federal Reserve Board on May 5, 
1919, in the following announcement: 

On August 15, 1918, the Federal Reserve Board announced that licenses for 
the export of silver would thereafter be granted only for civil or military pur- 
poses of importance in connection with the prosecution of the war and only in 
cases where the exporter certified that the silver to be exported had been pur- 
chased at a price which did not directly or indirectly exceed .$1.01i per ounce 
1.000 fine at the point v.'here the silver is refined in the case of silver refined 
in the United States or at the point of importation in the case of imported silver. 
The occasion which required the above limitations on the export of silver having 
now passed, the Federal Reserve Board will hereafter, unless a Government 
necessity should again arise, resume its former policy of granting freely and 
without condition all applications for the export of silver bullion or of silver 
coin of foreign mintage. 

This change of the policy of granting licenses does not do away with the 
necessity of filing on application for licenses to export silver bullion or silver 
coin of foreign mintage. Such applications must as heretofore be filed through 
the Federal reserve banks of the appropriate district, but such applications will, 
as stated above, be freely granted by the Federal Reserve Board. 

The Secretary of the Treasury does not contemplate any further sales of silver 
under the Pittman Act, except to the Director of the Mint.^ 

ZINC. 

On the recommendation of the War Industries Board and with the approval 
of the President the following maximum prices of zinc became effective on 

iQfflcial Bulletin, Apr. 11, 1918. 
- Official Bulletin, Aug. 17, 1919. 
^ Commercia) and Financial Chronicle, May 10, 1919. 



GOVERNMENT KEGULATIONS RELATING TO PRICES. 679 

February 13, 1918, were renewed on June 1, 1918, again on September 1, 1918, 
and remained in effect until January 1, 1919. 

Grade A, 12 cents per pound f. o. b. East St. Louis. 

Plate, 14 cents per pound. 

Sbeet,^ 15 cents per pound. 

These prices were subject to the following conditions : (a) Differentials shown 
on the producers' lists at that time were to be allowed; (&) the fixed prices 
applied to new business and not to unfiUed contracts made prior to February 14, 
1918,^ and to the following more general provisions : 

First, that the producers of grade A zinc will not reduce the wages now being 
paid ; second, they will sell to the Allies, to the public, and to the Government 
at the same price ; third, that ^hey will take the necessary measures, under the 
direction of the War Industries Board, for the distribution of the grade A zinc 
to prevent it from falling into the hands of speculators, who might increase the 
price to the public ; and fourth, that they pledge themselves to exert every effort 
necessary to keep up the production of grade A zinc, so as to insure an adeauate 
supply so long as the war lasts. 



othe^-^Sige^ '"'^^"^'''^ ^^^ ^^""^^^ °^ one-eighth inch thickness and less, and plate zinc all 

= Quoted from letter written on Apr. 23, 1918, by Mr. Pope Yeatman chief of ihe nnn 

ferrous metals secti9n of the War Industries Boai^, to MrrWR Calls editor 6f^e 

Engineering tand Mining Journal. i"sciii», eunot oi tne 



5. TEXTILES AND FIBERS. 



The control over textile and fiber prices, which came somewhat later than 
over footliS, fuels, and metals, was, in the main, be^n and carried through by 
the price-fixing committee. The regulations which were issued by the com- 
mittee, together with those originating in the War Trade Board, the War 
Industries Board, and the War Department, are listed below under one or the 
other of the following heads: Binder twine, burlap, cotton goods, cotton 
linters, kapok, manila fiber, rags, silk, and wool. 

BINDER TWINE. 

(Mar. 1, 1918, to 1919 harvest season.) 

On March 1, 1918, the Food Administration announced an agreement with 
the manufacturers of binder twine, fixing the price of binder twine for the 1918 
harvest. The following schedule shows the maximum differentials allowed 
above the cost of sisal to the manufacturers of twine, or 19 cents a pound. 

In June, 1918, an arrangement was made for the purchase of 500,000 bundles 
of sisal for the manufacture of twine for the 1919 harvest, at a price of 16 
cents per pound. But no change was made in the twine differentials. 

This contract as it stood at the time of the armistice will probably remain 
in effect during the 1919 harvest season. 

STANDARD AND SISAL BINDER TWINE, 500 FEET TO THE POUND, F. O. B. 

FACTORY. 

Cents 
per pound. 

Carload lots of 20,000 pounds or more 4 

Lots of 10,000 pounds or more, but less than 20,000 pounds 4J 

All amounts less than 10,000 pounds 41 

Prices for other grades should not exceed the prices of standard and sisal twine 
by more than the following amounts : • . 

Cents 
increase. 

550 feet to the pound 1| 

600 feet to the pound 3 

650 feet to the pound 4* 

650 feet to the pound (pure mapila) 6 

All of these prices are f. o. b. factory. 

The Food Administration considered the increased weight of binder twine over 
tlie sisal contained therein and the fact that the manufacturers have on hand sisal 
purchased at lower prices or twine manufactured from lower-priced sisal. 

BURLAP. 

(Oct. 4, 1918-Jan. 1, 1919.) 

With the following announcement on October 25, 1918, the War Industries 
Board inaugurated the control over the prices of burlap: 

The War Industries Board; through the jute, hemp, and cordage section, 
announces it has accepted the offer of the burlap importers and bag manufac- 

680 



GOVERNMENT REGULATIONS RELATING TO PRICES. 681 

turers to establish the following basis of maximum prices for burlap in carload 
or larger quantities, effective October 4, 1918 : 

Per yard, 40 inches 8 ounces, 13.6 cents Pacific coast ; 14 cents Atlantic and 
Gulf ports. 

Per yard, 40 inches 10^ ounces, 16 cents Pacific coast ; 16^ cents Atlantic and 
Gulf ports. 

Other sizes and weights in equal proportion. 

Other points in United States based on freight from Pacific coast. 

Quantities less than carload at prices slightly higher to cover cost of handling. 

These prices to be effective until about February 1, 1919. 

This resolution is voluntarily made by the trade because much lower prices 
are expected to prevail as the result of purchases to be made after January 1, 
1919, through assistance of the War Industries Board, and therefore does not 
affect the validity or integrity of contracts made prior to October 4, 1918. 

In its aim to secure much lower prices for all purchasers of burlap in the 
United States, the War Industries Board realizes that this voluntary reduction 
represents very heavy losses to importers and bag manufacturers. That the 
losses may be the more equitably distributed, it is therefore the duty of each 
citizen to stand loyally by any contract for burlap made prior to October 4, 1918. 

Dealers in second-hand bags and burlap attended a conference with the War 
Industries Board October 10, and after a full explanation of the situation placed 
themselves on record as being in accord with the action taken, and pledged 
their loyal support to the maintenance of maximum prices on the basis of 
these prices for new burlap and in the usual proportion thereto. 

Bag manufacturers established maximum prices on bags f. o. b. factory on the 
following basis : 

Maximum prices on burlap f, o. b. factory, plus cost of manufacturing, plus 
5 per cent margin. 

At the time of the armistice negotiations were under way for a price on 
burlap under Government control which show a decline of about 25 per cent 
from the existing maximum prices, 

COTTON GOODS. 

(July 1, 1918-Jan. 1, 1919.) 

The regulation of the prices of cotton goods was first formally considered in 
a conference between representatives of the industry and the price-fixing com- 
mittee on March 26, 1918. No action was then taken,* 

On June 8, 1918, it was agreed that a subcommittee of the price-fixing com- 
mittee should meet with a committee representing the industry and formulate 
a definite plan of action. 

On June 10 the following announcement was published : 

The price-fixing committee of the War Industries Board was in conference 
Saturday with the executive committee of the war service committee of the 
National Council of American Cotton Manufacturers. In order to establish a 
basis for a prospective price agreement to introduce stabilization into the trade 
and avoid any undue hardship upon the manufacturer and distributor of cotton 
goods, the following tentative plan was outlined to be operative if the pending 
negotiations for a price agreement are concluded : 

TENTATIVE PLAN OUTLINED. 

On all bona fide sales made on or before June 8, 1918, for delivery previous 
to January 1, 1919, prices to remain as shown in sales. On all sales made after 
June 8, 1918, for delivery subsequent to September 30, 1918, the prices are to be 
subject to revision to accord with the prices agreed upon by the price-fixing 
committee of the War Industries Board in conference with the war service 
committee of the National Council of American Cotton Manufacturers. 

On all sales made for delivery after January 1, 1919, the prices agreed upon 
by the price-fixing committee in conference with the war-service committee 
of the National Council of American Cotton Manufacturers are to be the prices, 

1 Price-fixing committee, Minute Book I, Mar. 26, 1918. 



682 HISTORY OF PRICES DURING THE WAR. 

regardless of the fact that the sales may have been made previous to June 
8, 1918. 

It is understood that all prices for so-called spring (1919) business will be 
subject to such revision. 

The plan contemplates that manufacturers' prices on staples shall be on the 
same basis of cost and profit to the Government and to their usual civilian out- 
lets. It is further expected that manufacturers will agree to devote a uniformly 
large proportion of their productive capacity to making staples.^ 

A few days later supplemental provisions were announced : 

The price-fixing committee recognizes the necessity for prompt stabilization, 
and expects that it will soon fix prices, even in the absence of such cost data 
as would be desirable; and, accordingly, it announces that its action in this 
instance is not in accordance with the usual procedure and may not be expected 
to be the basis for future operations with this industry. 

STIPULATION AGEEED TO. 

As a part of the price program which is planned to be operative within a few 
days the following stipulation was agreed to, supplementary to the provisions 
previously agreed to : 

All sales made after June 21 and before October 1 will be on the basis of the 
prices to be approved by the price-fixing committee to apply to sales made before 
October 1, this regardless of the period during which delivery is to be made. 

Prices will later be fixed to apply to sales made during the period October 1 
to December 31, 1918, or for such other period as may appear desirable at the 
time. 

The war-service committee submitted prices on a few staple cloths. The 
prices are materially lower than the present market prices. The committee was 
instructed to submit on July 1 a schedule of prices on the complete list of staples, 
as well as prices on cotton yarns, all on a parity with the prices suggested today.* 

On July 1, 1918, the price-fixing committee in executive session agreed that, 
pending the receipt of more definite data, it would be expedient to fix a maximum 
base price of 60 cents per pound for 36-inch sheeting with differentials for other 
cotton fabrics.' 

The official statement covering this decision was approved July 8, 1918, and is 
given below: 

At a meeting of the price-fixing committee of the War Industries Board with 
the cotton manufacturers, maximum net prices at mill were agreed upon and 
approved by the President for the following basic products : ' 

Cents 
per pound. 

36 inches, 48 by 48, 3-yard sheeting 60 

36 inches, 56 by 60, 4-yard sheeting 70 

38^ inches, 64 by 60, 5.35-yard print cloth 83 

38i inches, 80 by 80, 4-yard print cloth * 84 

Standard wide and sail duck, 37^ and 5 per cent from list. 

Standard Army duck, 33 per cent from list. 

These prices represent a reduction from quoted market prices of about 20 
to 30 per cent, and apply to all primary civilian purchases as well as to the 
Government and those Governments associated with us in the war. A com- 
nnttee is at work on a list comprising a full line of staple cotton fabrics for the 
purpose of establishing prices upon a parity with those herein quoted. It is 
expected that this list will be published in a few days. These prices are to 
remain in effect until October 1 of this year, before which date the industry will 
meet with the price-fixing committee for the purpose of agreeing upon prices for 
a further period of 90 days. Future agreements will be premised on figures to 
be collected and analyzed by the Federal Trade Commission designed both to 
show basis of profit and equity of parities. Present prices were necessarily 
based upon inadequate information, but in the emergency nature of the case and 

» Official Bulletin, June 10, 1918. 

2 Official Bulletin, June 22, 1918. 

' Price-Fixing Committee, Minute Book V, July 1, 1918. 

* Later changed to 86 cents. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 683 

the advisability of a gradual adjustment are considered fair and equitable by 
both the manufacturers and the price-fixing committee. Prices named are to 
cover primary sales made since June 8 for delivery after October 1 and all pri- 
mary sales made since June 21 regardless of the delivery dates. 

The President, in approving these prices, has expressed his appreciation of the 
spirit with which the cotton manufacturers have met the Government's efforts to 
stabilize an industry which so directly reaches into the life of every citizen. 
The President calls upon and expects all manufacturers of ready-to-wear goods 
as well as all dealers in cotton fabrics to so regulate their profits as to insure 
to the consumer the full benelit of this large reduction in price. 

Lists of differentials from the basic prices were issued from time to time. On 
September 3, 1918, the price-fixing committee announced its future policy with 
regard to the fixing of dilf erentials : 

In accordance with the agreement between the representatives of the cotton- 
manufacturing industry and the price-fixing committee, various differentials 
based on the fundamental prices then agreed on have been established and pub- 
lished. It is believed that enough representative fabrics have been so priced to 
make it entirely possible and feasible for the industry itself to establish prices 
on fabrics varying slightly from these representative numbers, such variants 
10 be prices in complete harmony with the spirit of the agreement of July 1, 

1918. Such variants may be reviewed and modified by the price-fixing committee 
if this course of action seems advisable. 

The committee conferred with representatives of the industry on September 
25, 1918, but owing to the failure of a large number of cotton mills to submit 
their cost sheets within thfe period requested, the committee found it necessary 
to postpone its revision of prices. 

With the exception of a few changes in maximum prices, to take effect October 
1, 1918, the schedules were extended until November 16, 1918. 

The price-fixing committee had hoped to reduce the maximum prices at the 
next conference, but when they met with the representatives of the industry on 
November 8 and 9, the trade protested against a reduction, and no new agree- 
ment was reached. JE^ committee issued the following statement : 

In the absence of agreement on new prices the present maximum limits on 
cotton goods are left unchanged by the price-fixing committee until January 1, 

1919, except for certain revisions hereinafter referred to. In making this ar- 
rangement the price-fixing committee took into consideration the special difficulty 
which arises at the present time in determining fair prices on cotton goods. The 
price of raw cotton is fluctuating and uncertain. The differentials for the 
numerous separate classes of cotton goods vary greatly and can not be brought 
into reasonable conformity with each other except after prolonged investiga- 
tion. In view of these circumstances the committee finds itself unable to fix 
new maximtim prices at the present time. 

In sanctioning the maintenance of the existing schedule for a limited period 
the committee wishes it to be understood that the prices enumerated in that 
schedule are not indorsed as just and reasonable, but only as maximum prices, 
not to be exceeded under any conditions during the period stated. It is not 
recommended by any implication that these prices must now be paid by the 
Government, by the Allies, or by the public. 

It is agreed on the recommendation of the manufacturers that certain errors 
in the yarn schedule be corrected and that differentials be investigated, and if any 
of them are found out of line with basic prices, be revised to more fairly conform 
to the general profit return on other cotton goods. All sales made after Novem- 
ber 16 shall be subject and shall conform to any revisions made under this 
paragraph.^ 

At a meeting of the price-fixing committee on November 14, 1918, the provision 
in the schedule of August 7, 1918, to the effect that sales in ginghams should be 
made only for delivery prior to April 1, 1919, was canceled. 

1 Official Bulletin, Nov. 16, 1918. 



684 



HISTORY OF PRICES DURING THE WAR. 



Sales of this commodity as well as of any other cotton commodity may be 
made for any delivery period agreed on between buyer and seller at prices 
under no circumstances in advance of the published schedules.' 

On December 12. 1918. differentials were fixed on yarns and twine covering 
sales made from November 17, 1918. to January 1, 1919. 

The fixed prices of cotton goods expired by limitation on January 1, 1919. 

The schedules of differentials are attached below. The commodities are ar- 
ranged alphabetically, and the prices under each commodity are arranged 
chronologically. 

BANDAGE CLOTH. 

(Sept. 25, 1918.) 



Width 
(inches). 


Yards per 
pound. 


Sley and pick. 


Cents per 

yard. 


3.i 
32 
30 
28 


8.77 
9.87 
10.52 
11.28 


44 by 40 
44 by 40 
44 by 40 
44 by 40 


9| 

m 



COTTON BLANKETS. 



STAPLE BLANKETS. 



(Aug. 16, 1918.) 



Made of American cotton with standard binding; and packing, maximum price of the equivalent of $3.07i 
per pair net cash at mill, based on size of 04 by 70 inches, weighing about 2J pounds per pair, finished in 
gray, white or tan mth usual border. 



WOOL FINISHED BLANKETS. 



(Aug. 10, 1918.) 



Made partly of foreign cotton, with standard binding and packing, maximum price the equivalent of 
$3.75 per pair, net cash at mill, based on size 00 by 83 inches, weighing about 3J pounds per pair, finished 
in gray, white, or tan with usual border. 

All other constructions, designs and colors in both the so-called "Staples" and "Wool finish" variety 
to be based on the above standard prices. Special Ijiuding or packing can be priced extra. 

JACQUAKD BLANKETS. 

(Aug. 10, 1918.) 

Made partly of foreign cotton and woven on j icquard looms, with standard binding and packing, ma.\- 
imimi price the equivalent of SI. 35 per pound net cash at mill. Special binding or packing can be priced 

DUGOUT BLANKETS, AMERICAN COTTON, QUARTERMASTER CORPS, NO. 127. 



We ght. 


Size (inches). 


Sley and pick. 


Price per 
blanket. 




48 by 84 
48 by 84 
48 by 84 


(Oct. 17, 1918.) 
45 by 55, wool finish 


$3.50 






4.55 




do 


4.00 









1 Price-Fixing Committee, Minute Book XI, Nov. 1.5, 1918. 



GOVERTSTMENT REGULATIONS RELATING TO PRICES. 



685 



HEAVY CHAMBRAYS, CHEVIOTS, COTTON PLAIDS, AND KINDRED COLORED 
FABRICS, SEPTEMBER 3, 1918. 

Class 1 : Lakewood, 25 inches, 6.10 plaids, at 15* cents, terms 2/10-60 extra, delivery 
at mill — no freight (which figures net to mill 15.03J cents). 

Class 2 : Riverside, 27 inches, 4.60 plaids, at 20* cents, terms 2/10-60 extra, delivery 
at mill — no freight (which figures net to mill 19.88J cents). 

Class .3 : Pilot junior shirting, 28 inches, 4.30 Chambrays, at 22 cents, terms 2/10-60 
t'xtra, delivery at mill — no freight (which figures net to mill 21.34 cents). 

Class 4 : Massachusetts, 26 inches, 3 suitings, at 29 cents, terms 2/10-60, delivery at 
mill — no freight (which figures net to mill 28.13 cents). 

Class 5 : Otis indigo checks, 30 inches, 3.50 checks, at 28 cents, terms 2/10 extra, de- 
livery at mill — no freight (which figures net to mill 27.16 cents). 

Class 6 : Massachusetts K. F. C, 32 inches, 3.10 shirting, at 31 cents, terms 2/10-60 
extra, delivery at mill — no freight (which figures net to mill 30.07 cents). 

COUTIL. 

Sept. 25, 1918. 



Division. 



1918 

No. 1.: 

No. 2 

No. 3 

No. 4 

No. 5 

No.G. 

No. 7 



Width 

(inches) 



Weight. 



2.73 
3.05 
2.25 
2.15 
2.15 
1.85 
1.70 



Sley and pick. 



108 
100 
96 
96 
104 
124 
104 



by 56 
by 56 
by 80 
by 68 
by 80 
by 84 
By 80 



Cents per 

yard. 



31J 
29 

m 

36J 
38| 
45 
46i 



riiscount. 



Less 3 per cent . 

do 

do 

do 

do 

do 

do 



Net cash 
f. o. b. 



$0.30565 
.2813 
.3601 
.3565 
.3771 
.4365 
.4486 



DENIMS. 
(Sept. 3, 1918.) 

Division No. 1 : Standard-Otis, No. 8. 2.20 white back denim, indigo. Price suggested, 
$0.3750 per yard ; terms 2/10^60 days dating, delivery at mill, no freight allowance 
(which figures net to mill 36.38 cents per yard). 

Comprising this division are all white brck indigo-blue denims. 

Differentials suggested as follows: 9-o.mce, 1 cent a pound less than 2.20; 8-ounce, 
1 cent a pound less than 2.20 ; 2.40/2.50, inclusive, IJ cents a pound more than 2.20 ; 
2.55/2.75, inclusive, 3 cents a pound more than 2.20 ; 3 and lighter, 4 cents a pound more 
than 2.20. 

Division No. 2 : Standard-Everett, 2.45 denim, indigo. Price suggested, 331 cents per 
yard ; terms 2/10-60 days dating, delivery at mill, no freight allowance (which figures 
net to mill 32.617 cents per yard). 

Comprising this division are all double and twist construction denims. 

Division No. 3 : Standard-Proximity, No. 31, 2.40 double and twist indigo denim. Price 
suggested, 38.50 cents per yard ; terms 2/10-60 days dating, delivery at mill, no freight 
allowance (which figures net to the mill 82.50 cents per yard). 

Differentials suggested as follows : 2.60/2.65, inclusive, 2 eeuts a pound more than 2.40 ; 
2.70/2.80, inclusive, 3 cents a pound more than 2.40 ; 8 and lighter, 4 cents a pound more 
than 2.40. 

Brown denims : Recommendation is that 2 cents per pound more be paid for brown 
denims than indigo denims in all corresponding weights. 

Aniline denims : Recommendation is that price be 2 cents per pound less than indigo 
denims in all corresponding weights. 

GRAY RED STAR DIAPER CLOTH. 

• (Sept. 25, 1918.) 



Width 
(inches). 


Yards per 
pound. 


Cents per 
pound. 


Cents per 
yard. 


19f 
20} 
24i 
26 
• 29V 
32i 


6.75 
6.00 
5.50 
5.15 
4.55 
4.15 


77 
76 
75 
75 
74 
73 


11.41 
12. 67 
13.64 
14.56 
16.26 
17.59 



686 



HISTORY OF PRICES DURING THE WAR. 

DRILLS. 



Width. 


Yards 

per 
pound. 


Sley and pick. 


Price per 
pound 

on basis 
estab- 
lished. 


Price per 

yard 
suggested 

experts. 


Inches. 
30 
30 
30 
30 
37 
37 
36 
37 
37 
30 
30 


2.50 
2.50 
2.50 
3.25 
2.65 
2.35 
2.28 
3.95 
3.75 
3.00 
2.85 


July 25, 1918. 
72 by 60 

70 by 52 
68 by 48 
68 by 40 
68 by 40 
68 by 40 
66 by 56 
68 by 40 
68 by 40 
68 by 40 

71 by 46 


Cents. 
60.60 
58.73 
57.48 
60.62 
61.00 
58.86 
60.41 
69.29 
67.67 
59.22 
59.85 


Cents. 
24i 
23* 
23' 

m 

23 

25 

264 

174 

18 

19f 

21 


3-LEAr WIDE DRILLS. 


40 

52 
58 
59 
59 


2.40 

L90 
1.60 

1.85 
L94 


68 by 40 
July 25, 1918. 
68 by 40 
68 by 40 
58 by 40 
68 ty 40 


60.94 

61.79 
60.41 
63.56 
64.59 


25f 

32)r 

151 

33i 


DRILLS. 


40 

37 
37 

29J 
37 


3.96 

3.25 
3.50 

2.40 
2.00 


Aug. 7, 1918. 
68 by 40 

Aug. 14, 1918. 
68 by 40 
68 by 40 

Oct. 25,1918. 
86 by 52 
68 by 56 




18 

20i 
19S 

25i 
304 












GRAY DRILLS. 


30 

30 

30 

30 

30 

30 

33 

344 

36 

37 

37 

49 

52 

52 

544 

54 

56 

60 


2.45 
2.50 
3.00 
4.00 
4.25 
5.25 
2.50 
2.38 
2.00 
2.75 
3.00 
L68 
L75 
1.75 
1.70 
1.70 
L70 
- 1.53 


Nov. 8, 1918. 
76 by 60 
68 by 56 
68 by 44 
68 by 40 
84 by 48 
60 by 50 
72 by 48 
68 by 56 
68 by 56 
68 by 40 
68 by 40 
72 by 48 
64 by 38 
68 by 42 
68 by 42 
70 by 44 
70 by 44 
70 by 44 




24f 
23f 
20| 
16 

m 

131 
24* 
25i 
28| 
22* 

21| 

3rtJy 

34 

34-1 

35J- 

30J 

36* 

40' 







































GOVERNMENT REGULATIONS RELATING TO PRICES. 



687 



DUCKS. 

(July 1, 1918.) 

Standard wide and sail duck, 37i per cent and 5 per cent from list. 
Standard Army duck, 33 per cent from list. 





ENAMELING DUCKS. 




Width 
(inches). 


Yards per 
pound. 


Sley pick. 


Cents per 
pound. 


51i 

38 

46i 

S6i. 

61 

72 


1.38 
2.00 
1.44 


July 25, 1918. 
84 by 30 
84 by 30 
84 by 30 
84 by 30 
84 by 30 
84 by 30 


61 
62 
61 
62 
63 
64 









FLAT SINGLE FILLING DUCKS. 



29 
29 


8.00 
8.00 


July 25, 1918. 

76 by 28 

(1) 


54 
55 



TWISTED FILLING DUCKS. 



29 
29 


8.00 
8.00 


July 25, 1918. 

76 by 28 

(») 


58 
59 



SHELTER TE-NT DUCK. 







Aug. 7, 1918. 




36 


1.95 


62 by 62 


2 39 


35 


3 81 


54 by 56 
Aug. 22, 1918. 


2 36i 


35 


1.94 


34 by 56 


75 


35 


1.94 


62 by 62 


78.9 



1 84 or over by 28. 2 per yard. ' Ounces. 

/The price as published under Aug. 7, 1918, is in error; quotation of Aug. 22, 1918, is 
correct.) 

REGULAR HOSE AND BELTING DUCK. 

(Aug. 7, 1918.) 

Cents per pound. 

Banging from 12 ounces to 36 ounces 58- 

10-ounce hose duck- 59 

(Sept. 26, 1918.) 

Hose and belting duck 62| 

10-ounce hose duck 64| 

Wide and sail duck, 371 per cent discount from standard list. 

Standard Army duck, 31 1 per cent discount from standard list. 

Single filling duck, classes A, B, and C. 

Double filling duck, classes A, B, and C. 

These classifications are described as follows : 

Class A : To be duck, made of white cotton, without waste or strips, and counting not 
under 80 by 28. Also qualities equal to Magnolia and Lindale to be in this class. 

Class B : To be duck, of all clean cotton, and counting not under 72 by 28. .This class is 
recognized as the standard grade of single filling duck. 

Class C : To be duck, made to count not under 72 by 28, and containing not over 25 per 
cent of waste or strips. 



688 



HISTORY OF PRICES DURING THE WAR. 



FLANNELS. 
(Sept. 25, 1918.) 

MITTEN FLANNELS. 



Weight (ounces). 


Cents net at mill. 


Cents per yard. 


3 


24.92 


252 


6 


27.34 


281 


7 


31.22 


32J 


8 


35.75 


361 


10 


44.69 


46J 


9 


40.17 


411 


11 


49.31 


50i 


12 


53.76 


55f 


13 


58.13 


59J 


14 


62.72 


64| 



CANTON FLANNELS. 



Width 
(inches). 



Yards per 
pound. 



2.75 
2.95 
4.00 
5-00 



Cents net at 
miU. 



26.91 
25.25 
20.00 
16.75 



Cents per 
yard. 



27J 

26 

201 



Lighter weights up to 7 in general proportion. 

FLANNELETTES. 

(Sept. 3, 1918.) . 

Division No. 1 : Cents per yard. 

1921 light stripes, checks, and plaids 25. 81 

1921 dark fancies and grays, North State light stripes, chcclfs, and plaids 25. 81 

North State dark fancies and grays 27. 81 

Swiss light stripes, checks, and plaids 25.81 

Swiss dark fancies and grays 1 27.81 

Division No. 2 : 

Smyrna light sti'ipes, checks, and plaids 2.S. 08 

Smyrna dark fancies and grays 23. 08 

Saluda light stripes, checks, and plaids 23. 08 

Saluda dark fancies and grays 25. 08 

Division No. 3 : 

Rutherford flannel 32^86 

Special Government flannel 32. 86 

Division No. 4 : 

Pine 23. 00 

Portage 23. GO 

Division No. 5 : ^ 

Daisy bleached 27. 75 

Daisy colors 28. 75 

Malta bleached ^ 27. 75 

Malta colors 28. 75 

Division No. 6 : ^ 

Cashmere bleached 24. 11 

Cashmere colors 25. 11 

1921 bleached 24. 11 

1921 colors 25. 11 

Division No. 7 : ' 

Persian bleached 21. 06 

Persian colors 22. 06 

Defender blpached 21. 06 

Defender colors 22. 06 

Division No. 8 : - 

1,501 bleached : .S3. 43 

900 bleached 33. 43 

(Maximum price, Aug. 7, 1918.) 

Cents per yard. 

Division No. 1: Toile du Nord, Amoskeag A,.F, C, Bates seersucker, Glonkirk 

zephyrs, rod seal sephyrs 23. 28 

Division No. 3 : Amoskeag utility, York dress aingham, red rose Lancaster, apple- 
web 21. 34 

Division No. 4 : Amoskeag 19000, Berwick chambray, Kilburnle gingham, Tomac 

gingham, white pine chevoit, Essex chambray 23. 28 

Division No. 7: Amoskeag staples, Lancaster staples 18.92 

(Above prices are all net cash at mill.) 

> These prices are based on bleached and light colors only. Differential to be given for 
darks and special shades. 

* These prices are based on bleached only. Differential to be given for darks and special 
shades. Prices are all net to mill, with no freight. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 



689 



3-LEAF JEANS. 
(Aug. 7, 1918.) 



Width 
(inches). 


Yards per 
pound. 


Sley and pick. 


Cents per 
yard. 


39 
39 
39 


2.75 
3.00 
3.10 


96 by 64 
96 by 64 
96 by 64 


27i 

26 

25i 



GRAY 3-LEAF JEANS. 
(Aug. 16, 1918.) 



39 
39 
39 


3.10 
3.00 
2.75 


96 by 64 
96 by 64 
96 by 64 


25i 

26 

27i 



When bleached, price of these goods to be increased IJ per cent. 

OSNABURGS. 

PART "WASTE OSNABURGS. 



Weight 
(inches). 


Weight 
per yard 
(ounces). 


Sley and pick. 


Cents per 
yard. 






(Aug. 14, 1918.) 




30 


7.00 


39 by 30 


22i 


30 


8.00 


39 by 34 


25J 


29i 


3.33 


34 by 34 


16i 


32 


1.88 


32 by 28 


2fi| 


34 


1.77 


32 by 28 


28i 


36 


3.00 


32 by 28 


18 


30 


3.25 


32 by 28 


m 


36 


3.60 


32 by 28 


15-3 


30 


3.90 


32 by 28 


Hi 


40 


1.60 


32 by 28 


311 


40 


2.00 


32 by 28 


25i 


40 


2.28 


32 by 28 


22| 


40 


3.25 


32 by 28 


17 


40 


3.50 


32 by 28 


16 


40 


3.00 


36 by 36 


181 



CLEAN OSNABURGS. 







(Nov. S, 1918.) 




36 


3.00 


32 by 28 


18i 


36 


3.25 


32 by 28 


17 


36 


3.80 


32 by 28 


15 


40 


2.00 


38 by 36 
(Nov. 9, 1918.) 


27 


40 


2.28 


32 by 28 


23i 



CARDED CLOTHS. 

PLAIN CARDED CLOTHS. 







(Aug. 16, 1918.) 




39 


5.00 


80 by 88 


22 


39 


6.00 


72 by 68 


18f 


39 


6.00 


80 by 76 


19A 


39 


5.25 


92 by 92 


24 


39 


5.00 


96 by 100 


25f 


39 


4.95 


96 by 104 


26 


40 


9.00 


72 by 60 


15i 


40 


7.70 


80 by 72 
(Nov. 8, 1918.) 


181 


29 


13.33 


56 by 52 


91 


36 


9.00 


68 by 64 


14iV 


36 


9.65 


72 by 68 


141 


36 


5.82 


60 by 60 


14A 


36 


6.25 


80 by 80 


191 


39 


8.70 


68 by 56 


14| 


40 


8.60 


72 by 68 


l<h^ 


40 - 


6.25 


88 by 80 


20f 


40 


6.00 


88 by 80 


20A 


40 


9.00 


72 by 60 


15J 



125547°— 20- 



-44 



690 



HISTORY OF PRICES DURING THE WAR. 
COMBED YARN FABRICS. 



Weight 
(inches). 


Weight 
per yard 
(ounces). 


Sley and pick. 


Cents per 
yard. 






(Sept. 3, 1918.) 




40 


10.50 


84 by 80 


28 


30 


12.00 


76 by 72 


16J 


28 


13.25 


68 by 64 


13J 


34 


6.40 


64 by 72 


21 


29 


7.50 


64 by 72 


18 


40 


9.50 


72 by 68 


20i 


40 


9.00 


76 by 72 


21f 


40 


8.50 


88 by 80 


25 


40 


7.00 


96 by 100 


29 


30 


11.35 


88 by 80 


18i 


34 


7.00 


72 by 100 


24 


36 


21.00 


28 by 24 


7 



PLAIN COMBED CLOTH. 







(Nov. 8, 1918.) 




36 


10.25 


73 by 56 


m 


36 


10.00 


72 by 60 


m 


38 


5.90 


96 by 125 


28| 


38i 


7.75 


96 by 92 


■ 27 


39 


11.00 


68 by 56 


m 


40 


6.50 


108 by 112 


32£ 


40 


7.25 


104 by 100 


30i 


40 


8.75 


100 by 96 


32J 


40 


6.00 


96 by 100 


281 


40 


9.35 


96 by 92 


33i 


40 


9.00 


80 by 80 


24i 


40 


7.25 


96 by 92 


27i 



SPECIAL PONGEE FABRIC. 
(Made from l|-inch cotton.) 



38 


4.85 


(Sept. 3, 1918.) 

60 by 72 18J 



COMBED PONGEE. 



34 
34 
38 


5.20 

5.80 
5.75 


(Nov. 8, 1918.) 
64 by 62 
64 by 60 
64 by 72 


22f 

22A 

20i 





PRINT CLOTHS. 








(July 1, 1918.) 




38i 


5.35 


64 by 60 


183 


38i 


4.00 


80 by 80 
(Aug. 7, 1918.) 


84 


39 


4.00 


80 by 80 . 
(Aug. 9, 1918.) 


2 21J 


39 


4.75 


68 by 72 


18 


39 


4.25 


72 by 76 
(Aug. 14, 1918.) 


19} 


38i 


8.20 


44 by 40 


lOi 


38i 


6.25 


60 by 48 


13J 


37J 


4.70 


64 by 68 


19i 


39 


4.50 


64 by 88 


20 


39 


4.20 


64 by 104 


22 


39 


6.60 


56 by 44 


12i 


40 


7.25 


52 by 40 


Hi 


44 


6.40 


48 by 48 


13J 


44 


7.25 


44 by 40 


Hi 


25 


10.55 


56 by 44 


8J 


27 


8.70 


56 by 56 


Qi 


27 


7.60 


64 by 60 


Hi 


31i 


7.50 


56 by 52 


Hi 


31i 


8.70 


48 by 48 


91 


32 


6.20 


64 by 60 


13i 


36 


11.30 


32 by 28 


7f 


30 


7.75 


48 by 44 


lOf 


37i 


4.70 


64 by 88 


19J 


36 


21.00 


20 by 16 


4A 


36 


13.00 


32 by 28 


m 


36 


17.00 


24 by 20 


5A 


38J 


5.35 


64 by 60 


15J 



1 Per pound. 



2 Correction. 



GOVERNMENT EEGULATIOISrs RELATING TO PRICES. 

PRINT CLOTHS— Continued. 



691 



Width 
(inches). 



Sley and 
pick. 



Price per pound (cents). 



Cents per 
yard. 



36 

36 

36 

36 

36 

36 

36 

36 

36 

36 

36 

36 

36 

36 

36 

36 

36 

36 

36i 

36* 



20 by 12 
20 by 14 
26 by 22 
28 by 24 
32 by 24 
32 by 28 
36 by 32 
36 by 32 
36 by 32 
40 by 32 
40 by 36 
44 by 36 
40 by 40 
44 by 40 
44 by 44 
48 by 40 
48 by 44 
44 by 44 
8 by 8 
16 by 8 



23.25 (34.6 average yam) 
22.00 (34.8 average yarn) 
15.80 (35.2 average yarn) 
15.00 (36.2 average yarn) 
13.50 (35.1 average yarn) 
12.00 (33.4 average yam) 
11.50 (36.3 average yarn) 
11.20 (35.4 average yam) 
10.50 (33.2 average yarn) 
10.20 (34.1 average yarn) 
9.65 (34.1 average yarn) . 
9.20 (34.1 average yarn) . 
9.20 (34.1 average yam). 
8.50 (33.2 average yarn) . 
8.10 (33.1 average yarn) . 
8.10 (33.1 average yarn) . 
7.75 (33.1 average yam) . 
8.40 (34.3 average yarn) . 
40.00 (30.1 average yarn) 
30.00 (33.9 average yam) 



31 
5M 

7tj 



9| 

9t2j 

10 

10^ 

lOJ 

11 

101 

2A 

3A 







Weight 


Price per 


Cents 


(inches). 


Sley or pick. 


per 
yard. 


poimd 
(cents). 


per 
yard. 




(Aug. 14, 1918.) 








37 


40 by 36 


9.38 


34.1 


9 


38 


48 by 48 


7.15 


33.7 


11? 


38 


56 by 44 


6.75 


33.1 


12i 


38i 


44 by 36 


8.50 


33.8 


9« 


38^ 


44 by 44 


7.65 


33.4 


ion 


38* 


48 by 48 


7.15 


34.1 


Hi 


38^ 


52 by 40 


7.30 


33.4 


iiH 


Z^ 


60 by 52 


6 00 


33.4 


131 


38* 


64 by 55 


5.50 


32.8 


15 


38i 


64 by 64 


5.15 


32.8 


16i 


39 


40 bv 28 


9.80 


33.5 


m 


39 


40 by 32 


9.20 


33.3 


9 


39 


72 by 80 


4.50 


34.4 


19-i 


40 


32 by 28 


10.80 


33.5 


^H 


40 


40 by 32 


9.10 


33.8 


9J 


40 


48 by 48 


7.00 


34.7 


T-^ 


40 


56bv44 


6.60 


34.1 


12A 


40 


56 by 56 


6.00 


34.7 


14tV 


40 


64 by 64 


5.10 


33.7 


16A 


42 


32 by 28 -* 


10.50 


34.2 


m 


42 


44 by 40 


7.50 


34.1 


llA 


42 


33 by 44 


7.00 


33.4 


ii-H 


43 


40 by 32 


8.25 


33.0 


9| 


43 


56 by 48 


5.85 


33.8 


14A 


43 


56 by 52 


5.60 


33.6 


14|f 


44 


36 by 32 


8.50 


32.8 


9A 


44 


64bv60 


4.65 


32.7 


17| 


44 


64 by 64 


4.50 


32.7 


18i 


25 


40 by 32 


14.75 


34.3 


5H 


25 


40 by 36 


14.00 


34.3 


6A 


25 


40 by 36 


13.25 


32.5 


6t 


25 


44 by 44 


10.26 


29.1 


8 A 


25 


58 by 45 


11.00 


34.1 


■ m 


27 


44 by 44 


9.50 


29.1 


8i 


27 


56 by 52 


9.00 


33.9 


9A 


27 


56 by 44 


9.75 


34.0 


8f 


27 


64 by 56 


7.85 


32.8 


lOJ 


28 


40 by 28 


13.50 


33.1 


6i 


28 


64 by 56 


7.50 


32.5 


HA 


28 


64 by 60 


7.30 


' 32.7 


lis 


29 


48 by 48 


9.70 


34.8 


9 


31* 


56bv40 


8.45 


33.0 


9| 


32 


32 by 28 


13.50 


33.5 


6A 


32 


48 bv 48 


8.80 


34.9 


9| 


32 


48 by 48 


8.50 


33.7 


lOA 


34 


44 by 40 


9.40 


34.6 


9 


34 


48 by 48 


8.00 


33.7 


10* 


34 


64 by 60 


6.00 


32.7 


13|| 


32 


64 by 60 


6.50 


33.3 


131 


28 


64 by 64 
(Oct. 17, 1918.) 


7.00 


32.4 


12i 


44 


36 by 32 


8.50 


82.34 


9A 



692 



HISTORY OF PRICES DURING THE WAR. 

SATEENS. 



Width 
(inches). 


Weight per 
yard. 


Sley and pick. 


Cents per 

yard f. o. b. 

mill. 






(Auk. 30, 1918.) 




53-54 


1.30 


104 by 64 
(Oct. 25, 1918.) 


53J 


31 


3.00 


108 by 56 


24* 


34 


2.45 


112 by 64 


28| 


31 


3.00 


108 by 60 


245 


33i 


2.15 


118 by 76 


. 3260 


37i 


1.89 


124 by 80 


37J 


33i 


2.15 


118 by 72 


32i 


34 


3.00 


108 by 56 


24| 


34 


3.00 


108 by 56 


24i 



FILLING SATEENS. 







(Sept. 30, 1918.) 




204 


6.85 


64 by 72 


12M 


28 


5.85 


64 by 88 


15} 


31 


4.00 


72 by 120 


22A 


31i 


5.50 


64 by 88 


16A 


35 


5.50 


64 by 72 


ifi-A 


3d 


6.25 


64 by 80 


17A 


35 


4.65 


64 by 104 


2fVi 


35 


3.75 


64 by 112 


231 


30 


5.10 


64 by 80 


17M 


30 


- 4. 85 


64 by 88 


mi 


36 


4.50 


64 by 96 


20,V 


37i 


5.25 


64 by 72 


17 


m 


5.00 


64 by 80 


ISA 


37J 


4.25 


64 by 96 


21A 


37J 


4.00 


04 by 104 


22-i 


37J 


4.15 


64 by 112 


22ii 


37J 


3.90 


64 by 112 


23^ 


39 


4.75 


64 by 80 


18? 


39 


4.00 


64 by 104 


22f 


39 


4.00 


64 by 112 


23A 


39 


3.75 


64 by 112 


m 


39 


3.80 


64 by 124 


241 



GN SATEEN. 




(Ocfr. 20, 1918.) 
120 by 64 



WARP SATEEN. 



31f 







(Sept. 25, 1918.) 




40 


3.00 


112 by 64 


26M- 


42 


3.50 


112 by 64 


24M 


42i 


4.00 


96 by 56 


21« 


424 


3.90 


96 by 60 


22A 


42i 


3.75 


96 by 64 


22M 


37J 


3.65 


112 by 64 


2214 


29 


4.20 


112 by 64 


19^ 


37 


3.50 


112 by 64 


25A 


374 


3.65 


112 by 64 


22H 


304 


4.00 


112 by 04 


m 


29 


4.20 


112 by 64 


19,^ 


.304 


3.35 


112 by 64 


22e 


30t 


3.30 


118 by 64 


23| 


304 


3.00 


11« by 64 


2oA 


304 


3.35 


118 by 64 


23A 


304 


2.65 


118 by 64 


27J 


274 


3.70 


112 by 64 


2014 


274 


2.50 


96 by 56 


2-iA 


30 


2.85 


88 by 38 


21H 



GOVEENMENT EEGULATIONS RELATING TO PRICES. 



693 



Width 
(inches.) 



30i 

42i 

43 

53 

53^ 

64 

54 

54 

55 

55 



SATEENS— Continued. 

CARDED WARP SATEENS. 



Weight per 
yard. 



Sley and pick. 





(Nov. 8, 1918.) 


3.00 


114 toy 84 


2.75 


96 toy 64 


3.45 


140 by 96 


1.14 


108 toy 64 


1.22 


108 by 64 


1.30 


93 by 60 


1.05 


96 by 64 


1.05 


85 by 64 


1.08 


93 by 60 


1.18 


108 by 64 



CARDED FILLING SATEENS. 



38 


4.40 


39 


3.75 


39 


3.20 


39 


3.50 


39 


3.75 


39 


3.50 


39 


3.35 


43 


3.35 


43 


3.35 


43 


3.35 


43 


3.85 


43 


3.65 



(Nov. 8, 1918.) 
80 by 124 
96 by 132 
72 by 120 
72 by 120 
84 by 124 
96 by 160 
96 by 160 
72 by 120 
84 by 124 
96 by 132 
64 by 104 
64 toy 112 



Cents per 

yardf. o. to. 

mill. 



27 i 
271 
34^ 
59i 



COMBER FILLING SATEENS- 



(Nov. 8, 1918.) 
96 toy 160 
84 toy 136 
96 by 136 




521 
62i 
63i 
60* 




44J 
331 
4U 



694 



HISTORY OF PRICES DURING THE WAR. 
SHEETING. 



Width 
(inches). 


Weight per 
yard. 


Sley and pick. 


Cents per 

yard f . o. b. 

mill. 






(July 1, 1918.) 




36 


3.00 


48 by 48 


>60 


36 


4.00 


56 bv 60 
(July 25, 1918.) 


70 


36 


2.85 


48 by 48 


2 20J 


36 


3.00 


48 by 48 


20 


36 


3.25 


48 by 48 


18i 


36 


3.50 


40 by 40 


17 


40 


2.85 


48 by 48 


211 


38,36 


4.00 


48 by 52 


l&J 


•36 


4.00 


56 bv 60 


17i 


36 


4.50 


48 by 52 


15.i 


36 


5.00 


48 by 48 


141 


36 


5.50 


48 by 44 


m 


36 


6.00 


40 by 40 


Hi 


36 


6.15 


44 by 40 


12 


31 


5.00 


48 by 48 


m 


36 


4.70 


48 by 52 


15i 


40 


5.00 


44 by 44 


m 


40 


4.25 


44 by 40 


15J 


40 


3.75 


48 by 44 
(Aug. 7, 1918.) 


17| 


36 


3.60 


64 by 68 


20 


36 


3.50 


64 by 68 


20i 


36 


3.70 


64 by 68 


m 


40 


3.15 


64 by 68 
(Aug. 30, 1918.) 


22J 


31 


5.00 


48 by 48 
(Sept. 3, 1918.) 


3 134 


40 


2.50 


48 by 48 


23J 


40 


2.70 


48 by 48 


22i 


40 


2.35 


48 by 48 


25 


32 


6.25 


40 by 40 


m 


36 


5.00 


64 by 64 


16 


31 


4.50 


44 by 44 
(Sept. 5, 1918.) 


14i 


34 


6.00 


40 bv 40 
(Sept. 25, 1918.) 


*m 


40 


2.00 


40 by 40 


27J 



GRAY SHEETINGS. 







(Nov. 8, 1918.) 




26 


4.35 


48 by 48 


14f 


36 


2.95 


52 by 56 


21 


36 


3.15 


69 by 72 


22J 


36 


3.90 


40 by 38 


151 


36 


4.00 


48 by 48 




40 


2.70 


44 by 44 


21f 


40 


3.60 


56 by 60 


19i 


48 


2.25 


48 by 48 


27J 


54 


2.00 


44 by 44 


303 


54 


2.00 


48 by 48 


31 


64 


2.25 


60 by 60 . 


32J 



1 Cents per pound 2 Net price. s Net f. o. b. mill. * F. o. b. mill. 

WIDE SHBETINGS. 

The price is 80 cents per pound net cash f. o. b. mill. This price divided by the weight 
of the 11/4 brown will give the yardage price of the 11/4 brown and 10/4 bleached ; div'dc I 
by the weight of 10/4 brown will give the yardage price of 10/4 brown and 9/4 bleached, 
and so on through the various widths. 

CARDED OIL CLOTH SHEETING. 



Width, 
(inches.) 


Weight per 
yard. 


Sley and pick. 


Cents per 

yard f . 0. b. 

mill. 






(Nov. 4, 1918.) 




5U 


4.75 


40 by 40 


17| 


51i 


4.50 


40 by 40 


18§ 


51i 


4.25 


40 by 40 


19 


5U 


4.75 


44 by 40 


18 


51J 


4.50 


44 by 40 


m 


51J 


4.25 


44 bv 40 


19i 


58 


4.25 


44 bv 40 


20J 


60 


4.18 


40 by 40 


20J 


60 


3.65 


44 by 44 


221 



GOVERNMENT REGULATIONS RELATING TO PRICES. 



695 



TICKING. 

(Sept. 25, 1918.) 

Class 1 is Intended to cover the various blue and white and fancy twill tickings in thp 
•heavier weights, but not to include the so-called " Straw ticks " • -^ '""" ncKings in xne 
32-inch, 8 ounces, 80 by 72, class 1, Cordis A, C, E, 38.558 cents net to mill 
32-inch, 8 ounces, 80 by 70, class 1, A, C, A Amoskeag. 
32-inch, 2 ounces, 76 by 68, class 1, A, O, A Eagle and Phoenix. 
32-inch, 8 ounces, 88 by 58, class 1, Bowling Brook. 
Class 2 is intended to cover the blue and white and fancy twill tickings in the liehter 
weights, known as " Straw ticks " : » s 

30-inch, 3.75 ounces, 73 by 40, class 2, Thorndike C, 20.13 cents 
Class 3 is intended to cover the sateen tickings in all weights : 

33-inch. 8 ounces, 100 by 72, class 3, Conestogo, R. & D. and B. & D 40 4975 cents 

Class 4 is intended to cover the hickory stripes, a fabric closely affiliated with tickina 

which it seems best to include : ^' 

28*-inch, 2.85 ounces, 72 by 42, class 4, Thorndike E, 8 by 4, hickory stripes, 27.16 

PILLOW TUBING. 

(Sept. 25, 1918.) 

The yardage price of the bleached cloth is to be found by dividing 85 cents per pound 
by the yards per pound of the gray cloth from which it is made. f f u 

TWILLS. 

4-LEAF TWILLS. 



Width 
(inches). 


Yards pei 
pound. 


Sley or pick. 


Cents pei 
pound. 


Cents per 
yard. 






(July 25, 1?18.) 






30 


2.00 


88 by 48 


56.84 


2S| 


30 


2.15 


88 by 48 


57.91 


27 


30 


2.31 


88 by 48 


59.04 


25.J 


30 


2.40 


88 by 48 


59.68 


241 


30 


2.50 


88 by 38 


58.71 


23i 


3,0 


2.65 


88 by 38 


59.90 


22| 


30 


2.85 


88 by 38 


61.21 


2ll 


30 


3.00 


88 by 38 


62.20 


20i 


30 


3.25 


88 by 38 


63.81 


191 


59 


1.76 


76 by 44 
(Sept. 25, 1918.) 


62.94 


35J 


37 
37 
37 
37 


1.75 
2.00 
2.10 
2.35 


86 by 44 
86 by 44 
86 by 44 
76 by 42 




32| 
29-1 
28f 








25 J 


37 


2.35 


84 by 42 
(Oct. 25, 1918.) 




26i 




29i 


2.65 


108 by 52 




25| 


30 


2.25 


108 by 52 




2^ 


37 


1.85 


108 by 52 




34? 






(Nov. 8, 1918.)^ 






29 


2.00 


104 by 54 




31 


29i 


2.15 


104 by 48 




2n 

20| 
26 
23.1: 
29| 


29i 
29i 
29^- 
30 


3.00 
2.50 
2.50 
2.00 


84 by 37 
104 by 48 
88 by 38 
98 by 42 










30 
30 
30 


2.00 
2.20 
2.31 


88 by 42 
98 by 42 
108 by 48 




28.i 
27| 
28 






30 
30 


2.70 
3.00 


80 by 37 
98 by 42 




■ 21J 
22J 




36 


1.90 


88 by 48 




31 J- 


37 


1.50 


76 by 42 




37| 
32' 


37 


1.75 


76 by 42 




37 


1.83 


104 by 42 




34f 
29!i 
31 


37 
39 


2.00 
1.90 


76 by 42 
76 by 40 






48 
50 
58 
58 
58 


1.54 
1.48 
.96 
1.30 
1.35 


76 by 42 
76 by 42 
76 by 42 
76 by 40 
68 by 56 




37Z 

399 

59 

45.',- 

45.i 










59 
59 


1.40 
2.00 


48 by 64 
88 by 56 
(Nov. 9, 1918.) 




431 
37 






29i 
30 


2.50 
3-00 


88 by 38 
98 by 42 




23i 
22| 
43i 




59 


1.40 


48 by 64 









696 



HISTORY OF PRICES DURING THE WAR. 



T \VI LLS— Contmued . 

3-LEAF TWILLS. 



Width 
(Inches). 


Yards per 
pound. 


Sley to pick. 


Cents per 
pound. 


Cents per 
yards. 


37 

36 

38 i 

39 

39 

39 

39 

39 

43 

43 

43 

43 

43 

301 

31" 

31 

31 

39 

39 

39 


4.50 
4.20 
3.10 
5.10 
4.80 
4.50 
4.25 
4.00 
4.30 
4.50 
4.00 
6.00 
4.75 

3.85 
3.85 
4.00 
4.20 
3.25 
5.10 

5.10 


(Sept. 5, 1918.) 
96T)y 60 
60 by 80 
96 by 64 
64 by 64 
64 by 72 
68 by 76 
68 by 76 
68 by 76 
68 by 60 
68 by 76 
68 by 76 
64 by 48 
68 by 52 

(Nov. 8, 1918.) 
. 68 by 76 
68 by 80 
64 by 72 
68 by 80 
68 by 76- 
64 by 104 

Nov. 9, 191(8.) 
64 by 104 




19i 

19H 

24| 

17 

ISA 

19J 

191 

20f 

19| 

20 

21i| 

14.V 

i7e 

19i 
191 

m 

23| 

23i 











































ALBERT TWILLS. 



35 


5.50 


35 


5.10 


3g 


4.40 


35 


4.85 


35 


4.00 


35 


5.40 


35 


2.72 


35 


3.00 


m 


4.00 


40 


2.38 


43 


2.22 



(Sept. 9, 1918.) 
64 by 72 
64 by 80 
64 by 80 
64 by 88 

(Nov. 8, 1918.) 
64 by 80 
64 by 72 
72 by 120 
72 by 120 
64 by 80 
72 by 120 
70 by 120 



1&^ 
17f 
19ts 
18J 



19| 

16 

29i 

27i 

20-1 

33i 

351 



Width 
(inches). 


Yards 

per 
pound. 


Sley or pick. 


Per 
pound. 


Cents 
per 
yard. 


30" 


2.10 


(July 25, 1918.) 
88 by 56 


60.90 


29 


33J 9- fin 


(Oct. 25, 1918.) 
68 by 86 




26 









VENETIANS. 
(Sept. 3, 1918.) 



SINGLE YARN. 



41 cents on N-120, 35 inches, 156 by 64, 31.8: 

30/1 all combed rov. twist warp. 

33/1 all combed filling. 
43i cents on N-261. 35 inches, 156 by 64, 2.85: 

30/1 all combed rov. twist warp. 

23/1 all combed fiUing. 



■J 4 cents on P-322, 38 inches, 156 by 64, 2.90: 

30/1 all combed rov. twist warp. 

33/1 all combed fllUng. 
46| cents on P-324, 38 inches, 156 by 64, 2.63: 

30/1 all combed rov. twist warp. 

23/1 all combed filling. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 



697 



VENETIANS— Continued. 

SINGLE YARN COMBED VENETIANS. 

(Nov. 4, 1918.) 



Width 
(inches). 


Yards per 
pound. 


Sley or pick. 


Cents per 
yard. 


35 


3.10 


156 by 64 


411 


35 


3.00 


156 by 64 


42| 


36 


3.00 


156 by 64 


42f 


36 


2,77 


156 by 64 


44i 


37 


2.80 


148 by 64 


44f 


38 


2.66 


144 by 64 


46i 


38 


2.75 


156 by 64 


45i 


38 


2.85 


156 by 64 


44| 



TWO-PLY WAEP COMBED VENETIANS. 
(Nov. 4, 1918.) 



35 
38 


2.85 
2.63 


156 by 64 
156 by 64 


58 
60 



TWINE. 



WRAPPING TWINE, 
(Aug. 14, 1918.) 

Prices for No. 1 quality wrapping twine of 8's or coarser yarn : 

Cents 
per pound. 
Anv ply wound on cones or tubes, packed in barrels or bales or in cases, in bulk- 61 
Any ply wound in 8-ounce or heavier balls, packed in barrels or cases, in bulk — blS 
Any ply wound in small balls weighing 5 or 6 to the pound, packed in barrels 

or cases, in bulk r-T" — "^ ^ 

Any ply wound in small balls weighing 5 or 6 to the pound, packed in 5-pound 

or 10-pound cotton-cloth sacks and 100 pounds in a bale o4 

Terms. — Prices are f. o. b. cars shipping point, net cash from date of shipment and 
include cost of selling. 

(Dec. 12, 1918.) 

[Covering sales made Nov. 17, 1918, to Jan. 1, 1919.] 

No changes made, schedule same as above. 

SEINE AND SAIL TWINE. 

(Sept. 3, 1918.) 

For United States standard seine twine in standard skeins, packed in bulk or in 5-pound 
or 10-pouud pads, 100-pound bales, basis No. 15 to 42 medium laid, 62 cents per pound. 
Differentials on other sizes and lays, as at present established. 

iSxtras. 

For winding in 8-ounce or heavier balls, in bulk, 1 cent above price of skeins. 

For winding on 1-pound or heavier tubes, in bulk, 1 cent above price of skeins. 

For winding in 4-ounce balls, in bulk, 2 cents above price of skeins. 

For winding in 2 to 3 ounce balls, in bulk, 4 cents above price of skeins. 

For packing tubes or balls in 5-pound or 10-pound muslin sacks, 2 cents above price 
for bulk packing. . „ ,_ • i , ■ 

Exact-weight skeins, 4 ounces or heavier, 2 cents above price regular skeins. 

For export packing, 1 cent above price regular packing. . ^ ^ ^ 

For broken pa<?kages of lots of less than 100 pounds of a size, 2 cents above price 
standard packing. _ , . ^ „ , 

Sail twine, made on Brownell or Haskell-Dawes twisters, 8-ply and up, on cones or 
tubes or in 8-ounce balls, in bulk, 63 cents per pound. 

Four-ounce balls, in bulk, 1 cent per pound above 8-ounce balls. 

Balls in 5-pound or 10-pound muslin sacks, 2 cents per pound above hulk packing. 
100-pound bales : 

Export packing, 1 cent per pound extra. 

Broken packages, 2 cents per pound extra. . ^ „^ ^ ^ 

Hose cord made of 12's yarn. Brownell or Haskell-Dawes twisters, 64 cents per pound. 

Terms. — No allowance for cones or tubes, net cash, f. o. b. mill. Seller to pay cost of 
selling. 



698 HISTORY OF PRICES DURING THE WAR. 

fDec. 12, 1918.1 
[Covering sales made Nov. 17, 1918, to Jan. 1, 1919.] 

■SEINE TWINE. 

For United States standard seine twine in standard skeins, packed in bulk or in 5- 
pound or 10-poiind pads, 100-pound bales, basLs No. 15 to 42 medium laid, basis price to 
be 7 cents per pound, over fixed price 10s single-carded yarn. 

Differentials on other sizes and lays — as at present established by leading manufac- 
turers. 

Extras. 

For winding in S-ounce or heavier balls, in bulk— 1 cent above price of skeins. 

For winding in 1-pound or heavier tubes, in bulk — 1 cent above price of skeins. 

For winding in 4-ounce balls, in bulk — 2 cents above price of skeins. 

For winding in 2-ounce to o-ounce balls, in bulk — 4 cents above price of skeins. 

For packing tubes or balls in 5 pounds or 10 pounds— 2 cents above price for bulk pack- 
ing muslin sacks. 

Exact weight skeins, 4 ounces or heavier — 2 cents above price of regular skeins. 

For export packing — 1 cent above price of regular packing. 

For broken packages of lots of less than 100 pounds of a size — 2 cents above price of 
standard packing. 

SAIL TWINE. 

Sail twine, made on Brownell or Haskell - Dawes twisters, 8 ply and up, on cones 
or tubes or in 8-ounce balls, in bulk — basis price to be 7 cents per pound over fixed price 
10s single-carded yarn. 

Four-ounce balls, in bulk- — 1 cent per pound above 8-ounce balls. 

Balls in 5-pound and 10-pound muslin sacks. 100-pound bales — 2 cents per pound above 
bulk packing. 

Export packing — 1 cent per pound extra. 

Broken packages — 2 cents per pound extra. 

Hose cord, made of 12s yarn, Brownell or Haskell-Dawes twisters — 64 cents per pound. 

Terms. — All sales to be made on net-weight basis, net cash, f. o. b. mill. Seller to pay 
cost of selling. 

YARN PRICES. 

(Aug. 14, 1918.) 

PRICES FOR CARDED WARP TWIST YARNS, MADE FROM NOT BETTER THAN MIDDLING UPLAND COTTON. 

Single yarn. 

Count: (8 and 10 12 13 14 16 18 20 22 2.3 24 26 28 30 32 34 35 36 

below) 
Price: 57 J 58 59 59 J 60 61* 63 64-^ 66i 674 68J 70i 721- 74* 77 J SOJ 82 83 J 

For above yarns made of strict to good middling cotton an advance in price of 2J cents per pound is made, 
making schedule for such yarns as follows: 

Count: (8 and 10 12 13 14 16 18 20 22 23 24 26 28 30 32 34 35 36 

below) 
Price: 60 OOJ 61 J 62 62i 64 65^ 67 69 70 71 73 75 77 SO 83 84i 86 

For above yarns made of staple cotton of strict to good middling grade, not less than Ifg inches and not 
over 1 J inches, an advance in price of 4 cents per pound is made over above schedule, making prices for such 
yarns as follows: 

Count: 36 38 40 42 44 46 48 50 
Price: 90 92 94 96 98 1.00 1.02 1.04 

The basic price is on No. 8 and below: 

Over 8 and not over 10 rise of J cent per number. 

Over 10 and not over 14 rise of J cent per number. 

Over 14 and not over 20 rise of f cent per number. 

Over 20 and not over 30 rise of 1 cent per number. 

Over 30 and not-over 36 rise of IJ cents per number. 
On yarns of staple cotton in counts 36 to 50 the rise is 1 cent per number. 

Ply yarns. 

On yarns made of not better than middling upland cotton for 2 ply to 7 ply 1 cent per pound has been 
added to the single yarn prices for twisting counts 8s and below and not over 10; IJ cents per pound for 
counts over 10 and not over 14: 2 cents per pound for counts over 14 and not over 20; 2* cents per pound for 
counts over 20 and not over 36, making prices as follows: 

Count: (8 and 10 12 13 14 16 IS 20 22 23 24 26 28 30 32 34 35 36 

Itelow) 
Price: 58J 59 60§ 61 61§ 63i 65 66.^ 69 70 71 73 75 77 80 83 84* 86 

On yarns made of strict to good middling cotton for 2 ply to 7 ply, 1 cent per pound has been added to 
the single yarn price for counts 8s and below and not over 10; li cents per poimd for counts over 10 and not 
over 14; 2 cents per pound for counts over 14 and not over 20: 2 J cents per pound for counts over 20 and not 
over 36, making prices as follows: 

Ck)unt: (8 and 10 12 13 14 16 18 20 22 23 24 26 28 30 32 34 35 36 

below) 
Price- 61 61i 63 63^ 64 66 67i 60 7I5 72i 73i 75^ 77J 79§ 82J 85* 87 88i 



40 


42 


44 


46 


48 


50 


i.oej 


1.09 


l.llj 


1.14 


1. 16J 


1.19 



GOVEElsrMElSrT REGULATIONS RELATING TO PRICES. 699 



For twisting any of above yarns in counts 8s to 12s in plies 8 to 12 ply an advance of 1 cent per pound is 
made over prices named above for 2 ply to 7 ply and for twisting them 13 ply to 60 ply an advance of IJ 
cents per pound is made over prices named for 2 ply to 7 ply. 

For Brownell or Haskell-Dawes tube twisted j^arn in counts 8 to 12 an advance is made of 4 cents per 
pound over the price for singles. 

On yarns made of strict to good middling staple cotton, not less than 1-jV inches and not over IJ inches, 
for any standard ply there is added to the price of the single yarn 5 cents per pound on No. 10s and an 
additional one-quarter cent per pound on each number finer than 10s, making the following prices: 

Count: 36 38 
Price: 1.01* 1.04 

Form of delivery. — The prices named above ar^ for commercial skeins, tubes, cones, and section beams 
of standard put up. 
For ball or chain warps 1 cent per pound extra will be added. 
For reverse twist 5 cents per pound advance over regular twist will be added. 

For cabling up to No. 30 a charge of 6i cents per pound will be added to the price of single yarn. 
Terms. — Prices include the weight of cones or tubes on which yarn is wound and are net cash from date 
of shipment and are f. o. b. cars snipping point. Prices include cost of selling. 

PRICES FOR STANDARD CARDED HOSIERY AND KNITTING YARNS MADE OF "WHITE COTTON. 

For single yarns. 

Count: (10 and 12 14 16 18 20 22 24 26 28 30 

below) 
Price: 61 62 63 64i 66 67i 69i 71J 73i 75^ 77i 

For above yarns made of staple cotton, of strict to good middling grade, not less than 1-^ Inches and not 
over IJ inches staple the following prices will apply: 

Count: (10 and 12 14 16.. 18 20 22 24 26 28 30 32 34 36 38 40 

below) 
Price: 65 66 67 68^ 70 71i 73J 75i 77i 79i SIJ 83i 85i 87i 894 91i 

The basic price is on 10s and below: , 

Over 10 and not over 14, rise of J cent per number. 
Over 14 and not over 20, rise off cent per number. 
Over 20 and not over 40, rise of 1 cent per number. 

For ply yarns 5 cents is added to the price for No. 10 single and i cent per pound additional per single 
number up to 40s. This charge for twisting these high-grade yarns is made for the reason that yarns used 
in the knitting trade require more perfect manufacture than commercial weaving yarns. They require 
Inspection and also an extra process called doubling. These charges are based on actual differential costs 
of mills making these yarns, making the following schedule for twisted yarns of standard carded hosiery 
and knitting quality made of white cotton: 

Count: (10 and 12 14 16 18 20 22 24 26 28 30 

below) 
Price: 66 67J 69 71 73 75 77i 80 82J 85 87i 

And the following schedule for twisted yarns made of staple cotton of strict to good middling grade not 
less than 1^ inches and not over IJ inches staple: 

Count: (10 and 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 

below) 
Price: 70 71 J 73 75 77 79 81J 84 86i 89 OIJ 94 96J 99 1.01 J 1.04 

Form of delivery. — On commercial tubes, cones, cops, or skeins in standard put up. 
Terms. — F. o. b. cars shipping point, net cash from date of shiprhent, 2 per cent allowance to be made for 
cones. Prices include cost ot selling. 

BASED ON BASIC PRICE FOR NO. 10 AND BELOW, GRADE STRICT TO GOOD MIDDLING. 

Combed cotton single yarns. ■ 

Length of staple.— 'Not over 1^ inches: 

Count: (10 and 12 14 16 18 20 22 24 26 28 30 

below) 
Price: 76 77 78 79J 81 82i 84 85i 87J 89§ 91i 

For over 1^ inches and not above IJ inches, 5 cents additional: 

Count: (10 and 12 14 16 18 20 22 24 26 28 30 36 40 

below) 
Price: 81 82 83 84J 86 87i 89 90§ 92i 94^ 96^ 1.02J 1.06i 

For over IJ inches and not above 1^ inches to IJ inches, 5 cents additional: 
Count: (10 and 12 14 16 18 20 22 24 28 28 30 

below) 
Price: 86 87 88 89§ 91 92i 94 95J 97i 99J I.OIJ 

Count: 36 40 45 50 55 60 
Price: 1.07i l.Ui 1.16i 1.21J 1.26i 1.31i 



700 HISTORY OF PEICES DURING THE WAR. 

For over 1\ inches and not above 1-fg inches to 1| inches, 10 cents additional: 
Count: (10 and 12 14 16 18 20 22 24 26 ' 28 

below) 
Price: 96 97 98 99} 1.01 1.02} 1.04 1.05} 1.07} 1.09} 

Count: 30 36 40 45 50 55 60 70 80 

Price: 1.11} 1.17} 1.21} 1.26} 1.31} 1.36} 1.41} 1.56} 1.71} 

^Basic price No. 10 and below: 

Over No. 10 and not over No. 14, } cent per number above No. 10. 
Over No. 14 and not over No. 24, | cent per number above No. 14. 
Over No. 24 and not over No. 60, 1 cent per number above No. 24. 
Over No. 60 and not over No. 80, 1} cents per number above No. 60. 

Form of delivery.— Hosiery and knitting yarns on commercial tubes, cops, cones or skeins in standard 
commercial put ups, suitable for the hosiery , underwear, and regular knitting manufacturers. 

Warp yams on commercial tubes, cones, skeins, section beams, or warps. 

Such yarns if made of higher twist than standard warp twist, or if put up in other than standard forms 
for deli ven^ , or if speciallv made for special work , or specially inspected for removal of imperfections , shall 
be subject' to such additional prices to cover additional costs as may be agreed upon between the buyer 
and seller. 

All figures are based on prices net cash from date of shipment f. o. b. cars shipping pomt, for yarns de- 
livered at net weight such prices to include the cost of selling. 

BASED ON BASIC PRICE FOR NO. 10 AND BELOW, GRADE STRICT TO GOOD MIDDLING. 

Combed cotton ply yarns. 

For twisting 5 cents has been added to No. 10, and one-quarter cent additional per (single) number up 
to 80s. 

Length of staple.— Hot over 1^ inches: 
Count: (10 and 12 14 16 18 20 22 24 26 28 30 

below) 
Price: 81 82} 84 86 88 90 92 94 96} 99 1.01} 

For over lA inches and not above 1} Inches, 5 cents additional: 
Count: (10 and 12 14 16 18 20 22 24 26 28 30 36 40 45 50 

below) 
Price: 86 87} 89 91 93 95 97 99 1.01} 1.04 1.06} 1.14 1.19 1.25} 1.31} 

For over li and not above 1-^ inches to IJ inches, 5 cents additional: 
Count: (10 and 12 14 16 18 20 22 24 26 28 30 36 40 45 50 55 60 

below) 
Price: 91 92} 94 96 98 1.00 1.02 1.04 l.Oej- 1.09 1.11} 1.19 1.24 l.SOJ 1.36i 1.425 1.49 

For over li inches and not above 1^^ inches to If inches, 10 cents additional: 
Count: (10 and 12 14 16 18 20 22 24 26 28 

below) 
Price: 1.01 1.02} 1.04 1.06 1.08 1.10 1.12 1.14 1.16} 1.19 
Count: 30 36 40 45 50 55 60 70 80 
Price: 1.21} 1.29 1.34 1.40} 1.46} 1.52| 1.59 1.76} 1.94 

Form nf delivery.— Hosiery and knittiog yams on commercial tubes, cones, or skeins in standard commer- 
cial put ups. 

Warp yarns on commercial tubes, section beams or warps. 

All figures are based on prices net cash from date of shipment, f. o. b. cars shipping point for yarns de- 
livered at net weight, such prices to include the cost of selling. 

(Dec. 12, 1918.) 

Prices for carded warp twist yams, made from Upland cotton below the grade of strict middling. 

Single yarn. 

fount: (Sand 10 12 13 14 16 18 20 22 23 24 26 28 30 32 34 35 36 

below) 
Price: 57} 58 59 59} 60 61} 63 64} 66} 67} 68} 70} 72} 74} 77} 80} 82 83} 

The basic price is on No. 8 and below : 

Over 8 and not over 10, rise of i cent per number. 
Over 10 and not over 14, rise of } cent per number. 
Over 14 and not over 20, rise of 5 cent per number. 
Over 20 and not over 30, rise of 1 cent per number. 
Over 30 and not over 36, rise of 1} cents per number. 

Ply yarn.i. 

For 2-ply to 7-ply, 1 cent per pound has been added to the single yam prices for twisting counts 8s and 
below and not over 10: 1} cents per pound for counts over 10 and not over 14; 2 cents per pound for counts 
over 14 and not over 20; 2} cents per pound for counts over 20 and not over 36, making prices as follows: 

Count: (8 and 10 12 13 14 16 18 20 22 23 24 26 28 30 32 3t 35 36 

below) 
Price: 58} 59 60} 61 61} 63} 65 66} 69 70 71 73 75 77 80 83 84} 86 



GOVERN^MENT REGULATIONS RELATING TO PRICES. 701 



advance 
twisting 
named for 2-ply to 7-ply. 

For Brownell or Haskell-Dawes tube twisted yarn in counts 8 to 12, an advance is 
made for 4 cents per pound over the price for singles. 

Form of delivery. — The prices named above are for commercial skeins, tubes cones 
and section beams of standard put up : ' ' 

For ball or chain warps 1 cent per pound extra will be added. 

For cabling up to No. 30's a charge of 6J cents per pound will be added to the price 
of single yarn. 

Terms. — Prices include the weight of cones or tubes on which yam is wound and are 
net cash from date of shipment, and are f. o. b. cars shipping point. Prices include cost 
of selling. 

Prices for carded warp-twist yarns, made from upland cotton that will grade strict to 
good middling. 

Single yarn. 



Count : 


(8 and 
below) 


10 


12 


13 


14 


16 


18 


20 


22 


23 


24 


Price : 


59 


59i 


60i 


61 


61i 


63 


64J 


66 


68 


69 


70 



Count: 26 28 30 32 34 35 36 
Price : 72 74 76 79 82 83i 85 

The basic price is on No. 8 and below : 

Over 8 and not over 10, rise of | cent per number. 
Over 10 and not over 14, rise of | cent per number. 
Over 14 and not over 20, rise of | cent per number. 
Over 20 and not over 30, rise of 1 cent per number. 
Over 30 and not over 36, rise of IJ cents per number. 

Ply yarns. 

For 2-ply to 7-ply, 1 cent per pound has been added to the single yarn prices for twist- 
ing counts 8's and below and not over 10; IJ cents per pound for counts over 10 and 
not over 14 ; 2 cents per pound for counts over 14 and not over 20 ; 2ft cents per pound 
for counts over 20 and not over 36, making prices as follows : 

18 20 22 23 24 
66i 68 701 711 72i 



Count : 
Price : 


(8 and 

below) 

60 


10 
60i 


12 
62 


13 

62i 


14 16 
63 65 


Count : 
Price : 


26 28 
74J 76J 


30 

78^ 


32 
81i 


34 

84J 


35 36 

86 87i 

SPECIAL. 



For twisting any of above yarns in counts 8's to 12's, in plies 8 to 12 ply an ad- 
vance of 1 cent per pound is made over prices named above for 2-ply to 7-ply, 'and for 
twisting them 13-ply to 60-ply an advance of li cents per pound is made over prices 
named for 2-ply to 7-ply. 

For Brownell or Haskell-Dawes tube twisted yarn in counts 8 to 12, an advance is 
made of 4 cents per pound over the price for singles. 

Form of delivery. — The prices named above are for commercial skeins, tubes, cones 
and section beams of standard put up. ' 

For ball or chain warps, 1 cent per pound extra will be added. 

For cabling up to No. 30 a charge of-6i cents per pound will be added to the price 
of single yarn. 

Terms. — Prices include the weight of cones or tubes on which yarn is wound and are 
net cash from date of shipment, and are f. o. b. cars shipping point. Prices include cost 
of selling. 

Prices for standard carded hoisiery and knitting yarns, made of white upland cotton. 

Single yarn. 

Count : 10 and 12 14 16 18 20 22 24 26 28 30 

below 
Price: 61 62 63 64| 66 67i 691 71i 73J 75i 77i 

The basic price is on 10s and below : 

Over 10 and not over 14, rise of i cent per number. 
Over 14 and not over 20, rise of i cent per number. 
Over 20 and not over 40, rise of 1 cent per number. 

For ply yarns 5 cents is added to the price for No. 10s single and 1 cent per pound 
additional per single number up to 40s. This charge for twisting these high-grade yarns 
Is made for the reason that yarns used in the knitting trade require more perfect manu- 
facture than commercial weaving yarns. They require inspection and also an extra 
process called doubling. These charges are based on actual differential costs of mills 
making these yarns, making the following schedule for twisted yarns of standard carded 
hosiery and knitting quality made of white cotton : 

Count : 10 and 12 14 16 18 20 22 24 2& 28 30 

below 
Price: 66 67 J 69 71 73 75 77J 80 82i 85 87J 

Form of delivery. — On commercial tubes, cones, cops, or skeins in standard put up. 

Terms. — F. o. b. cars shipping point, net cash from date of shipment for yarns deliv^ 
ered at net weight. Prices include cost of selling. 

Prices for carded hosiery and knitting yarns, made of staple cotton of strict to good middling grade 
not less than 1^ inches and not over 1| inches staple. 



702 HISTORY OF PRICES DURING THE WAR. 

Single yarn. 

Count: (10 and 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 

below) 
Price: 05 66 67 68i 70 71i 73i 75i 77i 79i 81i 83i 85J 87i 89i 91i 

The basic price is on 10s and below: 

Over 10 and not over 14, rise of J cent per number. 
Over 14 and not over 20, rise of J cent per number. 
Over 20 and not over 40, rise of 1 cent per number. 

For ply yarns 5 cents is added to the price for No. 10s single and J cent per pound additional per single 
number up to 40s. This charge for t\visting these high-grade yarns is made lor the reason that yarns used 
in the knitting trade require more perfect manufacture than commercial wea\'ing yarns. They require 
inspection and also an extra process called doubling. These charges are based on actual differential costs 
of mills making these yarns, making the following schedule for twsted yarns made of staple cotton of 
strict to good middling" grade, not less than 1^ inches and not over IJ inches staple. 

Count: (10 and 12 14 10 18 20 22 24 26 28 30 32 34 36 38 40 

below) 
Price: 70 71J 73 75 77 79 81J 84 86i 89 91i 94 96i 99 1.01^ 1.04 

Form of delivery. — On commercial tubes, cones, cops or skeins in standard put up. 

Terms. — F. o. b. cars shipping point, net cash from date of shipment for yarns delivered at net weight. 
Prices include cost of selUng. 

Prices for comber cotton single yarns based on basic price for No. 10 and below grade strict to good 
middUng. 

Length of staple not over 1^ inches. 

Count: (10 and 12 14 16 18 20 22 24 26 28 30 

below) 
Price: 76 77 78 79i 81 82§ 84 85 J 87i 89i 91 i 

Five cents additional for over 1-^ and not above IJ inches. 

Count: (10 and 12 14 16 18 20 22 24 26 28 30 36 40 

below) 
Price: 81 82 83 84i 86 87* 89 90i 92J 944 S^i l'02i 1.06i 

Five cents additional for over IJ and not above lA to IJ inches: 

Count: (10 and 12 14 16 18 20 22 24 26 28 30 36 40 45 50 55 60 

below) 
Price: 86 87 88 89§ 91 92J 94 95i 97i 99i l.Oli 1.07 J 1.11 J 1.16i 1.21i 1.26i 1.31J 

Ten cents additional for over IJ and not above 1t^ to If inches: 

Count: (10 and 12 14 16 18 20 22 24 26 28 30 

below) 
Price: 96 97 98 99J 1.01' 1.02J 1.04 l.OSJ 1.07J 1.09i l.llj 

Count: 36 40 45 50 55 60 70 80 
Price: 1.17i 1.21i 1.26J 1.31^ 1.36§ 1.41§ 1.56i 1.71i 

Basic price is on No. 10 and below: 
Over No. 10 and not over No. 14, § cent per num.ber above No. 10. 
Over No. 14 and not over No. 24, f cent per number above No. 14. 
Over No. 24 and not over No. 60, 1 cent per number above No. 24. 
Over No. 60 and not over No. 80, IJ cents per number above No. 60. 

Form of delivery.— Rosiery and knitting yarns on commercial tubes, cops, cones, or skeins in standard 
commercial put ups, suitable for the hosiery, underwear, and regular knitting manufacturers. 

Warp yarns on commercial tubes, cones, skeinS; section beams, or warps. 

Such yarns, if made of higher twist than standard warp t'W'ist, or if put up in other than standard forms 
for delivery, or if specially made for special work, or specially inspected for removal of imperfections, shall 
be subject to such additional prices to cover additional cost, as may be agreed upon between the buyer 
and seller. 

All figures are based on prices net cash from date of shipment f. o. b. cars shipping point for yams 
delivered at net weight, such prices to include the cost of selling. ' 

Prices for combed cotton ply yams based on basic price for No. 10 and below. Grade: Strict to good 
middling. 

(For twisting, 5 cents has been added to No. 10 and one-quarter cent additional per (single) number up 
to 80s.) 

Length of staple, not over ItV inches: 

Coimt: (10 and 12 14 16 18 20 22 24 26 28 30 

below) 
Price: 82 824 84 86 88 90 92 94 96i 89 IOI4 

Five cents additional for over 1^^ and not above IJ inches: 

Count: (10 and 12 14 16 18 20 22 24 26 28 30 36 40 45 50 

below) 
Price: 86 874 89 91 93 95 97 99 lOli 104 1064 114 119 125i 1314 

Five cents additional for over 1^ and not above 1-^ to li inches: 

Count: (10 and 12 14 16 IS 20 22 24 26 28 30 36 40 45 50 55 60 

below) 
Price: 91 924 94 96 98 100 102 104 1064 109 Uli 119 124 130i 1364 l-tZJ 149 

Ten cents additional for over 1\ and not above 1-^ to If inches: 
Count: (10 and 12 14 16 18 20 22 24 26 

below) 
Price: 101 IO24 104 106 108 110 112 114 II64 
Count: 28 30 36 40 45 50 55 60 70 80 
Price: 119 I214 129 134 140i 1464 152J 159 1764 194 



GOVERlSrMEjSrT REGULATIONS RELATIIsTG TO PRICES. 703 

Form of delivery.— Kosiery and knitting 3-ams on commercial tubes, cones, or skeins in standard com- 
mercial put-ups. 

Warp yams on commercial tubes, section beams or warps. 

All figures are based on prices net cash from date of shipment f. o. b. cars shipping point for yams 
delivered at net weight, such prices to include the cost of selling. 

COTTON LINTERS. 

On May 2, 1918, the price-fixing committee of the War Industries Board 
established the price for Government purchase of cotton linters of munition 
grade at $4.67 per hundred pounds f. o. b. points of production. All prices 
were made operative from May 2, 1918, to August 1, 1919. 

On July 8, 1918, acting upon the recommendation of the chief of the cotton 
linters section of the War Industries Board, the price-fixing committee fixed the 
maximum fee for the bleaching of cotton linters at $6.33 per hundredweight. 
This price, subject to revision October 81, 1918, was discontinued at that time. 

On July 10 the War Industries Board announced the following policy and 
regulations concerning cotton linters: 

It having been deemed necessary for the Government to take over all the 
cotton linters now in existence, irrespective of grade or ownership, arrange- 
ments have now been made for the purchase of mattress or high-grade linters 
which were produced prior to May 2, 1918, at the actual value of the commodity. 

Through the cooperation of the United States Bureau of Markets and cotton 
and cotton-products section of the War Industries Board, three samples of 
linters have been selected, representing types of linters on which prices have 
been suggested which are considered fair and equitable, both to owners of the 
linters and the Government. 

The Du Pont American Industries Co., of Wilmington, Del., as the purchasing 
agency for the Ordnance Department, is authorized to buy the linters, as 

follows : 

Suggested 
price 
Type of linters designated : per pound. 

"A" grade cents__ $0. 10 

" B " grade do . 07 

" C " grade do . 05* 

AH prices to be f. o. b. points of location. 

It is suggested that by agreement between the inspector acting for the pur- 
chasing agency of the Ordnance Department, and the owners of the linters, pur- 
chases can be made on the basis above suggested, but it must be understood 
that the prices named are not obligatory, or by authority of the War Industries 
Board, but are, in the opinion of the representatives of the United States 
Bureau of Markets and the cotton and cotton products section of the War In- 
dustries Board, acting as a committee, fair and just prices that should be paid 
for these three selected grades. 

In the event agreement can not be reached between the inspector and the 
owner, then the 5rdnance Department may exercise its right to commandeer, 
which process gives the owners opportunity to establish the actual value of 
their commodity in each instance. 

All linters below the grade represented by type " C " shall be considered 
munition linters, and the price of $4.67 per hundred pounds f. o. b. points of 
production, established as of May 2, 1918, by the price-fixing committee of the 
War Industries Board, shall apply. 

There shall be only one grade (munition type) of linters manufactured dur- 
ing the 1918-19 season, and all purchases will be made by the procurement divi- 
sion of the United States Ordnance Department. 

RULES GOVERNING THE MANUFACTURE OF COTTON LINTERS. 

Rule 1. — All linters cut after May 2, 1918, to be of munition type, running 
145 pounds and upward per ton of cotton seed crushe<l. They may be offered 
and sold only through the Du Pont American Industries Co., acting as pur- 
chasing agents for the procurement division of the United States Ordnance 
Department. 

Rule 2. — Linters shall be produced by one reginning of cotton seed. Such 
linters must be reasonably free of motes, flues, hull linters, hull fiber, hull 



704 HISTORY OF PRICES DURING THE WAR. 

particles, sweepings, seed, meats, lubricating oil, excess moisture, and all 
foreign matter, and the price of $4.67 per hundred pounds, fixed by the War 
Industries Board, as of May 2, 1918, shall apply thereto. 

Rule 3. — Linters contaminated by any of the above-mentioned foreign mate- 
rials, or linters made from spoiled, burned, or badly damaged seed or which 
have been otherwise damaged, will be accepted by the Government's authorized 
buying agency at a reduced price. If the producer and the buying agency 
can' not agree upon a price, an agreed sample, approved by both the producer 
and the buying agency, may be submitted to the procurement division of the 
United States Ordnance Department for a decision as to price. Such decision 
shall be final. 

Ride h- — The making of two cuts of linters or passing the seed through lint- 
jng machines a second time is prohibited. 

Rule 5. — Motes, flues, and sweepings: All motes, flues, and sweepings must 
be offered for sale to the Government buying agency, and if of acceptable grade 
will be purchased. If not acceptable, mills may then apply to the cotton and 
cotton products section of the War Industries Board for permit to sell on the 
open market such rejected motes, flues, and sweepings in limited specified 
quantities. 

Rule 6.— All offerings of motes, flues, and sweepings must be in not less than' 
carload lots. 

Rule 7. — All raw cellulose produced by oil mills, whether linters, motes, 
flues, sweepings, hull fiber, or other fibrous by-products of the cotton seed, 
shall be offered for sale to the Government buying agency. 

Rule 8. — The average weight of bales on any one shipment shall not be less 
than 450 pounds nor more than 550 pounds. Tare shall not exceed 7 per cent. 
For contract purposes It shall require 500 pounds gross weight to constitute 
one bale. All bales must be covered sufficiently and properly to protect the 
contents. 

Rule 9. — Beginning August 1, 1918, all manufacturers of cotton linters will 
be required to furnish semimonthly reports as of the last working day prior 
to the first and fifteenth of each month ; these reports to be mailed within three 
days after the end of each semimonthly period. Reports will deal with raw 
material and finished linters along the lines laid down in the reports required 
by the United States Food Administration. 

These rules harmionize with Army specifications. 

The lifting of control. — The Government was practically under the obligation 
to purchase the supply of linters until August 1, 1919. Immediately after the 
signing of the armistice, however, restrictions for the manufacture and sale 
of mattress linters were removed. 

The Ordnance Department made an arrangement with the producers of 
linters, whereby it has agreed to purchase linters to the amount of 150,000 bales 
at prices of 10, 8, and 5^ cents in the event that this amount is left in the 
hands of the manufacturers on August 1, 1919. 

RATES FOR COMPRESSING COTTON. 

On November 5, 1918, the price-fixing committee announced an agreement 
which it had made with the cotton-compress companies at the request of the 
Railroad Administration. This agreement Avas made effective November 4, 
1918, to expire July 31, 1919. The compensation agreed upon was 15 cents per 
100 pounds to load 75 bales per 36-foot standard car, to apply to all points 
where cotton is compressed.^ 

KAPOK. 

(June 18, 1918-Jan. 17, 1919.) 

On June 18, 1918, the War Trade Board announced that the importations of 
kapok would be restricted to purchases for Government use, and that import 
licenses would be issued through the textile alliance.^ No agreement was madt 

•Price-Fixing Committee Minute BooIj X, Nov. 4. 1918. 
nv.ar Trade Board Ruling, 133. 



GOVER]SrMENT REGULATIOlsrS RELATING TO PRICES. 705 

as to price. The restrictions of the War Trade Board were lifted on January 
17, 1919. 

On August 20, 1918, the Bureau of Supplies and Accounts of the Navy noti- 
fied all dealers in kapoc that restraining orders were to be issued, and no more 
sales of kapoc were to be made tt) the public. These orders became effective on 
September 20, 1918. Navy orders were then placed until about November 19, 
1918, when all orders were released.^ A provisional price which averaged about 
25 cents per pound was first made, but the final price paid to dealers averaged 
slightly over 30 cents per pound, some contracts being at lower prices and some 
at higher. Dealers were paid on the basis of the cost to them of the kapok 
taken by the Na-y. 

MANILA FIBER. 

(Mar. 25, 1918-Aug. 31, 1918.) 

On April 8, 1918, the War Trade Board announced that all purchases of 
Philippine manila fiber miist be made under a schedule of fixed prices for the 
various grades. In practice there were two schedules : Schedule A was the 
minimum price to producers in the Philippines on shipments to the United 
States or elsewhere ; schedule B was the maximum price on the same grades 
in New York. Both schedules were to continue in force for four months, 
beginning March 25, 1918 ; but schedule B became ineffective about June 20, 
1918. 

On July 25, 1918, the price-fixing committee established a maximum price 
of 14 cents f. o. b. Manila for grade I current hemp. The prices of other grades 
were fixed soOn after. The Government agreed to pay a price for manila 
rope based upon this maximum price fixed for hemp. Thi>s schedule lasted 
until August 31, 1918, after which no price control was exercised. 

Schedule A. 

HEMP OR MANILA FIBER. 

Grade A, $30.75 per picul in Manila, equal to 22 36 cents per pound. 
Grade B, $29.75 per picul in Manila, equal to 21.63 cents per pound. 
Grade C, $28.87| per picul in Manila, equal to 21 cents per pound. 
Grade D, $28.12J per picul in Manila, equal to 20.45 cents per pound. 
Grade B, $26.87i per picul in Manila, equal to 19.54 cents per pound. 
Grade F, $25.62J per picul in Manila, equal to 18.63 cents per pound. 
Grade I, $23.37i per picul in Manila, equal to 17 cents per pound. 
Grade J, $19.62i per picul in Manila, equal to 14.27 cents per pound. 
Grade SI, $25.62J per picul in Manila, equal to 18.63 cents per pound. 
Grade S2, $23.50 per picul in Manila, equal to 17.09 cents per pound. 
Grade S3, $20.62| per picul in Manila, equal to 15 cents per pound. 
Grade G, $20,121 per picul in Manila, equal to 14.63 cents per pound. 
Grade H, $18,871 per picul in Manila, equal to 13.72 cents per pound. 
Grade K, $14.50 per picul In Manila, equal to 10.54 cents per pound. 
Grade L, $13.50 per picul in Manila, equal to 9.81 cents per pound. 
Grade M, $9.75 per picul In Manila, equal to 7.09 cents per pound. 
Grade DL, $6,121 per picul in Manila, equal to 4.45 cents per pound. 
Grade DM, $4.25 per picul in Manila, equal to 3.09 cents per pound. 

CEBU MAGUEY. 

Grade 1, $12.75 per picul in Manila, equal to 9.27 cents per pound. 
Grade 2, $11.50 per picul in Manila, equal to 8.36 cents per pound. 
Grade 3, $9 per picul in Manila, equal to 6.54 cents per pound. 

MANILA MAGUEY. 

Grade 1,~$12.25 per picul in Manila, equal to 8.91 cents per pound. 
Grade 2, $10.25 per picul in Manila, equal to 7.45 cents per pound. 
Grade 3, $8.50 per picul in Manila, equal to 6.18 cents per pound. 

1 War Trade Board Ruling, 523. 

2 In releasing orders for kapok, the Navy no longer requisitioned supplies and manu- 
facturers were allowed to sell their stocks on the open market. 

125547°— 20 45 



706 



HISTORY OF PRICES DURING THE WAR. 



Schedule B. 

hemp or manila fiber. 

Cents 
per pound. 

A 32J 

B 3U 

C 301 

D, 25 per cent over good current SOJ 

D, good current 30 

E, 75 per cent over fair current 29?. 

E, 62S per cent over fair current 201 

E, 50 per cent over fair current 29 

F, 371 per cent over fair current 28J 

F, 25"per cent over fair current 28 

I, 12J per cent over fair current 26.5 

I, fair current 26 

J, 50 per cent over superior seconds 23J 

si ___- 28 

52 26i 

53 24 

G, soft superior seconds 24 

G, soft good seconds 23i 

H, soft reds 22J 

K 19 

L 18 

M 15 

DL 12 

DM 10 

CEBD MAGUET. 

Grade 1 17J 

Grade 2 16 

Grade 3 14i 

MANILA MAGUEY. 

Grade 1 17 

Grade 2 15* 

Grade 3 14 

MANILA CONTROL PRICES. 



Grades. 


Prices in 
cents per 
pounds 
fixed Mar. 
25, 1918, in 
Manila. 


Prices in 

pesos Mar. 

25, 1918, in 

Manila. 


Prices in 
pesos July 
26, 1918, in 

Manila. 


\ 


22.36 

21.63 

21.00 

20.45 

19.54 

18.63 

14.63 

13.72 

17.00 

18.63 

17.09 

15.00 

14.27 

10.54 

9.81 

7.09 

4.45 

3.09 


61.50 
59.50 
57.75 
56.25 
53.75 
51.25 
40.25 
37.75 
46.75 
51.25 
47.00 
41.50 
39.25 
29.00 
27.00 
19.50 
12.25 
8.50 


51.250 


B 


49.625 


C 


48. 125 


D 


46. 875 


E 


44. 750 


F . 


42.750 


G 


33.500 


H 


31.500 


I 


38.500 


Si '.. 


42. 750 


S2 


39. 125 


S3 


34. 625 


J 


34.000 


K 


28.500 


L 


27. 000 


M. 


19.500 


DL 


12.250 


DM 


8.500 







The above are all first-cost prices per picul in pesos. 

RAGS. 

(Aug. 19, 1918-Dec. 7, 1918.) 



Maximum prices for rags were established by the price-fixing committee on 
different grades of rags, under three dates in xVugust, 1918. Each schedule was 
to remain in effect until October 1, 191S, and thereafter, pending the compilation 
and submission of cost data, by the Federal Trade Commission. These fixed 



GOVEKNMENT REGULATION'S RELATING TO PRICES. 



707 



prices were net f. o. b. shipping point and were to apply to sales made both to 
the Government and to the public. 

In October, 1918, new prices, lower than those in force at that time, wer(3 
established, but publication was withheld and the prices were never announced.' 

VARIOUS GRADES OF RAGS. 
(Aug. 19, 1918.) 



Cents 
Grade. per pound. 

Mixed softs 21i 

Blue serge .. 25 

Brown serge 32 

Green serge ^ 32 

Red serge 28 

Black serge ^ 22 

White softs 52 

White flannels and serges 50 

White knits 56 

Red knits , 27J 

Blue knits, mixed '- 26| 

Silver gray knits 45 

Brown knits 32 

Fancy knits ; 21 

Black dressed knits 30 

Light hoods 38 

Light gray underwear 16 

Fine light merinos 82 

Fine dark merinos 25 

Coarse dark merinos with serges 16 

Coarse light merinos with serges 24 

Thlbets 281 



Cents 
Grade. per pound. 

Rough cloth 83 

Skirted cloth, ripped from rough cloth_ Hi 

Skirted cloth, sorted from mixed rags_ 10 

Light skirted cloth 155 

Black and white skirted cloth 17 

Fine light skirted cloth ISJi 

Brown skirted cloth 10 

Dark skirted cloth 8J 

Black skirted cloth . 10 

Blue skirted cloth , 10 

Tan skirted cloth 25 

Light skirted worsted 25 

Blue skirted worsted , 21 

Black skirted worsted 22 

Brown skirted worsted 23 

Dark skirted worsted , 17 

Wool carpets , 10^ 

Soft-back carpets 4J 

Mixed linseys 4i 

White linsey flannels 7 

Wool bodies-. 83 

Skirted delaines 6S 



CLIPS 

(Aug. 21, 1918.) 

The following prices were to be paid by the rag collector to the cutter-up. 
They were based on high standard of grading and not to be paid for inferior 
packing : 

MEx's WEAR. Cents per 

pound. 

Men's black and blue worsteds 4g 

Fine clothing-house clips, light weight l 39 

Fine merchant tailor clips 38 

Medium clothing-house clips, light weight ' 37 

Ordinary clothing-house clips, including cotton warps 32 

All-wool overcoating 23 

Medium overcoatings free from cotton warps 20 

All-wool mackinaws 17 

Mixed overcoatings, Including cotton warps ' 10 

Cotton-warp clothing clips 5 

All-wool flannels 25 

women's wear. 

Fine cloak and suit house, light weight mixed clips including serges 33 

Fine cloak and suit house, light weight mixed clips without serges 25 

All-wool mixed serges ~ 40 

All-wool cloakings 20 

Cotton warp serges -_ g 

Cotton warp cloak and suit clips I 5 



^All fixed prices were discontinued after Dec. 7, 1918. 
prices were issued by the price-fixing committee. 



The appended schedules of 



708 



HISTORY OF PRICES DURING THE WAR. 



NEW WOOLEN CLIPS. 



Cents per 
Grade. pound. 

Black worsted 65 

Blue worsted 62 

Blue-worsted edges 50 

Brown worsted 57 

Black and white worsted 5G 

Light worsted 54 

Fine light worsted and clips 50 

Fine lights 45 

Fine dark worsted 48 

Fine dark worsted and clips 47 

Fine mixed clips 44 

Mixed dark clips 40 

Mixed clips 35 

Medium mixed clips 32 

Heavy-weight clips 28 

Coarse dark clips 23 

Coarse light clips 25 

Ordinary light clips 20 

Black and white 30 

Dark gray oxford 26 

Plain black clips 26 

Blue uniform clips (without edges;) 38 

Fancy mackinaw 20 

Union 8 

Light union 11 

Light blue serge 52 

Black serge 50 



Cents per 
Grade. pound. 

Blue serge 50 

Brown serge 50 

Green serge 50 

Red serge 50 

Tan serge 60 

Black and blue serge edges '35 

Dark serge 35 

Light serge 45 

White serge 70 

Blue cheviot 28 

Red cheviot 28 

Brown cheviot 28 

Green cheviot-. 28 

Black cheviot 28 

Light blue cheviot 28 

Tan cheviot 35 

Light homespun 35 

Medium homespun 30 

Ordinary homespun • 25 

Light flannel 35 

Blue flannel 35 

Red flannel 35 

Green flannel 36 

French flannel 27 

Mixed flannel 25 

Black flannel 33 



Reworked wool or fiber. 

(Aug. 23, 1918.) 

These prices include carbonizing, picking, and carding. If dyeing Is added, 
the charges must not exceed 5 cents for black or olive drab (khaki) without 
special permit from the fiber administrator. 



Cents 
Grade. per pound. 

Blue serge 48J 

Brown serge 58 

Green serge 58 

Red serge 55 

Black serge 44i 

White softs 86 

White flannels and serges 83 

White knits 92 

Red knits 59 

Blue knits, mixed 57 

Silver gray knits 93 

Brown knits 66 

Fancy knits 48J 

Black dressed knits 63 

Light hoods ■ 76 

Light gray underwear 50 

Fine light merinos 58J 

Fine dark merinos 48 

Coarse dark merinos with serges 38 



Cents 
Grade per pound. 

Coarse light merinos with serges 50 

Thlbets 50i 

Light skirted cloth 39 

Black and white skirted cloth 42 

Fine light skirted cloth 445 

Brown skirted cloth 29 

Dark skirted cloth 2T 

Black skirted cloth 29 

Blue skirted cloth 29 

Tan skirted cloth 48 

Light skirted worsteds 48i 

Blue skirted worsteds ^ 43 

Black skirted worsteds 441 

Brown skirted worsteds 46 

Dark skirted worsteds 39 

Wool carpets =. 30 

Soft black carpets 33J 

Skirted delaines 36 



SILK. 

(Sept. 19, 1918-Dec. 20, 1918.) 

The War Trade Board, on September 3, 1918, voted to revoke all outstanding 
licenses for the importation of silk noils, silk-noil yarns, garnetted silk, and silk 
waste. This action was effective for shipments after September 10, 1918.^ 

Importers were required to give an option on all new licenses to the United 
States Government. The United States Government was permitted to purchase 
these restricted commodities at a price 2 per cent above the cost at the foreign 
port of shipment, as shown by the consular invoice, including all charges except 
prepaid freight and prepaid insurance. These provisions were administered by 
the Silk Association of America. 

The ruling of the War Trade Board granting this option to the Government 
was rescinded on December 20, 1918.' 



» War Trade Board ruling, 237. 



'War Trade Board ruling, 434. 



GOVERNMENT EEGULATIONS RELATING TO PRICES. 709 

wool; 

(Dec. 15, 1917-Jaii. 1, 1919.)^ 

The formal price fixing of wool began on May 1, 1918. The regulations per- 
taining to wool prices fall under one or another of the following heads and 
are so arranged in this compilation : Government regulations for the importa- 
tion of wool, issued by the War Trade Board ; Government regulations for han- 
dling the 1918 clip, issued by the War Industries Board ; Government wool 
prices effective May 1, 1918 ; Government issue prices to manufacturers holding 
Government contracts. 

Disposal of Government stocks. — On December 9, 1918, the Director of Pur- 
chase and Storage of the War Department made the following plan for dispos- 
ing of the Government supplies of wool. Limited amounts of wool were to be 
sold from time to time at public auction. A minimum reserve price was estab- 
lished, below which no bids were considered. The first auction was held on 
December 18, 19, and 20, 1918. Prices offered by bidders dropped at each 
auction, and on January 24, 1919, the following announcement appeared : 

The War Department authorizes the following statement from the office of 
the Director of Purchase, Storage and Traffic : 

Many inquiries have been received from wool dealers, wool growers, and wool 
manufacturers in regard to the policy of the Government in disposing of the 
stocks of wool held by the War Department. In answer to these inquiries, the 
War Department states as follows: 

First. It is the intention of the War Department to continue to sell at 
public auction such wools as manufacturers may require, with a minimum 
reserve price the equivalent of the British civil-issue price. This basis of the 
British civil-issue price will be maintained as the minimum reserve price until 
July 1, 1919. 

Second. It is not the intention of the War Department, in the sale of wool 
now owned by the Government, to compete with the domestic producers of 
wool. It is the intention of the War Department, on July 1, 1919, when the 
domestic clip will probably be arriving in the markets in sufficient volume to 
supply the wants of manufacturers, to discontinue offering at auction or other- 
wise until such a time as the domestic producer shall have had ample oppor- 
tunity to market his 1919 clip, November 1, 1919, those grades of wool that 
would compete with the product of domestic wool growers remaining in the 
hands of the Government." 

Removal of import restrictions. — Ruling No. 426, bureau of imports of the 
War Trade Board, issued on January 8, 1919, is given below : 

Wool, wool tops, )wUs, yarns, and waste. — On and after January 10, 1919, 
licenses may be issued where the applications therefor are otherwise in order 
for the importation of wool, wool tops, noils, yarns, or waste from any non- 
enemy country. 

Sucli licenses will contain the provision requiring indorsement of the bill of 
lading to the Textile Alliance (Inc.). 

The Textile Alliance (Inc.) will no longer require the giving of an option to 
the Government to purchase the commodities imported. 

Hereafter it will be imnecessary to refer to any applications for the impor- 
tation of these commodities to the office of the Quartermaster General. 

Under the foregoing rules, licenses may now be issued to importers other than 
the Quartermaster General for these commodities from the Argentine, Uruguay, 
and South Africa. Ruling No. 208, issued July 12, 1918, is hereby revoked. 

By a further I'uling effective April 29, 1919, the importation of wool under 
a general import license was permitted from all countries except Germany, 
Luxemburg, Hungary, and those parts of Russia under Bolshevik control. 

1 There ^ere no Government purchases of the 1919 clip, but all stocks of wool on 
hand at the time of the armistice were disposed of by the War Department. 
^ Federal Trade Information Service, Jan. 25, 1919. 



710 HISTOEY OF PRICES DURING THE WAR. 

REGULATIONS FOR THE IMPORTATION OF WOOL. 

(Announcement, Dec. 15, 1917.) 

The War Trade Board announces that the following regulations will apply as 
of December 15, 1917, to the importation of wool from all foreign sources : 

" 1. Applicants for import licenses will be required to sign an agreement con- 
taining the following provisions : 

"A. The applicant agrees that he will not sell the wool covered by Applica- 
tion No. , or any other wool of either foreign or domestic origin, to any 

person other than a manufacturer without the consent of the War Trade Board ; 
and that, in the ev(>ut of a sale to a person other than a manufacturer with 
such consent, he will exact from his purchaser a similar agreement. 

" B. The United States Government shall have, and it is hereby granted, an 
option to purchase, at the price and on the terms hereinafter set forth, all or 
any part of the wool covered by Application No. , for 10 days after custom- 
house entry thereof; and thereafter on such portion thereof as shall be at any 
time unsold until the whole amount thereof has been sold by the intporter. In 
the event of the exercise of such option, the basis of price to be paid for the 
wool shall be equivalent to 5 per cent less than the basis of price of July 30, 
1917, for similar wool, as established by the valuation committee of the Boston 
Wool Trade Association, the actual price of each lot to be! determined by a com- 
mittee to be appointed jointly by the Boston Wool Trade Association and the 
United States Government. 

" 2. These regulations shall not apply to any wool purchased abroad on or 
before December 15, 1917." 

Applicants for import licenses will therefore file with their first application 
copies of all their contracts outstanding on December 15, 1917, for the impor- 
tation of wool from foreign sources, and as to which all wool contracted for had 
not been entered at any United States port of entry December 15, 1917, and 
showing in detail the amount of wool already shipped and the amount of wool 
yet to be shipped thereunder. 

The War Trade Board in fixing the effective date of the foregoing regulations 
as of December 15, 1917, had as its object the avoidance of any retroactive effect 
which would be burdensome and embarrassing, and earnestly appeals to wool 
importers and to manufacturers of woolen products so to conduct their transac- 
tions with respect to the stock of wool now* on hand and the ^importations now 
en route that further speculation, hoarding, and the continuation of fictitious 
prices may be avoided. 

It is hoped that the effect of these regulations will be to clarify the situation 
and renK)ve tlie causes for anxiety which have occasioned the abnormal and 
illogical inflation of prices for that commodity. 

The price of wool has advanced in the United States by a percentage greatly 
in excess of such price advances in other countries. The price in England is 
fixed at 55 per cent in excess of prewar prices. The price in the United States 
has advanced 200 per cent above the prewar level. It is true that the demand 
for wool and products thereof has increased as a, result of the military needs 
of the United States, but the demand in other countries has been relatively as 
great. Those countries, however, have introduced a system of governm'ental 
control, and this has prevented the abnormal inflation which the absence of 
such control invites when the regular' course of commercej is disturbed by war. 

Governmental control in other countries has allayed the sense of uncertainty 
as regards the future, which in this country has become almost hysterical 
and has occasioned speculation between importers. Cloth manufacturers have 
been impelled by fear to carry abnormal stocks of wool and to contract with 
dealers or importers for unusual quantities for far forward delivery. Manu- 
facturers of clothing have also been infected by a like dread, inciting the pur- 
chase of cloth exceeding in volume their reasonable needs. Such processes have 
brought about an artificial demand, far in excess of actual consumption, the 
inevitable effect of which has created a fictitious price condition. This has 
happened at a time when the wool supply in the country is known to be ample 
for present needs and for a sufficient period in advance to remove any reasonable 
apprehension as to the ultimate available supply. 

Statistical data collected by the Government, corroboi'ated by independent 
investigations of the wool industry, clearly indicate that no wool shortage 
exists, either in the world's supply or in the amount on hand in the United 
States, notwithstanding the increased consumption for military purposes. The 



GOVERHMENT REGULATIONS RELATING TO PRICES. 711 

clip in most countries has steadily increased since the outbreak of the war, 
because sheep raisers, stimulated by the higher returns for wool, have permitted 
the flocks to increase, and it may be reasonably expected that this increased 
production will continue. 

The consumption of wool during the year 1918 will be little, if any, greater 
than it was during the year 1917, for the reason that textile manufacturers have 
been producing well up to the limit of their reasonable capacity, and, further, 
because of the increased use of substitutes for wool in manufacturing 
processes. 

The Commercial Economy Board has begun to exert its influence in applying 
the principle of conservation to the consumption of wool, and will continue 
to induce the curtailment of its use for less essential products ; that is to say, 
the consumption of wool will be directed into needful and withheld from 
unnecessary channels. This action as a matter of course will tend to diminish 
the consumption and further to maintain the present safe margin of supply. 

The War Trade Board has invited and confidently awaits the cooperation 
of the wool dealers and the cloth and clothing manufacturers of the country in 
causing the abandonment of the practice of far forward purchasing and the 
unnecessary accumulation of stocks, which practice a mistaken estimate of 
the wool supply of the coimtry and of the world has incited them to follow. 
Such hoarding is evidently dangerous, because of the resultant price inflation. 
The continuance of this practice will threaten the holders of abnormal stocks 
or those who are committed for far forward deliveries with a severe loss when 
the inevitable period of readjustment in commodity values is at hand. 

It is hoped that the action of the War Trade Board in providing that the Gov- 
ernment of the United States may take advantage of the option contained in 
all import licenses issued on and after December 15, 1917, to purchase importa- 
tions of wool at a price 5 per cent below that of the Boston market as of July 
30 last, will stabilize the market, encourage the importations of wool to con- 
tinue in the accustomed manner, check the price movement toward the breaking 
point, and permit of an orderly recession toward a less dangerous level. The 
bringing about of these conditions through the cooperation of the trade at large 
with the War Trade Board will enable the various interests concerned so to 
adjust their operations as to avoid what might otherwise lead to a serious 
catastrophe. 

The procedure of the War Trade Board in this, as in all other regulations 
instituted by it, necessarily is designed to attain greater national efficiency 
through the distribution of imported commodities, but the board is likewise 
desirous of accomplishing this result with the least disturbance to the legitimate 
course of industry, understanding that the harmonious coordination of all 
the energies of the Nation is the best guaranty for the successful termination 
of the war. 

More rigid regulations became effective January 14, 1918: 

The War Trade Board, after due consideration, has decided to supersede its 
regulations of December 15, 1917, affecting the importation of wool and deal- 
ings in foreign and domestic wool and to promulgate in their place and stead 
certain other regulations effective as of January 14, 1918. Pursuant to such 
decision, the War Trade Board hereby withdraws the said regulations of 
December 15, 1917, and in their place and stead promulgates the following 
regulations, effective on and after January 14, 1918 : 

First. All importers of wool will sign, before the delivery or release of any 
imported wool to them, an agreement or guaranty containing among other 
things provisions in substantially the following form : 

That the United States Government shall have, and is hereby granted, an 
option to purchase at the price and on the terms hereinafter set forth all or 
any part of the wool covered by this guaranty for ten (10) days after custom- 
house entry thereof; and thereafter to purchase such portion thereof as shall 
be at any time unsold by the importer until the whole amount thereof has 
been sold. In the event of the exercise of such option the basis price to be 
paid for the wool shall be equivalejit to five (5) per cent less than the basis of 
price of July 30, 1917, for similar wool, as established by the valuation com- 
mittee of the Boston Wool Trade Association, the actual price of each lot to 
be determined by a committee appointed jointly by the wool trade and the 
United States Government. This option shall not apply to any wool purchased 
abroad before December 15, 1917. 



712 HISTORY OF PRICES DURING THE WAR. 

That tlie importer will neither export any merchandise in class A or class B 
of domestic or foreign origin, as hereinafter described, nor transfer ownership 
or control thereof to or for the benefit of any person or persons outside the 
United i^tates without first obtaining an export license from or the consent of 
the War Trade Board. 

That the importer will not sell to any person or persons in the United States 
any merchandise in class A of domestic or foreign origin, as hereinafter de- 
scribed, without first obtaining the purchaser's agreement, in form satisfactory 
to the War Trade Board, and the consent thereon of the War Trade Boanl, 
which consent is to be applied for through the Textile Alliance (Inc.). 

That tlie importer will not sell or deliver to any person or persons in the 
United States any merchandise in cl-ass B of domestic or foreign origin, as 
hereinafter described, without rendering to the purchaser at or prior to the 
time the merchandise is shipped or delivered a written invoice thereof con- 
taining the following conditions to be fulfilled by such purchaser : 

That the purchaser will neither export such merchandise nor transfer own- 
ership or control thereof to or for the benefit of any person or persons outside 
the United States without first obtaining an export license from or the consent 
of the War Trade Board. 

That tlie purchaser will report through the Textile Alliance (Inc.) to the 
War Trade Board at the end of each month all sales of such merchandise. 

That the purchaser will not resell such merchandise to purchasers in the 
United States excepting under the same conditions. 

Description of class A and class B merchandise : 

Class A: Wool; animal hair suitable for spinning or weaving; tops of wool 
or of animal hair ; wooled skins ; skins of sheep or of goats or of lambs or of 
kids bearing hair suitable for spinning or weaving. 

Class B : Noils of wool or of animal hair ; yarn of wool or of animal hair ; 
waste of wool or of animal hair; animal hair unsuitable for spinning or weav- 
ing ; woolen rags ; jute wrappings or coverings when i-eceived as wrappings or 
coverings of merchandise listed in class A or class B above. 

Second. Purchasers of class A merchandise from importers will sign an 
agreement or guaranty containing, among othe" things, all of the provisions 
above set forth, with the exception of the provision giving an option of pur- 
chase to the United States Government. 

New rulings were announced in the AVar Trade Board Journal for August, 
1918: 

The supply of wool in the United States has been gradually decreasing owing 
to the enormous demands for military requirements and because of the short- 
age in ocean tonnage for transporting w^ool to this country, and it is evident 
there Mdll not be sufficient wool to take care of both civilian and military 
needs unless some comprehensive plan is adopted for purchasing and importing 
the necessary supply. 

It is apparent that under the present system of private transactions in wool 
it is difficult to insui-e the utilization thereof in the best interests of the coun- 
try, and likewise difficult for individuals to secure the necessary tonnage be- 
cause of lack of assurance to the Shpping Board that the wools imported will 
be used for the national interests. 

The War Trade Board on July 12, 1918, after consulation with the War In- 
dustries Board and the War Department, therefore adopted the followdng 
ruling : 

1. All outstanding licenses for the importation of wool from Uruguay, Argen- 
tina, and South Africa are revoked as to ocean shipments made from abroad 
after July 28, 1918. 

2. Hereafter no licenses for the imiX)rtation of wool from the countries 
above referred to for shipment from abroad after July 28, 1918, will be issued 
for the remainder of the present calendar year, except to the Quartermaster 
General of the United States Army. (W. T. B. R. 166.") 

GOVERNMENT REGULATIONS FOR HANDLING WOOL CLIP OF 1918. 

Tlie AVar Industries Board has fixed the prices of the 1918 clip of wool, as 
established by valuation committees and approved by the Government, as those 
established on July 30, 1917, at Atlantic seaboard markets. These values are 
figured on scoured basis. 



GOVEENMENT KEGULATIOl^S KELATING TO PRICES. 713 

EIGHTS OF THE GOVERNMENT. 

The Government shall have a prior right to acquire all of the 1918 wool 
clip, or any portion thereof which it may require, at the prices fixed by the 
War Industries Board. The remainder will be subject to allocation for civilian 
purposes under the direction of the War Industries Board. 

A very large portion of the wool-manufacturing machinery working on Gov- 
ernment contracts is located close to the Atlantic seaboard, and in order to 
avoid the possibility of railroad delay and congestion late in the season, when 
the crops are moving, it is desirable and necessary that the wool clip shall be 
collected as soon as possible at points near to the manufacturing centers. For 
these reasons it has been considered advisable to designate as distributing 
centers those centers which are close to points of consumption and which have 
the necessary facilities for handling wool. 

NECESSITY FOR CONCENTRATION. 

The necessities of the Government at this time are such as to require the 
use of all existing agencies for concentrating the wool near the centers of con- 
sumption. Therefore all the m^ooI of the 1918 clip must be distributed through 
approved dealers in approved centers of distribution. 

APPROVED DEALERS DEFINED. 

Approved dealers shall be those dealers authorized by the War Industries 
Board to handle wool who are located in the distributing centers and who buy 
from growers direct, through agents, or from country merchants ; and also 
those dealers authorized by the War Industries Board who are located in wool- 
growing districts, and who buy direct from growers and resell, or consign to 
the dealers in distributing centers. 

Approved distributing centers are the usual well-recognized points of dis- 
tribution. 

CLASSES or WOOL. 

In a general wav, the clip may be divided into fleece wool a^id territory wool. 

Fleece wool shall be considered as that which is grown in the States east 
of the Mississippi River, and also the States of Minnesota, Iowa. Missouri, 
Arkansas, and Louisiana, and also those parts of Kansas, Nebraska, North 
Dakota, and South Dakota, and other localities where the same general con- 
ditions prevail. All wool not listed as fleece wool shall be considered terri- 
tory wool. . -, -, ^ , 

In order that the collection of the clip may proceed m a rapid and orderly 
manner, the following regulations are promulgated by the Wool Division of 
the War Industries Board : 

Fleece Wool Regulations. 

compensation of grower and dealer. 

Approved dealers shall be entitled to a gross, profit in no case to exceed 1^ 
cents per pound on the total season's business, this profit to cover all expenses 
from grower to loading wool on board cars. 

The grower shall receive fair prices for his wool based on the Atlantic sea- 
board price as established on July 30, 1917, less the profit to the dealer, as 
stated above, and less freight to seaboard, moisture shrinkage, and interest. 

In no case shall this be construed to mean that there shall be more than li 
cents gross profits made from time wool leaves growers' hands until it arrives 
at the distributing center. 

On consignments forwardefl to distributing centers the prices to be paid for 
the wool to the approved dealers therein shall be those established by the 
valuation committee on Atlantic seaboard values of July 30, 1917, to which 
shall be added a commission of 4 per cent to be paid by the Government, if 
bought by the Government, or by the manufacturer to whom the wool is allotted 
for other tlian Government purposes. This commission is to include grading 
and other expenses of handling. The consignor shall be charged with the 
freight on his shipment and interest on all advances made for his account to 
the date of the arrival of his wool at a distributing center, as shown by the 
railroad receipt. 



714 HISTORY OF PRICES DURING THE WAR. 

On any lot remaininfi unsold in his possession for a longer period than six 
months the dealer shall be entitled to charge storage and insurance at the 
market rate, and this additional charge shall be added to the price of the wool. 

POOLING BY GROWERS IS ADVISED, 

Growers who desire to do so will be allowed to pool their clips in quantities 
of not less than miuinium carloads of 16,000 pounds and consign the wools so 
pooled as one account to any approved dealer in any approved distributing 
center. Growers are urged to adopt this latter course through county agents 
or others, thus eliminating the profits of one middle man. 

GOVERNMENT PRICE. 

Approved dealers in approved distributing centers will be required to open 
and grade all their purchases or consignments as rapidly as possible after 
the arrival of wool at point of distribution. Prices on all wools, as soon as 
graded, will be fixed by a Government valuation committee appointed for that 
purpose in the different distributing centers. Prices to be paid by the Gov- 
ernment at distributing centers for such wool as it may require are to be 
those established as of .July 30, 1917, at the Atlantic seaboard markets. In 
addition to said prices the Government is to pay a further sum equal to 4 per 
cent of the selling prices to cover compensation or commission to approved 
dealers for their services in collecting and distributing wool. On wool not 
taken by the Government for its own use and which may be allocated for other 
uses, prices will also be fixed in accordance with July 30, 1917, values at 
Atlantic seaboard markets, and on such wool approved dealers shall be entitled 
to a commission or compensation of a sum equal to 4 per cent of the selling 
price, and this commission or compensation shall be a charge against said wool 
and shall be collected from the manufacturer to whom said wool is allocated. 

PROFITEERING PROHIBITED. 

As a guard against profiteering, the books of all approved dealers in dis- 
tributing centers shall be at all times open to Government inspection, and if 
it be found that their gross profits, including the aforesaid commission of 4 
per cent, are in excess of 5 per cent on the season's business, then such profits 
shall be disposed of as the Government decides. 

The books of the country dealers shall likewise be open to Government inspec- 
tion. If it be found that their gross profit for the season's business is in 
excess of 1^ cents per pound, then such excess profits shall be disposed of as 
the Government may decide. 

DISTRIBUTING CENTERS. 

The approved distributing centers for fleece wools are: 

Boston, Mass. Chicago, 111. " Louisville, Ky. 

New York, N. Y. St. Louis, Mo. Baltimore, Md. 

Philadelphia, Pa. Detroit, Mich. Wheeling, W. Va. 

Territory Wool Regulations. 

exceptions. 

In the Willamette Valley, Oreg., and the Puget Sound district of the State of 
Washington, the regulations in regard to fleece wools shall apply. 

distributing CENTERS. 

For the reasons before stated, in order that the 1918 wool clip may be 
promptly concentrated near the manufacturing centers and to make use of 
every available agency for storing and grading, all Territory Wools must be 
consigned to one of the designated distributing centers which are as follows : 

Portland, Oreg. New York, N. Y. Boston, Mass. 

Chicago, 111. St. Louis, Mo. Philadelphia, Pa. 



GOVERN'MEliJ'T REGULATIONS KELATHSTG TO PRICES. 715 

The only exception is tliat clips of under 1,000 pounds may be sold by the 
owner. In buying these small clips, the buyer must recognize that he is en- 
titled to only a small profit, which must not exceed 2 cents per pound. Growers, 
if they desire for any reason to consign their wool through their banker, coun- 
try merchants, or others, may do so and said bank, country merchant, or 
others, may receive a commission or compensation for handling said growers' 
wool (in no case to exceed one-half cent per pound) ; such commission or com- 
pensation to be paid by grower. Growers ai-e, however, urged to consign their 
own wool and get the full price. 

SHIPPING. 

As soon as possible after wool reaches the railroad the owner should load 
It and consign it to any approved dealer he may select in one of the designated 
distributing centers, who will there deliever the wool to the Government or to 
some manufacturer to whom the Government may allot the wool. These ap- 
proved dealers will store, insure, handle, and deliver the wool under Govern- 
ment regulation. The grower should procure two copies of the shipping invoice 
and of the railroad bill of lading, and forward the original invoice and bill 
of lading to the dealer whom he has selected to handle his wool, retaining the 
duplicate in his own possession. 

ADVANCES, INTEREST, AND FREIGHT. 

The grower shall be entitled to receive an advance up to but not exceeding 
75 per cent of the fair estimated market value of his wool. He shall pay in- 
terest on this advance at the rate of 6 per cent per annum from the date he 
receives such advance until his wool arrives at the distributing center, as 
shown by the railroad receipt. It is not intended that the grower shall pay 
interest on advances after the date of arrival, as shown by the railroad receipt, 
and he shall be entitled to receive interest on the selling value of his wool after 
freight has been deducted from date of arrival. The Government is fixing the 
price of the 1918 clip on a basis delivered at Atlantic seaboard points. It is 
therefore incumbent on the grower to deliver his wool at the designated dis- 
tributing centers, and the expense of delivering the wool at such centers will 
be charged against the wool on a basis of the freight rate from point of origin 
to the Atlantic seaboard. 

VALUING AND GRADING. 

As soon as possible after the arrival of the wool at a distributing center, 
if the wool is to be taken in the original bags, it shall be valued by the 
Government Valuation Committee. If the wool is to be graded, it shall be 
valued in the piles by the Government Valuation Committee as soon as the 
piles are graded and ready for delivery. All grading will be conducted under 
Government supervision. The grades out of each clip will be weighed sepa- 
rately and the books of the dealer, as far as they pertain to any grower's 
wool, shall be open to him. Tags, bucks, black, and other recognized discount 
fleeces will be paid for at prices fixed by the Government. Bags will be 
paid for in the same manner. 

PAYMENTS TO GROWERS. 

Growers shall be entitled to payment on a basis of the date of the arrival 
of the wool as shown by the railroad receipt. However, as it would be im- 
possible for obvious reasons to make settlement on each clip on the date of 
its arrival, in order that the grower may lose nothing by any delay in settle- 
ment, he shall be entitled to draw interest on the selling price of his wool less 
freight from the date of the wool's arrival until the date of final settlement. 

Final returns will be made as promptly as possible in all cases, 

COMMISSIONS. 

The grower does not pay the commission or compensation for handling wools 
in the designated distributing centers. This commission or compensation for 
handling will be added to selling price of the wool and paid by the buyer. 

If sold in the original bags, the commission or compensation shall be 3 per 
cent of the selling price. If the wool is graded, the commission or compensation 
shall be SJ per cent of the selling price. This commission or compensation 
includes drayage, storage, and insurance for a period not exceeding on any lot 
six months after arrival. On any lot remaining unsold in his possession for a 



716 



HISTORY OF PRICES DUEI2TG THE WAR. 



longer period than six months the dealer shall be entitled to charge storage 
and insurance at the market rate, and this additional charge shall be added 
to the price of the wool. 

MILLS LOCATED IN WOOL-GROWING DISTRICTS. 

In order that the Government may have full control of the wool situation, 
Avith a view to conserving as far as may be necessary the wool supply for 
military purposes, it is considered necessary to prohibit manufacturers from 
buying wool, exccjit in the designated distributing centers, and then only with 
the permission and consent of the Government under such regulations as the 
Government may hereafter make. 

However, mills located in wool-growing districts not near to the designated 
centers of distribution, and which are working on Government orders, will be 
given permits through the wool division of the War Industries Board to buy 
certain amounts of wool in their immediate neighborhood. In making appli- 
cations for such permits, the manufacturer applying sliould state the number 
of his Government order, the amount of goods yet to be delivered- against such 
order, the amount of his wool stock on hand, and the amount and class of wool 
required to complete said order. The manufacturer receiving such a permit 
will be required to report to tlie wool division of the War Industries Board all 
purchases made against permit issued to him. 

PERMITS TO DEALERS. 

All dealers in approved centers desiring a permit to operate should apply to 
the wool division of the War Industries Board stating their capacity for storing 
and grading. 

All country dealers should apply for a permit to operate by writing to the 
wool division of the War Industries Board giving name and address. 

In order to expedite movement of wool, dealers in country districts and dis- 
tributing centers may operate inwnediately in accordance with the above regula- 
tions, pending application for and granting of permit. 

Lewis Penwell, 
Chief of Wool Division, War Industries Board. 



GOVERNMENT WOOL PRICES, EFFECTIVE MAY 1, 1918. 
DOMESTIC WOOL IN THE GREASE. 

BOSTON VALUATIONS SCOURED BASIS AS OF JULY 30, 1917 GKEASY FLEECE WOOLS. 

OHIO AND SIMILAR, INCLUDING NEW ENGLAND STATES, NEW YORK, PENNSYL- 
VANIA, WEST VIRGINIA, KENTUCKY, VIRGINIA, MICHIGAN, NEW JERSEY. 
DELAWARE AND MARYLAND. 



Choice. 



Average. 



Fine delaine 

Fine clothing 

1^ Bid. staple... 
J^ Bid. clothing. 
3-8 staple 



$1.75 



3-8 clothing 

1-4 Bid. staple 

l-4Bld.clotlung... 
Low 1-4 

Common and braid. 



$1.85 
1.70 
1.68 
1.60-62 
1.45 
1.42 
1.32 
1.30 
1.17 
1.07 



MISSOURI, 



INDIANA, ILLINOIS, AND SIMILAR, INCLUDING lOWO-, WISCONSIN, 
MINNESOTA, KANSAS, NEBRASKA, AND ARKANSAS. 



Choice. 



Average. 



Fine delaine 

Fine clothing $1. 70 

1^ Bid . staple 1. 63 

1^ Bid. clothing 1. 60 

3-8 staple 1. 40 

3-8 clothing i 1. 37 

1-4 Bid . staple ' 1. 28 

Bid . clothinc : 1. 26 

Low 1-4..... 1.17 

Common and braid -V 



$1.80 
1.65 
1.60 
1.67 
1.37 
1.34 
1.26 
1.24 
1.15 
1.07 



GOVEKNMENT REGULATIONS RELATING TO PRICES. 



717 



GOVERNMENT WOOL PRICES, EFFECTIVE MAY 1, 1918— Continued. 
GEORGIA AND LAKE WOOLS AND OTHER SOUTHERN WOOLS. 



Average lots, largely 3-8s 
Average lots, largely l-4s 



Average. 



$1.25 
1.20 



Semibright. 

Semibrights are to be classified as territory or fleece, 
the lot. 

TERRITORY. 



according to the character of 



Fine and fine medium staple . . 
Fine and fine medium clothing 

i Bid. staple 

J B Id . clothing 

High 3-8s staple 56-58s 

High 3-8s clothing 56-58s 

3-8s staple 56s 

3-8s clothing 66s 

Low 3-8s staple 50-568 

Low 3-8s clothing 50-5as 

High 1-4 blood staple 48-50s . . . 

High 1-4 clothing 48-50? 

1-4 staple 46-48S 

1-4 clothing 46-48S 

Low 1-4 staple 44s 

Common and braid 40s 



Choice. 



Average. Inferior 



$1.80 


$1.75 


1.70 


L65 


1.68 


L63 


1.60-62 


1.58 


L45 


1.42 


1.42 


1.39 


1.40 


1.37 


1.37 


1.34 


1.35 


1.32 


1.32 


1.29 


1.32 


1.29 


1.30 


1.27 


1.28 


1.26 


1.26 


1.24 


1.17 


1.15 


1.07 


LOS 



SI. 70 
1.62 
1.60 
1.53 
1.40 
1.37 
1.35 
1*32 
1.30 
1.27 
1.27 
1.25 
1.24 
1.22 
1.13 
1.03 



TEXAS. 




Twelve months. 
Eight months.. 
Six months 



CALIFORNIA. 



Twelve months. 
Eight months . . 
Fall 




$1.60 
1.40 
1.15 



SOUTH AMERICAN WOOLS. 

rValuation of South American wools in the grease on a clean scoured basis. — Values 

as of July 30, 1917.] 

ARGENTINE, MONTEVIDEO, AND CONCORDIA FLEECE WOOLS, BASIS UNITED 
^"^ ' STATES OF AMERICA STANDARD TYPES. 



Good 6s or 32-36s combing fleece 

Good 5s or 36-40s combing fleece 

Good 4s or 44-40s combing fleece 

Good 3s or 46s combing fleece 

Good 50s combing fleece 

Good 56s combing fleece 

Good 1-2 Bid. or 58-50 combing fleece 

Good 60-64S combing fleece 

Good 64s combing fleece 

Good 64s clothing combing fleece 



1 Montevideo 
Argentine. 1 and 

Concordia. 




SO. 85 
.90 
1.05 
1.20 
1.30 
1.40 
1.55 
1.60 
1.65 
1.50 



718 



HISTORY OF PRICES DURING THE WAE. 



SOUTH AMERICAN WOOLS— Continued. 
ARGENTINE, MONTEVIDEO, AND CONCORDIA BURRY COMBING FLEECE. 



Montevideo 

and 
Concordia. 



SO. 75 



Burry 6s or 32-36s combing fleece 

Burry 5.s or 3&-40s combing fleece 

Bmry 4s or 44-403 combing fleece 

Burry 3s or 46s combing fleece 

Barry 60s combing fleece 

Binry 56s combing fleece 

Burry J.- bid. or 58-60s combing fleece 

Bmry 60-fi4s combing fleece . 

Burry 64s combing fleece 

Burry 64s clotiiing combing fleece . . . 



In all the above burrs are considered in the shrinkage. 

Argentine, Montevideo, and Corcordia, good skirting, free from bellies, same basis 
as Burry combing fleece. 

LAMBS. 




.95 


.95 


1.10 


1.10 


1.15 


1.15 


1.20 


1.25 


1.30 


1.40 


1.40 


1.45 


1.45 


1.50 


1.35 


1.35 



BUENOS AIRES, 



MONTEVIDEO, CONCORDIA, PATAGONIA, 
LAMBS— PRACTICALLY FREE. 



AND SIMILAR 



Buenos 
Aires. 



Montevideo, 
Concordia, 
Patagonia, 

and similar. 



Good 36-403 

Good 44-40$ 

Good 46s 

Good 50s 

Good 56s 

Good i blood or 58-60s 
Good 64s 



$0.80 
.95 
1.00 
1.05 
1.15 
1.25 
1.25 



$0.80 
.95 
1.05 
1.15 
1.25 
1.30 
1.30 



BUENOS AIRES, MONTEVIDEO. CONCORDIA, PATAGONIA, AND SIMILAR SECOND 
CLIP WOOLS — PRACTICALLY FREE. 



Good Ss or 36-40s 
Good 4s or 14-40s 
Good 3s or 46s... 

Good 50s 

Good 56s 




50.85 
1.00 
1.10 
1.20 
1.30 



BELLIES. 

BUENOS AIRES, MONTEVIDEO, CONCORDIA, AND SIMILAR BELLIES. 

5s or 25-40S , $0.75 

4s or 44-40S .90 

3s or 46s .95 

50s 1- 05 

56s 1- 15 

58-60S 1- 25 

64s 1- 25 

Bui;rs included in shrinkage. 

PUNTA ARENA FLEECE. 

[Skirted, U. S. A. style.] 

36-40S good combing fleece $0. 90 

44_40s good combing fleece 1. 00 

46s good combing fleece 1. 20 

50s good combing fleece 1. -^O 

56s good combing fleece 1. 40 

58-60S good combing fleece 1. 55 

64s good combing fleece • !• 60 

PUNTA ARENAS, BELLIES AND PIECES. 

36-40S clothing ^0.80 

44-40S clothing -90 

46s clothing 1.10 

50s clothing 1-20 

56s clothing 1-30 

58-60S clothing 1- 45 

64s clothing 1- 50 



GOVERNMENT REGULATIONS RELATING TO PRICES. 



719 



BELLIES— Continued. ■ 

PERUVIAN WASHED. 

White supermerino $1- 50 

White average merino 1- gO 

White choice No. 1 1- ^^ 

White average No. 1 }in 

White average No. 2 1- 10 

Gray merino 1- 25 

Gray average No. 1 i nn 

White pieces and locks i- |J0 

Stained l- ^^ 

ICELAND WASHED. 

Choice washed ?0. 90 

Average ^ • °^ 

CHILEAN UNWASHED. 

Merino spring 56-60s ^J" ?o 

Merino Mestiza Fall carding \-\^ 

Mestiza choice Valdivian Spring 46-56s broad 1-23 

Mestiza average spring 56-58s, some 50s 1-28 

Doma average spring 44-46s 1-10 

Common average spring 40-36s -85 

CordilUra average carding, bulk 50 i- 1° 

ISA gray (carding) 46-56s. i- 15 

PERUVIAN UNWASHED. 

Choice 50-58S ® J- 30 

Average 46-56s broad 1-12 

Low36-40s -Sa 

Black 44-46S i- 00 

Gray 40-46s 90 

UNWASHED ECUADORIAN. 
Ecuadorian 40-36s $0. 85 

UNWASHED BOLIVIAN. 
Bolivian 46-56s $1-12 

WASHED BOLIVIAN. 
Washed Bolivian 50-o6s $1. 20 

FOREIGN BLACK AND GRAY— COMBING AND CLOTHING. 



Combing. 



Clothing. 



Blacks . 



44-40S (gray) 

46s (gray) 

50s (gray) 

56s (gray) ; 

58-60s(gray) 

60-64S and fine (gray). 

Iceland (gray) 

China (gray) 

Peruvian (gray) 

Bolivian (gray) 

ChiU (gray) 

Ecuador (gray) 

Spanish (gray) 

Cape Coa and colored. 
Greek, black and gray 



$0.90 
1.05 
1.15 
L25 
1.30 
1.50 
.90 
.60- .70 

2 1.12 

.80- .90 
. 70-1. 20 
.60- .85 
■ . 70- . 85 
1 . 40-1. 25 
: . 60- . 75 



SO. 85 
1.00 
1.15 
1.25 
L30 
1.50 



$L00 
1.10 
1.25 
1.35 
1.40 
1.60 



1.70- .80 
1L25 


.80-1.00 

1.25-1.40 

1.00 










1.00-L30 


1 1. 30-1. 50 
1 . 75-1. 50 







1 Fine. 2 Low. ' Pulled cloth. 

Burry and seedy, cotts same basis as burry combing. 

SCOURED WOOLS. 

[Valuation of scoured fleece wool on the basis of values as of July 30, 1917.] 

TERRITORY AND FLEECE. 

Scoured fine anti fine medium $1- 62 

Scoured fine and fine medium territory choice . 1. 70 

Scoured fine medium . 1. 60 

Scoured 3-8's territory 1- 45 

Scoured 1-4's territory, New Mexican 1- 23 

Scoured low territory, New Mexican 1- 00 

Scoured fine California (baled) }' ^i 

Scoured medium California (baled) 1.40 

Scoured defective fine California (baled) 1- 15 

Scoured slightly defective fine California (baled) 1.38 

Carbonized fine California (baled) 1.50 

Carbonized medium California (baled) 1.36 

Scoured fine short Texas 1. 60 

Scoured domestic fine sorts : 1. 10 

Scoured fine sorts ^•^'^ 

Scoured domestic medium sorts 1. 05 



720 



HISTOKY OF PRICES DURIlsTG THE WAE. 



SCOURED WOOLS— Continued. 

SOUTH AMERICAN SHORN LAMBS. 
Concordia, Patagonia, Montevideo, Paste Fuerte, and similar lambs : 

Scoured 50-5t)S 5I. 25 

BUENOS AIRES LAMBS. 

Scoured Buenos Aires lambs, 46s $1. 15 

Scoured Buenos Aires Hoggetts, 46s 1. 15 

Carbonized Buenos Aires lambs, 46s 1. 15 

Carbonized Buenos Aires lambs, 40-44s 1. 10 

SOUTH AMERICAN SECOND CLIP FLEECE. 

Patagonia, Pasto Fuerte, Concordia, Montevideo, and similar : 

Scoured (bulk) 56s _- $1. 35 

Scoured 50-56s 1. 30 

Scoured 50s 1. 25 

Scoured 46-50s 1. 20 

Scoured (bulk) 44s 1. 15 

Carbonized 50'-56s 1. 35 

Carbonized 46-50s 1. 17 

Carbonized (bulk) 44s 1.12 

SOUTH AMERICAN BALED. 

Scoured Buenos Aires 4(3— 50s $1. 25 

Scoured Buenos Aires (bulk) 44s 1. 10 

Scoured Chubut 60-64s 1.65 

SOUTH AMERICAN PIECES AND BELLIES. 

Scoured Punta Arenas, .50s $1. 25 

Scoured Punta Arenas, 46s 1.17 

CHILIAN. 

Scoured 1-2 blood $1.25 

Scoured 3-8s 1. 10 

Scoured gray and stained low quarter . 80 

Scoured common . 70 

Merino 1. 35 

PERUVIAN. 

Scoured No. 1, 3-8s $1. 22 

Scoured No. 2, quarter : 1. 12 

Scoured gray low, 3-8s 1. 12 

CAPE, 

Scoured fine, fair staple (bags) $1.48 

Scoured fine, snow-white (baled), average 1. 60 

Scoured fine, snow-white (baled), choice 1.70 

Scoured fine (baled), jnferior 1.32 

Scoured fine, stained (baled) 1. 25 

Scoured fine, stained (baled), inferior 1. 00 

Scoured grey (baled), average . 85 

Scoured grey (baled), coarse .60 

Scoured fine choice long (bags) 1.70 

Scoured fine good staple (bags) 1.55 

Carbonized fine (bags) -; -r 1.62 

Scoured No. 2 (baled) 1-25 

SCOURED AUSTRALIAN FLEECE WOOL. 



Extra super, scoured 

Choice scoured, good length, sound ; free or practically free 

Best carding, bulky, free 

Good carding, fairly free 

Good average combing, scoured Queensland, nearly free. . 

Average combing scoured, fairly free 

Good combing pieces and bellies 

Average length carbonizing, bellies, pieces 

Shivy fleeces, thinly grown 



70's and 
better. 



U. 80 
1.75 
1.70 
1.60 
1.65 
1.55 
1.50 
1.45 
1.40 



64-70's. 



$1.65 
1.70 
1.65 
1.55 
1.60 
1.50 
1.45 
1.40 
1.35 



60-64's. 



$1.65 
1.60 
1.55 
1.45 
1.50 
1.40 
1.36 
1.30 
1.30 



70's. 



64-70's. 



60-64's. 



Super clothing, free 

Good clothing, free 

Average clothing, nearly free, carbonizing 



$1.75 
1.65 
1.55 



$1.70 
1.60 
1.50 



$1.60 
1.55 
1.45 



$1.50 
1.45 
1.35 



GOVERNMENT REGULATIONS RELATING TO PRICES. 721 

SCOURED WOOLS— Continued. 

TOPS. 

[Prices as of July 30, 1917.] 
Grade : 

36s $1. 00 

40s 1. 05 

44s 1. 20 

46s 1. 35 

50s 1. 50 

56s 1. 62 

58s 1. 84 

60s 1. 95 

64s 2. 05 

66s 2. 12 

32s and below (carpet tops) at corresponding values. 

PULLED WOOL. 

[Valuation on domestic and foreign pulled wools in the grease on a clean basis. Scouring 
costs not included. All values as of July 30, 1917.] 

DOMESTIC COMBINGS. 

AA combing, 64s $1. 80 

A combing, 60s .. 1. 70 

B combing, 56-50s 1. 55 

C combing, 46-50s 1. 43 

Low combing, 44— 40s 1. 25 

Butt combing, average 36s 1. 00 

DOMESTIC STAPLE. 
AA staple, 64s $1.78 

A super staple, 60s 1. 70 

B super staple, 56-50s 1. 52 

C super staple, 44-50s 1.42 

DOMESTIC CLOTHING. 

AAA clothing, 70s $1.85 

AA clothing, 64s 1. 72 

A super clothing, 58-56s 1. 60 

B super clothing, 50s ^ 1.46 

C super clothing, 44s 1- 33 

Low C . 9.5 

Gray B super 1. 28 

Gray C super 1.18 

Short gray ,^ • 92 

A shearlings 1- 25 

B shearlings 1- 15 

C shearlings • 90 

White vat • 35 

SPANISH PULLED. 

Choice white fine $1- 10 

Average white • 85 

Choice black ., 1- 32 

Average black • 82 

Low black ■ 65 

Low medium white • 7o 

Low • "5 

MONGOLIAN. 
Choice No. 1 white $0. 68 

Low white • 55 

Choice No. 1 gray ■ 68 

Low gray ' • oO 

CHINA. 

Choice No. 1 white $0. 85 

Average white • 78 

Average gray ^ • 48 

EAST INDIA. 
Low white $0. 55 

Low medium yellow ■ °0 

CORDOVA. 

White combing ^ $0. 65 

Fine white clothing • 85 

ITALIAN. 
White skin wool $0.45 

ICELAND. 

No. 2 skin wool ^^-^9 

No. 1 Iceland • "0 

12.^.fi47°— 20 46 



722 



HISTORY OF PRICES DURING THE WAR. 



PULLED WOOL— Continued. 

SOUTH AMERICAN PULLED. 

Fine combing $1. 65 

AA staple (choice), 60-64s 1. 70 

Half blood or 58-60s combing 1. 55 

A combing (choice). 56-58s 1. 55 

56s combing 1. 45 

B combing (choice), 50-56s ^ 1. 50 

50s combing 1. 35 

C combing (choice), 46-50s ^ 1. .35 

46s combing L 1. 25 

Low combing (choice), 44s 1. 15 

44— 40s combing 1.10 

Lincoln combing (choice), 36s, 40s 1. 00 

Do .95 

AA clothing, (i0-64s 1.65 

A clothing, 56s 1. 52 

B clothing, .50s 1.42 

C clothing, 44-40S 1.12 

Lincoln clothing, 36s .95 

PULLED CAPE. 

AA staple. 64s $1. 75 

AA clothing. 64s . 1.55 

SCOURED PULLED WOOLS. 

[Valuation of scoured pulled wool on the basis as of .July 30, 1917.] 

DOMESTIC PULLED. 

Scoured domestic, AA superpulled choice-^ $1. 75 

Scoured domestic. AA superpulled average 1.65 

Scoured domestic, A superpulled choice 1.65 

Scoured domestic, low A superpulled choice 1.53 

Scoured domestic, A superpulled western 1. 50 

Scoured domestic, high B choice 1. 50 

Scoured domestic, B superpulled 1. 43 

Scoured domestic, B superpulled western 1. 35 

Scoured domestic, C superpulled choice 1. 28 

Scoured domestic, C superstalned pulled . 1. 05 

Scoured domestic, C superlow stained pulled . 95 

Scoured domestic, gray B superpulled 1. 23 

SOUTH AMERICAN PULLED. 

Scoured fine $1. 70 

Scoured .56-58s 1. 55 

Scoured 50s , 1. 45 

Scoured 46s 1. 30 

Scoured 40-44s 1. 15 

Scoured Lincoln 1. 00 

AUSTRALIAN. 

[Valuation of Australian greasy fleece combing on a clean basis as of July 30, 1917.) 



Type. 



70s. 



6&-70S. 



64s. 



60s. 



Extra super spinners, choicest style 

Spinners, good length, free 

Average spinners, bright and attractive, few burrs 

Super French combing, free 

Shafty combing, showy, bright but tender, free or nearly 

Shafty combing, sound, but more or less huirj 

Good top makers, irregular quality and length, but fairly free. 
Averagetopmakers,irregular quality and length, but fairly free 

Good French combing, fairly free 

French combing, few burrs 

Average combing, more or less burrs 

Average length combing, very burry or suitable for carbonizing . 
French combing, very burry, or suitable for carbonizing 



SI. 95 
1.90 

• 1.86 
1.80 
1.80 
1.78 
1.80 
1.75 
1.75 
1.68 
1.70 
1.60 
1.50 



SI. 93 
1,88 
1.83 
1.78 
1.78 
1.76 
1.78 
1.73 
1.73 
1.66 
1.67 
1.55 
1.45 



CLOTHING. 



Type. 



Extra super, regular length, absolutely free. 

Choice clothing, absolutely free 

Average clothing, free or nearly free 

Average clothing, some fault 

Faulty, irregular 64-80s 



SI. 85 
1.80 
1.70 
1.60 



$1.90 
'1.85 
1.80 
1.75 
1.75 
L75 
L75 
1.70 
1.70 
1.63 
1.65 
1.50 
1.40 



70s. 



$1.85 
1.80 
1.75 



1.70 
1.68 
1.70 
1.65 
1.65 
1.58 
1.60 
1.46 
1.36 



$1.80 
1.75 
1.65 
1.55 



64-70S. 



' $1. 65 
1.55 
1.50 
1.40 



1 Basis of prices as per the committer's report on which all valuations contained herein are based. 



GOVERlsrMEN'T REGULATIOl^S RELATING TO PRICES. 



723 



AUSTRALIAN — Continued. 
BROKEN NECKS AND PIECES— COMBINGS. 



Type. 



64s. 



60-64S 



Extra super combing, Geelong and N. E. types. 
Good length combing, sound, free or nearly free 

Average length, sound, free or nearly free 

Average length, tender, free or nearly free 

Good length, sound, few burrs or seeds 

Average length, sound, few burrs or seeds , 

French combing, few burrs or seeds 

Good length combing, very burry 

Average length combing, very burry 

French combing, very burry 



»1.75 
1.70 
1.60 
1.65 
1.60 
1.55 
1.60 
1.50 
1.40 



il.75 
1.70 
1.65 
1.55 
1.60 
1.55 
1.50 
1.55 
1.45 
1.35 



SI. 70 
1.65 
1.60 
1.50 
1.55 
1.50 
1.45 
1.50 
1.40 
1.30 



STAINED PIECES AND CARBONIZING PIECES. 



Type. 



64s and 
better. 



60-64S. 



Good length carbonizing bellies 

Average length carbonizing bellies 

Short length carbonizing bellies 

Good length combing stained pieces, free or nearly free. . . 
Average length combing, free or nearly free stained pieces 

Good length combing stained pieces, burry 

Average length combing stained pieces, burry 

Bulky carbonizing stataed pieces 

Average carbonizing stained pieces 

Inferior carbonizing stained pieces 



$1.25 
1.15 
1.00 
1.50 
1.45 
1.35 
1.25 
1.10 
1.00 
.80 



$1.15 

1.05 

.90 

1.40 

1.35 

1.25 

1.15 

1.00 

.90 

.70 



Carbonizing charges not included. 



COMBING BELLIES. 



Type. 



64-70S. 60-64S 



Super combing bellies, sound, free 

Good length combmg bellies, sound, free or nearly free. 

Average length combing bellies, free or nearly free, sound 

French combing belUes, fairly free 

Good length combing bellies, moro or less burry and seedy or tender. . 
Average length combing bellies, more or less burry and seedy or tender 

French combing bellies, more or less burry or seedy .- 

Combing bellies , very burry 



.11.70 
1 1.65 
1.55 
1.45 
1.45 
1.35 
1.30 
1.25 



$1.60 
1.55 
1.45 
1.35 
1.35 
1.25 
1.20 
1.15 



$1.50 
1.50 
1.40 
1.30 
1.30 
1.15 
1.15 
1.10 



• Basis olprices as per the committee's report on which all valuations contained herein are based. 

MERINO LAMBS. 

Extra super geelong lambs free , 

Super, practically free 

Average length second super, practically free 

Short free lambs 

Good length, more or less huiTS 1 

Medium length, more or less burrs . . 

Irregular length, more or less burrs. . ^carbonizing , 

Short length, more or less burrs | 

Inferior Kempy , carbonizing 



MERINO LOCKS. 



Good length locks free 

Average length locks free 

Short length locks free 

Bulky locks, carbonizing 

Average length locks, carbonizing — 

Short length lock?, carbonizing 

Carbonizing charges not included. 



$1.70 
1.60 
1.55 
1.40 

n.40 

1.35 

1.20 

1.10 

.80 

$1.20 

1.10 

1.00 

1.00 

.90 

.80 



WEANERS. 



First combing weaners 

Second combing weaners . 



70s. 



$1.60 
1.30 



$L55 
1.25 



$1.50 
1.20 



1 This price taken as basis; 10 cents carbonizing charges added to same is equivalent to the committee's 
basis of $1.40. 



724 



HISTORY OF PRICES DURING THE WAR. 



36s 

40s...., 

■44s 

46s 

46-50S. 



GREASY AUSTRALIAN AND NEW ZEALAND FLRECKS— r.OOD. 
[Scoured basis as of July 30, 1917.) 



.$0.95 
. 1.00 
. 1.15 
. 1.30 
. 1.35 



50s $1.4S 

50-56S 1. 50 

56s 1 . 55 

58s 1 . 70 



CARPET. 



Handshaken fleece. No. 1 white sining 

"Wlllowed, No. 2 white sining 

Handshaken fleece, black sining (.super) 

Handshaken fleece, gray sining 

Handshaken fleece, stained sining 

Willowed, No. 2 gray 

Handshaken semi-carbonized No. 1 white (good) 

Government type, white, Szechuen 

Sundried, No. 1 white Szechuen 

Sundried, No. 2 white Szechuen 

Sundried, gray Szechuen 

Washed, No. 1 white ball (super) 

Government type, ball China 

Willowed, No. 2 white ball 

Willowed, No. 1 gray ball 

Willowed, No. 2 gray ball 

Willowed, open ball 

Handshaken, best unassorted fleece (A) 

Handshaken, medium unassorted fleece (C) 

Handshaken, low imassorted fleece (D) 

Willowed, best white filling (A) 

Willowed, good white filling (B) 

Willowed, fair white filling (C) 

Willowed, low white filling (D) 

Willowed, short white filling (cuttings) 

Willowed, best gray filling , 

Willowed, fair gray 

Willowed, low filling , 

Willowed, China autumn 

Handshaken, China No. 1 fleecy super lambs 

Handshaken, China No. 2 fleecy lambs 

Handshaken, China No. 3 fleecy lambs 

Willowed, China lambs 

Government type, China No. 1 woosie, spring 

Government type, China No. 1 woosie, autumn 

Government type, China No. 2 woosie, autiunn or spring. 

Washed, China Shanghai 

Handshaken, China Honan, unassorted 

Washed Mongolian, average (Urga.) 

Washed Manchurian, white (Hailar) , 

Washed Manchurian, gray , 

Unwashed Cordova, good carbonized, white 

Unwashed Cordova, good carbonized, gray 

Unwashed Cordova, second clip, white 

Ecuador 

Caribbean 

Spanish, coarse carbonized, white 

Spanish, good carbonized, white 

Spanish, white, mattress 

Spanish, gray, mattress 

Macedonian, white, combing 

Macedonian, black, combing 

Oporto 



July 30, 1917. 



Per 
cent. 



Grease 
price. 



JO. 43 
.38 
.39 
.39 
.36 
.37 
-.38 



.41 

.28 
.36 
1.00 
.71 
.38 
.65 
.36 
.45 
.36 
.35 
.33 
.43 
.42 
.39 
.37 
.33 
.39 
.36 
.35 
.43 
.56 
.50 
.43 
.71 
.40 
.36 
.15 
.32 
.28 
.52 
.46 
.39 
.38 
.37 
.39 
.23 
.26 
.37 
.37 
.40 
.18 
.36 
.31 
.25 



Basis 
scoured. 



$0.72 
..59 
.67 
.67 
.67 
.57 
.73 



.63 
.54 
.59 

1.10 
.95 
.57 
.87 
.56 
.77 
.70 
.66 
.61 
.68 
.66 
.61 
.57 
.46 
.63 
.56 
.54 
.64 

1.33 

1.10 
.95 

1.10 
.64 
.60 
.43 
.49 
.58 
.68 
.61 
.55 
.76 
.74 
.70 
.77 
.65 
.60 
.74 
.51 
.30 
.68 
.62 
.62 



Scoured. 



$0.80 
.65 
.76 
.73 
.72 
.62 
.85 
.75 
.80 
.62 
.68 

1.10 
.95 
..59 
.90 
.56 
.85 
.82 
.80 
.61 
.80 
.75 
.61 
.57 
.52 
.71 
.56 
.54 
.70 

1.40 

1.12 
.96 

1.15 
.85 
.70 
.43 
.55 
.58 
.78 
.61 
.55 
.90 
.75 
.85 
.85 
.75 
.60 
.82 
.51 
.30 
.68 
.62 



GOVERNMENT ISSUE PRICES TO MANUFACTURERS HOLDIN(4 GOV 
BRNMENT CONTRACTS MAY 15. 1918. 



The issue prices of wool for Govenmient contract!^ are based on the valua- 
tion committees' description and estimate of shrinliage of each lot. Tlie Gov- 
ernment does not guaraiitee the estimated shrinltages of the valuation com- 
mittees, but believes them to be approximately correct. Samples of each lot 
will be shown at the office of the wool distributer and are intended to fairly 
represent the bulk lot, but are not guaranteed to do so. They are exhibited for 
the convenicncf- of manufacturers interested. Examination in bulk may be 
made if desired. 



GOVBKNMENT REGULATIONS RELATING TO PRICES. 725 

CONDITIONS. 

1. Holders of Government contracts should make application for any lot or 
lots (or portions thereof) in writing to E. W. Brigham, 298 Summer Street, 
Boston. Application shall state the number of the Government contract for 
which the wool is required, and such other details as may be required. 

2. The price on each lot is the price fixed by the Government and is accepted 
by the buyer when his application is made. 

3. Terms are net cash within 60 days from date of allotment. 

4. Bags or bale covers are to be charged at cost and are not to be returned. 
The British Government now charges for bale covers of Australian wools. 

5. All wools or tops are to be taken at the same weights as billed to the 
Quartermaster Corps, which were sworn weigher's weights at time of the de- 
livery of wool to the Quartermaster Corps. 

6. Manufacturers may be required to give a bond for the full amount of the 
wool furnished. 

7. Deliveries of all wool allotted to be taken within 30 days of date of allot- 
ment. 

8. Storage, insurance, and drayage charges applying against each lot of wool 
are to be paid by the buyer. 

9. Cartage from warehouse to railroad is to be paid by the buyer. 

THE government's ISSUE PRICES ON SCOURED WOOLS. 

1. The prices of scoured foreign wools grading 58s and lower will be July 
30 prices (as established by the valuation committees) plus 7 per cent. 

2. The prices of scoured foreign wools grading finer than 58s will be July- 
30 prices. 

3. The prices of scoured domestic wools grading up to and including high 
three-eighths (58s quality), and in pulled scoured up to and including straight 
As will be .July 30 prices plus 7 per cent. 

4. The prices of scoured domestic wools finer than high three-eighths (.58s 
quality), and in pulled scoured finer than straight As will be .July 30 prices. 

THE government's ISSUE PRICES ON GREASY PULLED WOOLS. 

1. The prices of greasy foreign pulled wools grading 58s and lower will be 
July 30 prices (as established by the valuation committees) plus 7 per cent. 

2. The prices of greasy foreign pulled wools grading finer than 58s will be 
•July 30 prices. 

3. The prices of greasy domestic pulled wools grading up to and including 
straight As will be July 30 prices plus 7 per cent. 

4. The prices of greasy domestic pulled wools finer than straight As will 
be July 30 prices. 

THE government's ISSUE PRICES ON DOMESTIC WOOLS. 

Ohio and similar, including New England States, New York, Pennsylvania, 
West Virginia, Iventucky, Virginia, Michigan, New Jersey, Delaware', Mary- 
land : 



Issue price, 
scoured basis. 

Fine Delaine, clioice $1. 95 

Fine Delaine, average 1. 90 

Pine clothing, choice 1. 80 

Fine clothing, average 1. 75 

Half-blood staple, choice 1. 80 

Half-blood staple, average 1. 75 

Half-blood clothing 1. 70 



Issue price, 
scoured basis. 

Three-eighths staple $1. 55 

Three-eighths clothing l. 50 

Quarter-blood staple 1. 40 

Quarter-blood clothing l. 38 

Low one-fourth 1. 25 

Common and braid 1. 15 



Missouri. Indiana, Illinois, and similar, including Iowa, Wisconsin, Minne- 
sota, Kansas. Nebraska, and Arkansas : 



Issue price. 

Fine Delaine |1. 85 

E'ine clothing, choice 1. 75 

Fine clothing, average 1. 70 

Half-blood staple 1. 75 

Half-hlood clothing 1. 67 

Three-eighths staple 1. 52 



Issue price. 

Three-eighths clothing $1. 50 

Quarter-blood staple 1. 40 

Quarter-blood clothing 1. 38 

Low quarter-blood 1. 25 

Common braid : 1. 15 



Georgia, Lake wools, and other southern wools: 

Issue price. I Issue price. 
Average lots, largely 3-8ths $1. 37 | Average lots, largely 1-4 blood $1. 30 



726 



HISTORY OF PRICES DURING THE WAR. 



TEKEITORY. 

Pine staple : 

Choice 

Average 

Inferior 

Pine clothing : 

Choice 

Average 

Inferior 

Half-blood staple : 

Choice 

Average 

Inferior 

Half-blood clothing : 

Choice 

Average 

Inferior 

High 3-S staple 56-58s : 

Choice 

Average 

Inferior 

Three-eighths clothing 56-5Ss : 

Choice 

Average / 

Inferior 

Three-eighths staple 56s : 

Choice 

Average 

Inferior 

Throe-eighths clothing 56s : 

Choice 

Average 

Inferior 

Low 3-8 staple 50-56s : 

Choice 

Average 

Inferior 

Low 3-8 clothing 50-56s : . 

Choice 

Average , 

Inferior '. 

High 1-4 4a-50R: 

Choice 

Average 

Inferior _- 



Issue price. 



$1. 90 
1. 85 
1. 80 



1. 80 
1. 75 
1. 65 

1. 80 
1. 75 
1. 70 

1. 70 
1.65 
1. 60 

I. 60 
1. 55 
1. 50 

1. 55 
1. 50 
1. 45 

1. 55 
1. 50 
1. 45 

1. 52 
1. 47 

1. 42 

1. 50 
1. 47 
1. 45 

1. 4S 
1. 45 

1. 4;; 



TBBRITOET. 

Issue price. 
High 1-4 clothing 48-50s : 

Choice .$1. 40 

Average 1.87 



1-4 



Inferior. 

1-4 staple 46^8s : 

Choice 

Average 

Inferior 

clothing 46-48S 

Choice 

Average 

Inferior 

Low 1-4, 44s : 

Choice 

Average 

Inferior 

Common-braid 40s : 

Choice 

Average 

Inferior 



1. 35 

1. 40 
1. 38 
1. 35 

1. 38 
1. 35 
1. 32 



1. 12 



12 months : 

Choice 1. 80 

Average , 1. IT) 

Inferior 1. 70 

8 months : 

Choice 1. 60 

Average 1. 57 

Inferior 1. 55 

6 months : 

Choice 1. 50 

Average 1. 47 

Inferior 1. 45 

CAUPORMA. -— 

12 mouths : 

Choice 1. 80 

Average 1. 70 

Inferior 1. 60 

8 months : 

Choice 1. 55 

Average 1. 50 

Inferior 1. 45 



Note. — Bucks, tags, black, seedy, and other discount fl 
prices fixod later by the Government. 



will b<^ paid for at fair 

THE GOVERNMENT'S ISSUE PRICES ON FOREIGN WOOLS. 

[Argentine, Montevideo, Concordia fleece wools — Basis V. S. standard type.] 

Issue price. 

Good fis or 32-36S, combing fleece $0.92 

Good 5s 01' 36-40S, combing fleece 1. 02 

Good 4s or 44— 40s, combing fleece . 1. 12 

Good 3s or 46s, combing fleece 1. 28 

Good 50s, combing fleece 1.40 

Good 56s, combing fleece , 1. 50 

Good 1-2 or 58-60S. combing neece {f^^^^jl^^^ 1; ^ 

Good 60-64S, .ombing fleece {f«„°4\Yn/« }• Jg 

Good 64s, combing ^i^^^e {^o^^^^::::::::::::::::::::::::'::::::::::::::: 1:|§ 

Good 64s, clothing 1.65 



AUSTRALI.VN AND NEW ZEALAND CROSSBREDS. 



36s $1. 00 

40s 1. 05 

44s 1. 20 

46s 1. 35 

46-50S 1. 42 



50s .fl. TiO 

50-56S 1. 55 

56s 1. 60 

58s 1. 75 



ARGENTINE, MONTEVIDEO, AND CONCORDIA BURRY COMBING FLEECE. 



Burry 6s or 32-36s combing fleece $0. 80 

Burry 5s, or 36-40s combing fleece , 86 

Burry 4s' or 44— 40s combing fleece 1, 02 

Burry 3s or 46s combing fleece 1. 18 

Bnrry 50s combing fleece 1. 22 



Burry 56s |1. 34 

Burry 58-60s 1. 50 

Burry 60-64s 1. 55 

Burry 64s 1. 60 

Rnrrv fi4s clothing 1. 45 



In all the above burrs are considered shrinkage. 
Argentine, Montevideo, and Concordia good skirl ins. 
burry combing fleece. 



fref from bellies, same basis as 



GOVERIsrMElSrT REGULATIONS RELATING TO PRICES. 



727 



BUENOS AIRES, MONTEVIDEO, CONCORDIA, PATAGONIA, AND SIMILAR 
LAMBS PRACTICALLY FREE. 

Buenos Aires, Montevideo, and Con- 
cordia, and similar bellies — Con- 
tinued. Issue price. 



Buenos Aires : Issue 


price. 


Good 36-40S 


$1. 00 


Good 44-40S 


1. 10 


Good 4es 


1. 15 


Good 50s 


1.25 


Good 56s 


1.35 


1-2 or 5S-60S _ 


1.40 


64s _ __ 


1.40 


Montevideo, Concordia, Patagonia, 


and similar : 




Good 36-40S 


1.00 
1.10 


Good 44-40S _ _ 


Good 46s __ __ _ 


1.15 


Good 50s 


1. 25 
1.35 


Good 56s 


Good 1-2 blood or 58-60s 


1.40 


Good 64s _ 


1.40 


Buenos Aires — Second-clip wools, 


practically free : 




Good 5s or 36-40s_ 


1.00 


Good 4s or 44-40s 


1. 15 


Good 3s or 46s 


1. 20 


Good 50s - 


1. 30 


Good 56s 


1.40 


Montevideo, Concordia, Patagonia — 




Second clip : 




5s or 36-40S 


1.00 


4s. or 44— 40s 


1. 15 


3s or 46s 


1. 25 


50s 


1. 35 


56s 


1.45 


Buenos Aires, Montevideo, and Con- 


cordia, and similar bellies : 




5s or 36-40S 


.82 


4s or 44— 40s 


.98 
1.03 


3s or 46s 



THE GOVERNMENT'S ISSUE PRICES ON 



1. 02 



50s 

56s 

58-60S 

64s 

Burrs included in shrinkage. 

Punta Arenas fleece, skirted, Ameri- 
can style : 

36-40s combing fleece 

44— 40s combing fleece 1. 12 

46s combing fleece 1. 30 

50s combing fleece 1. 40 

56s combing fleece 1. 50 

58-60.S combing fleece 1. 70 

64s combing fleece 1. 70 

Punta Arenas bellies and pieces : 

36-40S clothing 1.00 

44-40s clothing 1.10 

46s clothing 1. 25 

50s clothing 1. 35 

56s clothins; 1. 45 

58-60S clothing 1. 55 

64s clothing 1.60 

Foreign pulled wools : 

36-40S combing 1. 05 

44-40s combing 1. 20 

46s combing 1. 40 

50s combing 1. 45 

56s combing 1. 55 

i blood, or 58-60s combing 1. 65 

Fine combing 1. 75 

Greasy Cape Merinos : 

64s deep combing 1. 70 

64s average fair combing 1. 63 

64s good average clothing 1. 50 

AUSTRALIAN WOOLS— GREASY FLEECE. 



[Clean scoured basis. 



Type. 



66-70S. 



64s. 



Extra super spinners, choicest style 

Spinners, good length, free 

Average spinners, bright and attractive, few burrs 

Super French combing, free 

Shafty combing, showy, bright but tender, free or nearly 

Shafty combing, soimd, but more or less biu-ry 

Good top makers, irregular qualitjr and length, but fairly free. . 
Average top makers, irregular quality and length, but fairly free. 

Good French combing, fairly free 

French combing, few burrs 

Average combing, more or less burrs 

Average length combing, very burry or suitable for carbonizing 
French combing, very burry, or suitable for carbonizing 



$L95 
L90 
1.85 
L80 
1.80 
1.78 
L80 
L75 
L75 
1.68 
1.70 
L60 
1.50 



SI. 93 
L88 
1.83 
1.78 
L78 
1.76 
1.78 
1.73 
1.73 
1.66 
1.67 
1.55 
1.45 



81.90 
L85 
1.80 
1.75 
L75 
1.75 
1.75 
L70 
L70 
1.63 
1.65 
1.50 
1.40 



$L85 
1.80 
L75 

"i.'70 
1.68 
1.70 
1.65 
1.65 
1.58 
1.60 
1.45 
1.35 



CLOTHING. 



["ype. 



Extra super, regular length, absolutely free . 

Choice clothing, absolutely free 

Average clothmg, free or nearly free 

Average clothing, some fault 

Faulty, irregular 64-80s 



SOs. 



$1.85 
1.80 
1.70 
1.60 



BROKEN NECKS AND PIECES— COMBING. 
[Clean scoured basis.] 



Type. 



Extra super combing, Geelong, and N. E. types 
Good length combing, sound, free, or nearly free 

Average length, soimd, free, or nearly free 

Average length, tender, free, or nearlv free 

Good length, sound, few burrs or seeds 

Average length, sound, few burrs or seeds 

French combing, few burrs or seeds 

Good length combing, very burry 

Average length combing, very burry 



70s. 



SI. 80 
1.75 
1.65 
I..55 



643. 


60-6-ls. 


SI. 80 


SI. 75 


1.75 


1.70 


1.70 


1.65 


1.60 


1.55 


1.65 


1.60 


1.60 


1.55 


, 1.55 


1.50 


1.60 


1.55 


1.50 


1.45 



64-70S. 



$1.65 
1.55 
1.50 
1.40 



00s. 



$1.70 
1.65 
1.60 
1.50 
1.55 
1.50 
1.45 
1.50 
1.40 



728 



HISTOEY OF PRICES DURING THE WAR. 



STAINED PIECES AND (^AlllJONIZlNC 1>1K('I> 
[Clean scoured basis.) 



Type. 



Good length carbonizing bellies 

Average length carbonizing bellies 

Short length carbonizing bellies 

Good length combing stained pieces, free or ne.irly free. . . 
Average length combing, free or nearly free stained pieces 

Good length combing stained pieces, biirry 

Average length combing stained pieces, burry 

Bulky carbonizing stained pieces 

Average carbonizing stained pieces 

Inferior carbonizing stained pieces 



64-70S. : 00-nis. 



$1.25 
1.15 
1.00 
1.50 
1.45 
1.35 
1.25 
1.10 
1.00 
.80 



SI. 15 

1.05 

.90 

1.40 

1.35 

1.26 

1.15 

1.00 

.90 

.70 



Carbonizing charges not inf hided. 



SCOURED WOOLS. 
[Clean scoured basis.] 



Type. 



Choice scoured, good length, sound, free or practically free. 

Best carding, bulky, free 

Good carding, fairly free 

Good average combing, scoured, Queensland, nearly free . . 

Average combing, scoured, fairly free 

Super clothing, free 

Good clothing, free 

Averageclotlung, nearly free 

Good combing, pieces and beUies 

Shivy fleece, thinly grown 



70s and 
above. 



$1. 75 
1.65 
1.55 



$1.75 
1.70 
1.60 
1.65 
1.55 
1.70 
1.60 
1.50 
1.60 
1.40 



81.70 
1.65 
1.55 
1.60 
1.50 
1.60 
1.55 
1.45 
1.45 
1.35 



60-64S. 



$1.60 
1.55 
1.45 
1.50 
1.40 
1.50 
1.45 
1.36 
1.35 
1.30 



Other scoured wools to be valued on the basis of greasy wools of similar type. 

COMBING BELLIES. 

[Clean scoured basis.] 



Type. 



64-708. 60-64S. 



Super combing beUies, sound, free 

Good length combing bellies, sound, free or nearly free 

Average length combing bellies, free or nearly free, sound. . . 
Good length combing bellies, more or less burry or seedy.... 
Average length combing bellies, more or less burry or seedy 

French combing bellies, more or less burry or seedy 

Combing bellies, very burry 



$1.70 
1.65 
1.60 
1.45 
1.35 
1.30 
1.25 



!S1.60 
1.55 
1.50 
1.35 
1.25 
1.20 
1.15 



$1.50 
1.50 
1.45 
1.30 
1.20 
1.15 
1.10 



MERINO LAMBS. 

[Clean scoured basis.] 

Extra super (TCelong lambs, free $1.70 

Super, practically free 1.60 

Good length, free or nearly free 1.40 

Medium length, free or nearly free 1.30 

Short length, free or nearly free 1.10 

Inferior length, kempy. carbonizing .SO 

MERINO LOCKS. 

Good length locks, free $1.20 

Average length locks, free 1. 10 

Short length locks, free 1.00 

Bulky lo'ks, carbonizkig -85 

Average length locks, carbonizing . 75 

Short lengih locks, carbonizing .65 

Carbonizing charges not included. 

WEANERS. 



First combing weaners 

Second cojnbing weaners. 




The Government ha?- 
upon appli'-ation. 



TOPS. 

small anuiunt of tops in stock. 



These will be shown and priced 



6. HIDES, SKINS, AND LEATHER. 



The regulation of the prices of hides, skins, and leather began with the control 
of imports, administered through the license system. On December 15. 1917, 
the Tanners' Council of the United States of America (Inc.), was designated 
by the War Trade Board as the consignee of hides, skins, and leather imported 
into the United States.' 

On March 20, 1918, the woolpullers agreed to give the Government an option 
on all skins pulled by them, at maximum prices fixed for April, May, and June, 
on a basis of 14 cents per square foot on all leather suitable for jerkins. At 
the same time prices were established on four grades of leather at 16 cents. 18 
cents, 20 cents, and 23 cents, the average price for finished jerkin leather ap- 
proximating 181 cents.^ 

On May 19, 1918, the War Industries Board made public the following state- 
ment of its policy concerning the prices of hides, skins, and leather : * 

As the war needs of the Government for leather products of various kinds are 
so large as to necessitate some measure of control over the hide and leather 
industry, a meeting was called of those interested in the hide business for the 
purpose of discussing ways and means of stabilizing the prices of hide and skins. 

At this meeting were representatives of the Cattle Men's Association, the Hide 
and Skin Importer's Association, the packers, the country hide dealers, the hide 
brokers, and the Food Administration. 

DIFFERENCES OF OPINION ADJUSTED. 

While there was great difference of opinion among the various interests rep- 
resented as to what a fair and reasonable maximum price on hides and skins 
should be for the next 90 days, the representatives of the industry as a com- 
mittee of the whole finally recommended to the price-fixing committee of the 
War Industries Board the maximum prices on the attached schedules to be 
established by the Government on hides and skins. 

After several meetings and lengthy discussions the price-fixing committee, with 
exhaustive information, not only as to the present position of the industry but 
as to the near -future developments, finally concluded that the prices named on 
the kill for May, June, and July, while a little higher than their differential 
value of the present stock and the present market prices, were reasonable, so 
the Government has adopted the schedule of maximum prices as they relate to 
present stocks of domestic hides and skins, and to the kill for May, June, and 
July. 

As the Government, through an ihaport-license system, exercises full control 
over all imported hides and skins, the price-fixing committee has fixed maximum 
prices until July 31 on hides and skins similar to those produced in this country 
at the same price fixed for our domestic producers, and all other hides and skins, 
as per list attached. This differs somewhat from the views expressed by the 
hide committee regarding the fixing of prices on imported hides and skins. 



^ War Trade Board Journal, Jan. 8, 1918. For the rules governing the administration 
of the licenses see bulletins issued by the Tanners' Council, Dec. 20, 1917, and Feb. 28, 
1918. 

^Report of the hides, leather, and tanning materials section of the War Industries 
Hoard to Chairman Baruch. Jan. 1. 1918. 

• Official Bulletin, May 19, 1918. 

729 



730 HISTORY OF PRICES DURING THE WAR. 

FUTURE MEKTIXG ARRANGED. 

A meeting will be held two weeks before the expiration of the present agree- 
ment, which expires Julj' 31, 1918, for the purpose of considering the situation 
and with a view of fixing maximum prices for a further period. 

The price-fixing committee will call a meeting of the tanners at once with a 
-view of establishing fair and equitable prices on leather, and will endeavor to 
see that leather products will reach the consumer at fair and equitable prices. 

The supervision and carrying into effect of the decision of the price-fixing com- 
mittee will be executed by the hide and leather section of the War Industries 
Board. 

In J.une, 1918, the War Trade Board restricted the importation of hides and 
skins, tanned skins, leather, and manufactures of leather. All licensees were 
required to give an option to the Government at the fixed prices. 

Action to restrict importations of hides, .skins, leather, tanned skins, and 
manufactures of leather has been taken by the War Trade Board, which have 
revoked all outstanding import licenses for hides, skins, leather, tanned skins, 
and manufactures of leather as to ocean shipments after June 15, 191S. Here- 
after no licenses for shipments from overseas will be issued except for — 

(a) Shipments from Soutli America of 57.000 long tons of cattle hides of 
specified weights and grades. 

(&) Shipments of other grades of hides oi- skins from any Allies or neutral 
countries as may be certified by the War Industries Board to be for Govern- 
ment use. 

(c) Shipments of leather, tanned skins, or manufactures of leather as may be 
certified by the War Industries Board to be for Government use. 

The usual exceptions for shipments overland or by lake from Canada, over- 
land from Mexico, or as back haul from European ports when loaded at con- 
venient ports and without delay are made. 

The licenses covering the foregoing shipments will be issued according to such 
allocations of the various commodities as may be made by the hide and leather 
control section of the War Industries Board. All importers of the foregoing 
commodities are to be required as a condition precedent to the indorsement of 
bills of lading by the Tanners' Council to give the United States an option to 
purchase such of these commodities on which a maximum price has been estab- 
lished by the price-fixing committee appointed by the President at pri(;es so 
fixed.^ 

The lifting of control. — The regulation of the prices of foreign hides and 
skins was discontinued January 1, 1919. 

Fixed prices on domestic hides and skins expired by limitation on January 
31, 1919. 

War Trade Board Ruling No. 43, dated December 20, 1918, revoked the restric- 
tions of July 16, 1918, and on January 9, 1919, the board announced that the 
import licenses for hides and skins would be issued thereafter without the 
provision that the bill of lading be Indorsed to the Tanners' Council. (War 
Trade Board Ruling 492.) 

PRICE SCHEDULES. 

On July 23, 1918, the price schedules for August, September, and October 
were announced, providing the following changes in the earlier schedules.' 

The following price changes were agreed upon at a meeting of the hide inter- 
ests in the United States with tlie price-fixing committee of the War Industries 
Board on .July 19, 1918 : 

Packer hides. — ^Heavy native steers, No. 1, 30 cents ; heavy butt-branded 
steers. No. 1, 28 cents ;' heavy Texas steers, No. 1, 28 cents ; heavy Colorado 
steers, 27 cents ; light native cows. No. 1, 24 cents. 

1 War Trade Board Ruling 141, June 16, 1918. 

2 Official Bulletin, July 23, 1918. 



GOVERNMEJS^T EEGULATIONS RELATING TO PRICES. 731 

PEICES OF COUNTEY HIDES. 

Country hides (for best secfioi/.s). — Extremes, 25 to 45 pounds, 22 cents; 
buffs, 45 to 60 pounds, 21 cents. 

All country hides are to be bought and sold on a selected basis. 

River Plate Frigorifico hides. — Maximum price on steers, $53 Argentina 
gold; maximum price on cows, $40 Argentina gold (f. o. b. shipped, including 
export duty and lighterage, but not including salting charges). 

The new schdule applies to August, September, and October take-off on all 
domestic hides and skins, and August, September, and October shipment from 
origin of all foreign hides and skins. 

BASIS FOB DIFFERENTIALS. 

These prices are the basis for all other differentials, which will be pub- 
lished in due course. These readjustments of maximum iixed prices will more 
nearly equalize the actual market conditions as reflected in prices of country 
hides and need not affect the prices of cattle. There have been widespread com- 
plaints that the small hide producer has been unable, owing to marketing con- 
ditions, to secure a fair price for his hides. The War Industries Board has, 
therefore, under consideration the appointment by permit of hide dealers, simi- 
lar to the system adopted in wool. 

Definition of maximum prices. — On August 13, 1918, the chief of the hide, 
leather, and leather goods division of the War Industries Board issued the fol- 
lowing statement concerning the nature of "■ maximum " prices : 

It should be understood that maximum prices do not mean fixed prices. 
Maximum prices merely establish a level beyond which commodities or grades 
and selections of commodities can not sell, and are established to stabilize the 
industry in order to protect the industry, the Government, and the community 
at large against a runaway market. 

Within the Maximum prices the law of supply and demand should have its 
influence on trade prices of all commodities or gi'ades and selections of com- 
modities. The price-fixing committee does not intend that maximum prices 
shall obtain unless such prices are justified by the law of supply and demand. 

In fixing maximum pi'ices on leather, the price-fixing committee has and will 
endeavor to cover all important kinds, grades, and selections, and provides the 
means to fix maximum prices for all possible differentials. 

In all cases where differential kinds, grades, and selections present them- 
selves on the market and an agreement as to their relative value compared 
with the nearest kind, grade, or selection for which maximums have been fixed 
can not be arrived at to the satisfaction of buyer and seller, the facts should be 
referred to the hide, leather, and leather-goods division of the War Industries 
Board for consideration, and, if necessary, for submission to the price-fixing 
committee for decision. , 

The prices established for November and December. 1918, and January, 1919, 
were announced on October 30, 1918.* 

The price-fixing committee of the War Industries Board has established 
maximum prices on packer and country hides and skins for November, Decem- 
ber, and January take-off. This action has been taken after several confer- 
ences with representatives of the producers, tanners, packers, country hide 
dealers, and also Government departments, which are vitally interested. The 
basis of prices, as compared with August, September, October maximum 
prices, remains unchanged, but differentials have been established to corre- 
spond to the poorer quality of the hides as they go into the winter season. 
The basic prices, as established for November, December, and January take- 
off are mentioned below : 

November, December country hides and kips are three-quarters cent less, 
and January hides are a cent and one-half less than August, September, Octo- 
ber, and packers are 1 cent less for November, December and 2 cents less for 
January. 

All 44-cent calfskins are lowered to 40 for November, December, January, 
and other calf have been lowered correspondingly. 

Imported wool sheepskins and imported pickled sheepskins. — The importer 
will be required to sign as follows at the time he applies for a license: 

" In consideration of license being granted by the War Trade Board for the 
impoi'tation of wool sheepskins and pickled sheepskins, we agree that we will 

1 Official annouDcement of price-fixing committee, Oct. 30, 1918, 



732 HISTORY OF PRICES DURING THE WAR. 

not sell them in excess of their value relative to the various kinds and selec- 
tions that have been established on domestic pelts by the price-fixing committee 
appointed by the President." 

HIDES AND SKINS. 

Below are given the regulations and schedules of fixed prices announced on 
the indicated dates by the various price-fixing agencies. 

DOMESTIC PACKER HIDES. 
[Regulations for t.ike-ofE of May, June, and July, 1918.] 

Maximum prices for special reselections of packer steers and cows for belting, 
carriage, furniture, (-)r harness leather purposes are 1 cent over the ma?;imums 
for regular selections and grades. 

Beginning June 1 take-off all small packers, abattoirs, and wholesale butchers 
are governed by standard packer selections, and shall make the same grades, 
selections, and tare as standard packers make. Their maximum prices "shall be 
relative to best standard packer maximum prices, and shall be based on Chicago 
freight. Chicago freight basis In States of California, Washington, Oregon, and 
Nevada means that the seller shall deduct f cent per pound (being three-fourths 
of present freight East, which is 1 cent) from the invoice, or take this amount 
into consideration when naming his selling price. In all other States " Chicago 
freight basis " means that the seller allows the buyer any excess freight on 
shipment over the amount which could be charged on such shipment were it 
shipped from Chicago, and if freight charged from point of shipment does not 
exceed that from Chicago, no allowance is made, neither is any allowance made 
if the freight is less than from Chicago.. 

Transactions at a flat price in packei-, abbattoir, and wholesale butcher hides 
of May, June, and July take-oft shall be operative for the May hides only. Be- 
ginning June 1 the flat prices shall be adjusted to graded and selected basis, 
taking into consideration Chicago freight. 

Tanners are not permitted to buy green or slack-cured stock of butchers (ex- 
cepting packers, abattoirs, and wholesale butchers), unless at 20 per cent less 
on hides and kips and 12* per cent less on skins than the maximum green salted 
prices. 

Tanners are not permitted to buy green salted hides, kips, or skins of a 
butcher in less than carload lots at a higher price than 10 per cent less than than 
the maximum green salted prices. 

Packer, abattoir, and country coast (California, Oregon, Washington, and 
Nevada) hides shall first be offered to coast tanners having Government con- 
tracts, and. those tanners, if they wish to buy the hides, must give decision 
within 48 hours after receipt of the offering. 

Small packer, abattoir, and wholesale butcher hides, which have been resalted, 
shall be so described when offered for sale. • 

The maximum prices on Canadian packer hides are to correspond with do- 
mestics of similar merit and description ("Canadian hides" embrace those 
from other North American British possessions). 

Hawaiian hide prices are ex-store San Francisco, usual quality, and selection. 

For the take-off of August, September, and October the regulations were essen- 
tially the same as those governing the May, June, and July take-off with the 
following modifications : 

Any resalted packer, abattoir, or wholesale butcher calfskins shall sell at 
relatively less than the price of 44 cents, which is for first salt standard packer 
stock on Chicago freight basis. 

A go-between can not charge a brokerage to both buyer and seller. No one 
owning a lot of hides or skins can charge his customer a brokerage when selling 
same. Any tanner may pay an agent a brokerage for buying hides or skins 
(except on hides or skins which the agent owns himself), but such agent may not 
buy less than carload lots of butchers at a higher price than 10 per cent under 
applicable maximum prices. No brokerage shall exceed 2 per cent. 

The prices on packers bulls are now on a selected basis, whereas formerly 
they were on a flat basis. 

The modifications in general regulations for the November, December, and 
January, 1919, take-off are as follows: 

All first salt hides and kips of small packers, abattoirs, wholesale butchers, 
and also good lots of city and country butchers, of standard packer pattern, 



GOVERNMENT REGULATIONS RELATING TO PRICES. 



733 



trim and conditions, containing not over 7 per cent No. 2's for cuts, may be gov- 
erned by standard packer prices, Chicago freight basis. Any excess over 7 per 
cent No". 2's for cuts in such lots shall go at the No. 2 country price. Standard 
packer grading, selection, and tare shall govern. Chicago freight basis in States 
of California, Washington, Oregon, Nevada, Idaho, and Utah means that the 
seller shall deduct three-fourths of a cent per pound from the invoice, or take 
this amount into consideration when naming his selling price. In all other 
States " Chicago freight basis " means that the seller allows the buyer any 
excess freight on shipment over the amount which could be charged on such 
shipment were it shipped from Chicago, and if freight charged from point of 
shipment does not exceed that from Chicago, no allowance is made, neither is 
any allowance made if the freight is less than that from Chicago. 

The maximum price for resalted hides and kips as described in paragraph 
No. 1 shall be 5 per cent less than the maximum for such first salt hides and kips. 

The maximum prices for. resalted packer, abbatoir or wholesale butcher, calf- 
skins shall be 5 per cent less than the maximum for such first salt calfskins. 

Maximum prices for special reselections of packer steers and cows for belt- 
ing, carriage, furniture, or harness leather purposes are 1 cent over the maxi- 
mums for regular selections and grades. The premium of 1 cent per pound over 
the maximum allowed for special reselection of packer steers and cows is only 

permissible as follows : , , ^ . , ^ ^^ ^ ^^ 

(a) When native steers 60 pounds and up are graded for weights 60 to 65 
pounds and 65 pounds and up. 

(b) No. 1 native steers 50 to 60 pounds and 60 pounds and up, free of grubs 
when every hide is grubbed. 

(c) No. 1 heavy native com^s, free of grubs when every hide is grubbed. 
id) No. 1 light native cows, free of grubs when every hide is grubbed. 

(e) Plump narrow hides picked out of native steers, 60 pounds and up. 

(f) Spready hides picked out of native steers, 60 pounds and up. 

It shall not be permissible to exceed the maximum prices by paying relatively 
more than same for green or slack-cured weight. 

DOMESTIC PACKER HIDES. 



Description. 



Heavy native steers. No. 1 

Heavy native steers, spready, No. 1 

Ligtit native steers. No. 1 

Extreme light native steers, No. 1 

Heavy butt-branded steers. No. 1 

Light butt-branded steers, No. 1 

Extreme light butt-branded steers. No. 1 

Heavy Colorado steers, No. 1 

LighfColorado steers, No. 1 

Extreme Ught Colorado steers. No. 1 

Heavy Texas steers. No. 1 

Light Texas steers, No. 1 - 

Extreme Ught Texas steers. No. 1 

Branded cows. No. 1 

Heavy native cows, No. 1 

Light native cows. No. 1 

Native bulls. No. 1 

Branded bulls. No. 1 

All Koshers, at J cent discount. 

Kips, No. 1 

Overweight kips, No. 1 

Branded kips. No. 1 

Calfskins, No. 1 

Pacific coast — Oregon, Washington, California : 
Maximum price at shipping point- 
Steers, flat 

Cows, flat 

Hawaii: 

Honolulu — 

Steers, 40 pound.'< and up 

Steers under 40 pounds and cows all weights 
Hilo and other packer hides — 

Steers 

Cows. 



Stocks 

and 

take-off 

to and 

including 

Apr. 30, 

1918. 



.29 

.30 

.28 

.21 

.26^ 

.25^ 



. 25.1- 
.24i 



.25i 
.18 



Take-ofl for— 



May, 
June, 
and 
July. 



$0.33 
.34 
.32 
.26 
.31 
.30 



.30 
.29 



.31 
.30 
.25 
.25 
.30 
.26 
.23 
.21 

.2^ 
.26 
.23 
.44 

May. 

.29 
.24 



August, 
Septem- 
ber, and 
October. 



.28 

.27 

.24 

.23 

.28 

.24 

.2H 

.19i 

.27 
.25J 
.22i 
.44 



Flat. 
.30 
.25 



Novem- 
ber and 

Decem- 
ber. 



.29 

.30 

.28 

.23 

.27 

.26 

.22 

.26 

.25 

.22 

.27 

.26 

.23 

.22 

.27 

.23 

■ 20^ 

.184 

.26 
.24* 
.21i 
.40 



January, 
1919. 



$0.28 
.29 
.27 
.22 
.26 
.25 
.21 
.26 
.24 
.21 
.26 
.26 
.22 
.21 
.26 
.22 
.19i 

.m 

.25 
.23i 
.201 
.40 



.25 
.20 



734 HISTORY OF PRICES DURING THE WAR. 

DOMESTIC COUNTRY HIDES. 

Rules regarding the sale of couutry hides fox- the take-off of May, June, and 
July. 1918: 

Dealers who accumulate hides, kips, and skins from various sections shall, 
when offering such merchandise, state where same originated and sell such mer- 
chandise of each section in accordance with the schedule of maximum prices 
applicable thereto. When various sections are sold all together as one lot the 
price shall be the price of the district and kind, according to the schedule, which 
commands the least. 

The maximum prices in the schedule for country domestic green salted and 
dry hides are based on carload lots at point of shipment. 

In country hides, sold on a selected basis, a hide with one grub is a grubby 
hide. 

A butt-branded hide, in hides sold on a selected basis, is a No. 2. 

The maximum price on black hides, special selection suitable for robes, is 2.3 
cents flat. 

Weights 25 to 50 pounds (not over 41 pounds average) are one-fourth cent less 
than weights 25 to 45 pounds of the same kind, excepting where the price for 
45 to 60 is the same price as that for 25 to 45. 

The designation of " mostly or practically free of grubs, but no mention for 
hair " is changed to " not over 15 to 20 per cent grubby." 

Maximum prices on Canadian country hides are to correspond with domestics 
of similar merit and description, ( " Canadian hides " embrace those from other 
North American British possessions.) 

It is recommended that the practice of curing hides in vats be stopped. 

When hides are sold to be free of ticks and not over 50 per cent ticky hides 
are found on a beam-house selection, the buyer will accept the ticky hides at not 
over the applicable maximum price of ticky hides, but if more than 50 per cent 
ticky hides are found on the beam-house selection, the entire lot must be billed 
at not over the applicable maximum price foe- ticky hides. 

When sales are made of hides not over 15 to 20 per cent grubby and are found 
at destination to exceed 20 per cent grubby, the excess over 20 per cent up to 
50 per cent shall be at the maximum price for grubby hides. If at destination 
the percentage of grubby is found to exceed 50 per cent, the seller shall bill the 
entire shipment at the maximum price for grubby hides. 

The following modifications occur in the regulations for the take-off of August, 
September, and October : 

Tanners are not permitted to buy green or slack-cured stock of butchers (ex- 
cepting packers, abattoirs, and wholesale butchers) unless at 20 per cent less on 
hides and kips and 124 per cent less on skins than the maximum green salted 
prices. 

Tanners are not permitted to buy green salted hides, kips, or skins of a 
butcher in less than carload lots at a higher price than 10 per cent less than the 
maximum green salted prices. 

All hides and skins must be bought and sold on a selected basis. 

The general regulations regarding the sale of country hides for November, 
December, and January, 1919, follow : 

All hides and skins must be bought and sold on selection. The actual selec- 
tion must be made. 

Dealers who accumulate hides, kips, and skins from various sections shall, 
when offering such merchandise, state where same originated and sell such mer- 
chandise of each section in accordance with the schedule of maximum prices 
applicable thereto. When various sections are sold all together as one lot the 
price shall be the price of the district and kind, according to schedule, which 
commands the least. 

The maximum price on black hides, special selections suitable for robes is 
1 cent over the regular maximum for the same grade. 

No tanner is allowed to pAy a brokerage or other compensation on country 
hides, kips, calf, goat or sheep pelts, dry or green salted, or on horsehides 
when the cost to the tanner, including such brokerage or other compensation, 
exceeds the prescribed maximum. A go-between can not charge a brokerage to 



GOVERNMENT EEGULATTONS RELATING TO PRICES. 



735 



both buyer and seller. No one owning a lot of hides or skins can charge his 
CTstomeV a brokerage when selling same. 

No dealer or tanner is allowed to buy less than carload lots within 5 per cent 
of maximum prices. 

Domestic August, September, and October take-off hides, kips, calf and goat 
sldns, and horsehides not sold on or before December 1 shall be governed by 
November and December prices. Domestic November and December take-off 
hides, kips, calf and goat skins, and horsehides not sold on or before February 1 
shall be governed by January, 1919, prices. 

Thirty-six thousand pounds of green salted hides and skins shall constitute 
minimum carload. Twenty thousand pounds dry hides and skins shall con.sti- 
tute minimum carload. 

It shall not be permissible to exceed the maximum prices l)y paying rela- 
tively more than same for green or slack cured weight. 

All the other regulations governing the sale of coiintry hides are similar to 
the provisions of the August, September, and October maximum-price schedule. 

DOMESTIC COUNTRY HIDES. 



Description. 



Best sections, such as Ohio and Middle 
West (including West Virginia and 
Pennsylvania): 

Extremes, 25 to 45 pounds, No. 1 

BufEs, 45 to 60 pounds. No. 1 

Heavy native steers, 60 pounds and 

up, No. 1 

Light native steers, 50 to 60 pounds, 

No.l 

Heavy native cows, 60 pounds and 

up,"No. 1 

Bulls, all weights 

Bulls, 60 pounds and up, No. 1 

Kips, 15 to 25 pounds. No. 1 

Calf, 8 to 15 pounds, city first salt, 

equal to Chicago, No. 1 

Calf, outside, city 

Calf, country. No. 1 

Ripe calf, 7 "to 8 pounds 

Deacons 

Kansas, Illinois, Missouri, Iowa, Ne- 
braska, Wisconsin, Minnesota, North 
and South Dakota (western North and 
South Dakota and Illinois not included 
in August, September, and October 
take-off): 

Extremes, 25 to 45 pounds, No. 1 

Buffs, 45 to 60 pounds, No. 1 

Heavy native steers, 60 pounds and 

up, No. 1 

Light native steers, 50 to 60 pounds, 

No.l 

Heavy native cows, 60 pounds and 

up. No. 1 

Bulls, 60 pounds and up, No. 1 

Kips, 15 to 25 pounds. No. 1 

Calf, 8 to 15 pounds, city first salt, 

equal to Chicago, No. 1 

Calf, country, N0.-I 

Light calf, 7 to 8 pounds 

Deacons 

Southeastern hides (Kentucky to Florida 
and Maryland to Mississippi and Louis- 
iana east of Mississippi, but excluding 
West Virginia): 
Ticky— 

Extremes, 25 to 45 pounds 

Buffs, 45 to 60 pounds (or 45 and 



Stocks and take-off 
to and including 
Apr. 30, 1918. 



Grubby, 
long 
hair, 
poor 

season. 



80.19 

.18 



.24 



.37i 

.34 

2.50 

2.30 



up). 

Bufis •..- 

Kit>s, 15 to 25 pounds 

Caff, 15 pounds and down. 



Not over 
15 to 20 
per cent 
grabby. 



80.21 
.19 



.19 
.15 



.36 
2.60 
2.40 



Take-off for- 



Flat. 
.14 

.14 
.12 
.14 
.24 



Flat. 
.16 

.16 
.14 
.16 
.24 



June, 
and 
July. 



August, 
Septem- 
ber, and 
October. 



}.22 
.22 



.25i 
.17 



.38i 

.34 

2.70 

2.50 



Flat. 
.181 

.18i 
.15 
.19 
.30 



November 

and 
December. 



$0.22 
.21 

.24 

.23 

.23 



.17 
.24 



.34 
2.70 
2.50 



.21J 
.20i 

.23i 

.22J 

,.22i 
.16J 

.23i 

.44 

.34 

2.70 

2.50 



January, 
1919. 



80.22J 
.20i 


$0.20J 


• 2.31 


.22J 


.22i 


.21i 


■22i 


.21i 



.IGi 
.23i 



.34 
2.50 
2.30 



.20i 



.22i 

.21i 

.214 
.151 
.22J 

.40 

.34 

2.50 

2.30 



.15J 
.22} 



.84 
2.50 
2.30 



.19} 
.18} 

.21} 

.20} 

.20} 
.14} 
.21} 

.40 

.34 

2.50 

2.30 



736 



HISTORY OF PRICES DURING THE WAR. 

DOMESTIC COUNTRY HIDES— Continued. 





Stocks and take-ofl 
to and including 
Apr. 30, 1918. 


Take-oS for- 


Description. 


Grubby, 
long 
hair, 
poor 

season. 


Not over 
15 to 20 
per cent 
grubby. 


May, 
June, 
and 
July. 


August, 
Septem- 
ber, and 
October. 


November 

and 
December. 


January, 
1919. 


Southeastern hides— Continued. 
Free of ticks — 

Extremes, 25 to 15 pounds 


Select. 

$0. 18i 
.16i 

Flat. 
.13 
.12 
.18 
.31J 


Select. 

80. 20J 
.17i 

Flat. 
.15 
.14 
.20 
.31i 


Select. 

$0,211 
.211 

Flat. 
.17 
.15 
.21^ 








Buffs, 45 to 60 pounds 








Native bulls 








Branded bulls 








Kins, 15 to 25 pounds 








Calf.'..... ...^.. .. 




Kentucky, Tennessee, Maryland, North 

Carolina, Virginia, District of Columbia: 

Extremes, 25 to 45 pounds. No. 1 




$0. 2U 
.20i 
.16i 
.23i 

.44 

.34 

2.70 

2.50 

.19i 
.18i 
.15i 

.20i 

.41 

.31 

.m 

.19i 


$o.m 

.19i 
.15J 
.221 

.40 
.30 
2.50 
2.30 

.18i 
.171 
.141 

.19} 

.37 

.30 

.19f 

.m 


$0 20 


Buffs, 45 to 60 pounds. No. 1 








.19 


Bulls, 60 pounds and up. No. 1 








.15 


Kips, city and country. No. 1 








22 


Calf, 8 to 15 pounds, city first salt 
equal to Chicago, No. 1 








.40 


Calf, country. No. 1 








.30 


Light calf, 7 to 8 pounds 








2.50 


Deacons 








2.30 


Ticky hides, kips, and skins at 2 
cents per pound less than free of 
ticks. 
Florida, Alabama, Mississippi, Georgia, 
South Carolina, Louisiana east of Mis- 
sissippi River: 
Ticky hides- 
Extremes, 25 to 45 pounds or 30 to 45 
pounds. No. 1 








. 18 


Buffs, 45 pounds and up. No. 1 








.17 


Bulls, 60 pounds and up, No. 1 








.14 


Kips, 15 to 25 pounds or 15 to 30 
pounds, No. 1 








.19 


Calf, city first salt. No. 1 








.37 


Calf, country. No. 1 








.30 


Free of ticks, 2 cents per pound 
more. 
Texas, Oklahoma, Arkansas, Louisiana, 
i#est of Mississippi River: 
Extremes, 25 to 40 pounds or 25 to 45 
pounds. No. 1 


Flat. 
.15 
.14 
.13 


Flat. 
.18 
.18 
.15 


Flat. 
.19? 
.19f 
.17 


19 


Buffs, 40 or 45 pounds and up. No. 1 . . . 
Native bulls 


.18 


Native bulls, 60 pounds and up 


.17 






Bulls, 60 pounds and up. No. 1 








.14} 


.U 


Branded bulls 


.12 


.14 


.15 






Branded bulls, 60 poimds and up 


.i5 

.2H 

.32 






Kips, 15 to 25 pounds, No. 1 


.16i 
.24 

.15 
.12 


.19 
.24 

.16 
.14 


.21* 
.30" 

.16 
.15 


.201 
.30 


20 


Calf, 15 pounds and down. No. 1 

Western parts of North and South Dakota: 
Country branded hides 


.30 


Bulls 








Bulls, 60 pounds and up 


.15 

.17 

.20 






Hides, 25 poimds and up,side, branded 










Hides, 25 pounds and up, imbranded 
(except butt branded, which are 
classed as No. 2) 












Kips, G. S. branded States 


.20J 


.221 


.20f 






Kips, 15to 25 pounds 


.21 






Native, unbranded hides 


.15J 


.161 


.m 






Calf, city and coimtry 


.38i 






Colorado, Wyoming, Montana (including 
LTtah for May, June, July): 
Country branded hides 


.15 
.12 


.16 
.14 


.16 
.15 






Bulls 








Bulls, 60 pounds and up 


.15 






Kips, G. S., branded States 


.20i 


.22J 


.20J 






Kips, 15 to 25 pounds, No. 1 


.21 


.20§ 


.19J 


Native, unbranded hides 


.15i 


.16i 


.191 


Hides, 25 pounds and up, side 
branded 


.17 
.20 






Hides, 25 pounds and up, unbranded 
(except butt branded, which are 
classed as No. 2) 













GOVEKNMENT REGULATIONS RELATING TO PRICES. 
DOMESTIC COUNTRY HIDES— Continued. 



737 



Desciiptioii. 



Stocks and take-off 
to and including 
Apr. 30, 1918. 



Grubby, 
long 
hair, 
poor 

season. 



Not over 
15 to 20 
per cent 
grubby. 



Take-ofl for— 



May, 
June, 
and 
July. 



August, 
Septem- 
ber, and 
October. 



November 

and 
December. 



January 
1919. 



Colorado, Wyoming, Montana— Con. 

Calf, city and country, No. 1 

Buffs, 45 pounds and up. No. 1 (no 

selections for brands) 

Extremes, 25 to 45 pounds. No. 1 (no 

selection for brands) 

California^ Oregon, Washington, Nevada, 
Idaho, and Utah after July: 

30 to 50 pounds 

Over 50 pounds 

Steers, 50 pounds and up, No. 1 

Cows, 60 pounds and up, No. 1 

Extremes, 30 to 45 pounds. No. 1 

Buffs, 45 pounds and up, No. 1 

Native buUs, 60 pounds and up. No. 1 
Bulls, branded, 60 pounds and up, 

No.l 

Kips, 15 to 30 pounds. No. 1 

Calf, partly trimmed 

California, Nevada, and Utah 

cities and countries 

Calf, Portland, and Seattle, trimmed. 

Calf, short trimmed 

Oregon, Wasliington, and Idaho, 

cities and countries 

Calf, long trimmed 

Arizona and New Mexico 

Hides, weights 25 pounds and up 

Extremes, 25 to 45 pounds No 1 

Buffs, 45 pounds and up. No. 1 

Bulls, 60 pounds and up, No. 1 

Native bulls, 60 pounds and up 

Branded bulls, 60 pounds and up 

. Kips, 15 to 25 pounds, No. 1 

Calf, 15 pounds down, No. 1 

No selection for brands on Nov- 
ember, December, and Janu- 
ary, 1919, take-ofi. 

Dry hides, 16 pounds and up — 

Bulls two-thirds price and glue 
half-price after July. 

7 to 16 pounds 

Kips, 7 t o 16 pounds, glue out 

Calf - 

Calf , under 7 pounds, glue out 

New England hides (Maine, Vermont, 
New Hampsliire, Massachusetts, New 
York, Connecticut, Rhode Island, and 
Delaware and New Jersey after July): 

Extremes, 25 to 45 pounds, No. 1 

Biifls, 45 poimds and up. No. 1 

Heavy steers 

60 pounds and up, No. 1 

Heavy cows 

60 pounds and up. No. 1 

Bulls .- 

60 pounds and up. No. 1 

Bjps, including grassers. No. 1 

Hawaii, Honolulu; - 

30 to 50 pounds 

50 pounds and up 

Stocks and take-ofl to and in- 
' eluding Apr. 30, 1918, 30 to 50 
pounds, $0.18i. 
Stocks and take-ofl to and includ- 
ing Apr. 30, 1918, 50 pounds and 
up, 80.20. 



Flat. 



Flat. 



Flat. 



S0.38J 



.15 



Select. 
.35 



Flat. 
.39 



.15} 
.16i 



80.18i 
.20 




.39 



.24 

"."ie" 

.25' 

.18i 
.20 



.19 



.17 
.15 
.21} 
.32 



.39 



.45 



.21 
.20} 



.23 
.22" 



.16 
.24 

.18} 
.20 



.35 

.171 

.181 



.22i 
•21i 
.20i 
.19i 
.161 

•14J 
.221 



.36 



.40 



.191 
.181 
.14J 



.20f 
.3t) 



.34 



.201 
.191 



.22i 



.15i 
.23i 

.17} 
.19 



$0.35 
.17 
.18 



.21} 

.20} 
.19} 
.18} 
.15} 

.13} 
.21} 



.20 
.30 



.34 



.21 
.20} 



.14} 
.22} 



.17} 
.19 



125547°— 20- 



-47 



738 



HISTORY OF PRICES DURING THE WAR. 



CALFSKINS. 

The maximum prices set on large city first-salt skins, outside city skins, and country skins do not apply 
to the Pacific coast. 

Other eastern trimmed calfskins not equal in all respects to New York city skins shall sell at relatively 
less, according to their value. Nobody shall be allowed to give the butcher a bonus because this practice 
Is construed to mean paying more than the maximums. 

DOMESTIC CALFSKINS (NOT OTHERWISE PROVIDED FOR). 



Description. 



Stocks on 

hand May 1 

and take-off 

for May, 

June, and 

July. 



Take-ofl for- 



August, 
Septem- 
ber, and 
October. 



November, 
December, 
and Jan- 
uary, 1919. 



Chicago city first-salt calfskins and other large city first-salt calfskins. 

Light calf, 7 to 8 pounds 

Deacons 

New York City trimmed calfskins and other eastern city trimmed 
calfskins equal in all respects to New York City: 

4 to 5 pounds 

5 to 7 pounds 

7 to 9 pounds 

9 to 12 pounds 

12 to 17 pounds 

17 to 25 pounds 

Buttermilk calf 



$0.44 
3.17 
2.97 



3.10 
4.00 
5.00 
6.00 
7.00 
7.50 
125 



$0.44 
3.30 
3.10 



3.10 

4.00 
5.00 
6.00 
7.00 
7.50 
»25 



$0.40 
2.95 
2.80 



2.80 
3.60 

4.50 
5.40 
6.50 
6.50 
>15 



1 Per cent discoimt. 
. DOMESTIC PICKLED SHEEP AND LAMB SKINS. 

STOCKS ON HAND MAY 1 AND TAKE-OFF FOE MAY, JUNE, AND JULY, 1918. 

The schedule below is for all green salted packer and city butcher skins of strictly good take-ofl. All 
green salted coimtry butcher and city butcher skins showing poor take-ofl shall be selected on the same 
basis, but the price shall be 3 cents per square foot less than price paid for the various grades of strictly 
good packer and city butcher take-on. 

All pickled skins to be graded according to the following specifications, the grades to be identified by 
numbers. 



Grade 
No. 



Description. 



Price. 



10 



Bull sheep: Super heavy, measuring over 120 square feet and weighing 45 poimds and 

over, per dozen 

Heavy sheep: Heavy clear sheep, measuring over 110 square feet, per dozen 

Clear sheep: Sheep with clear, smooth, and sound grain, measuring over 100 square 

feet, containing no blind ribs, no ribby skins, and free from cockle 

Blind rib sheep: All sheepskins measuring over 100 square feet , having a blind rib, no 

ribby skins, or defective grain '. 

Ribby sheep: All other ribby sheep measuring over 75 square feet, no defective grain. 
No. 2 sheep: All sheep measuring over 100 feet rejected from 1, 2, 3, 4, and 6 grades, 

with poor and defective grain, value but not to exceed 

Prime lambs: All smooth, clear lambs, 65 to 100 square feet, inclusive, strictly good 

pattern; no blind rib or ribby skins; no open grain skins; no torn skins; absolutely 

free from cockle and pinny skins 

Blind rib lambs: All lambs containing a blind rib, strictly good pattern; no ribby 

skins and no damaged grain; no torn skins and no cockle; 75 to 100 square feet 

Ribby lambs: Lambskins showing ribby or open grain, cockle skins, and pinholes 

up to 75 square feet 

Small lambs: All lambskins 50 to 64 square feet, rejected from Nos. 7, 8, and 9 on 

accoimt of size ; 

Torn skins: All torn skins or badly cut skins over 50 feet; all heated skins 

Pieces and culls: All pieces and culls and torn skins under 50 feet; all heated skins.. . 



$0.18 
.16 

.14 

.12 
.11 

.08 

.15 

.14 

.09 

Value. 
Value. 
Value. 



GOVERNMENT REGULATIOlSrS RELATING TO PRICES. 



739 



DOMESTIC PICKLED SHEEP AND LAMB SKINS. 

TAKE-OFF FOR NOVEMBER, DECEMBER, AND JANUARY, 1919. 

The schedule below is for all green salted packer and city butcher skins of strictly good take-ofl. All 
ereen salted country butcher and city butcher skins showing poor take-off shall be selected on the same 
basis, but the price shall be 3 cents per square foot less than price paid for the various grades of strictly 
good packer and city butcher take-on. . .^ ^. ^^ ^ ^ ■. -j ^-^ j v. 

All pickled skins to be graded according to the foUowmg specifications, the grades to be identified by 
numbers: 



Grade 

No. 



Description. 



Bull sheep: Super heavy clear sheep measuring over 120 square feet 

Heavy sheep: Heavy clear sheep measuring over 110 square feet 

Clear sheep: Sheep with clear, smooth and sound grain, measuring over 100 

square feet, containing no blind ribs, no ribby skins and free from cockle. 
Blind rib sheep: All sheepskins measuring over 100 square feet having a 

blind rib; no ribby skins or defective grain; slight cockle 

Ribby and cockley sheep: All other ribby sheep measuring over 100 square 

feet; slight grain damage and all cockle; skins not suitable for grade No. 4 

permitted if otherwise sound - - 

No. 2 sheep: All sheep rejected from 1, 2, 3, 4, and 5 grades, with poor and 

defective grain, value but not to exceed - - - -. — 

Prime lambs: All smooth, clear, lambs 75 to 100 square feet, inclusive, 

strictly good pattern; no blind rib or ribby skins; no open gram skins; no 

torn skins; absolutely free from cockle and pinny skins 

Blind rib lambs: All lambs containing a bUnd rib, strictly good pattern; no 

ribby skins ,damaged grain or torn skins; slight cockle, 75 to 100 square feet, 
Ribby and cockley lambs: Lambskins showing ribby or open grain; cockle 

skins and pinholes, 75 to 100 square feet 

Small lambs: All lambskins under 75 square feet rejected from Nos. 7, 8, 

and 9 on account of size (relative value) 

Tom skins: All torn skins or badly cut skins over 50 feet; all heated skins 

(relative value) • - — - - • ■ 

Pieces and culls: All pieces and culls, and torn skins under 50 feet; all heated 

skins (relative value) 



Present 
price. 



Relative 
value. 



.18 
.16 

.14 

.11 

.09 
.07 

.15 
.13 
.09 



All wool pelts taken off before November 1, when ready for sale in the pickle, may be sold at prices 
ruling as of August 1 to November 1, providing a suitable affidavit concerning the quantity and date of 
take-off is filed prior to November 5, giving inventory of all wool pelts on hand or m process November 1. 

Imported pickled sheep or lamb skin pelts or pickled pelts reduced from imported wool skms to be 
sold at their value relative to the various kinds and selections as established above. 

The number of square feet mentioned in the various paragraphs refers to square feet per dozen skms. 

All country skins showing take-ofl equal to city butcher skms of equal take-ofl will receive the same 
prices that are allowed to city butcher skins. 

HORSEHIDES. 

General reguIatiom.—A\l prices are f. o. b. shipping point, free of manes and tails. 

Prices vary according to the section of the country and also with the differences in sizes and widths of 
butts or lengths of shanks. 

For the November, December, and January, 1919, take-ofl certain modifications were made, as follows: 

City Tenderers would mean only such hides as are actually taken off in a rendering establishment and 
a sworn affidavit executed by a notary must accompany each shipment. City Tenderers that are taken 
ofl in the States of Virginia, West Virginia, Tennessee, North and South Carolina, Georgia, Alabama, 
Florida, Mississippi, Arkansas, Missouri, Louisiana, Oklahoma, New Mexico, and Arizona, shall be classed 
as Southern horsehides and shall sell for S6.25 for Nos. 1 and 2. Country horsehides from the above-men- 
tioned States shall not sell to exceed $6, including mules. Any dealer accumulating southern horsehides 
at points along the Missouri and Ohio Rivers must so designate as same and sell as such. 

DOMESTIC HORSEHIDES. 



Description. 



Stocks on 
hand May 1, 
and take-ofl 
for May, Jime, 

and July. 



Take-ofl for- 



August, 
September, 
and October. 



November, 

December, 

and January, 

1919. 



Whole horsehides: 
City Tenderers — 

Accompanied by affidavit 

Nos. 1 and 2 

Ordinary cities and countries 

Nos. 1 and 2 

Southerns 

Nos. 1 and 2 ■ 

Southern countries 

Ponies and glues, half price. 

Headless hides (one that is trimmed ofl back of ears), 
50 cents less. 



S8.00 



$7.50 



$7.50 



$6.75- 7.50 
' 6. '66^ '6.50 



S6.25- 7.00 
'5.56^ '6.00 



$6.25- 7.00 



6.25 
6.00 



740 



HISTORY OF PRICES DURING THE WAR. 

DOMESTIC HORSEHIDES— Continued. 



Description. 



Stocks on 
hand May 1, 
and take-oft 
for May .June, 

and July. 



Take-off f or- 



August, 
September, 
and October. 



November, 

December, 

and January, 

1919. 



Colts 

Horse fronts 

No. 2 and headless horse fronts, 50 cents less. 
Butts: 

Green salted- 
Length, 15 to 18 inches 

Length, 18 to 20 inches 

Length, 20 to 22 inches 

Length, 22 inches and up 

No. 2 and short shanks, 25 cents less. 

Butts of different sizes and widths at relative prices. 



J5. 75-86. 25 



1.25- 1.40 
1.50- 2.00 
2. 25- 2. 50 
2.50- 3.15 



|0.25-$1.00 
4.75- 5.50 



1.15- 1.30 
1.75- 1.90 
2. 15- 2. 30 
2. 75- 2. 90 



«0.25-$1.00 
4.75- 5.50 



1.15- 1.30 
1.75- 1.90 
2. 15- 2. 30 
2. 75- 2.90 



FOREIGN WET SALTED HIDES. 

Regulations for the sale of stocks on hand May 1, 1918, and importations shipped up 
to and Including July 31, 1918 : 

May, June, and July shipments of foreign short-haired hides taken off north of the 
Equator have maximum prices 10 per cent over maximum prices set. Hides on which 
the maximum prices are quoted weighed and delivered should, when bought on shipping 
■weight, not cost relatively more than the New York weighed and delivered basis 
maximum. 

Australian and New Zealand hides, having been inactive here for a long time, were 
given nomiual maximums. If possibilities of actual business arise and are brought to 
the attention of the hide, leather, and tanning materials section the matter will be given 
proper consideration. A price for New Zealand meat works has been made below. 

Mataderos : Kips, the weight (both range and average) varies, and may continue to do 
so according to custom. 

All prices are quoted in cents per pound. 

The following modifications occur in the regulations for the sale of the August, Sep- 
tember, and October take-off : 

All prices in Argentine gold are per 100 kilos f. o. b. ship, unless otherwise noted, and 
include export duty and lighterage, but salting on ship is for buyers' account. Copy of 
invoice covering each transaction will be required. No deviation may be made from 
these terms ; no buyer shall assume the export duty and lighterage, even though the total 
cost comes within the maximum price. 

For the take-off of November and December there were the additional regulations : 

A go-between may not charge a brokerage to both buyer and seller. No one owning a 
lot of hides or skins may charge his customer a brokerage when selling same. Brokerage 
on foreign cattle hides and skins shall not exceed 2 per cent. The brokerage on foreign 
goatskins, sheepskins, and other skins (excepting cattle hides and skins) shall not exceed 
3 per cent. 

Shipments of dry kips under 12 pounds and dry salted kips under 15 pounds, when 
mixed with common dry hides (such as Bogota, Orinocos, Porto Cabellas, La Guairas, 
Central Americans, etc.) shall be sold at two-thirds the price of the hides, or rejected, 
at buyer's option. Shipments of dry kips under 14 pounds mixed with hides from 
Mexico, West Indies, and Peru shall be sold at two-thirds price, or rejected, at buyer's 
option. 

The following schedules give the prices fixed by the pl-ice-flxing committee of the War 
Industries Board : 





Stocks on 








hand 








May 1, 1918, 








and ship- 








ments from 






Description. 


point of 


Remarks. 






origin to 




, 




and 








including 








July 31, 








1918. 






Buenos Aires frigorifico: 








Steers 


S0.31i 


Shipping weight, c. i. f.. 


New York 


Cows 


.23 


basis. 
Do. 




Montevideo frigorifico: 




Steers 


.31 J 
.22 

.26 
.21 


Do. 
Do. 

Do. 
Do. 




Cows 




Buenos Aires city matadero well taken off: 

Steers 




Cows 





GOVERISTMENT REGULATIONS RELATING TO PRICES. 



741 



Description. 



Stocks on 

hand 
May 1, 1918, 
and ship- 
ments from 
point of 
origin to 

and 

including 

July 31, 

1918. 



Argentine city matadero well taken off: 
Steers - - 



Cows 

Argentine country matadero and campos: 

Steers 

Cows 

Paraguay country matadero and campos: 

Steers 

Cows 

Paraguay city matadero and campos: 

Steers 

Cows 

Montevideo city matadero: 

Steers 

Cows 

Buenos Aires matadero kips 

Montevideo matadero Jdps 

Argentine and Uruguay saladero: 

Steers 

Cows 

Rio Grande saladero: 

Steers 

Cows 

sa.0 Paulo frigorlflco hides 

Rio Janeiro bides • 

Bahia hides 

Pemambuco hides 

Minas hides 

Venezuela frigoriflco hides 

Colon (cemmissariat) hides 

Colombia city hides 

Panama hides 

West Indian hides 

Guinas hides 

Havanas packers' hides 

Havanas specials hides 

Havanas regular hides 

Mexico city packers' hides 

Mexico city and neighborhood hides 

Vera Cruz hides 

Vera Cruz rastro hides - 

Puebla hides 

Pachuca rastro hides 

Orizaba hides 

Gueretaro hides 

Quadalajara hides 

Oaxaca hides *- 

Frontera hides 

Tabasco hides 

Campeche hides 

Laguna hides 

Northern Mexican city hides 

Tampico hides 

Progresso hides 

Chile (Valparaiso) hides 

Peru (Lima) hides 

China packers' (heavy) hides 

China packers' (light) hides 

Shanghai hides 

Queensland butchers' hides (nominal) 

Australian meat works' hides (nominal) 

New South Wales butchers' hides (nominal) 

New Zealand hides (nominal) 

Rangoon hides (nominal) 

China bufEalos' hides 

New Zealand meat works' hides: 

Steers 



SO. 24^ 
.20 



Remarks. 



Cows. 



.19 
.19 

.19 
.19 

.20 
.20 

.25 
.20 
.24 
.22 

.29 
.24 

.29 

.24 

.25 

.16 

.22 

.23 

.16 

.27 

.22 

.24 

.21 

.20 

.20 

.22 

.21 

.20 

.24 

.23 

.22 

.25 

.23 

.22^ 

.22J 

.22i 

.231 

.23^ 

.21^ 

.21 

.21^ 

.21^ 

.22 

.21^ 

.20 

.24 

.25 

.27 

.25 

.24 

.22 

.26 

.24 

.26 

.18 

.17 

.27^ 



Shipping weight, c. i. f., New York 
basis. 
Do. 

Do. 
Do. 

Do. 
Do. 

Do. 
Do. 

Do. 
Do. 
Do. 
Do. 

Weighedand delivered New York basis. 
Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. . 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

C.i. f . shipping weight 3 per cent shrink- 
age guaranteed. 
Do. 



742 



HISTORY OF PRICES DURING THE WAR. 



Description. 



Shipments 
from ongin 

August, 

September, 

and 

October. 



Shipments 
from origin 
November, 
December, 
and Jan- 
uary, 1919. 



Buenos Aires Frigorifico: 

Steers 

Cows , 

Montevideo Frigorifico: 

Steers 

Cows 

River Plate Frigorifico type steers. 
River Plate Frigorifico type: 

Cows 

Kips 

Calf. 



353.00 
40.00 

53.00 
40.00 

1 48. 50 

2 36. 00 
2 38.00 



Argentina and Uruguay Saladero steers , 

Argentina and Uruguay Saladero cows , 

Frigorifico tj'pe Chilians (Valparaiso) hides , 

Habana and Santiago regular hides , 

Argentine City special Matadero steers • , 

Argentine City special Matadero cows 

Buenos Aires and Montevideo Frigorifico kips, 15 to 25 pounds 

Buenos Aires and Monte\'ideo Frigorifico kips, not over 32 pounds, average. 

Buenos Aires and Montevideo Frigorifico bulls , 

Morris & Co., San Salvador hides , 

Swifr & Co., Asuncion hides 

Montevideo City Matadero: 

Steers 

Cows , 

Kips 

Extremes 

Buenos Aires and extremes 

Rio Grande Saladero: 

Steers , , 

Cows 

Sao Paulo Frigorifico hides 



50.00 

36.50 

3.25 

3.20 



(») 



$61.00 
44.00 

61.00 

44.00 

158.00 

2 43. 00 

2 47.00 

2 38.50 

57.50 

40.00 



<.28l 
<.20i 
49.00 
47.00 
42.00 



(') 



•.28i 
<.23 



<.23 
«.22 

56.50 
40.00 
3. 26 J 



' 10 per cent shrinkage guaranteed. 

2 10 per cent shrinkage. 

3 Weighed and delivered at New York. 



* C. and f. New York or Boston. r 

» Price shall be relative to regular Frigorificos. 



FOREIGN HORSEHIDES. 



Description. 



Take-off for 
November 

and 
December, 

1918. 



Chile and Buenos Aires City G. S. hides: 

Not under 25 kilos average and free of ponies, colts, and glues . . . 
(Headless and seconds, 50 cents less.) 
Chile and Buenos Aires Province or Campos: 

About 18 to 20 kilos, average and free of ponies, colts, and glues. 
All China dry horsehides: 

No. I's, about 16 to 17 pounds, average 

No. I's, about 12 to 13 pounds, average 

No. I's, about 10 pounds, average 

(No. 2's, 50 cents less.) 
(No. 3's, half price.) 



1 $7. 50 



15.75 

3.50 
2.75 
2.50 



1 C. and f ., shipping weight. 

FOREIGN DRY HIDES. 

Regulations for the sale of hides included in the original regulations for May, June, 
and July, 1918 : 

May, June, and July shipments ol foreign winter haired dry hides, taken oflE south of 
the Equator, have maximum prices 10 per cent over the maximum prices set. 

Cordova (Argentina) dry hides include hides from Salta, Santiago del Estero, and 
Metan. 

Maximum price of inservibles shall not be over 50 per cent of the maximum price of 
the best selection of the same kind. 

Maximum price on all dry salted hides is 6 cents less than dry flint in all cases where 
it has been customary to sell lots running all or practically all dry salted and in such 
cases the hides with pickle on them are .3 cents under dry flints. In other cases the 
customary conditions prevail. 

The percentages of desechos mentioned in Argentine and Uruguay dry hides do not 
apply to kip and calf. Kip and calf are free of mal-desechos and are inservibles. 

Venezuela, Colombia, Equador, Central America, West Indies, San Domingo, Haiti, and 
Porto Rico kip, maximum price 1 cent per pound over maximum price for hides of the 
respective countries ; calf, maximum price 6 cents over the maximum price for hides of 
the respective countries. 



GOVERITMEN^T REGULATIONS RELATING TO PRICES. 



743 



Bogota Mount slaughterhouse hides accompanied by a statement sworn to before 
United States consul or consular agent that they are slaughterhouse hides, such state- 
ment to be attached to invoice to United States buyer of hides to have a maximum price 
of 1 cent more than the maximum price ruling on Mount Bogotas. 

Guayaquil slaughterhouse hides* accompanied by statement sworn to before a consul 
or consular agent that they are slaughterhouse hides, such statement to be attached 
to invoice to United States buyer. Maximum price to be 33i cents for dry. 

All prices are quoted in cents per pound. 

The schedule of maximum prices on hides and skins for August, September, and Octo- 
ber, 1918, contains a full list of hides of this class. In general it may be said that 
prices vary from the lowest prices for West Indian dry hides to the highest for Cordovan 
dry hides. 

Modifications of terms of sale for this period follow : 

When prices are on basis of New York weights, original selection, the certified arrival 
weights shall govern. 

When prices are on the basis of C. i. f. or c. and f. on original shipping weights, the 
customary shrinkage guarantees shall govern, unless otherwise specified. 

Cordova (Argentina) dry hides shall include Santiago del Ester o, San Luis, Salta, 
and Metan. 

Maximum price on all dry salted hides is 6 cents less thian dry flint in all 
cases where it has been customary to sell lots running all or practically all 
dry salted, and in such cases tlie hides witli pickle on them are 3 cents under 
dry flints. In other cases tlie customary conditions prevail. 

Maximum price of inservible hides shall not be over two-thirds of tlie maxi- 
mum price for hides of the basis selection of the same kind. 

Venezuela, Colombia, Equador, Central America, West Indies, San Domingo, 
Haiti and Porto Rico kip, maximum price 1 cent per pound over maximum 
price for hides of the respective countries ; calf, maximum price 6 cents over 
the maximum price for hides of the respective countries. 

Prices quoted are cents per pound. 

The prices for November and December remain unchanged. 

FOREIGN DRY HIDES. 



Description. 



Stocks and 
shipments 
from origin, 

to and 

including 

July 31, 

1918. 



Remarks. 



Becerritos 

Buenos Aires, W. H., 30 per cent desechos: 

Hides 

Kips 

Calf 

Cordova, W. H., 15 per cent desechos: 

Hides 

Kips 

Santa Fe, W. H., 15 per cent desechos: 

Hides 

Kips 

Corriente, W. H., 15 per cent desechos: 

Hides 

Kips 

Entre Rios, W. H., 15 per cent desechos: 

Hides 

Kips 

Concordia, W. H., 15 per cent desechos: 

Hides 

Kips 

Montevideo, W. H., 15 per cent desechos: 

Hides 

Kips 

Calf 

Paraguay,.W. H., 15 per cent desechos: 

Hides , 

Kips 

Upper ^Parana, 15 per cent desechos, hides.. 
Brazil^ W. H., Rio Grande No. 1 selection: 

Hides , 

Kips 

Cuyuba, No. 1 selection, hides , 

Motto Grasso, No. 1 selection, hides , 

Bahia, hides 

Pemambuco, hides , 

Ceara, hides , 

Pamahyba, hides 

Minas (Rio Janeiro), hides 

Venezuela, Orinoco, hides 

Puerto Cabello and La Guayra, hides 

Colombia, Mount Bogota, hides 

Ambata and Latacunga, hides 



80.54 



C. and f.. New York or Boston. 



34 


Do. 


43* 


Do. 


56 


Do. 


37 


Do. 


46 


Do. 


34 


Do. 


40 


Do. 


32 


Do. 


36 


Do. 


34 


Do. 


40 


Do. 


34* 


Do. 


40 


Do, 


35* 


Do, 


42 


Do. 


54 


Do, 


30 


Do. 


34 


Do. 


33 


Do. 


34 


Do. 


36 


Do. 


33 


Do. 


33 


Do, 


343^ 


NewYo 


34* 


Do. 


37 


Do. 


37 


Do. 


30 


Do. 


33} 


Do. 


m 


Do. 


•m 


Do. 


31i 


Do. 



New York delivery and selection. 



744 



HISTORY OF PRICES DURING THE WAR. 

FOREIGN DRY HIDES— Continued . 



Description. 



Stocks and 
shipments' 
from origin, 

to and 

including 

July 31, 

1918. 



Remarks. 



Guayaquil cities (excepting slaughterhouse), hides. 

Guatemala city, hides 

Guatemala country, hides 

Honduras, hides 

Honduras Ampala, hides 

San Salvador, hides 

Nicaragua, hides 

Costa Rica, hides 

Panama, hides 

Ecuador: 

Mount Quito, hides 

Mountain, hides 

Coast, liides , 

Peru: 

Hides 

Kips (flat, free of glue) 

Bolivia: 

Hides, trimmed 

Hides, untrimmed or partly trimmed 

West Indian, San Domingo, Haiti, hides 

Porto Rico, hides 

Mexico: 

Northern — 

Hides 



Kips 

Calf (free of glue) 

Pueblo, San Geronimo, and west coast, hides . 
Chihuahua, hides 



Java, shaved, best quality and selection: 

About 1 to 6 pounds (about 2 kilos average) . . . 

About 6 to 10 pounds (about 3i kilos average) . 

About 10 to 15 pounds (about 6 kilos average) . 
Rangoon, arsenicated: 

Calf 

Calf, 6 to 10 pounds average 

Calf, 12 to 16 pounds average 

Dry salted, 16 to 20 pounds average 

Cape of Good Hope and South Africa: 

Best selection 

Best selection, dry salted 

Nigeria: 

Hides, first selection 

Kips, excluding glue 

Calf, excluding glue 

Madagascar: 

Best selection 

Dry salted 

Mombassa: 

Hides and kips 

Calf 

Abyssinian: 

Hides and kips 

Calf 

Soudan: 

Hides and kips 

Calf 



BUFFALOES. 

East India, winter season: 

Commissariat slaughters 

Dacca slaughters 

Rangoon, winter season: 

First selection, dry 

Dry salted 

Trimmed and shaved 

Java, best season: 

Trimmed and shaved 

Chin.i, winter season: 

Trimmed and shaved 

Arsenicated 

Dry salted 

China, Hongkong: 

Shaved 

Dry 

Dry salted 



SO. 311 
. 3,5 J 
.34} 
.32 J 
.33i 
.33} 
.32} 
.32} 
.32} 

.33} 
.29} 
.25} 

.32 
.38 

.34 
.55 
.29 
.31 



.33 

.39 

.45 
.54J 
.34' 



.75 
.68 
.62 

.40 
.36 
.32 
.26 

.34 
.32 

.26 
.26 
.31 

.30 
.20 

.30 
.35 

.30 
.35 

.28 I 
..33 I 



13d 
8d 

$0.20 
.16 
.33 



New York delivery and selection. 
Do. 
Do. 
Bo. 
Do. 
Do. 
Do. 
Do. 
Do. 

Do. 
Do. 
Do. 

Do. 
Do. 

Do. 
Do. 
Do. 
Do. 



New York freight, selection as cus- 
tomary. 
Do. 
Flat, New York basis. 

Jo. 
New York freight, selection as cus- 
tomary. 

r.andf. 
Do. 
Do. 

Do. 
Do. 
Do. 
Do. 

Do. 
Do. 

Do. 
Flat, c. andt. 
Do. 

C. and f. 
Do. 

Do. 
Do. 

Do. 
Do. 

Do. 
Do. 



Do. 
Do. 

Do. 
Do. 
Do. 

C. i. f. and war risk for first selection. 

Do. 
Do. 
Do. 

Do. 
Do. 
Do. 



GOVEBNMENT REGULATIOIfS RELATING TO PRICES. 

FOREIGN DRY HIDES— Continued. 



745 



Description. 




Remarks. 



BUFFALOES. 

West Indies: 

Santo Domingo and Haiti — 

Dry flint hides 

Dry salted, flat , 

Cordova, W. H., 15 per cent desechos: 

Hides 

Kips 



New York delivery and selection. 
Do. 

G. and f., New York or Boston. 
Do. 



Description. 



Stocks and shipments from origin, to and including July 
31, 1918. 



lto6 
pounds. 



6tol0 
poimds. 



10 to 14 
pounds. 



14 to 20 
pounds. 



20 to 24 
pounds. 



24 to 30 
pounds. 



30 and 

up 
pounds. 



China: 

Hankow, B. S. W. H. (2's 6 cents less) 

Shanghai, B. S. W. H. (2's 6 cents less)... 

Hongkong, original run , flat 

Thibet, B. S. W. H. (2's 6 cents less) 

Neuchwang, B. S. W. H. (2's 6 cents less) 
Mongolia, B. S. W. H. (2's 6 cents less) . . . 



$0.55 
.54 
.36 
.45 
.45 
.45 



SO. 48 
.47 
.33 
.37 
.37 
.37 



$0.46 
•45 
.32 
.35 
.35 
.35 



$0.44 
.43 
.31 
.33 
.33 
.33 



$0.42 
.41 



SO. 40 
.39 



.30 
.30 
.30 



Above prices are c. i. f. and war risk. 





Shipment from origin, August, September, October. 




1-6 1 6-10 
pounds, pounds. 


10-14 
pounds. 


14-20 
poimds. 


20-24 
pounds. 


24-30 
pounds. 


30-»p. 
pounds. 


China: 

Hankow, B. S. W. H. (2's 6 cents less) ... . 
Shanghai B. S. W. H., same trim as Han- 
kow (2's 6 cents less) 


$0.53 

.52 
.36 
.69 


$0.48 

.47 
.33 
.62 


$0.48 

.47 
.33 
.56 

.37 


$0.46 

.45 
.32 


$0.44 

.43 
.31 


$0.42 j $0.40 
.41 


Hongkong, original run, flat 




Canton, shaved 




Tibet, Neuchwang, Mongolia, B. S. W. H. 
(2's 6 cents less) 


.45 ! .37 


.35 


.33 


.30 .30 















China prices are c. and f. New fork. 

CABRETTA AND SHEEPSKINS. 





Stocks on 






hand May 


1 




1, 1918, 






and ship- 




Description. 


ments from 
origin, to 

and includ- 
ing July 
31, 1918. 


Remarks. 


Brazils 


$1.20 


Per piece, landed basis New York. 


Punjabs: 




700 pounds average for 500 skins 


7.00 


Per dozen. 


Each 100 pound additional 


.50 
15.00 


Per dozen more. 


China sheepskins, basis 2i pounds average 


Per dozen. 


Java sheepskins, basis IJ pounds average 


11.00 


Do. 


West Indians, 1 pound to 1^- pounds 


.65-1.00 


Flat, per piece. 


Peruvian slats, f pound to 1 pound 


2. 50-4. 00 


Per dozen, according to quality and 






weight. 


Cape Town glovers, basis first heavies. . 


2.20 


Per sfin. 


(Lower grades and weights in proportion.) 





746 



HISTORY OF PRICES DURING THE WAR. 

CABRETTA AND SHEEPSKINS— Continue.l. 



Description. 


Stocks on 
hand May 

1, 1918, 
and ship- 
ments from 
origin, to 
and includ- 
ing July 
31, 1918. 


Remarks. 


Spanish lambskins: 

Basis, first wool, 12 to 13 kilos, 
primes 


Catalonian 


S21.00 

13.50 

2.00 
1.70 
1.40 
1.15 
1.00 
.85 

1.60 

1.15 

.90 

.65 

.80 

1.00 

.90 
.70 
.40 


Per dozen. 

Do. 

Per skin. 
Do. 
Do. 
Do. 
Do. 
Do. 

Do. 
Do. 
Do. 
Do. 

Per skin. 

Do. 

Do. 
Do. 
Do. 




(Other weights and grades in proportion.) 
Oriental Iambs, basis 95 to 100 kilos 




Black-head Mocha sheepskins: 

Average No. 1, 200 to 210 pounds 




Average No. 1, 170 pounds 




Average No. 1, 140 pounds 




Average Np. 1 , 125 pounds 




Average No. 1, 110 pounds 




Average No. 1 , 95 pounds 




(All seconds at two-tliirds price.) 
White heads: 

Average No. 1 , 225 pounds 




Average No. 1, 179 to 180 pounds 




Average No. 1, 140 to 150 pounds 




Average No. 1 , 120 to 125 pounds 




(All seconds at one-half price.) 

Mombassa sheepskins; No. 1, 150 to 
average. 
(Seconds at | price.) 
Mombassa shade dried 


160 pounds 




(Seconds at § price.) 
Red Head Mocha sheepskins: 

AverafR No, 1, 160 to 17n poiinds. 




Average No. 1, 140 to 150 pounds 




Average No. 1^ 115 to 120 pounds 




(Seconds at J price.) 





Description. 


Shipments 
from point 
of origin, 
August, 
September 

and 
October. 


Remarks. 


Brazil, banded, bans, over 2 pounds, heavies, regu- 
lar primes. 
Punjab: 

Sheep pelts, 400 pounds average for 500 skins 

Wool sheep, 1,500 pounds average for 500 skins... 
Madras and southern India sheep: 

Basis, 85 per cent primes; 15 per cent seconds, 
average about 185 to 200 pounds. 
West Indies sheepskins; basis i tol^ pounds average. 
Spanish lambskins, first wool, second wool, 13 to 14 
kilos: 
Basis, Citalonian primes. 


$1.30 

7.00 
13.50 

11.00 

SO. 65-1. 00 

21.00 
23.00 
21.00 
19.00 

13.00 
12.25 
11.75 
11.00 
9.00 

14.00 
13.25 
12.75 
12.00 
10 00 
18.00 


Each. 

Per dozen. 
Do. 

Do. 

Each. 

Per dozen. 


18 to 19 kilos 


Do. 


13 to 14 kilos 


Do. 


8 to 9 kilos 


Do. 


Macedonian lambskins: 
Average about— 

95 to 100 kilos 


Do. 


80 to 90 kilos 


Do. 


70 to SOMlos 


Do. 


60to70kilos 


Do. 


50 to 60 kilos 


Do. 


Grecian lambskiflS: 
Average about— ~ 

96 to 100 kilos ...'. 


Do. 


80 to 90 kilos 


Do. 


70 to SO Idlos 


Do. 


60 to 70 kilos 


Do. 


.50 to 60 kilos . . 


Do. 


Prime Macedonian and Grecian sheen'Trirs ar*' 
Kavlaks, average over 140 kilos. 


Do. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 



747 



GOATSKINS. 

The prices on goatskins, as given in the following schedule of May 1, 1918, were con- 
tinued in force through December, 1918, without change : 

Angoras, straight $0. 42J 

Angoras, light crossbred .50 

New Mexico, No. 1 .75 

Navaho, No. 1 .85 

(No. 2's, kids and bulls, two-thirds price.) 

Domestic skins . ^ 12. 00-15. 00 

Packers ' 18. 00 

Mexico : , 

Oaxacas, flat ($0.90 per pound) =1.65 

Pueblas, flat ($0.85 per pound) "2.00 

Matanzas, flat ($0.80 per pound) " 2. 25 

Frontiers, selected ($0.75 per pound) ='1.75 

West Indies : 

.Tamaicas, flat ^. 85 

Porto Plata, flat ^.65 

Haitians, flat ^ . 65 

Colombia, Bogoto, selected 1. 00 

Venezuela : 

Barquisemetas, flat . 55 

Coros, flat : . 50 

Rio Hache, flat .45 

Islands, flat . 43i 

Maracalbos, flat . 42| 

La Guayras, flat . 4l| 

Brazil : 

Brazils a 1. 30 

For 110 average New York, with specials * . 05 

Heavies, 20 per cent less than firsts. 
Bulls, light and seconds, two-thirds price of firsts. 
Bahias, on basis of 2i cents less per pound. 
Argentines : 

Cordobas (50 per cent Matedores and 50 per cent Campos), 9^ to 
10 K., $0.85 for firsts; seconds, two-thirds price. 
Santiago, same price as Cordobas. "* 

Metans_,9J to 10 K, 10 cents less 75 

San Luis, 10 K, 10 cents less 75 

Saltas, 10 K 70 

Bahia Blancas,ll to 12 K 60 

Pampas(Buenos Aires Provinces), 11 to 12 K 62J 

Cordobas kidsMn per dozen. . 3. 50 

Seconds, two-third price. 
Chilians: , 

Chile kidsMns , do 3. 50 

Seconds, two-thirds price. 
Peru: 

Paytas, dry salted, selected basis per pound. . . 65 

Peruvian goats (fiint dry) flat basis do 55 

Piscos, dry salted, selected basis do 55 

Bolivia: 

Bolivians , flat basis do 45 

Africa: 

North Africans, no importations. 
Egypt, no importations . 

Capetown, basis prime extra lights do 70 

Algoah Bay, basis prime extralights do 65 

Kafir^ basis prime extralights do 55 

Nigenan per dozen. . 14. 00 

All primesfree kids. 

Weight,pounds, $1.30 per skin, lower qualities proportionately cheaper. 



Abyssinians , fiint dry flat 

Harrarsjflat 

Dmikali,flat - 

Berherah, flat 

Somali , flat 

Hodeidahs , flat 

Gizan and Gumflttah, flat 

Gatoway , flat 

Adan butchers, flat 

Mombassa, flat 



Firsts. 



Per cent. 
60 
60 
10 
50 
10 
60 
60 
60 
(5) 
25 



Seconds. 



Per cent. 
30 
30 
75 
40 
75 
30 
30 
30 



(5) 



60 



Thirds. 



Per cent. 
10 
10 
15 
10 
15 
10 
10 
10 
10 
15 



pounds. 



110 
110 

90 
110 

95 
120 
120 
115 
170 
110 



Per 
dozen. 



$12.00 
12.50 

9.00 
13.00 

9.00 
11.00 
11.00 
10.50 
18.00 
12.50 



* Per dozen, flat. ^ Average per pound. ' Per pound. * Less. 



5 All firsts. 



748 



HISTORY OF PRICES DURING THE WAR. 



Spain : 

Ooatos and cheverettes dozen $30. 00 

Greece : 

Macedonian goats, selected basis do 17. 50 

Macedonian cheverettes, selected basis do 14. 00 

India : 

Amritzar, basis 1,000 pounds for 500 skins; 85 per cent firsts, 15 per cent 

seconds dozen 13. 00 

For each extra 100 pounds, per 500 skins additional do 1. 00 

Wet salted Northwest : 

40 inches and upward piece__ 1. 38 

36 to 40 inches do 1. 33 

33 to 36 inches do 1.23 

28 to 33 inches do 1. 13 

Seconds, 70 per cent of price of firsts. 
Dry salted : 

Patnas, about 550 average for 500 skins dozen 11, 00 

Mozufferpores, about 550 average for 500 skins do 12. 00 

Dinajporcs, about 550 average for 500 skins do 11. 75 

Daccas. about 550 average for 500 skins do 13. 00 

The above dry salted are all about 50 per cent primes, 30 per cent seconds, 
20 per cent thirds. 

Calcutta, killed, about 675 pounds average dozen 15. 50 

Kushitas, about 675 pounds average for 500 skins do 17. 00 

Dry salted Calcutta and Kushitas are about 75 per cent primes, 15 per 
cent seconds, 10 per cent thirds. 
Northwests, about 900 pounds average for 500 skins, 60 per cent primes, 

30 per cent seconds, 10 per cent thirds dozen 15. 00 

Madras, 185 pounds average, flat do 14. 50 

Coconada, 190 pounds average, flat do 15. 00 

Javas : 

.Tavas, 82 pounds basis primes do 15. 00 

China : 

Chowchings, short hair, 19 pounds per dozen, average, inclusive, 30 per 

cent seconds dozen 19.00 

Chowchings, medium hair, 22 pounds per dozen, average, inclusive, 30 per 

cent seconds . dozen 16. 50 

Chowchings, long hair, 27 pounds per dozen, average, inclusive, 30 per cent 

• seconds" dozen 16. 00 

Shuntifus, $1 per dozen less than Chowchings. 

Patoingfu, S2 per dozen less than Chowchings. 

Tientsins, $3 per dozen less than Chowchings. 

Short hair descriptions may include 15 to 20 per cent medium hair. 



Seconds. 



Per 
dozen. 



Szechuens, 17 pounds average, inclusive 

Wanshiens, 19 pounds average, inclusive 

Honans, 18 pounds average, inclusive 

Clear River, 18 pounds average, inclusive 

Mud cured rivers, 21 pounds average, inclusive 



Per cent. 
25 
25 
25 
25 
30 



S27. 50 

21.00 

14.50 

12.00 

8.00 



DEER AND ELK SKINS, 

The original schedule for deer and elk skins, effectiv.e May 1, 1918, was maintained 
through December, 1918, with a single exception, noted below : 



Flat. 
Tuxpans $0. 60 



Flat. 

Guatemales $0. 75 

San Salvador . 75 

Honduras, trimmed . 70 

Honduras, untrimmed . 65 

Costa Ricas . 70 

Central Americans . 70 

Angosturas . 38 

La Guayras . 35 

Maracaibo . 29 

Rio Hache .31 

Sisals . 65 

Mexicans . 55 

When sold on a selected basis, the maximum prices shall be 10 per cent above the 
maximum prices set above. 

Domestic deerskins from $1 to $3.50 per piece, according to size, section, and quality. 

Take-off for August, September, and October on Chinas, 1 to 1| pounds, not over 15 
per cent ; seconds, $1.05. 

APPENDIX. 



MatamoraS- 

Pai-as 

Maranhams ^ 

Oaxacas : 

Panamas 

Barquismetos 

Porto Cabellos 

West Coast 

Chinas, not over 15 per cent seconds. 

Singapore elks 

Macassar elks 



50 
55 
70. 
85 
65 
35 
35 
70 
.95 
.45 
42 



SUPPLEMENTARY PRICES AND REGULATIONS ON HIDES AND SKINS ISSUED ON TULT 1, 1918. 

The maximum price on standard packer kid skins, measuring pbout two-thirds the 
size of the goatskins is two-thirds the price of the goatskins. 

The maximum price on butcher and country kid skins is $4 per dozen. 



GOVEKNMENT REGULATIONS EELATIlsTG TO PRICES. 749 

The maximum price on Sumatra buffalo hides is 33 cents for trimmed and shaved, 
31 cents on untrimmed and shaved. 

The maximum price in Tapuchula, Mexico, wet salt hides is 22J cents. 
The maximum prices on Sumatra cowhides, shaved, are as follows : 

Skippers own 
preparation. 
Country and untrimmed : 

About 1 to 6 pounds about 2 kilos average, 65 cents c. and f cents 70 

About 6 to 10 pounds about 31 kilos average, 58 cents c. and f do 63 

About 10 to 15 pounds about 6 kilos average, 52 cents c. and f do 57 

The maximum price on Cuban wet salt hides is 19 cents. 

The maximum price of Tuxpan, Mexico, wet salt hides is 211 cents. 

The maximum price on Canton, China, shaved dry hides is as follows : 

One to 6 pounds, 69 cents ; 6 to 10 pounds, 62 cents ; 10 to 15 pourds, 56 cents ; 
C. i. f. and war risk New York basis. 

The maximum price on China dry donkey hides is $2 each c. i. f. and war risk. New 
York basis. 

The maximum price on Mendez, Brazil, frigorifico hides is 20 cents weighed ex dock 
New York. Delaware and New Jersey are classed with the New England States. 

The maximum price on Madras pickled goatskins is $15.50 per dozen. 

The maximum price on Madras extra large goatskins about 27 pounds average is $16.50. 

The maximum price on Argentine wet salt Matadero and Campo kip is 20 cents. 

The maximum price on Courland Scharren dry calf is $1.20 per pound ; Courland 
slaughter dry calf is $1.10 per pound ; Wiatka dry calf is $1.07 per pound ; Palloy dry 
calf is 45 cents per pound. 

The maximum price on Mexican wet salt kips is the same price as the maximum on 
the same kind of hides. 

The maximura price on Tampico, Mexico, dry hides is 32J cents. 

The maximum price on Madras sheepskins, basis 85 per cent primes and 15 per cent 
seconds, average about 190 to 200 pounds, is $11. 

The maximum prices on Hulo (Hawaiian Islands) packer steers, 27 cents; cows, 22 
cents, ex store San Francisco. 

The maximum price on ducca cowhides 9 to 12 pounds and 12 to 15 pounds is 26 
cents c.f. s. 

The maximum price on China wet salt buffaloes is 13 cents. 

The maximum price on Habana packer hides of superior take-off and preparation is 
1 cent per pound more than other Habana packer hides. 

The price on Chicago and other large city first-salt calfskins applies to all other first- 
salt untrimmed skins in carload lots, equal in all respects to Chicago skins. Othar 
first-salt skins of inferior quality, take-off, and preparation shall sell at relatively less. 

Any resalted packer, abattoir, or wholesale butcher calfskins shall sell at relatively less 
than the price of 44 cents, which is for first-salt standard packer stock on Chicago freight 
basis. 

The maximum price on River Plata frigorifico-type kips and extremes is 26 cents and 
freight, shrinkage guaranteed not to exceed 10 per cent, to New York or Boston. 

A go-between can not charge a brokerage to both buyer and seller. No one owing 
a lot of hides or skins can charge his customer a brokerage when selling same. Any 
tanner may pay an agent a brokerage for buying hides or skins (except on hides or 
skins which the agent owns himself), but such agent may not buy less than carload 
lots of butchers at a higher price than 10 per cent under applicable maximum prices. 
No brokerage shall exceed 2 per cent. , ^ ^ 

Small packer, abattoir, ^nd wholesale butcher price light calf (7 to 8 pounds) and 
deacons are governed by the packer calf price of 44 cents for first-salt stock, on Chi- 
cago freight basis, and taking into consideration any inferiority as to take-off and 
salting. 

BLACK HARNESS LEATHER. 

Harness leather. — The prices of black harness leather were fixed by the price- 
fixing committee on June 25, 1918, subject to revision November 1. 1918, or 
before that date, contingent upon possible changes in the prices of hides and 
skins. The prices in the schedule below were later extended until November 
20, 1918, when price fixing was here ended. 

BLACK HARNESS LEATHERS. 

(June 25, 1918.) 

Per pound. 

Grade A, or first selection $0. 70 

Grade B, or second selection • 68 

Grade C, or third selection • 66 

First selection, butt brands — -68 

Second selection, butt brands • 66 



750 HISTORY OF PRICES DURING THE WAR. 

SOLE AND BELTING LEATHER. 

(Aug. 9, 1918.) 

Provisions for the control of prices and output of sole and belting leather 
became effective August 9, 1918, and were administered by the hide and leather 
section of the War Industries Board. These regulations and prices, which are 
given 4)elow, were extended on October 8, 1918, until December 8, 1918, when 
they were removed. 

KEGTJLATIONS. 

These maximum prices on grades are based on maximum prices of No. 2 
selection as basis for tannery run. When sold in selections the assortment 
value of the total selections shall not exceed the maximum price of the No. 2 
or tannery run. 

In Texas scoured or bloom oak sole leather, classification No. 3, the tannery 
run maximum price is 87 cents, and when sold in selections the assortment 
value of the four selections shall not exceed the maximum tannery-run price 
of 87 cents. 

These prices apply to all sales made by tanners or by their representatives 
or by jobbers, but do not apply to sales made by retail dealers or by the so- 
called findings trade. 

DIFFERENTIAXS. 

Tanners who claim preferential differentials on account of low yield of 
leather will make application for same to the hide, leather, and leather goods 
division of the War Industries Board. 

The conditions upon which they will be given this advantage are: 

That their yield shall be at least seven points under the yield used as a 
factor in determining maximum prices on the same season's hides and that a 
sworn statement shall be rendered to this effect and shall be the result of at 
least six months' operation. 

That they will make consecutive monthly reports to the hide, leather, and 
leather goods division of the War Industries Board of their yield. 

Every side of subdivision of these sides shall be stamped with the name of 
the tannage. 

Tanneries producing leather of such high yield as to exceed the arbitrary 
factor of yield used in figuring maximum prices on the same season's hides by 
more than seven points shall be subject to a differential reduction, such reduc- 
tion to be figured on the excess yield beyond or above the seven-point allow- 
ance. Every side or subdivision of these sides shall be stamped with the name 
of the tannage. 

When requested by the hide, leather, and leather goods division of the War 
Industries Board tanners will make monthly reports of their yields, stating 
classes and seasons of hides. _ 

PRICE OF OFFAL. 

These maximum prices are established for three months and at a time when 
all offal is a burden on the market. At the expiration of the three months, if 
the offal has found an outlet and established a higher market level, this addi- 
tional return in value to tanners will be reflected in the readjustment of a new 

schedule three months hence. 

I 

High-grade heavy packer oak belting butts, made from packer heavy native and ^^''^ 

light native steers and heavy native cows (based on yield of 65 per cent) : pouna 

No. 1 $0. 96 

No. 2 . 94 

No. 3 . 86 

High-grade light packer oak belting butts under 20 pounds, made from light native 
cows and extreme light native steers (based on yield of 62 per cent) : 

No. 1 . 91 

No. 2 . 89 

No. 3 . 81 



GOVERNMENT REGULATIONS RELATING TO PRICES. 751 

High-grade Texas scoured or bloom oak sole leather, made from packer heavy and p^^^ 

light Texas steers (based on yield of 83 per cent) : • 

Tan run sides '''"•Sj^ 

Tan run bends • kAj. 

X sides • ggf 

A sides • 25| 

B sides • gi| 

C sides • S^2 

X bends • gX 

A bends • 52 

B bends • S? 

C bends ' 

High-o-rade heavy or overweight oak sole leather, made from packer butt brands 
and" Colorado steers, oak trim (based on yield of 78 per cent) : 

No 1 sides • ^g 



No. 2 sides - 



No. 1 backs 



No. 3 backs 
No. 1 bends. 



No. 3 sides. 
No. 1 backs. 
No. 2 backs. 



No. 1 sides- 
No. 2 sides. 



55 



No. 3 sides ■ ^7 



75 



No. 2 backs • j^ 



90 

88 



No. 2 bends ZZZZZZZZZ isl- 

High grade heavyor" overweight union sofe leather made from packer butt brand 
and Colorado steers and frigoriflco steers, union trim (based on yield of 80 per 

cent) : f. kq 

No. 1 sides "• ^S 

No. 2 sides • 21 

No. 3 sides • ^? 

No. 1 backs • L% 

No. 2 backs • * 3 

No. 3 backs • gg 

No. 1 bends • g° 

No. 2 bends • °5 

No. 3 bends—- -— r :5-t • "■^ 

High grade light or middleweight oak sole leather made from packer branded 
cows, oak trim (based on yield of 75 per cent) : 

No. 1 sides • ^o| 

No. 2 sides • ?- ^ 



Z_ZZ_Z . 501 

,j.2^ 

ZZZZZZZZZZZZZZZZZZ • '70i 

"M/-) Q hacks • ^^^ 

High grade light or middleweight oak sole leather, union trim based on yield of 

75 per cent) : kci 

No. 1 sides • g^l 

No. 2 sides • gif 

No. 3 sides • »!/s 

No. 1 backs • '^ 

No. 2 backs • o^ 

No 3 backs ■ ^ 

Country or domestic hides, heavy or overweight oak or union leather, made from 
steers or heavy cows (based on yield of 68 per cent) : 



53 
51 



No. 3 sides -47 

Country or domestic middleweight oak or union leather made tnni cows or ex- 
treme light steers (based on yield of 68 per cent) : 

No. 1 sides • ^^ 

No. 2 sides • ^^ 

No. 3 sides . ,— — vT ;7— 5 ' 

High grade heavy or overweight hemlock leather made from packer heavy (based 
on yield of 90 'per cent) : 

No. 1 sides '- • ^^ 

No. 2 sides • g* 



No. 3 sides. 



50 



High grade middleweight hemlock sole leather made from extreme Texas and 
branded cows (based on yield of 80 per cent) : 

No. 1 sides • g4 

No. 2 sides • ^i 

No. 3 sides -,—,---7-7 7— r r • *^ 

Country or domestic hide, heavy or overweight hemlock, made from steers or 
heavy cows (based on yield of 80 per cent) : 

No. 1 sides • *^ 

No. 2 sides -jl 

No 3 sides * 

Country or domestic hemlock made from cows or extreme light steers (based on 
yield of 80 per cent) : ' 

No. 1 sides • *' 

No. 2 sides • Jg 

No. 3 sides -.-rr-r , — , j — J • 

High grade dry hide heavy overweight and middleweight hemlock made trom 
Buenos Aires hides (based on yield of 170 per cent) : 

Tan-run sides ■ — • *** 

Buffalo dry hide overweight (based on yield of 190 per cent) : 

Tan-run sides • ^* 



7. LUMBER. 



The first step in the control of hiniber prices was taken in 1917 with the in- 
stitution by tlie hunber committee of the Council of National Defense, of 
" eniergency bureaus," semiofficial Government agents in the purchase of Gov- 
ernment lumber requirements.^ 

The general regulations concerning lumber prices and the regulations and 
schedules pertaining to individual species appear below in the following order : 

General regulations, birch logs, black walnut, cypress and tupelo, Douglas tir, 
mahogany lumber, New England spruce. North Carolina pine, Pennsylvania hem- 
lock, southern or yellow pine, western spruce. 

GENERAL REGULATIONS. 

Notice as to Government lumber prices, March 30, 1918. — All lumber manu- 
facturers and dealers are hereby notified that the present Government yellow 
or southern pine lumber prices for mill shipments from the Southern States are 
to remain in effect until June 15, 1918, and that in no case must orders for lum- 
ber for mill shipments be accepted, sold, or invoiced to the Government or Gov- 
ernment contractor, having a cost-plus job, either by manufacturers or dealers, 
at any greater price per item than the maximum' price fixed by the Government 
list.' 

Public announcement regarding lumber made by the price-fixing committee 
of the War Industries Board, June 11, 1918. — The price-fixing committee of the 
War Industries Board has fixed maximum item prices for northwestern fir logs 
and lumber and for southern pine lumber. The detailed schedules of these item 
prices have been approved by the President and publicly announced. The prices 
established are manufacturers' f. o. b. mill prices for shipment at the mills, the 
same for all purchasers. They are maximum prices, not fixed prices, to hold for 
a period of 90 days from June 15. 

No regulation has been made Avith regard to transactions other than sales by 
manufacturers at the schedule prices. Wholesale dealers, retail dealers, and all 
others are entitled to buy on the basis of these f. o. b. mill prices. As yet no 
regulation of rates or profits has been made with regard to sales either by 
Avholesalers or retailers to consumers. The War Industries Board believes that 
sales by all dealers should be made at reasonable prices based on a strictly rea- 
sonable profit above the fixed schedule rates. The board is confident that the 
trade will conform to the spirit of the existing regulations and the board will 

1 These bureaus and dates of organization were as follows : Southern pine emergency 
bureau, May, 1917 ; North Carolina pine emergency bureau, May, 1917 ; Georgia-Florida 
yellow pine emergency bureau, June, 1917 ; New England spruce emergency bureau, June, 
1917 ; Douglas fir emergency bureau (later organized as the flr production board), October, 
19l7 ; Northern hardwood emergency bureau, Nov. 24, 1917 ; Central Pennsylvania hem- 
lock emergency bureau, Apr. 6, 1918 ; Cypress emergency bureau. 

2 Price-Fixing Committee Minute Book II, Mar. 30, 1918. 

752 



GOVEKHMENT REGULATIONS RELATING TO PRICES. 753 

not proceed to further regulation or restriction of dealers' prices until their 
conduct of business indicates that such action is necessary. 

Retail lumber prices. — Occasional purchases of lumber from retail lumber 
dealers to meet emergency needs became necessary for certain branches of the 
Government, and in order to insure a fair and reasonable price a fixed maxi- 
mum retail price was established for Douglas fir and" southern yellow pine 
lumber for the period from June 1, 1918, to July 31, 1918. These prices applied 
to emergency purchases of lumber from retail lumber dealers in the cities and 
vicinities of Boston, New York, Islewark, N. J., Philadelphia, and Baltimore. 

The agreement was — 

That the dealers be allowed for handling charges and profit the following 
advance prices over and above the Government's delivered prices f. o. b. cars in 
the districts mentioned, includhig switching charges, if any : To the dealers in 
the cities and vicinities of Boston, New York City, Newark, N. J., $12.50 per 
1,000 feet b. m. ; to the dealers in the cities and vicinities of Philadelphia and 
Baltimore, $11.50 per 1,000 feet b. m. 

These prices in all districts to be based on the Government department re- 
placing the lumber to the dealers within 90 days from date of replacement 
order at the Government's manufacturers' prices delivered f. o. b. cars in the 
districts mentioned, provided the dealers prefer to have the lumber replaced, 
or a cash settlement on the same basis if they prefer not to have the lumber 
replaced. These prices to the Government for the lumber received from the 
retail dealers in all cases to be f. o. b. dealers' wagons, trucks, or railroad cars 
in dealers' yards. 

Working. — Where dressing or ripping is necessary to obtain the items de- 
sired by the Government, charges for same shall not exceed the following: 
Dressing one, two, or four sides, $4 per 1,000 feet b. m. ; ripping or resawing 
(first cut), $4 per 1,000 feet b. m. ; ripping or resawing (second cut), $2 per 
1.000 feet b. m. • 

Teaming. — When lumber is hauled by retail yards the charges for same 
shall not exceed the charges following : By auto truck, $2.50 per 1,000 feet first 
mile, with allowance of 35 cents per 1,000 each additional mile ; by team, $1.75 
per 1,000 feet first mile, with allowance of 25 cents per 1,000 each additional 
mile. 

In the event the Government does not replace the lumber taken from local 
yards within the time stated above it is understood that the retailer may refuse 
to accept lumber replacement, and settlement for lumber taken should be made 
on basis of the following allowances in addition to the original replacement 
price : $6 per 1,000 feet on all short leaf ; $6 per 1,000 feet on all long leaf under 
12 inches ; $10 per 1,000 feet on all long leaf 12 inches and over. 

In the matter of replacing lumber taken from retail yards under the above 
agreement it is understood that the lumber is to be replaced in the same sizes 
or easier sizes than the sizes taken from the retail dealers; that is to say, if 
boards are taken from the retail dealers, boards are to be replaced ; or if fram- 
ing lumber is taken, framing lumber is to be replaced in sizes no larger than 
the sizes taken. 

For the present, at least, it is understood that all lumber replacements will 
come from the districts of Alabama-Mississippi territory, southern pine terri- 
tory, Georgia-Florida territory, and from the first district in the Pacific North- 
west. If North Carolina pine is taken from the retail dealei-s' yards, it may 
or can be replaced by comparable grade from the shortleaf territory of the 
above-mentioned producing districts. 

All requests for replacement by the retail dealers should be accompanied 
.by the signature of the receiving Government officer or agent, that the director 
of lumber may know in replacing this lumber that the sizes and quantities 
asked for are justified, and should be submitted to. the Government bureau iu 
AVashington through which the original authority for the original purchase 
by the Government was authorized. 

It must be distinctly understood that the above prices referred to are only 
effective in the cities and vicinities above mentioned, where the costs of 
handling and doing business have been investigated by the Federal Trade 
Commission. 

125547°— 20 48 



<54 HISTORY OF PRICES DURING THE WAR. 

All departments of the Array and Navy and tlie Emergency Fleet Gorpora- 
tiou agree immediately to put maximum prices into effect, and all pnrcliasing 
officers of all departments are to l>e notified immediately of the above decision.* 

Notice as to application of prices for soft wood lumber affected by rulings 
of the price-fixing committee of the War Industries Board. — All lumber manu- 
facturers and dealers are hereby notified that the present prices for soft 
lumber for mill shipment as heretofore established or which may hereafter be 
established by the price-fixing committee of the War Industries Board shall 
remain in effect during the period of time prescribed and that in no case must 
orders for lumber for mill shipment or recousignment thereof be accepted, 
sold, or invoiced to any purchaser by either a manufacturer, dealer, or other 
person at a greater price per item than the maximum price fixed by the 
price-fixing committee of the War Industries Board, except where delivered 
prices are made to purchasers' destination points, in which cases freight may 
be added on the basis of standard weights for each item so priced, also except 
as to orders received or contracts made prior to the date of ruling of the price- 
fixing committee governing the producing territory involved. 

The price-fixing committee has taken the position that cost figures presented 
by the Federal Trade Commission on which the price-fixing committee has 
based its ruling already include sales service to purchaser. So, in fact. In 
paying the price fixed in the ruling, the purchaser has already paid for this 
sales service. The purchaser or public should not be asked to pay any addi- 
tional price to any vendor offering mill shipments.^ 

The wholesale lumber dealers of the country protested against this ruling, 
saying that the prices as fixed did not allow any compensation or profit to 
them in the sale and distribution of lumber and that the strict application of 
the ruling would destroy a selling and diS'tributing agency which had long been 
a recognized factor in the lumber trade. On July 23 the price-fixing com- 
mittee, after consideration of arguments submitted by the wholesale lumber 
dealers, refused to modify its ruling of July.* 

Statement on southern pine prices on Government orders. — ScUlement of 
question of jyiice icith southern pine emergencij Inireau as to orders on hand 
prior to midnight, June I'l, 1918. — On all Government orders on which the 
price is fixed by the Government the price in effect on the date of shipment 
rather than the price in effect on the date the order is placed shall control, 
unless expressly stipulated to the contrary at the time the price is fixed, or 
unless a different rule is adopted by mutual agreement between the Government 
and the manufacturer. 

CONDITION TO THE ETJLE. 

As a condition to this rule, it must be understood, however, that the shipper 
will exercise due diligence in an effort to prepare and move the items covered 
by such order, and that the southern pine emergency bureau will exercise its 
best efforts in inducing the members with whom orders are placed to send 
shipments forward as pi-omptly as possible ; provided that if it is established 
that due diligence has not been used by any mill, the price shall be the lower 
price applying in the price-fixing periods involved. 

0T?I>EES X'NSHIPPED. 

All orders for the Government xmshipped on June 14, 1918, shall take the 
price prevailing at the time such orders were placed with the bureau ; provided 
that this rule shall not be construed to apply to orders placed prior to June 14, 
1918, for shipment after September 14, 1918. All restrictions as to deferred 
shipments are permitted to be removed. If not permitted by car builders to be 
f^hipped by September 14. the price applying at the time of delivery shall apply.* 

Procedure for distribution of southern or yellow pine lumber, — At a hearing 
of the manufacturers of southern or yellow-pine lumber l>efore the price-fixing 

1 Official Bulletin, .Tunc 19, 1918. 

= Price-Fixins Committee Minute Booli V, July 1, 1918 ; Official Bulletin, July 5, 1918. 

" Price-Fixing Committee Minute Book VI, July 1.5, 1918. 

* Price-Fixing Committee Minute Book VI, July 17, 1918 ; Official Bulletin, July 19, 1918, 



GOVEENMENT REGULATIONS RELATIj^G TO PRICES. 755 

committee of the War Industries Boanl on September 23, 1918, it was agreed 
that the ruling of June 14, 1918, fixing maximum f. o. b. mill prices on southerB 
or yellow-pine lumber should remain in effect from midnight September 23 
to midnight December 23, 1918, inclusive. 

It was also decided by the price-fixing committee and the representatives of 
Government departments that inclusiA-e within these dates timber prices on the 
lumber schedule should apply to all shipments to Government departments, 
including the Emergency Fleet Corporation. 

it x^'a.s decided by the price-fixing cojaamittee that the interpretation of the 
terms of sale should be as follows : 

The usual trade practices shall continue, including 2 per cent off for cash 
within 10 days from date of invoice to be applied to United States Government 
purchases as well as all others (except in special cases where former trade 
practice has well established net cash terms and except as to export shipments 
to foreign countries). In transactions where purchasers do not avail them- 
selves of cash discounts the terms shall be 60 days net from date of invoice, 
and in such transactions the accounts may be converted into trade acceptances 
which do not bear interest before maturity. 

As regards the requirement by the Railroad Administration that shippers 
shall bulkhead the ends of open freight cars, it was decided that an extra 
charge for lumber and labor for constructing bulMieads may be made by the 
shipper and invoiced to consignee, irrespective of whether or not for Govern- 
ment or civilian use. 

On the readjustment of item prices it was decided that the director of lum- 
ber, in conference with the war-service committee of the manufacturers, should 
have discretion to make certain minor changes and corrections in the item 
prices, which, however, should not affect the average base price. 

As to price concessions made by manufacturers to v.'holesale distributors, it 
was decided to incorporate in the present announcement a formal statement, 
to wit: 

That in cases where manufacturers make reductions from the maximum 
prices to wholesale dealers, the reductions should be considered in the nature 
of an allowance to cover the expense and profit of sales by wholesale dealers 
and should not be interpreted as constituting a general reduction in the mai-ket 
price of lumber to the trade. 

BIRCH LOGS. 

An informal agreement as to fair and reasonable prices for birch veneer logs 
suitable for airplane purposes was made on October 30, 1918, at a conference 
in which the lumber section of the War Industries Board, bureau of aircraft 
production, and representatives of veneer manufacturers and loggers were pres- 
ent. The prices agreed upon, f. o. b. shipping point, for logs of veneer quality 
were as follows : Logs 12 to 15i inches in diameter, $55 per thousand feet ; logs 
16 inches and up in diameter, $65 per thousand feet. These prices remained 
unchanged throughout the period of the war, 

BLACK WALNUT, 

No official price was set on black walnut as a whole, but a fixed maximum 
price was set on gunstock flitches and propeller blades. 

On August 10, 1917, the Ordnance Department of the United States Army 
fixed a maximum price of $1.05 each for gunstock dimension blanks f. o. b. 
mill. On August 1, 1918, the price was raised to $1.20 each by action of the 
price-fixing committee of the War Industries Board. 

. The Signal Corps of the United States Army on January 28, 1918, fixed a 
maximum price of $310 per thousand board feet for airplane propeller stock, 
which was continued throughout the war. 

On August 1, 1918, the price-fixing committee also made an informal agree- 
ment with lumber manufacturers as to the price of 2.i-inela hlaek walnut flitdi, 



756 



HISTORY OF PRICES DURING THE WAR. 



which was set at $80 per thousand board feet f. o. b. mill. This price was not 
binding on manufacturers, but was regarded as a fair price for the material. 
An informal agreement was also made on August 7, 1918, between the price- 
fixing committee and walnut log buyers as to a fair and reasonable price to 
be paid for black walnut logs. An announcement was made as follows : 

As an aid to the Government in securing the outturn at fair and reasonable 
prices of the walnut timber necessary for its needs and for the protection of 
the walnut timber owners we ask that you give publicity to the following ranges 
of prices for each diameter which the log buyers or the walnut manufacturers 
having Govei'nment contracts for gunstocks and propeller lumber will pay for 
good walnut logs 12 inches and up in diameter and 8 feet and up in length. 



Diameter (inches). 


Prices of black walnut 
logs 8 feet and over 
long on board cars on 
railroad. 


Equivalent value for 
standing timber. 




Minimum. 


Maximum. 


Minimum. 


Maximum. 


14 


Per M. 
§45 
55 
65 
75 
85 
95 
105 
115 
125 
135 


PctM. 

$55 

65 

75 

85 

95 

105 

115 

125 

135 

150 


Per M. 
$20 
30 
40 
50 
60 
70 
80 
90 
100 
110 


FctM. 

$35 


10 


45 


18 


50 


20 


60 


22 


70 


24 


80 


26 


90 


28 


100 


30 


110 




120 







In arriving at prices which it is paying for propeller lumber and gunstocks 
the Government has taken these log prices into consideration, and has allowed 
the mills prices for the material it gets which will allow for only a fair and 
reasonable profit both to the mills and the log buyer. 

The above prices were used as a guide only, purchases being made both above 
and below those given in the log price list. 

CYPRESS AND TUPELO. 

Tlie maximum price of cypress and tupelo lumber was not fixed by the price- 
fixing committee, but an unofficial price list was issued by the Cypress emergency 
bureau, which was recognized as representing fair and reasonable prices. The 
list was dated October 25, 1918, and was in effect to the close of the war period, 

CYPRESS EMERGENCY BUREAU. 

[Net cypress and Tupelo list for Government f. o. b. mills in North and South Carolina, Georgia, Florida, 

and Louisiana.] 

• • CYPRESS. 



Hougli, random width. 


Tank. 


Factory- 
select. 


Shop. 


Box. 


Peck. 






$35.00 
40.50 
43.00 
46.00 
57.50 
67.50 
66.50 


$29.50 
35.50 
36.50 
38. 50 
50.50 
50.50 
59.50 


$25.00 
26.00 
26.00 
26.00 


$16.00 






18.00 




861.00 
67.00 
85.00 
85.50 
94.50 


18.00 




16.00 

























For SIS or S2S add $1.50 per thousand. , , . , ^ 

1-inch to 2-inch factory select, shop, box arc for standard lengths. Add $1 per thousand for each foot 

Prices specified on l.\ and 2 inch tank 8 to 16 feet. For 18 and 20 feet add $4 per thousand. On 2i to 4 
inches, all grades, add $2 per thousand for each foot over 16 feet. 



GOVEKNMENT REGULATIONS RELATING TO PRICES. 



757 



Finishing lumber SIS or S2S. 



1 by 4, 6, 8, and 10 inches, 10/20 

1 by 12, 10/20 

1 by 4 to 12 inches, R. W ., 10/20 

1 by 13 to 19 inches, inclusive, 10/16 ' . . 

1 by 14, 10/16 1 

Iby 16,10/161 

Iby 18,10/161 

1 by 20 to 23 inches, inclusive, 10/16 i . . 

1 by 24 and wider, 10/16 i 

11 by 4, 6, 8, and 10 inches, 10/20 i 

1-i by 12, 10/20 1 

H' by 4 to 12 inches, R. W., 10/20 i 

li by 13 to 19 inches, 10/16 i 

li- by 14, 10/16 1 

li by 16, 10/16 1 

li by 18, 10/16 1 

IJ by 20 to 23 inches, inclusive, 10/16 i. 
li by 24 and wider, 10/16 i 

2 by 4, 6, 8, and 10 inches, 10/20 

2by 12, 10/20 

2by4tol2inches,R.W., 10/20 

2 by 13 to 19 inches, inclusive, 10/16 i . . 

2 by 14. 10/16 i 

2 by 16; 10/161 

2by 18, 10/161 

2 by 20 to 23, 10/16 i 

2 by 24 and wider, 10/16 1 



A. 



$53.00 
58.50 
53.00 
67.50 
65.00 
69.50 
74.00 
81.00 
94.50 
56.50 
62.00 
56.50 
71.00 
68.50 
73.00 
77.50 
84.50 
98.00 
66.50 
72.00 
66.50 
81.00 
78.50 
83.00 
87.50 
94.50 
108.00 



$47.50 
52.00 
47.50 
62.00 
59.50 
64.00 
68.50 
75.50 
89.00 
51.50 
56.00 
51.50 
65.50 
63.00 
67.50 
72.00 
80.00 
92.50 
61.00 
65.50 
61.00 
75.50 
73.00 
77.50 
82.00 
89.00 
102.50 



$44.00 
51.00 
44.00 



47.50 
54.50 
47.50 



Select 
common. 



53.00 
60.00 
53.00 



$38.50 
45.58 
38.50 



42.50 
49.00 
52.50 



47.50 
54.50 
47.50 



1 For li add $1 over price H. 

For rough, deduct SI. 50 per tliousand. For S4S, add 50 cents per thousand. „.,cf„„<. 

For 13 inches and wider random or specified widths, add $1 per thousand for each foot oyer 16 feet. 
For 10 to 16 foot lengths in 2i, add $13; for 3 inches add $17; and for 4 inches add $23 to price of 2 inches. 
For specified lengthCl to 2 inches, add $2 per thousand; 2i to 4 add $2 per thousand for each foot over 

^^plnel stock: | by 8 inches and wider, S2S to A inch $28; J bjr 8 inches and wider, S2S to A inch, $34.50; 
I by 8 inches and wider, S2S to A inch, $40; |- by 8 inches and wder, S2S to A mch, $47. 

WMl?Sf 12"5c&n*^^^ ?6 per M. S. M.; 16 inches and wider, $9 per M. S. M. 



Flooring, ceiling, drop siding, shiplap, casting and base. 



I by 4 or 6 inches, 8/20 

I by 4 or 6 inches, 8/20 1 

I by 4 or 6 inches, 8/20 

1 by 3 

1 by 4, 5, 6, and 8 inches, 8/20. 

Iby 10,8/20 

Iby 12, 8/20 



36.50 
44.50 
57.00 
66.50 



B. 



$26. 00 
34.00 
42.00 
49.00 
48.50 



C. 



$24.50 
32.00 
40.00 
45.50 
45.00 



Select 
common. 



$40.00 
39.50 
39.50 
46.50 



For U inches, add $4; IJ add $5; 2 inches add $15 to price of 1 inch. 

fhorrSngrStog%rr'o^8 feet, $1 per thousand less than standard lengths, in same width and 
grade. 



Bevel siding. 



I by 4, 8/20, 
I by 6, 8/20 
i by 0, 8/20 



$27.00 
27.00 
28.00 



$24.50 
24.50 
24.50 



C. 



$22.50 
22.50 
22.50 



D. 



$16.00 
19.50 
17.00 



J by 4 or 6 mixed lengths only from inch stock, 4 by 8 feet, B and better, $21. 



758 



HISTORY OF PEICES DURUiTG THE WAR, 



Bungalow be\"ol sidinj. 



1 by S S4S and resa%vn to \ S.l 

IJ by 8, resawn to f S. L 

li by 8, resawn to | inch 



331.50 
40.50 
49.50 



|28. 00 
37.00 
44.00 



C and 
better. 



$27. 00 
36.00 
43.00 



For specifiedienerths, add SI. 
For 10-iucli wdtii, add SI. 



826.00 
35.00 
42.00 



BYRiaT SHEATHING LATH. 
[Long lengths, S19.50; shcrt lengths, S18.50; all orders must include reasonaWe poreentage of ^ort lengths- 



Shingles. 


Best. 


Primes. 


Economy. 


Xax. 


CEpper. 


3 inches dimension 


S3. 75 
4.65 
4.90 
4.90 


S2.70 
3.60 
3.85 
3.85 










S2.70 
3.00 
3.00 




$1 95 


5 inches dimension 


1 95 






1 95 




$2.05 


1.80 




1 







TUPELO. 

Standard 

Rough: lengflis. . 

Wagon box boards, 13 to 17 inches §40. 50 

Wagon box boards, 8 to 12 inches 37. 00 

First and seconds 29. 00 

No. 1, common 26. 00 

No. 2, common 23. 50 

No. 3, common 18.00 

Log ran, No. 3, common and better with firsts and seconds out - . 23. 50 

Log run. No. 3, common and better with firsts and seconds in 24. 25 

1 by 3 wider, 12 to 36 inches, C and better, shorts 51. 50 

FJEish," flooring, ceiling, siding, partition, worked: 

Finish B and better, 4 to 10 inches, specific ^\T.dths ^ '33. 50 

Finish B and better, 12 inches ^. 38. 00 

Finish B and better, 4 to 12 inches, assorted widths 34. 00 

Finish B and better, 13 inches and wider 43. 00 

Finish C, 4 to 10 inches, specified widths 27. 00 

Ftoish C, 12 inches 31. 50 

Finish C, 4 to 12 inches assorted widths i 28. 00 

Flooring and ceiling, B and better i 36. 00 

Flooring and ceUing, C i 31. 50 

Partition, B and^better i 40. 50 

Partition, C 36.00 

Drop siding, C and batter 31. 50 

Bevel siding, B and better » 20. 00 

Bevel siding, C 18.00 

When specific prices are not given on worlied stock add the ioUowing working charges, stock to be 
graded before worlring: 
Add SI .50 for each resaw. 
Add SO. 50 for each rip or cross cut. 
Add $3 for each S2S and resaw. 
Add S4 for resawing and S2S afterwards. 
Add $2.50 for making flooring, shiplap, ceiling, grooved roofing, jambs, bevel cribbing, or drop siding- 



No. 1 c -mmcn rough. 


R. L. 


6 and 8. 


10 


12 


14 


10 


IS 


20 


1 by3 


$32. 50 
32.50 
32.50 
32.50 
32.50 
32.50 
38.00 
34.00 
34.00 
34.00 
34.00 
39.50 


$30. 50 
30.50 
30. 50 
30.50 
30. 50 
30. 50 
36.00 
32.50 
32.50 
32.50 
32. 50 
38.00 


832.50 
32.50 
33.50 
32.50 
32.50 

33. 50 
39. 50 

34. 00 
34.00 
34.00 

35. 00 
41.50 


S32. 50 
32.50 
34.00 
32.50 
32.50 
34.00 
40. 50 
34.00 
34.00 
34.00 
36.00 
42. 50 


S32. SO 
33.50 
31.00 
32.50 
32.50 
31.50 
37.00 
34.00 
34.00 
34.00 
33.50 
38.50 


S33.50 

33. .50 
33.00 
35.00 
32.50 
33.00 
38. 00 
35.00 
34.00 
34.00 

34. 50 
39.50 


S32. 50 
33.50 
34.00 
32.50 
33.50 
34.00 
40.50 
35. 00 
34.00 
35.00 
36.00 
42.50 


$32.50 


1 by 4 


34.00 


1 by 5 


35.00 


1 by 6 


32.50 


1 by 8 


34. 00 


1 by 10 


34. SO 


1 by 12 

2 by 4 


42.50 
36.00 


2 by 6 


.34.00 


2 by 8 


36.00 


2 by 10 


36.50 


2 by 12 


44.00 







> For specified lengths gdd $1 per thousand feet to these prices. 



GOVEK:N"MEIsrT REGULATIONS RELATIISTG TO PRICES. 



759 



No. 2 com men rough. 


R. L. 


6 and 8. 


10 


12 


14 


16 


IS 


20 


1 by3 


?29. 00 
28.50 
28.50 
28.50 
28.50 
28.50 
32.50 
30.00 
30.00 
30.00 
30.00 
34.00 


$27. 00 
26.50 
26.50 
26.50 
26.50 
26.50 
30.50 
28.50 
28.50 
28.50 
28.50 
32.60 


$29. 00 
28.50 
29.50 
28.50 
28.50 
29.50 
33.50 
30.00 
30.00 
30.00 
31.00 
35.00 


$29. 00 
28.50 
29.50 
28.50 
28.50 
29.50 
33.50 
30.00 
30.00 
30.00 
31.00 
35.00 


.$29. 00 
28.50 
29.60 
28.50 
28. 50 
28.60 
32.50 
30.00 
30.00 
30.00 
30.00 
34.00 


$31.50 
28.50 
28.50 
31.00 
28.50 
28.50 
32.50 
30.00 
30.00 
30.00 
30.00 
34.00 


S29. 00 
29.50 
29. .50 
28.50 
29.50 
29.50 
33.50 
31.00 
30.00 
31.00 
31.00 
35.00 


$29. 00 


1 by 4 


29.50 


Iby 5 


30.00 


Iby6 


28.50 


1 by 8 


29.50 


Iby 10 


30.00 


1 by 12 


34.50 


2 by -1 


31.00 


2 by 6 


30.00 


2 by 8 


31.00 


2 by 10 


32.00 


2 by 12 


36.50 







For IJ and li- add S2 to price of 1 inch. 
For SIS or S2S add $1.50 per thousand feet. 
For S4S or SIS and IE add $2 per thousand feet. 
Timbers (green), rough: 

3 by 4, 4 by 4, 4 by 6, 10/16 831. 50 

3 by 6 and 3 by 8, 10/16 32.50 

3 by 10 and 3 by 12, 10/16 34. 00 

6 by 6 and 6 by 8 i34.00 

For SIS or S2S, add $1.50 per thousand. 
For S4S or SIS and IE, add $2 per thousand. 
Battens, 10/16: 

I by 3 inches, SIS 5.00 

f by 3 inches, O. G 5. 2.5 

2-inch O. G. finish, 13/16 by If inches 6. 50 

2^inchO. G. finish, 13/16 by 2i inches 9-00 

For 18 and 20 foot battens add 25 cents. 
Lath: 

No. 1, t by li inches, 4-foot 4. 2o 

No. 2, f by li inches, 4-foot 3. 80 

No. 1, i by 1* inches, 32-inch 1- SO 

No. 1, g- by 1 J inches, 4-foot i. 7. 6o 

DOUGLAS FIR. 

The first price control of Douglas fir was carriecl out by the Dougla.s Fir 
Emergency Bureau, and the item prices listed at that time were in effect from 
December 1, 1917, to March 1, 1918. 

These prices were adopted by the price-fixing committee, to be effective from 
March 19, 1918, to June 1, 1918. 

The entire fir schedules were revised in June, 1918, by the price-fixing com- 
mittee and the lumber director. The new prices represented an average increase 
of approximately $2.75 per thousand board feet and Avere made applicable to 
both the Government and public purchases. 

The new schedules became effective June 15, 1918, and provided a base price 
for Douglas fir of $26 per thousand feet ; $40 per thousand feet for rough and 
dressed timber, and $50 for aircraft timbers. The log range was from $12 to 
$20 per thousand feet. 

The following announcement by the price-fixing committee accompanied the 
schedules of June 15, 1918: 

No regulation has been made with regard to transactions other than sales by 
manufacturers at the schedule prices. Wholesale dealers, retail dealers, and all 
others are entitled to buy on the basis of these f. o. b. mill prices. As yet no 
regulation of rates or profits has been made with regard to sales either by 
wholesalers or retailers to consumers. The War Industries Board believes that 
sales by all dealers should be made at reasonable prices based on a strictly 
reasonable profit above the fixed schedule rates. The board is confident that 
the trade will conform to the spirit of the existing regulations and the board 
will not proceed to further regulation or restriction of dealers' prices until 
their conduct of business indicates that such action is necessary.^ 



1 For 18 and 20 foot add $1 per thousand. 

2 Official Bulletin, June 24, 1918. 



760 



HISTORY OF PRICES DURING THE WAR. 



The prices of June 15, originally effective for 90 clays, were extended to 
October 15, 1918, and at that time it was agreed that they should be continued 
vut\\ January 15, 1919, when all price control over Douglas fir was discontinued. 

Airplane fir. — On April 10, 1918, the spruce production division of the Signal 
Corps of the United States Army issued a schedule of prices for Douglas fir 
airplane material. The f. o. b. mill price for lumber cut to specification was 
$65 per thousand board feet. In July these prices were superseded by others 
which carried a price of $50 per thousand board feet f. o. b. mill. 

The War Industries Board announced, on March 19, 1918, the following 
I'ulings : 

That the maximum price for fir logs in the Pacific Northwest, delivered at 
the points where it has been customary to make delivery to the sawmill opera- 
tors, be fixed at $19 per 1,000 for No. 1 logs, $15.50 per 1,000 for No. 2 logs, 
and $10 per 1,000 for No. 3 logs, scale as to grade and contents to be determined 
according to the methods that have been customary in the' various districts for 
the past four or five years. These prices are a basis for logs up to and including 
40 feet in length. Logs over 40 feet in length to be priced on the same basis for 
extra lengths as has heretofore been established by custom. In no case shall 
any greater price than that mentioned above be allowed for logs of those grades 
during the period of March 19 to May 31, 1918. 

That the price of fir ship timbers under the Ferris schedule to the Emergency 
Fleet Corporation be readjusted at item prices that will average $40 per 1,000 
for a complete schedule for both the rough and dressed items, and that all sales 
of lumber for other vessels under Government contract requiring a schedule 
of lumber of similar type shall be furnished at not to exceed the same basis of 
prices. 

That the prices of fir lumber for aircraft use to both the United States 
Government and the Allies remain the same as those now in effect (Mar. 19, 
1918). 

That the prices of all other items of fir lumber remain the same as those 
enumerated in the appended list of the Douglas fir emergency bureau, effective 
between the dates of December 1, 1917, and March 1, 1918, to all other depart- 
ments of the Government be continued in effect to May 31, 1918. 

Prices named on West Coast Lumber Association's yellow sheet bearing date 
December 1, 1917, covering timber 34 feet and longer, shall be canceled and a 
price of $6 per 1,000 over West Coast price list of May 1, 1915, hereby is made 
effective for timbers of above lengths until May 31, 1918. Pi'ices on items not 
covered by above list shall be based on the nearest comparable item. It is 
understood that during this time the loggers and lumber manufacturers will 
not reduce the scale of wages now being paid. 
F. 0. b. mill prices December 1, 1917, and May 31, 1918: 

FIR COMMON BOARDS SIS OR SHIPLAP. 

Ibv2, 6 to 20 feet, mixed lengths, SIS 818.00 

1 by 3, 6 to 20 feet, mixed lengths, SIS 18. 00 

lby4, 6 to 20 feet, mixed lengths, SIS 16.00 

1 by 6, 6 to 20 feet, mixed lengths, SIS or S. L 16. 50 

1 by 8, to 20 feet, mixed lengths, SIS or S. L 17. 50 

IbvlO, 6to 20 feet, mixed lengths, SIS or S. L 17.50 

1 by 12, 6 to 20 feet, mixed lengths, SIS or S. L 18. 00 

For selected common add S3; for D. and M. add SI. .50; for grooved roofing add $3. Orders for 16, 18, 
and 20 feet only add S2. Other orders for specified lengths add $1 to above prices. Number 2 common 
boards and shiplap J3 less when in stoct. 



Fir common dimensions, SISIE. 



6 feet. 



8,12,14 
feet. 



16 feet. 



9 to 10, 
18 to 20 



22 and 
24 feet. 



26 to 32 
feet. 



2by3, 2by4. 
2 by 6, 2 by 8. 

2 by 10 

2 by 12 

2byl4 

2byl6 

2byl8 

2by20 



$15.50 
15. 50 
16.00 
16.50 



$16.50 
16.00 
17.00 
17.50 
19.00 
20.00 
22.00 
24.00 



817. 50 
17.00 
17.50 
18.00 
19.00 
20.00 
22.00 
24.00 



$18.50 
17.50 
18.00 
18.50 
20.00 
21.00 
23.00 
25.00 



$19.50 
18.50 
19.00 
19.50 
21.00 
22.00 
24.00 
26.00 



$21.50 
20.00 
21.00 
21.50 
23.00 
24.00 
26.00 
28.00 



Add 50 cents for every 2 feet over 32 feet long up to 40 feet. 

For select common add S3. SIE or rough same mill base as dressed. For 2 by 4, 2 by 6, or 2 by 8 D. 
& M. or shiplap add to SlSlE, $1.50. Hemlock permitted in 2 by 4 and 2 by 6. 



GOVER]SrMENT REGULATIONS RELATING TO PRICES. 761 

FIR COMMON PLANK AND SMALL TIMBERS SISIE OR S4S. 



8,12,14, 
and 16 

feet. 



9 to 10, 
18 and 20 

feet. ' 



22 and 24 
feet. 



26 to 32 
feet. 



31)7 3,3by4 

3by6 

4by4, 4br6, 4by 8 

3 by 8 

3byl0,3by 12 

3byl4 

3 by 16 

3byl8 

3by20 

4byl0,4byl2 

4by 14 

4byl6 

4 by 18 

4 by 20 

6by 6to8by 8 



$17.00 
18.00 
18.50 
18.00 
18.50 
19.00 
20.00 
22.00 
24.00 
18.50 
19.50 
20.50 
22.00 
24. 00 
18.00 



S17.50 
18.50 
19.50 
18.50 
19.50 
20.00 
21.00 
23.00 
25.00 
19.50 
20.50 
21.50 
23.00 
25.00 
19.00 



$18.50 
19.50 
20.50 
19.50 
20.50 
21.00 
22.00 
24.00 
26.00 
20.50 
21.50 
22.50 
24.00 
26.00 
20.00 



S20. 50 
21.50 
22.50 
21.50 
22.50 
23.00 
24.00 
26.00 
28.00 
22.50 
23.50 
24.50 
26.00 
28.00 
22.00 



Add 50 cents for every 2 feet over 32 feet long up to 40 feet. 

For selected common add S3 SlE or rough same mill base as dressed. 

FIR TIMBERS, SINGLE CARLOAD LENGTHS. 




32 feet and under. 



SlSlE or 

S4S. 



6by 10 to 8 by 12.., 
6by 14 to 8 by 14.., 
6 by 16 to 10 by 16. 
6 by 18 to 10 by 18. 
6by 20 to 8 by 20... 
6by 22 to 8 by 22.., 
6by24to8by24.., 
10 by 10 to 12 by 12 
lOby 14tol4by 14 
10 by 20 to 12 by 20 
10 by 22 to 12 by 22 
10 by 24 to 12 by 24 
12by 16tol6by 16 
12 by 18 to 18 by 18 
14 by 20 to 20 by 20 
14 by 22 to 22 by 22 
14 by 24 to 24 by 24 



$20. 00 
20.50 
22.00 
23.00 
24.50 
27.50 
31.00 
20.00 
20.50 
25.00 
27.00 
30.00 
21.50 
23.50 
24.50 
26.50 
30.00 



$21.00 
22.50 
24.50 
26.00 
27.50 
31.00 
35.00 
21.00 
23.00 
28.50 
30.75 
34.00 
25.00 
27.50 
29.00 
31.50 
35.50 



FIR, TIMBERS, SINGLE CARLOAD LENGTHS. 

For odd or fractional thicknesses add to next less thickness 50 cents. Odd or fractional length timbers 
ordered shall be coimted as of ne.xt longer even length. For odd or fractional widths add to next less width 
81. For select common add $3. 





No. 1. 


No. 2. 


No. 3. 


tby4 10 to 16 feet V G flooring 


$37.00 
40.50 


$34. 00 
36.50 


$28.00 


IJby 4, 6 to 16 feet, V. G. flooring 


30.50 






Note.— No. 1 and No. 2 V. G. flooring 1 by 4, 6, 7, 8, and 9 feet, $1 less when in stock: No. 3 V. G., $2 
less. All 4 and 5 feet, $5 less. Short flooring subject to stock on hand. Specified lengths S2 extra. 




No. 2 

clear and 

better. 


No. 3. 




$24. 00 
27.00 


$21.00 




25.00 







Allflatgrainflooringe, 7, 8, and9feet, $21ess. All 4 and 5 feet, $5 less. Specified lengths, S2 extra. 
No. 2 clear and better; IJ, n or 2 inches, 8 to 12 inches wide, 3 to 16 feet, V. G. fir stepping S2S, or S2S 
and nosed, $45; 14 inch, $2 extra; specified lengths, $2 extra. 



762 HISTOEY OF PKICES DURING THE WAE. 

FIR FINISH NO. 2 AND CLEAR AND IJETTER, 6 TO IG FEET LONG. 



S2Sor 
S4S. 



Rough 
dry. 



Rough 
green. 



Ibv4 

Iby 6 

1 by 5, 8 and 10 inches 

Iby 12 

li and 1\ by 4 and 6 inches 

li and li by §, 10 and 12 inches. 

2by4 

2by6 

2 by 8 and 10 inches 

2byl2 

2.i, 3, and 4 inches (green only).. 



$34. GO 
35.00 
36.00 
SS. 00 
37.00 
39.00 

34. 00 

35. 00 
36.00 
38.00 



S32. 00 
33.00 
34.00 
36.00 
35.00 
37.00 
32.00 
33.00 
34.00 
36.00 



S30.00 
31.00 
32.00 
34.00 
33.00 
35.00 
30.00 
31.00 
32.00 
34.00 
36.00 



For each inch in w-idth over 12 inches add SI. Specified lengths, $2 extra. 
For selected slash grain add SIO. For vertical grain add S7. 

CEILING. 



g by 4, 10 to 16 feet, C. and E., B. or C. and E. V. 
1 by 4, 10 to 16 feet, C. and E., B. or C. and E. V 




No. 3 
clear. 



S17.50 
21.00 



Six to 9 feet. S3 less: 4 and 5 feet, S5 less. SBecLQed lengths, $2 extra. 

Fir p<i.rtition, S6 more than ceiling. For 6-inch ceiling or partition add S3.50 to the price of 4-inch. 

Iby 6, 10 to 10 feet, drop silling and rustic: 

No. 2 clear and better S26. 00 

No. 3 clear - 23. 00 

Si^ to 9 feet, S3 less; 4 and 5 feet, S5 less. Specified lengths, S2 extra. Orders for drop siding patterns 
other than No. 106 must include the other grade accumulated in ^-orking at grade prices. 
\ 

(June 11, 1919.) 

After considering tlic information snbnutted by the Federal Trade Commis- 
sion as to tlie cost of logging and of manufacturing lumber and tlie information 
submitted by tlie representatives of tlie loggers and lumber manufacturers of 
tlie Pacific Northwest at the hearings held on Monday and Tuesday, June 10 
and 11, 1918, at which their request for a readjustment of prices on their 
products Avas heard, the price-fixing coimuittee, appointed by the President, 
has determined upon, by agreement with the said representatives of the loggers 
and lumber manufacturers of the Pacific Northwest, the following maximum 
prices for fir logs and fir lumber produced in the Pacific Northwest, which 
maximum prices shall not be exceeded on any sales and contracts for the sale 
thereof (for mill shipment) made during a period of three months beginning 
midnight June 15, 1918, either to the public, to the Government, to Govern- 
ments of the nations associated with us in the present war, or the railroads, 
whether by rail or by water shipment : 

The maximum price for fir logs in the Pacific North we.st deUvered at points 
where it has been customary to make deliveries to the sawmill operators shall 
be $20 per thousand for No. 1 logs, .$16 per thousand for No. 2 logs, and $12 
per thousand for No. 3 logs, scale as to the grade and contents to be determined 
according to the methods that have been customary in the various districts. 
Said prices are on a basis of logs up to and including 40 feet in length ; logs 
over 40 feet in length to be priced on same basis for extra lengths as has here- 
tofore been established by custom or (in case of uncertainty or question or 
variation in the different\listricts as to past custom, as to point of delivery, 
method of scaling, or prices for extra lengths) as may be decided by the 
lumber section of the War Industries Board. In no case shall any greater 
prices than those mentioned above be allowed for logs during the period men- 
tioned. Any additional cost for log freights occasioneil by order No. 28 of 
the Director General of Railroads to be added to foregoing log prices on logs 
so affected. 



GOVERNMENT EEGULATIONS EELATING TO PEICES. 763 

The price of fir ship timbers under the Ferris schedule to the Emergency 
Fleet Corporation to remain the same .as those determined upon by the price- 
&x.ms; committee March 19, 1918, namely: Item prices that average $40 per 
thousand for a complete schedule for both the rough and dressed items, and 
all sales of lumber for otlier vessels re-quiring a schedule of lumber of similar 
type shall be furnished at not to exceed the same basis of prices. 

The prices of fir lumber for aircraft use to remain the same as those now m 
effect. 

Tlie prices of ail otJier items of fir lumber shall be based on the West Coast 
price list of May 1, 1915, plus additions noted on discount sheet No. 22 of 
February 15, 1918, on the following items : 

All items of No. 3 clear and better. 

AU items of fir timbers larger than 8 by 8 dimension of all lengths. 

Ail items 3 Inches and thicker and 10 inches and wider and plus §>1 per 
thousand less than discount sheet No. 22 on all remaining items of fir on said 
lumber list. , . ^ i. 

Prices on items not covered by above list shall be priced on basis of nearest 
comparable item, . 4.- 

The custom of delivered prices of lumber to purchasers destination points 

shall remain unchanged. -, . -t.-, ■ + 

Contracts for sale of logs and of lumber entered into in good taith prior to 
midniglit of June 15. 1918, and enforcible at law will be performed in accord- 
ance with their terms, subject, of course, to orders received from the Govern- 
ment which may require priority. „ , . ^ .u 

It is imperative that, with tlie least possible disruption of the industry, the 
vast war needs of the Governm-ent, both direct and indirect, far fir logs and 
fir lumber be supplied on a fair basis; that an adequate supply and equitable 
distribution thereof be assured for essential commercial needs ; that the move- 
ment thereof be facilitated, and that injurious speculation therein be pre- 
vented Therefore the procedure outlined below, by agreement with the repre- 
sentatives of the loggers and lumber manufacturers of the Pacific Northwest, 
has been adopted for a period of three months beginning midnight June lo, 

Tlie procedure in that each fir logger and each manufacturer of fir lumber in 
the Pacific Northwest shall— 

(1) Make contracts for the sate of his products and accept orders therefor at 
prices not exceeding the applicable maximum prices, always subject to an 
option at the applicable maximum prices in favor of the United States or the 
nominee of the War Industries Board. Under this option, which wiU cover all 
fir logs and lumber down to the time of actual delivery to the purchaser, the 
War Industries Board, to any extent required, will allocate either to the Gov- 
ernment or to other essential users. Any balance not so allocated will be 
released for sale to commercial buyers, but at prices no greater than those 
determined npon as above set forth. 

(2) Comnly with the directions of the War Industries Board as issued from 
time to time ^^-ith reference to filling conmiercial requirements in the order of 
their public importance and to furnishing such information and making such 
reports as may be required. -, , , 

(3) Keep up to the best of his ability the production of logs and lumber, 
so as to insure an adequate supply so long as the war la,sts. 

(4) Neither reduce the scale of wages now being paid nor change funda- 
mental labor conditions now in force. 

The Government will apportion the car supply available for, and arrange for 
the transportation of, logs and lumber, subject to allocation by the War 
Industries Board as aforesaid, to the end that injury to the industry due to 
abnormal war-time conditions be neutralized so far as may be. . 

Foreign trade, except to the Governments of nations associated with us in 
the present war, is not to be affected by this ruling. 

(Jime 12, 1918.) 

The raaxiniTim price for Douglas fir logs in the Pacific, Northwest having been 
fixed by the price-fixing committee of the War Industries Board as follows : 

• No. 1 grade ^ ^20. <K) 

No. 2 grade }o'^ 

No. 3 ^:ade i-^- ^ 



764 HISTORY OF PRICES DURING THE WAR. 

It is determined tliat the above prices constitute the basis for logs up to and 
includins: 40 feet in length. 

It is further determined that the above prices are net cash upon determina- 
tion of log scale. 

Scale as to grade and contents shall be according to custom, with the excep- 
tions hereinafter noted. 

All fir logs, otlier than those graded No. 1, No. 2, or No, 3, shall be entitled 
to. a maximum price of ,$16, with the exception that logs 15 inches and under 
at top end shall be classified as No. 3 logs and shall be so scaled, priced, and 
invoiced. This also applies to No. 1, No. 2, and No. 3 graded logs. All coarse, 
large l«>gs containing defects similar to the No. 3 grade shall be scaled, priced, 
and invoiced as No. 3 logs. 

Custom as to log delivery shall remain unchanged, except as applying to the 
delivery of logs on Grays Harbor and Willapa Harbor, in the State of Washing- 
ton, in which districts mills shall absorb towage. 

The price of fir logs shall neither directly nor indirectly be added to by any 
log producer through the compelling of the purchaser to take hemlock logs with 
the fir logs at any price higher than the then maximum price of No. 3 fir logs. 
Hemlock logs, when ordered by the purchaser or rafted separately, are not 
subject to said restriction. 

Long logs -'/2 feet and over. — A long log is to be construed as one 42 feet and 
longer, 18 inches and over in diameter at the top end, suitable for the manufac- 
ture into a square edge and sound timber. 

Long-log dilferentials hereinafter named, in the case of the graded logs, are 
to be addefl to the price of a No. 2 log, and in the ungraded logs are to be 
added to the price of the ungraded $16 log. 

The hereinafter-named differentials on long logs shall only apply when such 
logs are ordered by the purchaser. 

Logs 21 inches and under at top end. — Logs in this class, when specifically 
ordered in lengths 42 feet and over, carry the differentials enumerated below : 

42 to 50 feet $2. 00 

52 to 60 feet 4. 00 

62 to 70 feet 6. 00 

72 to 80 feet 9. 00 

82 to 90 feet 12.00 

92 to 100 feet 15. 00 

Logs 28 inehes and over at top end.— 

42 to 50 feet $6. 00 

.52 to 60 feet 8. 00 

62 to 70 feet H- 00 

72 to 80 feet W. 00 

82 to 90 feet 18.00 

92 to 100 feet 25.00 

Provided the above spread in prices shall be limited as follows : 

Logs longer than 60 feet shall take the 60-foot price to the extent of 10 per 
cent of the raft unless specifically ordered, and when so ordered such longer 
lengths shall take the regular differentials. In no event shall lengths longer 
than those ordered above 60 feet in length exceed 10 per cent of the total scale 
of the raft. All logs over 60 feet in length in excess of 10 per cent of the total 
contents of the raft shall be invoiced at the base price unless ordered. 

liOgs over 100 feet in length subject to special rates. 

Fir-production board to have authority, under the lumber section of the 
War Industries Board, in all matters of interpretation of rulings as applied 
to the scaling of logs and inspection of lumber and other minor points. 

(June 15, 1918.) 

Government maximum f. o. h. mill base prices for Douglas fir lumber effective midnight June 15, 1918, 
to midnight September 15, 1918, in accordance with the ruling of the price-fixing committee of the War 
industries Board, dated June 11, 1918. 





V. G. flooring. 


No. 1. 


No. 2. 


No. 3. 






$42.00 


$39.00 
41.50 


$33.00 


1*^ by 4 6 to 16 feet 




45. 50 


35.50 











Note.— No. 1 and No. 2 V. G. flooring 1 by 4, 6, 7, 8, and 9 feet, $1 less when in stock. No. 3 V. G., $2 
Jess. All 4 and 5 feet, $5 less. Short flooring subject to stock on hand. Specified lengths, $2 extra. 



GOVERXMEXT E.EGULATI02^S EELATIXG TO PRICES. 



765 



Flat grain flooring. 



No. 2 

clear and 

better. 



1 by 4, 10 to 16 foot \ §29. 00 

1 by 6, 10 to 16 foot ! 32. 00 



No. 3. 



$26.00 
30.00 



All flat-gram flooring 6, 7, S, and 9 feet, S2 less; all 4 and 5 feet, ?5 less. Specified lengths, S2 extra. 



Ceiling. 



No. 3 
clear. 



I by 4, 10 to 16 feet, C. and E., B. or C. and E. V. 
1 by 4,, 10 to 16 feet, C. and E., B. or C. and E. V. 




Note.— 6 to 9 feet, $3 less; 4 and 5 feet, 85 less. Specified lengths, 82 extra. Fir partition $5 more than 
ceiling. For 6-inch ceiling or partition add $3.50 to the price of 4-inch. 



Stepping. 



I4, 1*, or 2 inches, S to 12 inches wide, 3 to 16 feet SSa 00 



No. 2 

clear and 

better. 



V. G. fir stepping S2S or S2S and nosed. 

Note.— 14 inches, S2 extra; specified lengths, S2 extra. 



Drop siding and rustic. 



i by 6H foot drop siding and rustic ■ S31- 00 



No. 2 

clear and 

better. 



No. 3 
clear. 



S28.50 



Note.— 6 to 9 feet, S3 less, 4 and 5 feet, S5 less. Specified lengths, $2 extra. Orders for drop siding pat- 
terns other than No. 106 must include the other grade accumulated in working at grade prices. 

FIR FINISH NO. 2 CLEAR AND BETTER, 6 TO 16 FEET LONG. 



1 by 4 

Iby6 

1 by 5, 8 inches and 10 inches... 

Ibyl2 

1 J and 1* by 4 and 6 inches 

1 J and li, 5, 8, 10, and 12 inches. 

2by4..1 

2by6 

2 by 8 and 2 by 10 

2byl2... 

2J, 3, and 4 inches (green only) . 



SaSor 

S4S. 



.?39. 00 
40.00 
41.00 
43.00 
42.00 
44.00 
39.00 
40.00 
41.00 
43.00 



Rough 
dry. 



S37.00 
38.00 
39.00 
41.00 
40.00 
42.00 
37.00 
38.00 
39.00 
41.00 



Rough 
green. 



$35.00 
36.00 
37.00 
39.00 
38.00 
40.00 
35.00 
36.00 
37.00 
39.00 
41.00 



Note.— For each inch in width over 12 inches add SI. Specified lengths S2 extra. For selected slash 
grain add SIO. For vertical grain add S7. , , , v 1 

Foregoing prices on uppers are based on loading not less than 85 per cent 10 feet and longer; balance 
shorter, usual lengths, well proportioned. 

FIR, COMMON BOARDS, SIS OR SHIPLAP. 

1 by 2, 6 to 20 feet mixed lengths, SIS ^^- SS 

1 by 3, 6 to 20 feet mixed lengths, SIS 20. W 

lby4, 6 to 20 feet mixed lengths, SIS 18-00 

1 by 6, 6 to 20 feet mixed lengths, SIS or S. L 18-50 

1 by 8, 6 to 20 feet mixedlengths, SI S or S. L 19-50 

1 by 10, 6 to 20 feet mixed lengths, SIS or S. L 19-50 

1 by 12, 6 to 20f eet mixed lengths, SlS 20. 00 

For selected common, add S3; for D. and M., add $1.50; for grooved roofing, add S3. Orders for 16, 18, 
and 20feet only, add S2. Other orders for specified lengths, add $1 to above prices. No. 2 common boards 
and shiplap, S3 less when in stock. 



766 



HISTORY OF PRICES DURING THE WAR. 

FIR, COMMON DIMENSION, SISIE. 



2 by 3 and 2 by 4. 
2 by 6 and 2 by 8. 

2 by 10 

2 bv 12 

2 by 14 

2byl6 

2byl8 

2 by 20 



6 feet. 



$17. 50 
17.50 
18.00 
18.50 



8, 12, and 
14 feet. 



818. 50 
18.00 
19.00 
19.50 
21.00 
22.00 
24.00 
26.00 



IHfcet. 



S19.50 
19.00 
19.50 
20.00 
21.00 
22.00 
24.00 
26.00 



9, 10, 18, 

and 20 

feet. 



22 and 24 
feet. 



$20. 50 
19.50 
20.00 
20.50 
22.00 
23.00 
25,00 
27.00 



$21.50 
20.50 
21.00 
21.50 
23.00 
24.00 
26.00 
28.00 



26 to 32 
feet. 



S23.50 
22.00 
23.00 
23.50 
25.00 
26.00 
28.00 
30. 00 



Add 50 cents for every 2 feet over 32 feet long up to 40 feet. For select common, add S3. SlE or rough, 
same mill base as dressed. For 2 by 4, 2 by 6, or 2 by 8 D. and M. or shiplap, add to SlSlE, $1.50. Hem- 
lock permitted In 2 by 4 and 2 by 6. 

FIE COMMON PLANK AND SMALL TIMBERS SlSlE OR S4S. 



2 by 3, and 3 by 4 . . . 

3 by 6 

3by8 

4 by 4, 4 by 6, 4 by ,8. 

6 by 6 to 8 bv 8 

3 by 10 and 3 bv 12. . 

3byl4 ; 

3byl6 

3byl8 

3 by 20 

4 by 10 and 4 by 12. . 

4 by 14 

4 by 10 

4 by 18 

4 by 20 



8, 12, 14, 

and 16 

feet. 



9,10, 18, 
and 20 

feet. 



$21.00 
22.00 
22.00 
22.50 
22.00 
23.50 
24. 00 
25.00 
27.00 
29.00 
23.50 
24.50 
25. 50 
27.00 
29.00 



$21. 50 
22.50 
22.50 
23.50 
23.00 
24.50 
25.00 
26.00 
28.00 
30.00 
24. 50 
25.50 
26.50 
28.00 
30.00 



22 and 
24 feet. 



$22.50 
23.50 
23.50 
24.50 
24.00 
25.50 
26.00 
27.00 
29.00 
31.00 
25.50 
26.50 
27.50 
29.00 
31.00 



26 to 
32 feet. 



$24. 50 
25.50 
25.50 
26.50 
26.00 
27.50 
28.00 
29.00 
31.00 
33.00 
27.50 
28.50 
29.50 
31.00 
33.00 



Add 50 cents for every 2 teet over 32 feet long up to 40 feet. 

For selected common add S3 SlE or rough same mill base as dressed. 

FIR TIMBERS SINGLE CARLOAD LENGTHS. 



6 bv 10 to 8 by 12... 
6by 14 to 8 by 14... 
6 by 16 to 10 by 16.. 
6by 18 to 10 by 18.. 
6by 20to8by 20... 
6by 22toSby 22... 
6by 24 to 8 by 24... 
10 by 10 to 12 by 12. 
lOby 14tol4by 14. 
10 by 20 to 12 by 20. 
10 by 22 to 12 by 22. 
10 bv 24 to 12 by 24. 
12 by 16 to 16 by 16. 
12 by 18 to 18 by 18 
14 by 20 to 20 by 20. 
14 by 22 to 22 by 22 
14 by 24 to 24 by 24. 



32 feet and under. 



Rough. 



SlSlE 
or S4S. 



S25. 00 


$26.00 


25. 50 


27.50 


27.00 


29.50 


28.00 


31.00 


29.50 


32.50 


32. 50 


36. 00 


36.00 


40.00 


25.00 


28.00 


25.50 


28.00 


30.00 


33.50 


32.00 


as. 75 


35.00 


39.00 


26.50 


30.00 


28.50 


32.50 


29.50 


34.00 


31.50 


36.50 


3.5.00 


40.50 



34 to 40 feet. 



Rough. 



$27.00 
27.50 
29.00 
31.00 
32.50 
36.50 
42.00 
27.00 
27.50 
33.00 
36.00 
39.50 
28.50 
30.50 
.32.50 
35.50 
39.50 



SlSlE 
or S4S, 



$28.50 
30.00 
32.00 
34.50 
36.00 
40.50 
46.50 
29.50 
30.50 
36.00 
40.25 
44.00 
32.50 
35.00 
36.50 
41.00 
45.50 



GOVERNMENT REGULATIOlsrS RELATtNG TO PRICES. 

FIR TIMBERS REQUIRING TWO OR MORE CARS. 



767 



$29. 50 
30.00 
31.50 
34. 00 
35.50 
39.50 
45.00 
29.50 
30.00 
36.00 
39.00 
42.60 
31.00 
33.50 
35.50 

14 by 22 to 22 by 22 t 38. 50 

14 by 24 to 24 by 24 j 42. SO 



6by 6to8by 12.... 
6by 14 to 8 by 14... 
6 by 16 to 10 by 16.. 
6 by 18 to 10 by 18.. 
6by 20 to 8 by 20... 
6by 22 to 8 by 22... 
6by 2.4 to 8 by 24... 
10 by 10 to 12 by 12. 
10 by 14 to 14 by 14. 
10 by 20 to 12 by 20. 
10 by 22 to 12 by 22. 
10 by 24 to 12 by 24. 
12 by 16 to 16 by 16. 
12 by 18 to IS by 18. 
14 by 20 to 20 by 20. 



42 to 44 feet. 



Rough. 



SISIE 
orS4S. 



$31.25 
32. 75 
34.75 
37.75 
39.25 
43.75 
49. 75 
32.25 
33.25 
40.25 
43.50 
47.25 
35.25 
38.25 
40. 75 
44.25 
48.75 



46 to 50 feet. 



Rough, 



$31. 75 
32.25 
33.75 
37.00 
38.50 
42.50 
48.00 
31.75 
32.25 
39.00 
42.00 
45.50 
33.25 
36.50 
38.50 
41:50 
45.50 



SlSlE 
or S4S. 



S33. 75 
35. 25 
37.25 
41.00 
42.50 
47.00 
53.00 
34.75 
35.75 
43.50 
46.75 
50.50 
37.75 
41.50 
44.00 
47.50 
52.00 



52 to 54 feet. 



Rough. 



$33.75 
34.25 
35.75 
40.00 
41. 50 
45.50 



33.75 
34. 25 
42.00 
45.00 
48.50 
35.25 
39.50 
41.50 
44.50 
48.50 



SlSlE 
orS4S. 



$36. 00 
37.50 
39.50 
44.25 
45. 75 
50.25 



37 00 

38.00 
46.75 
50.00 
63.75 
40.00 
44.75 
47 25 
50.75 
55.25 



56 to 60 feet. 



Rough. 



$36. 75 
37. 25 
38.75 
44. 50 
46.00 
50.00 



36.75 
37.25 
46.60 
49.50 
53.00 
38.25 
44.00 
46.00 
49.00 
53.00 



SlSlE 
or S4S. 



S39. 25 
40.75 
42.75 
49.00 
60.50 
55.00 



40.25 
41.25 
51.50 
54.75 
58.50 
43.25 
49.50 
52.00 
55.50 
60.00 



For odd or fractional thicknesses add to next less thickness 50 cents. Odd or fractional length timbers 
ordered shall be counted as of next longer even length. For odd or fractional widths add to next less width 
$1. For select common add $3. For price on lengths longer than 60 feet add $11 per thousand to f. o. b. 
mill price as contained in west coast price list of May 1, 1915. 

Inspection at mill. Grades in accordance with West Coast Lumberman's Association grading rules, 
rail A list issued January 1, 1917. 

GOVERNMENT PRICE LIST F. O. B. MILL, COVERING DOUGLAS FIR FOR RAILROAD 
AND OAR MATERIAL, AS APPROVED BY DIRECTOR OF LUMBER, OCTOBER 12, 1918. 



0) 



6 by 8 

7 by 8 
7 by 9 



Cross- 
ties. 



$19. 00 
20. 00 
21.00 



C) 



6 by 8 

7 by 8 and 8 by S, 
7by9.. .-.. 



Bridge 

ties 

suifaeed. 



$20. 00 
21.00 
22.00 



1 For switch ties add $1.50perl,000 to crosstie prices. 



Bridge stringers. 



6 by 16 to 10 by 16-32 and under 
6 by 18 to 10 by 18 and under . . . 
6 by 20 to 8 by 20 and under . . . . 

6 by 22 to 8 by 22 and under 

6 by 24 to 8 by 24 and under 

10 by 20 to 12 by 20 and under . . 
10 by 22 to 12 by 22 and under . . 
10 by 24 to 12 by 24 and under . . 



Common, 
rough. 



$27.00 
28.00 
29.50 
32.50 
36.00 
30.00 
32.00 
3S.0G 



Surfaced. 



S?9. 50 
31. 00 
32. 50 
36.00 
40.00 
33.50 
35.75 
39.00 



Select 
common. 



$30.00 
31.00 
32. 50 
35.50 
39.00 
33.00 
35.00 
38.00 



Select 
common, 
surfaced. 



S32. 50 
34.00 
35.50 
39.00 
43.00 
36.50 
38.75 
42.00 



Weight: Rough, 3,300 pounds; SlSlE or S4S, 3,000 pounds. For odd or fractional thickness add to next 
less thickness 50 cents. Odd or fractional length timbers ordered shall be counted as of next longer even 
length. For odd or fractional widths add to next less width $1. 

^foTE.— Lengths 34 to 40, add regular timber list spread. 



Car sills. 


34-foot. 


35 to 40 
foot. 


41 to 45 
foot. 




$29. 00 
31.00 


$31.00 
33.50 


$36. 00 


S4S 


38.50 











Note.— For select common add S3 per 1,000. 



768 HISTORY or prices during the war. 

STANDARD CAR DECKING AND END LINING (SURFACED). 



Common. 



Select 
common. 



No. 2 clear 
and bettor, 
F.G.K.D. 



No. 2 clear 
and better, 
V.G.K.D. 



2 by 6 to 2 by 10 1 . . 
2}-mch and thicker. 



S21.00 



$24. 00 



$41.00 
44.00 



548.00 
51.00 



' $1.50 less for rough stock. 

STANDARD CAR FRAMING, FACIA AND RUNNING BOARD. 





Rough. 


Surfaced. 




Common. 


Select 
common. 


Common. 


Select 
common. 


2 by 12 and smaller, H^ch surfacing 

Larger sizes, J inch surfacing 


$2,4. 00 
26.00 


$27. 00 
29.00 


$26.00 
28.00 


S29.00 
SI. 00 







INSULATION. 

g by 4 and i by 6, 4 lo 20 feot, No. 1 common, $15.50 ; select common, $17.50. 
Note. — Surface mea.surement . 

STANDARD CAR SIDING. 

1 by 4, No. 2 and better, V. G., K. D., SIS, S2S, or worked $44.00 

1 by 4, No. 2 and better, F. G., SIS, S2S, or worked 34. 00 

1 by 6, No. 2 and better, V. G., SIS, S2S, or worked 46. 00 

1 by 6, No. 2 and better, F. G., SIS, S2S, or worked 35.50 

Note. — Fractional lengths shall be counted as the next longer odd or even foot in 
length ; 15 per cent of No. 3 grade accumulated in manufacturing $5 per thousand less ; 
rough green stock $4 less ; rough dry stock >'i;2 less. 

STANDARD CAR LINING AND ROOFING. 

1 by 4, No. 2 and better, S. G. (SIS, S2S, or worked), random lengths $34. 00 

1 by 4, No. 2 and better, S. G. (SIS, S2S, or worked), specified 36.00 

1 bv 6, No. 2 and better, S. G. (SIS, S2S, or worked), random lengths 35. 50 

1 by 6, No. 2 and better (SIS, S2S, or worked), specified 37.50 

15 and IJ by 8, No. 2 and better, S. G. (SIS, S2S, or worked), random lengths— 43. 00 

11 and l| by 8, No. 2 and better, S. G. (SIS, S2S, or worked), specified 45.00 

Note. — No. 3 grade accumulated in manufacture at $5 per thousand less ; rough green 
stock $4 less ; rough dry stock $2 less ; V. G. add $9. 

HORIZONTAL SHEATHING (KILN-DRIED WORKED). 

2 by 4, No. 2 and better, S. G _• $42. 50 

2 by 6, No. 2 and better, S. G 43. 50 

Note. — V. G. add $7 ; rough green stock $4 less ; rough dry stock $2 less. 

Timbers, boards, dimensions, shiplap, and other miscellaneous requirements at prices 
approved for Government purchases. All grading and surfacing to be in accordance with 
West Coast Lumbermen's Association standard classification grading and dressing rules, 
January 1, 1917, for general requirements. August 1, 1917, for car material. 

MAHOGANY LUMBER. 

An informal agreement as to a fair and reasonable price for mahogany lum- 
ber, propeller quality, v>-as entered into in March, 1918, between mahogany 
producers and the bureau of aircraft production. The price agreed upon was 
$350 per thousand feet. It remained unchanged throughout the period of the 
war. 

NEW ENGLAND SPRUCE. 

An average price of $33 per thousand Avas reached by agreement between 
the manufacturers of New England spruce and the lumber committee of the 
Council of National Defense in June, 1917. 



GOVEKFMENT REGULATIONS RELATING TO PRICES. 



769 



A new schedule, approved by the price-fixing committee on April 12, 1918, 
showed an increase to about $40 per thousand board feet.' 

The Federal Trade Commission investigated costs in the industry, and a new 
price list was issued July 17, 1918. This applied to all purchasers of spruce 
lumber and showed another increase of $8 per thousand board feet on all items. 

The schedules of July, 1918, were effective until November 1, 1918, and were 
then extended to December 1, 1918, when control ceased. 

(Apr; 12, 1918, to July 1, 1918.) 
Prices quoted in the schedule below are on United States Government orders 
for merchantable spruce lumber in orders of substantial size, for carload lot 
shipments. Prices are effective from April 12, 1918, to July 1, 1918. For further 
information inquire of New England spruce emergency bureau, 131 State Street, 
Boston, Mass. 



Sizes. 



Lengths (feet). 



2 by 2 

2 by 3 planed 1 edge. 

2 by 4 planed 1 edge. 

2by5 

2by6 

2by7.... 

2by8 

2by9 

2bvl0 

2by 12 

3 by 4 planed ledge. 

3by5 

3by6 

3by7 

3by 8 

3by9 

3byl0 

3byl2 

4by 4 

4by5 

4by 6 

4by7.... 

4by8 

4by 9 

4by 10 

4byl2 

5by5 

5by6 

6by7 

6by8 

5by9 

5byl0 

5byl2 

6by6 

6by7 

6by8 

6by9 

6 by 10 

6 by 12 

7by7 

7by8 

7by9 

7bylO 

7by 12 

8bv8 -'-.-. 

8by9 

8 by 10 

8byl2 

Where the fractional 
part of a foot is specified, 
the stock is to be figured 
the next foot in length. 

For every 2 feet or 
fraction over 20 feet add 
$1 per M. 



8-20 feet. 
....do.., 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do. . 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

do.. 

..do.. 

..do.. 

..do., 

..do.. 

..do.. 

..do.. 

..do.. 

..do.. 

..do.. 

..do.. 

..do.. 

..do.. 

..do.. 

..do., 

..do.. 



Prices 
(per M 
feet). 



S40. 00 
40.00 
40.00 
40.00 
40.00 
40.00 
40.00 
46. 00 
50.00 
52.00 
40.00 
40.00 
40.00 
40.00 
40.00 
45.00 
50.00 
52.00 
40.00 
40. 00 
40.00 
40.00 
40.00 
45.00 
50.00 
52.00 
40.00 
40.00 
40.00 
40.00 
45. 00 
50.00 
52.00 
40.00 
40.00 
40.00 
45.00 
50.00 
52.00 
40.00 
40.00 
45.00 
50. 00 
52.00 
40.00 
45.00 
50.00 
52.00 



Sizes. 



Lengths (feet). 



Prices 
(per M 
feet). 



Iby4 

Iby5 

Iby6 

Iby7 

IbyS 

Iby9 

IbylO 

Ibyl2 

IJor liby 4 

liorliby5 

liorlibv6 

liorlJby7 

IJor IJbyS 

liorljbyg 

lior l\by 10 -... 

IJ or 14 by 12 

2by2 - 

2bv3 

2by4 

3 by 4 or 4 by 4 

All other 8-inch and 
under sizes. 

2by9 

2by 10 

2by 12 

Iby4 

Iby5 

Iby6 

Iby7 

IbyS 

Iby9 

I|by9 

Iiby9 

Iby 10 

liby 10 

IJbylO 

Iby 12 

liby 12 

I;^byl2 



1 by 2 or 1 by 3 planed 

1 side. 
1 by 2 or 1 by 3 planed 

1 side. 
1 by 4 to 8 planed 1 side. 

1 by 4 to 8 planed 2 sides, 
planed 1 or 2 sides and 
matched, planed, 
matched and beaded, 
or planed 4 sides. 



8-20 feet 
....do.. 
....do.. 
....do.. 
....do.. 



ao 

....do 

....do 

....do. 

....do 

....do 

....do 

....do 

....do 

....do 

....do 

Random lengths 

do 

....do 

....do 

....do 



....do 

....do. 

....do 

....do 

do 

do 

do... 

do 

do 

do 

do 

do 

do 

do 

do 

do 

do 

Any quantity 

any length. 

8-20 feet 



Random lengths 

Random widths 

and lengths. 
Random lengths 



S40. 00 
40.00 
40.00 
40.00 
40.00 
45.00 
50.00 
55.00 
40.00 
40.00 
40.00 
40.00 
40.00 
45.00 
59.00 
55.00 
35. 00 
35.00 
35. 00 
38.00 
40.00 

43.00 
45.00 
48.00 
40.00 
40.00 
40.00 
40.00 
40.00 
45.00 
45.00 
45.00 
50.00 
50.00 
50.00 
55.00 
55. 00 
55.00 



40.00 
35.00 
38.00 
40.00 



1 Price Fixing Committee Minute Book II, Apr. 11-12, 1918. 
125547°— 20 49 



770 HISTORY OF PEICES DURING THE WAR. 

All prices in the rough unless otherwise spcclfled above. 

For planing 1 side, add $0. 50 

For planing 2 sides, add 1. 00 

For planing 1, 2 sides and matching or grooving and planing 4 sides, add 1. 50 

For heading, add . 50 

The above prices are quoted with the understanding that the Government will endeavor 
to give a fair assortment of widths and lengths on their orders and that we should not bo 
called upon to furnish all S-inch and wider on any job unless we furnish the narrow 
widths and short lengths needed for same job. 

Any order submitted not in accordance with our interpretation of the above statement, 
we reserve the right to make additional charge, according to manufacturing and market 
conditions at that time, for furnishing such schedules. If such charge is not agreeable 
to the Government cancellation may be made within a reasonable length of time after noti- 
fication to the Government, say, 10 days. 

These prices allow the present rate of freight to Boston, Mass. They do not include 
the 3 per cent tax on freight bills. In adjustment of freight differentials, the Bangor & 
Aroostock Railroad lumber tariff to govern. All freight rates subject to change in accord- 
ance with changes of present railroad rates. 

Terms of settlement : One per cent discount for cash 15 days from date of shipment, 
eastern merchantable inspection to govern. 

For deliveries other than Boston, add following arbitraries : 

Per M. feet. 

Albany, via Delaware & Hudson $J). 75 

Schenectady, via Delaware & Hudson ^ . 75 

South Boston 1- 00 

Philadelphia 3. 7.j 

Wilmington : 3. 75 

Newark 3. 75 

Baltimore ; 3. 75 

Bristol, Pa 3. 75 

Troy, N. Y .25 

Albany and Schenectady, via New York Central 1 1.25 

The prices quoted to remain in effect until July 1, 191S, or such prior time as the 
Federal Trade Commission have completed an investigation of cost of manufacturing 
lumber in the New England district and is prepared to submit their findings to the price- 
fixing committee of the War Industries Board, at which time these prices may be sub- 
ject to revision. 

(July 19, 1918.) 

After considering the information submitted by tlie Federal Trade Commis- 
sion as to the cost of manufacturing New England spruce lumber, and the infor- 
mation submitted by the representatives of the manufacturers thereof at the 
hearings held on the 18th of July, 1918, at which their request for a readjust- 
ment of prices on their products was heard, the price-fixing committee appointed 
by the President has determined, by agreement with the said representatives of 
the manufacturers of New England spruce lumber, upon the following maximum 
prices for such lumber. These maximum prices shall not be exceeded on any 
sales and contracts for sale (for mill shipment) made by the manufacturer, 
dealer, or other person during a period beginning midnight July 19, 1918, and 
ending midnight November 1, 1918, to the Government, to the Governments of 
the nations associated with us in the present war, to the railroads, or to 
such others as customarily purchase lumber for mill shipment, whether by rail 
or by water. 

The prices of all New England spruce lumber in the States of Maine, New 
Hampshire, Vermont, and Massachusetts shall not exceed the item prices 
named in attached list. These prices are for New England spruce lumber deliv- 
ei'ed (freight allowed) to Boston, Mass. They do not include war tax on 
freight bills. For shipments to other destination points, freight adjustments 
will be governed by differentials shown in Bangor & Aroostook Railway lumber 
tariff on basis of 3,000 poijnds weight to 1,000 feet of lumber. 



GOVEKNMENT EEGULATIONS RELATING TO PRICES. 



771 



Prices on items not covered by above list shall be priced on basis of nearest 
comparable item. 

The usual trade practices shall continue, including cash discount of 1 per cent 

in 15 days or 30 days net. 

Contracts for the sale of lumber entered into in good faith prior to midnight 
July 19, 1918, and enforcible at law, will be performed in accordance with their 
terms, subject, of course, to orders received from the Government which may 
require priority. 

It is imperative that with the least possible disruption of the industry the 
vast war needs of the Government, both direct and indirect, for New England 
spruce lumber be supplied on a fair basis, that an adequate supply and equitable 
distribution thereof be assured for essential commercial needs, that the move- 
ment thereof be facilitated, and that injurious speculation therein be prevented. 
Therefore the procedure outlined below, by agreement with the representatives 
of the manufacturers of New England spruce lumber, has been adopted for a 
period beginning midnight July 19, 1918, and ending midnight November 1, 1918. 

The procedure is that each manufacturer of New England spruce lumber 
shall— 

(1) Make contracts and accept orders for his product at prices not in excess 
of the applicable maximum prices, always subject to an option at the applica- 
ble maximum prices in favor of the United States or the nominee of the War 
Industries Board. Under this option,, which will cover all New England spruce 
lumber down to time of actual delivery to the purchaser, the War Industries 
Board to any extent required will allocate either to the Government or to other 
essential users. Any balance not so allocated will be released for sale to com- 
mercial buyers, but at prices no greater than those determined upon as above 
set forth. 

(2) Comply with the directions of the War Industries Board, as issued from 
time to time, with reference to filling commercial requirements in the order of 
their public importance and to furnish such information and making such re- 
ports as may be required. 

(3) Keep up to the best of his ability the production of spruce lumber so as 
to insure an adequate supply so long as the war lasts. 

(4) Neither reduce the scale of wages now being paid nor change - funda- 
mental labor conditions now in force. 

The Government will apportion the car supply available for lumber and ar- 
range for its transportation, subject to allocation by the War Industries Board 
as aforesaid, to the end that injury to the industry due to abnormal war-time 
conditions be neutralized so far as may be. 

Foreign trade, except to the governments of nations associated with us in 
the present war, is not to be affected by this ruling. 

(July 19, 1918.) 

Maximum prices on New England merchantable spruce lumber delivered 
(freight allowed) to Boston, Mass. They do not include war tax on freight 
bills. For shipments to other destination points freight adjustments will be 
governed by differentials shown in Bangor & Aroostook Railroad lumber 
tariff' on basis of 8,000 pounds weight to 1,000 feet of lumber. Effective mid- 
night July 19, 1918, to and including November 1, 1918. 

DIMENSION. 

[Specifled lengths 20 feet and under.] 



Sizes. 



Iby2, DlStol-inch 
lby3, DlSto|incli 

Il3y4... 

Iby5 

Iby6.... 

Iby7 

IbyS.... 



Prices. 



$48.00 
48.00 
48.00 
48.00 
48.00 
48.00 
48.00 



Sizes. 



IbyO 

IbylO 

Ibyl2 

IJ or li by 4 
li or U by 5 
11 or H- by 6 
11 or li by 7 



Prices. 



$53.00 
58.00 
60.00 
48.00 
48.00 
48.00 
48.00 



772 



HISTORY OF PRICES DURING THE WAR. 

DIMENSION— Continued. 



Sizes 



l}or Hby 8 

liorlibyO...- 

lior Uby 10 

liorlibyl2 

2by2 

2 by 3, DIE to 2| inches 

2 by 4, DIE to 3} inclios 

2bv5 

2by6 

2by7 

2by8 

2by9 

2by 10 

2byl2 , 

3 by 4, DIE to 3J inches. 

3by5 

3by6 , 

3by7 

3by8 

3by9 

3byl0 

3byl2 , 

4by4 

4by5 

4by6 

4by7 



Prices. 



$48. 00 

r,3. 00 

5S. 00 
60.00 
48.00 
4S. 00 
48.00 
48. 00 
48.00 
48.00 
48.00 
53.00 
58.00 
60.00 
48.00 
48.00 
48.00 
48.00 
48.00 
53.00 
58.00 
60.00 
48. 00 
48.00 
48.00 
48.00 



Sizes. 



4 by 8. 
4 by 9. 
4 by 10 

4 by 12 

5 by 5. 
5 by 6. 
5 by 7. 
5 by 8. 
5 by 9. 
5 by 10 

5 by 12 

6 by 6. 
6 by 7. 
6 by 8. 
6 by 9. 
6 by 10 

6 by 12 

7 by 7. 
7 by 8. 
7 by 9. 
7 by 10 

7 by 12 
8by8. 

8 by 9. 
8 by 10 
8 by 12 



Prices. 



S48.00 
53.00 
58.00 
60.00 
48.00 
48.00 
48.00 
48.00 
53.00 
58.00 
60.00 
48.00 
48.00 
48.00 
53.00 
58.00 
60.00 
48.00 
48.00 
53.00 
58.00 
60.00 
48.00 
53.00 
58.00 
60.00 



All above prices are for roua;h lumber unless otherwise specified. 

Where the fractional part of a foot is specified, the stock is to be figured the next foot in length. 

For every two feet or fraction over 20 feet add $1 per thousand. 

RANDOM LENGTHS. 



Sizes. 



1 by 2, DlS to I inch 
■lby3, DlS to ^ inch 

lby4 

Iby5 

Iby6 

Iby7 

IbyS 

Iby9 

IbylO 

Ibyl2 

IJ or IJ by 4 

lior liby5 

IJor l.i;by6 

IJor ljby7 

IJor libyS 

IJor l.Vbv9 

IJorliby 10 

l-Jor 11 by 12 



Prices. 



S38.00 
38.00 
42.00 
42.00 
45.00 
45.00 
45.00 
50.00 
55.00 
59.00 
45.00 
45.00 
45.00 
45.00 
45.00 
50.00 
55.00 
59.00 



Sizes. 



2by2 , 

2 by 3, DIE to2Jinclies, 

2 by 4, DIE to 3i inches. 

2by5 

2by6 

2by7 

2by8 

2by9 

2byl0 

2byl2 

3 by 4, Die to 3| inches, 

3by9 

3byl0 

3byl2 

4by4 

4by9 

4by 10...... 

4 by 12 



Prices. 



$36.50 
36.50 
38.00 
38.00 
38.00 
38.00 
43.00 
45.00 
50.00 
65.00 
40.00 
45.00 
50.00 
55.00 
40.00 
45.00 
50.00 
55.00 



All 8 inches and under sizes, random lengths, including timber, not specified above, $43. 
All above prices are for rough lumber unless otherwise specified. 

For planing 1 side add per M. . $0. 50 

For planing 2 sides add do 1. 00 

For planing 1 or 2 sides and matching or grooving add do 1. 60 

For beading, extra : do 50 

For planing 4 sides add do 1. 50 

1 by 4 to 8, planed Iside, random widths and lengths 41.00 

1 by 5 and up, planed and matched, random widths and lengths 43. 50 

1 by 5 and up, planed and matched, random widths, all even lengths, 10 to 18 feet 47. 00 

Shiplap5, 6, and 7 inches, random lengths 46.00 

Shiplap 8 inches, random lengths 48. 00 

Prices on items not covered by above list shall be priced on ba.sis of nearest com- 
parable item. 

Terms of settlement : One per cent discount for cash within 1.5 days or 30 days net 
from date of shipment ; eastern merchantable Inspection to govern. 

All freight rates subject to change up or down according to any changes by railroada 
in present rates. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 



773 



Sizes. 


Lengths (any quantity any length). 


Prices 
(per M 
feet). 


1 by 2 or 1 by 3 


Planed 1 side, 8 to 20 feet 


$40 


Do 


Planed random lengths 


35 


1 by 4 to 8 . . 


Planed random widths and lengths 


33 








Do... 


<PIaned 1 or 2 sides and matched, planed, matched and beaded, 






40 









Where the fractional part of a foot is specified the stock is to be figured the next foot 
In length. 

For erery 2 feet or fraction over 20 feet add $1 per thousand. 

The above prices are quoted with the understanding that the Government ■will 
endeavor to give a fair assortment of widths and lengths on their orders and that we 
should not be called upon to furnish all 8-inch and wider on any job unless we furnish 
the narrow widths and short lengths needed for same job. 

On any order submitted not in accordance with our interpretation of the above state- 
ment we reserve the right to make additional charge, according to manufacturing and 
market conditions at that time, for furnishing such schedules. If such charge is not 
agreeable to the Government, cancellation may be made within a reasonable length of time 
after notification to the Government, say 10 days. 

These prices allow the present rate of freight to Boston, Mass. They do not include 
the 3 per cent tax on freight bills. In adjustment of freight differentials the Bangor & 
Aroostook Railroad lumber tariff to govern. 

Terms of settlement : One per cent discount for cash 15 days from date of shipment, 
eastern merchantable inspection to govern. 

For deliveries other than Boston add following arbitraries : 

Per thousand 
feet. 

Albany via Delaware & Hudson $0. 75 

Schenectady via Delaware & Hudson . 75 

South Boston 1. 00 

Philadelphia 3. 75 

Wilmington 3. 75 

Newark . 3. 75 

Baltimore : 3. 75 

Bristol, Pa 3. 75 

Troy, N. Y .25 

Albany and Schenectady via New York Central 1. 25 

Add 25 cents per thousand right through to above prices, occasioned by advance in 
freight rate of 1 cent per hundredweight, Bangor & Aroostook Railroad, supplement 
No. 7 to I. C. C. No. 1133, effective April 20, 1918. All prices in the rough unless 
otherwise specified above. 

Per thousand 
feet. 

For planing 1 side, add $0. 50 

For planing 2 sides, add 1. 00 

For planing 1, 2 sides, and matching or grooving and planing 4 sides, add 1. 50 

For beading, add ..50 

NORTH CAROLINA PINE. 



The first price schedules for North Carolina pine were those made by 
informal agreement with the North Carolina pine emergency bureau. They 
were prices to the Government only and were effective from April 8, 1918, to 
June 5, 1918. - 

On June 28, 1918, the price-fixing committee announced a slight advance in 
price, showing an increase of $1 per thousand on No. 4 flooring and $2 per 
thousand on No. 4 ceiling and partition, the basic price being $29.50. These 
prices were eifective until September 30, 1918. 

On October 1, 1918, the existing schedules were extended to December 31, 
1918, when control ended. 



774 



HISTORY OF PRICES DURING THE WAR. 



(Apr. 8 to Junes, 1918.) 
[All prices f. o. b. Norfolk or Richmond (Virginia gates).] 



Width and lengths.' 


Price. 


Width and lengths.' 


Price. 


2 by 2, 10 feet 


S30.00 
28. 00 
28.00 
28.00 
30.00 
30.00 
31.50 
31.50 
27.50 
26.50 
26.50 
26.50 
27.50 
27.50 
29.00 
29.00 
29.00 
27.00 
27.00 
27.00 
29.00 
29.00 
30.50 
30.50 
26.50 
25.50 
25.50 
25.50 
26.50 
26.50 
28.00 
28.00 


2 by 8, 10 feet 


828.50 
26 50 


2 by 2, 12 feet 


2 by 8, 12 feet 


2 by 2, 14 feet 


2 bv 8, 14 feet 


28 50 


2 by 2, 16 feet 


2 by S, IG feet 


26 60 


2 bv 2, J S feet 


2 by 8, 18 feet 


28 50 


2 by 2, 20 feet 


2 by 8, 20 feet 


28 50 


2 by 2, 22 feet 


2 by 8 , 22 feet 


30 00 


2 by 2, 24 feet 


2 by 8, 24 feet 


30 00 


2 by 3, 10 feet 


2 by 10, 10 feet 


29 OO 


2 by 3, 12 feet 


2 by 10, 12 feet 


27 00 


2 bv 3, 14 feet 


2 by 10, 14 feet 


27 00 


2 by 3, 16 feet 


2 by 10, 16 feet 


27 00 


2 by 3 , 18 feet 


2 by 10, 18 feet 


29 00 


2 by 3, 20 feet 


2 by 10, 20 feet 


29 00 


2 by 3, 22 feet 


2 by 10 , 22 feet 


30 59 


2 by 3, 24 feet 


2 by 10, 24 feet 


30 50 


2 by 4, 10 feet 


2 by 12, 10 feet 


30 50 


2 by 4, 12 feet 


2 by 1 2, 1 2 feet 


29 00 


2 by 4, 14 feet 


2 by 12, 14 feet 


29 00 


2 by 4 , 1 G feet 


2 by 12, 16 feet 


29 00 


2 by 4, 18 feet 


2 by 12, 18 feet 


30 50 


2 by 4, 20 feet 


2 by 12, 20 feet 


30 50 


2 by 4, 22 feet 


2 by 12, 22 feet 


32 00 


2 by 4, 24 feet 


2 by 12, 24 feet 


32 00 


2 by 6, 10 feet 


2 by 2 random , 8 to 16 feet 


28.00 


2 by 6, 12 feet ; • . 


2 by 3 random, 8 to 16 feet 


26 50 


2 by 6, 14 feet 


2 by 4 random, 8 to 16 feet 


27 00 


2 by 6, 16 feet 


2 by 6 random, 8 to 16 feet 


25 50 


2 by 6, 18 feet 


2 by 8 random, 8 to 16 feet . 


26 50 


2 by 6, 20 feet ' 


2 by 10 random, 8 to 16 feet.. .. 


27 00 


2 Ijy 6, 22 feet 


2 by 12 random, 8 to 16 feet 


29 00 


2 by 6, 24 feet 











1 Dimensions SISIE. 

For D. & M. or shiplap add $1 per thousand feet. For S4S add 50 cents. For dimen- 
sions over 24 feet add $1 for each 2 feet up to and including 32 feet. 

The above prices are for simple working, now standard in manufacture. 

xVll above items 50 cents per thousand less if rough. 

1 by 3 random lengths, E. G. flooring No. 2 $51. 50 

1 by 4 random lengths, B. G. flooring No. 2 49. 50 

1 by 4 random lengths, flooring No. 2 37. 50 

1 by 4 random lengths, flooring No. 3 34. 50 

1 by 4 random lengths, flooring No. 4 26. 50 

1 by 6 random lengths, flooring No. 2 40. 00 

1 by 6 random lengths, flooring No. 3 35. 00 

1 by 6 random lengths, flooring No. 4 1 27. 50 

1 by 3 to 6 inches, random lengths, flooring No. 4 27. 00 

1 by 4 to 6 inches, random lengths, flooring No. 4 27. 00 

g by 4 random lengths, ceiling No. 2 35. 50 

s by 4 random lengths, ceiling No. 3 32. 50 

p by 4 random lengths, ceiling No. 4 25. 50 

§ by 4 random lengths, ceiling No. 2 : 38. 50 

3 by 4 random lengths, ceiling No. 3 35. 00 

I by 4 random lengths, ceiling No. 4 26. 50 

1 by 6 random lengths, drop siding No. 2 38. 50 

1 by random lengths-, drop siding No. 3 34. 50 

1 bv 6 random lengths, drop siding No. 4 28. 50 



Width and length. 



Description. 



1 by 4, random lengths | Finish, No. 2 

1 by 6, random lengths i do 

1 by 8, random lengths I do 

1 by 10, random lengths | do 

1 by 12, random lengths do 

1 by 4 to 12, random lengths j do 

1 by 4, random lengths , i Finish, " C •' or No. 3. 

1 by 6 and 8, random lengths I do 

1 by 10, random lengths I do 

1 by 12, random lengths do 

1 by 4 to 12, random lengths I do 

Forspecincdiengthsof finish add SI per M feet. For | 
S4S add 50 cents; if rough deduct SO cents. 

1 by 2, random lengths SlS or S2S, No. 3 

1 by 3, random lengths ! do 

1 by 4, random lengths i do 



Price. 



$39. 
40.50 
40.50 
41.50 
42.50 
40.50 
35.50 
37.50 
39.00 
39.50 
37.50 



31.50 
32.50 
30.50 



GOVERI^MElSrT EEGULATIOlSrS EELATING TO PRICES. 



775 



Widtli and length. 



Description. 



Price. 



1 by 6, raoidora lengths 

1 by 8, random lengths 

1 by 10, random lengths 

1 by 12, random lengths ' 

1 by 2, random lengths 

1 by 3, random lengths 

1 by 4, random lengths 

1 by 6, random lengths 

1 by 8, random lengths 

1 by 10, randoraleugths 

1 by 12, randomlengths 

1 by 6 to 12, random lengths 

For specified lengths of 1 inch. No. 3 and No. 4, add 
50 cents, except 16-foot add 81; for D. & M.andshiplap 
add 50 cents; if S4S add 50 cents. 

IJ by 4 to 10 inches, 10 to lOfeet 

IJ by 4 to 12 inches, 10 to 16 feet 

1-1 by 4 to lOinches, 10 to 16 feet 

1* by 12 inches, 10 to 16 feet 

1 by 4, random lengths 

1 by 6, random lengths 

1 by 8, random lengths 

1 by 10, random lengths 

1 by 12, random lengths 

1 by 4 to 12 inches, random lengths 



SlSorS2S,No. 3. 

do 

do 

do 

SlSorS2S, No. 4. 

do 

do 

do 

do 

.....do 

do 

do 



S23,No.2 

do 

do 

do 

SIS or S2S, culls, E.Ht. 

do 

do 

do 

do 

do 



S31..50 
31.50 
31.50 
34.50 
26.50 
27.50 
25. 50 
26.50 
27.50 
27.50 
29.50 
27.50 



45. 50 
47.50 
45.50 
47.50 
22.50 
23.00 
23.50 
23.50 
24.00 
23.00 



Add 50 cents to above if S4S, D. & M., or shiplap. 
All above items 50 cents less if rough. 



Width and lengths. 



10 to 20 
feet. 



22 and 
24 feet. 



26 feet. 



28 feet. 



30 feet. 



32 feet. 



3 by 4 and 4 bv 4 S29. 50 

3 by 6 to 8 by 8 28.50 

3 by 10 and 4 by 10 1 32. 50 

5 by 10 to 10 by 10 1 31 . 50 

3 by 12 to 5 by 12 34. 50 

6 by 12 to 12 by 12 33. 50 

2 by 12 to 5 by 14 39. 50 

6 by 14 to 8 by 14 39.00 

10 by 14 to 14 by 14 38. 50 



S30. 50 
29.50 
33.50 
32.50 
35.50 
34.50 
40.50 
40.00 
39.50 



S31.50 
30.50 
34.50 
33.50 
36. 50 
35.50 
41.50 
41.00 
40.50 



S32. 60 
31.50 
35.50 
34.50 
37.50 
36.50 
42.50 
42.00 
41.50 



S33.50 
32.50 
36.50 
35.50 
38. 50 
37.50 
43.50 
43.00 
42.50 



S34.50 
33.50 
37.50 
36.50 
39.50 
38.50 
44.50 
44.00 
43.50 



The above prices are for short-leaJ dimension. 

For merchantable add $3 per thousand for 10 inches and under. 

For merchantable add $2 per thousand for 12 inches and over. 

All prices are based on furnishing rough. 

For dressing" .3-inch plank and small timbers up to and including 6 by 6, add 50 cents 
per thousand feet. For S4S add $1 per thousand. 

For dressing 6 by 8 and larger, add $1 per thousand feet. 

For timbers over 14 inches, add $3 for eacli 2 inches above 14 inches. 

For timbers over 32 feet, add |1 for each foot. 

For tongue and grooved or shiplapping timbers, add $2 per thousand, 3 inches and 
over. 

For grooving timbers 5 inches thick or thicker for splines, add $5 per thousand to the 
above dressed prices. 

For grooving timbers, 3 and 4 inches thick, for splines, add $3 to above dressed prices. 

For beveling and outgauging, add |2 per thousand feet. 

All prices f. o. b. Norfolk or Richmond (Virginia gates). 

War tax not to be paid by shlpi}er. 

Note. — Prices on all orders destined to points south of Norfolk are to be based on 
Norfolk list, with freight allowed from shipping point to Norfolk. 

(June 28, 1918.). 

After considering the information submitted by the Federal Trade Commis- 
sion as to the cost of manufacturing long and short leaf pine lumber produced 
in the States of Virginia and North and South Carolina and the information 
submitted by the representatives of the manufacturers thereof at the hearings 
held on this date, June 28, 1918, at which their request for readjustment of 
prices on their products was heard, the price-fixing committee appointed by 
the President has determined, by agreement with the said representatives of 
the manufacturers of long and short leaf pine lumber in Virginia and North 
and South Carolina, upon the following maximum prices for such lumber. 



776 HISTORY OF PRICES DURING THE WAR. 

These maximum prices shall not be exceeded on any sales and contracts for 
sale (for mill shipment) made during the period of three months beginning 
midnight June 28, 1918, either to the public, to the Government, to Govern- 
ments of the nations associated with us in the present war, or to the railroads, 
whether by rail or by water shipment. 

Prices of all long and short leaf pine lumber in the States of Virginia and 
North and South Carolina shall not exceed the item prices named on attached 
list. These prices are for long and short leaf pine lumber delivered (freight 
allowed) to Norfolk, Richmond, and other Virginia gateways. For shipments 
to destination points north of and beyond these, gateways these prices are for 
such portion of freight allowed to destination points as will equal shipments 
originating in above gateways. For shipments to destination points south of 
these gateways the f. o. b. cars mill or f. o. b. vessel, rail mill prices shall be 
$2.50 per thousand less on each item than prices named on attached list. 

Prices on items not covered by above list shall be priced on basis of nearest 
comparable item. 

The usual trade practices shall continue, including cash discounts to be 
applied to the United States Government purchases as well as all others, ex- 
cept that in commercial transactions where purchasers do not avail themselves 
of the cash discounts the accounts may be converted into trade acceptances 
which do not bear interest before maturity. 

The custom of delivered prices of lumber to purchasers' destination points 
shall remain unchanged. 

Contracts for the sale of lumber entered into in good faith prior to midnight 
June 28, 1918, and enforcible at law, will be performed in accordance with 
their terms, subject, of course, to orders received from the Government which 
may require priority. 

It is imperative that, with the least possible disruption of the industry, the 
vast war needs of the Government, both direct and indirect, for long and short 
leaf pine lumber from Virginia and North and South Carolina be supplied on 
a fair basis, that an adequate supply and equitable distribution thereof be 
assured for essential commercial needs, that the movement thereof be facili- 
tated, and that injurious speculation therein be prevented. Therefore the pro- 
cedure outlined below, by agreement with the representatives of the manufac- 
turers of long and short leaf pine lumber from above-mentioned States, has 
been adopted for a period of three months beginning midnight June 28, 1918. 

The procedure is that each manufacturer of long and short leaf pine lumber 
in Virginia and North and South Carolina shall — 

(1) Make contracts and accept orders for his product at prices not in excess 
of the applicable maximum prices, always subject to an option at the appli- 
cable maximum prices in favor of the United States or the nominee of the 
War Industries Board, Under this option, which will cover all long and short 
leaf pine lumber from above-mentioned States down to actual delivery to the 
purchaser, the War Industries Board, to any extent required, will allocate 
either to the Government or to other essential users. Any balance not so 
allocated will be released for sale to commercial buyers, but at prices no greater 
than those determined upon as above set forth, 

(2) Comply with the directions of the War Industries Board as issued from 
time to time with reference to filling commercial requirements in the order of 
their public importance and to furnishing such information and making such 
reports as may be required. 

(3) Keep up to the best of his ability the production of long and short leaf 
pine lumber in Virginia and North and South Carolina, so as to insure an ade- 
quate supply so long as the war lasts. 

(4) Neither reduce the scale of wages now being paid nor change funda- 
mental labor conditions now in force. 



GOVBRKMENT EEGULATIOlSrS RELATING TO PRICES. 



777 



Tlie Government will appportion the ear supply available for lumber and 
arrange for its transportation, subject to allocation by the War Industries 
Board as aforesaid, to the end that injury to tbe industry due to abnormal vs^ar- 
time conditions be neutralized so far as may be. 

Foreign trade, except to the Government of nations associated with us in the 
present war, is not to be affected by this ruling. 

These prices are for long and short leaf pine lumber delivered (freight 
allowed) to Norfolk, Richmond, and other Virginia gateways. For shipments 
to destination points north of and beyond these gateways these prices are for 
such portion of freight allowed to destination points as will equal shipments 
originating in above gateways'. For shipments to destination points south of 
these gateways the f. o. b. cars mill or f. o. b. vessel rail mill prices shall be 
$2.50 per thousand less on each item than prices named on attached list. 
Effective June 28 to and including September 28, 1918. 



No. 1. 



No. 2. 



No. 3. 



No. 4. 



Cull. 



1 by 3 and 31 flooring 

1 by 4 and ^ flooring 

1 by 5 and 5| flooring 

1 by 6 flooring 

1 by 2J to 5* flooring 

H- by 2J and 3 flooring , 

H by ^ and 4 flooring 

i by 2 J inch to 34-inch ceiling 

i^j by 2J inch to 3|-iach ceiling 

i by 2J inch to 34-inch ceiling 

I by 2$ inch to 3 J-inch ceiling 

^ and il inch, 2h to 3J- inch ceiling . 

li by 2 J and 3 partition 

H by 31, 4, and 4J partition 

fl by 5 and 6^ partition 

1 by 6 inch drop or O. G. siding . . 
Bevel siding from 1-inch stock . . . . , 
Bevel siding from l^inch stock . . . . 



$43. 00 
42.00 



47.00 
47.00 
27.50 
29.00 
31.50 
34.00 
43.00 
43.00 
44.00 
46.00 
45.00 
30.00 
32.00 



$41. 00 
40.00 



45.00 
45.00 
26.00 
27.50 
30.00 
32.50 
41.00 
41.00 
42.00 
44.00 
42.00 
28.00 
30.00 



$36. 50 
36. 50 
37.00 
37.50 
36.00 
37.50 
37.50 
24.00 
25.50 
28.50 
30.00 



37.00 
37.50 
38.00 
37.50 
26.00 
28.00 



$32. 00 
32.00 
33.50 
34. 50 
32.00 
32.00 
32.00 
21.00 
22.50 
24.00 
26.00 



34.50 



34.50 
22.00 
24.00 



$20. 00 



Add $1 per thousand feet for specified lengths. 
Deduct $1 per thousand for air dried (Oct. 1, 1918). 



Boards. 


Iby3. 


lby4. 


lby6. 


IbyS. 


1 by 10. 


lbyl2. 


1 b_y 4 to 
12 mches. 


No. 3 SI or 2S 


$36. 00 
31.50 


$36. 00 
31.50 


$37. 00 
34.00 


$37.00 
34.00 
28.60 


$37. 00 
35.00 
28.50 


$40. 00 
36.50 
29.00 


$37. 00 


No. 4 SI or 2S 


33.50 




26.00 










20.50 


No. 1 and 2 bark strips and mis- 
cuts, SI or 2S 














34.00 


No. 3 and 4 bark strips and mis- 
euts, SI or 2S 














24.00 



For 1-inch Nos. 3 and 4 in speciiied lengths add 50 cents, except 16-foot, add $1. 

Rough 50 cents less than S2S ; S4S, D. and M., or shiplap add 50 cents to S2S prices. 
For resawing add $1 per thousand. 

Nos. 1 and 2 bark strips, when worked to partition, add. to above S2S price $2 per 
thousand feet. 

Boards, when ordered kiln dried, add $1 per thousand feet. 

For D. and M. beaded, 8 inches and wider, add $2 to S2S price (Oct. 1, 1918). 



Finish S2S. 



No. 1. 



No. 2. 



No. 3. 



No. 4. 



1 by 4 to 12, random.. 

1 by 4, random 

1 by 6, random 

1 by 8, random 

1 by 10, random 

1 by 12, random 

6/4 by 4 to 12, random 

5/4 by 6, random 

6/4 by 8, random 

5/4 by 10, random 

5/4 by 12, random 

6/4 by 4 to 12, random 

6/4 by 6, random 

6/4 by 8, random 

6/4 by 10, random 

6/4 by 12, random 



$43. 50 
43.50 
44.60 
45.50 
46.00 
47.50 
47.50 
48.60 
49.50 
50.00 
51.50 
48.50 
49.50 
60.50 
61.00 
54.50 



$41.50 
41.50 
42.50 
43.50 
44.00 
46.50 
46.60 
46.50 
47.50 
48.00 
49.50 
46.50 
47.50 
48.50 
49.00 
52.60 



$39.00 
39.00 
39.00 
39.00 
42.00 
41.00 
41.00 
41.00 
41.00 
44.00 



$34. 50 
35.00 
35.00 
36.00 
37.60 
35.00 
35.60 
33. 50 
36.50 
38.00 



778 



HISTORY OF PEICES DURING THE WAR. 



Finish S28. 



No. 1. ! No. 2. 



NO. 3. 



No. 4. 



8/4 by 4 to 12, random 

8/4 by 6, random 

8/4 by 8, random 

8/4 by 10, random 

8/4 by 12, random 

Molded casing and base from 1 by ,4, 6 and 8 inch slock 
Molded casing and base from 1 by 5 and 10 inch stock . 

Jambs from 4/4 stock 

Jambs from 5/4, 6/4, and 8/4 stock 



S49. 50 
50.50 
51.50 
52.00 
53.50 
50.00 
52.00 
50.00 
53.00 



S47. 50 
48.50 
49.50 
50.00 
51.50 
47. 00 
49.00 
47.00 
50.00 



S41.00 
41.00 
41.00 
41.00 
44.00 



The above prices are for S2Sfinfsh ; for S4S, add 50 cents per thousand feet. 

For specified lengths, add $1 per thousand feet ; for rough, deduct 50 cents per thou- 
sand feet. 

Moldings, Ig-inch width and smallei', 52 per cent discount; moldings, l? inches and 
wider, 47 per cent discount. 

Laths, No. 1, 4.7."> ; laths, No. 2, .$3.75. 



Dimensions. 



10, 12, 14, 

and 16 

feet. 



18 and 20 22 and 24 
feet. ' feet. 



Random. 



2by2SlSlE. 
2by3SlSlE. 
2by4SlSlE. 
2by6SlSlE. 
2by8SlSlE. 
2 by 10 SISIE 
2 by 12 SlSlE 



S31.00 
29.50 
30.00 
28.50 
29.50 
30.00 
32.00 



.S33. 00 
30.50 
32.00 
29.50 
31.50 
32.00 
33.50 



S34. 50 
32.00 
33.50 
31.00 
33. 00 
33.50 
35. 00 



S30. 50 
29.00 
29.50 
28.00 
29.00 
29.50 
31.50 



Dimension when ordered kiln dried, add $2 per thousand feet. 

Dimension D. & M. or shiplap, add $1 per thousand to SISIB prices ; rough, 50 cents 
less than SlSlE price.s ; S4S, add 50 cents per thousand to SlSlE prices. 

For dimension over 24 feet, add $1 for each 2 feet up to 32 feet. 

For merchantable longleaf 10 inches and under wide, add $3 per thousand feot. 

For merchantable longleaf 12 inches and over wide, add $2 per thousand feet. (Oct. 1, 
1918.) 

Note.— All lumber not over 2 inches thick when ordered in odd or fractional lengths will bo invoiced 
as of next longer length in multiples of 2 feet. 



Timbers. 



3 by 4 and 4 by 4.. 

3by Gto8by 8 

3 by iO to 4 by 10.. 
5 by 10 to 10 by 10. 
3 by 12 to 5 by 12. . 
G by 12 to 12 by 12. 
3 by 14 to 5 by 14.. 
G by 1 J to 8 by 14.. 
10 by 14 to 14 by 14 



10 to 20 
feet. 


22 and 24 
feet. 


20 feet. 


28 feet. 


30 feet. 


32 feet. 


$33.00 


S34. 00 


S35.00 


$36.00 


$37.00 


$38.00 


32.00 


33.00 


34.00 


35.00 


36.00 


37.00 


36.00 


37.00 


38.00 


39.00 


40.00 


41.00 


35.00 


36.00 


37.00 


38.00 


39.00 


40.00 


38.00 


39.00 


40.00 


41.00 


42.00 


43.00 


37. 00 


38.00 


39.00 


40.00 


41.00 


42.00 


43.00 


44.00 


45.00 


46.00 


47.00 


48.00 


42.50 


43.50 


44.50 


45.50 


40.50 


47.60 


42.00 


43.00 


44. 00 


45.00 


46.00 


47.00 



Add for timbers over 14 inches $3 for each 2 inches over 14 inches. 

Add for timbers over 32 feet $1 for each foot over 32 feet. 

Prices above are for short-leaf dimensions rough ; ^or better qualities and various 
working apply the following differentials : 

For long leaf No. 1 common add $2 per thousand feet. 

For merchantable 10 inches and smaller add $3 per thousand to No. 1 long-leaf price. 

For merchantable 12 inches and larger add $2 per thousand to No. 1 long-leaf price. 

For prime rule of 1905 add $5 to No. 1 long-leaf price. 

Add for dressing $1 per thousand feet. 

Add for T. & G. or shiplap $2 per thousand feet. 

Add for grooving $3 per thousand to dressed price stock 3 and 4 inches thick. 

Add for grooving $5 per thousand to dressed price stock 5 inches and thicker. 

Add for bevelling and outgauging $2 per thousand feet to dressed prices. 

Note. — All timber when ordered in odd or fractional lengths will invoice as of next 
longer length a multiple of 2 feet. 

PENNSYLVANIA HEMLOCK. 

The original price schedules for Pennsylvania hemlock were announced by 
the emergency bureau on April 6, 1918, and wei-e approved by the price-fixing 
committee on May 8, 1918. The base price was $27 per thousand board feet. 
This base price was increased on August 15, 1918, to $29 per thousand, and the 
price lists rearranged accordingly. 

On October 16 revision was postponed and existing prices were continued until 
December 20, 1918, when all restrictions were removed. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 



779 



(May 8, 1918, to Aug. 8, 1918.) 

The price-fixing committee of the War Industries Board passed the following 
ruling on May 8, 1918, covering the maximum prices for mill shipment of 
Pennsylvania hemlock lumber : 

"-The price of $31 per thousand feet f. o. b. cars Philadelphia which has been 
in force since April 6, 1918, shall be continued in effect as the basic maximum 
price of Pennsylvania hemlock lumber to all departments of the Government 
until August 8, 1918." 

At the same time the following rules with reference to the prices of No. 1 and 
No. 2 grades of Pennsylvania liemloek were promulgated: 

1. That the system of delivered prices be discontinued; and that there be 
substituted as basic maximum the price of $27 per thousand feet f. o. b. mill, 
with variations according to the appended schedule. 

2. That the entire stock, and production of Pennsylvania hemlock, grades Nos, 
1 and 2, will be held available for the direct and indirect needs of the Govern- 
ment in the war, and will be distributed and dealt in subject to the control 
of the War Industries Board. 

3. That such of the lumber as, in the judgment of the chief of the lumber sec- 
tion of said board, can without detriment to governmental reqiiirements be 
released for urgent commercial or other needs, may be sold to car-lot pur- 
chasers (with his consent) at prices which, per item, shall not exceed the prices 
as established by the appended schedule. 

4. This arrangement shall continue effective until August 8, 1918. 

SCHEDULE OF VARIATION FROM BASE OF $27 PEE M FEET, BOARD MEASURE 

IN CARLOAD LOTS. 



NO. 1 SIZES. 

2 by 3: 

10 feet (ripped from 2 by 6), 

ndd $1. 00 

12 and 14 feet, add 1.00 

16 feet, add 3. 00 

18 and 20 feet, add 5. 50 

2 by 4 : 

8 feet, L. R., deduct 2. 00 

9 feet, L. R., when In stock, add_ 2. 00 

10 feet 

12 feet 

14 feet 

16 feet, add 3. 00 

18 and 20 feet, add 4. 50 

22 and 24 feet, add 5. 50 

2-inch sizes. No. 2, $2 per M less 

than same size in No. 1. 

2 by 6 to 2 by 12 : 

10 feet, when in stock, add 

12 and 14 feet 

16 feet, add 1. 50 

18 and 20 feet, add 3. 50 

22 and 24 feet, add 5. 50 

26 and 28 feet, add 6. 50 

30 and 32 feet, add 7. 50 

34 and 36 feet, add 9. 50 

38 and 40 feet, add 11. 50 

3 by 4' to 12 by 12 : add 50 cents per M 

feet to price of 2 by 6 to 2 by 12, same 

lengths. 

NO. 1 BOARDS. 

1 by 6: 

10, 12, and 14 feet 

16 feet, add ?5. 00 

18 and 20 feet, add 4. 00 

1 by 8: 

10, 12, and 14 feet 

16 feet, add 2. 00 

18 and 20 feet, add 3. 50 

1 by 10 : 

10, 12, and 14 feet, add 1. 50 

16 feet, add 5. 00 

18 and 20 feet, add 5.00 

1 by 12 : 

12 feet, add 4. 50 

10 and 14 feet, add 2. 00 

16 feet, add 6. 00 

18 and 20 feet, add 6. 00 

5/4 and 6/4, add $2 to price of boards 

same width. 



NO. 2 BOARDS. 

1 by 6, 8 to 18, rough or SIS, deduct. $1. 00 

1 by 8, 8 to 18, rough or SIS 

1 by 10, 8 to 18, rough or SIS, add_ . 50 
1 by 12, 8 to 18, rough or SIS, add. . 50 

NO. 3 BOARDS. 

1 by 6 to 12 : 

8 to 18, rough or SIS, deduct— $4. 00 

LOG RUN BOARDS. 

1 by 4, 8 to 16, rough or SIS, deduct- $i. 00 
1 by 6 to 12, 8, rough or SIS, deduct _ 3. 00 
1 by 6 to 12, 10, SIS, deduct 

DRESSED AND MATCHED BOARDS. 

1 by 4, 8 to 16 feet. No. 1 (25 per 

cent 10 feet), add SI. 00 

1 by 6, 10 feet. No. 1 

1 by 6, 8 to 18 feet. No. 2 

1 by 8, 8 to 18 feet. No. 2 

1 by 6, 10 to 16 feet. No. 1 (25 per 

cent 10 feet), add 3. 00 

ROOFING LATH. 

1 by 2, 1 by 2h, and 1 by 3, 10 to 16 

feet, add $5.00 

SPECIAL. SIZES. 

For each inch over 12 inches in width 
in timber and plank add 50 cents per M. ; 
5 inches, 7 inches, 9 inches, and 11 inches 
sawed to order, $1 per M. extra. 



PRICES FOR WORKING LUMBER. 

Saw sized or SlSlE_-per M $1. 75 

Dressing 1 or 2 sides (except L. R. 

No. 2 and 3 boards) per M 1. 50 

Ship lap or matching (except as 

specified under D and M. boards__ 

per M__ 2. 00 
Joists worked to flooring, or grooved 

2 edges, or dressed 4 sides_per M 2. 00 



780 



HISTOKY OF PRICES DURING THE WAR. 



(Aug. 15, 1918.) 

The price-fixing comiiuttee of the War Industries Board announces a base 
price of $29, an increase of $2 over the former price of Pennsylvania hemlock 
lumber. The entire output of No. 1 and No. 2 grades will probably be required 
by the Government, and the stock will be distributed subject to the control of 
the War Industries Board. Following is the official announcement: 

"After considering the information submitted by the Federal Trade Commis- 
sion as to the cost of hemlock-lumber production in the State of Pennsylvania, 
and the information submitted by the representatives of the manufacturers of 
sueti lumber at a hearing granted them on Wednesday, August 14, 1918, the 
price-fixing committee of the War Industries Board, by agreement with the 
producers, passed a ruling fixing a maximum base price for mill shipments of 
Pennsylvania hemlock lumber at $29 per thousand feet, f. o. b. cars shipping 
point, such price to become effective midnight August 15, 1918, and to remain 
in effect to and including October 20, 1918. 

" The following companies, producing the greater part of Pennsylvania hem- 
lock lumber, were present at the hearing : Goodyear Lumber Co., Norwich, Pa. ; 
Wheeler & Dusenbury, Endeavor, Pa. ; Pennsylvania Lumber Co., Killettsville, 
Pa. ; Central Pennsylvania Lumber Co., Williamsport, Pa. 

" By reason of the construction program of the various governmental depart- 
ments, it is apparent that the Government will require substantially the entire 
output of No. 1 and No. 2 grades of Pennsylvania hemlock. It was, therefore, 
agreed at the hearing by all of the above manufacturers : 

"(1) Tliat their entire stock and production of Pennsylvania hemlock, 
grades Nos. 1 and 2„ will be held available for the direct and indirect needs 
of the Government in the war, and will be distributed and dealt in subject to 
the control of the War Industries Board. 

"(2) That such of the foregoing lumber as, in the judgment^ of the chief of 
the lumber section of said board, can, without detriment to governmental 
requirements, be released for urgent commercial or other needs may be sold 
to car-lot purchasers (with his consent) at prices which, per item, shall not 
exceed the prices as established by the attached list." 

The " attached " list referred to above contains the item prices, which are 
unchanged from the old list, except that they apply to the new $29 base. 



NO. 1 SIZES. 

2 by 3: 

10 feet (ripped from 2 by 6)__ S.30. 00 

12 and 14 feet 30. 00 

16 feet 32.00 

18 and 20 feet 34. 50 

2 by 4: 

8 feet, L. R 27. 00 

9 feet, L. R. (when in stock). 31.00 

10 feet 29. 00 

12 feet , 29. 00 

14 feet 29.00 

16 feet 32. 00 

18 and 20 feet 33. 50 

22 and 24 feet 34. 50 

2 bv 6 to 12 by 12 : 

" 10 feet (when in stock) 29. 00 

12 and 14 feet 29.00 

16 feet 30. 50 

18 and 20 feet 32.50 

22 and 24 feet 34. 50 

26 and 28 feet 35. 50 

30 and 32 feet 36. 50 

34 and 36 feet 38. 50 

38 and 40 feet 40. 50 

3 by 4 to 12 by 12, add 50 cents per 

M feet to price of 2 by 6 to 2 by 12, same 

lengths. 

2-inch sizes, No. 2, $2 per M feet less 

than .same size in No. 1. 



XO. 1 BOARDS. 

1 by 6 : 

10, 12, and 14 feet $29. 00 

16 feet 34. 00 

18 and 20 feet 33. 00 

1 by 8: 

10, 12, and 14 feet 29. 00 

16 feet 31.00 

18 and 20 feet 32. 50 

1 by 10: 

10, 12, and 14 feet 30. 50 

16 feet 34. 00 

18 and 20 feet 34.00 

1 by 12 : 

12 feet 33. 50 

10 and 14 feet 31. 00 

16 feet 35.00 

18 and 20 feet 35. 00 

5/4 and 6/4, add $2 to price of boards 

same width. 

XO. 2 BOARDS. 

1 by 6, 8 to 18, rough or SIS $28. 00 

1 by 8, 8 to 18, rough or SIS 29. 00 

1 by 10, 8 to 18, rough or SIS 29. 50 

1 by 12, 8 to 18, rougher SIS 29. 50 

NO. 3 BOARDS. 

1 bv 6 to 12, 8 to 18 feet, rough or 

SIS $25. 00 



GOVERIfMENT REGULATIONS EELATIiTG TO PRICES. 



781 



LOG EUN BOARDS. 

1 by 4, 8 to 16, rough or SIS $25. 00 

1 by 6 to 12, 8, rough or SIS 26. 00 

1 by 6 to 12, 10, rough or SIS—— 29. 00 

DRESSED AND MATCHED BOARDS. 

1 by 4, 8 to 16 feet (25 per cent, 

10 feet), No. 1 $30.00 

1 by 6, 10 feet, No. 1 29. 00 

1 bv 6, 10 to 16 feet (25 per cent, 

10 feet). No. 1 32.00 

1 by 6, 8 to 18 feet. No. 2 29. 00 

1 by 8, 8 to 18 feet, No. 2 29. 00 

ROOFING LATH. 

1 by 2, 1 bv 21, and 1 by 3, 10 to 

16 feet $34.00 



PRICES FOR WORKING LUMBER. 

(Per M feet.) 

Saw sizes or SISIE $1.75 

Dre.ssing 1 or 2 sides (except L. B. 

and Nos. 2 and 3 boards) 1.50 

Ship-lap or matching (except as 

specified under D. and M. boards)- 2. 00 
Joists worked to flooring, or grooved 

2 edges, or dressed 4 sides 2. 00 

SPECIAL SIZES. 

For each inch over 12 inches in width 
in timber and plank add 50 cents per M; 
5 inches, 7 inches, 9 inches, and 11 inches, 
sawed to order, $1 per M extra. 



SOUTHERN OR YELLOW PINE. 

Informal arrangements. — The lumber committee of the Council of National 
Defense made an informal agreement with the Southern Pine Association on 
June 13, 1917. This agreement covered items of lumber necessary for the build- 
ing of cantonments. The average price for the grades required was $20 per 
thousand board feet. 

On September 11, 1917, a voluntary reduction of $1 per thousand vras made 
on 1-inch boards and 50 cents per thousand on 2- inch dimensions. Another 
reduction of approximately 50 cents per thousand became effective October 10, 
1917. 

A third reduction in November made a total average reduction of $1.65 per 
thousand board feet. 

On November 21, 1917, the War Industries Board, upon the recommendation 
of the lumber committee,^ approved lumber prices for a period up to December 
10, 1917. The price then in effect was equivalent to $23.20 per thousand feet 
mill run. These prices were published on January 28, 1918, by the southern 
emergency bureau and by the Alabama and Mississippi emergency bureau. 

No action was then taken by any Government agency until March 21, 1918, 
when the price-fixing committee decided not to grant an advance in pMce. Dur- 
ing the period of agreement the prices were fixed to the Government only. 

In June, 1918, the industry asked for another advance in prices with permis- 
sion to apply the fixed price to Government purchases only. Mr. Baruch on 
this occasion stated that " the President was emphatic upon the point that the 
prices fixed should applj*- both to the Government and to the public, even if the 
Government had to suffer thereby."^ 

The price-fixing committee then fixed the price of yellow pine, effective June 
15, 1918, at $28 per thousand board feet to both civilian and Government pur- 
chasers. The new schedules on this basis represented an advance of approxi- 
mately $4.80 per thousand over the former price lists. 

Except for minor modifications, these schedules were reviewed again in 
September, 1918, and remained in force until December 23, 1918, when control 
ceased. At that time the following notice was sent by the lumber division of 
the War Industries Board to the southern lumber administrator : 

Regarding status of unshipped orders entered since June 14, 1918, at the 
expiration of the present leases, December 23, 1918, Government orders will be 
subject to rate. negotiation as to prices. Commercial orders entered during the 
above period at agreed-upon item prices will not be affected.^ 

1 Minutes of the War Industries Board, Nov. 21, 1917. 

* Minute Book V of the price-fixing committee, meeting of June 13, 1918. 

8 Federal Trade Information Service, Dec. 23, 1918. 



782 



HISTORY OF PRICES DURING THE WAR. 



(Nov. 11, 1917, to June 1.5, 1918.) 

Government yellow pine or southern pine maximum prices covering States of Missouri, 
Arkansas, Texas, Oklahoma, Louisiana, Mississippi, Tennessee, and Alabama, and that 
part of Florida lying west of the cast line of Alabama if continued to the Gulf : 



B and 

better 
rift. 



B and 

hotter. 



No. 1 
common 



No. 2 
common. 



1 by 3 flooring 

1 by 4 floorinj; 

1 by flooring 

1 by 3 to inches flooring . . . 
1 by 4 and 6 indies flooring. 

§ by 4 ceiling 

■J by 4 ceiling 

1 by G drop siding 



S44.no 
42.00 



S32. 00 
30. 00 
32.50 



$2-0. 00 
27.00 
27.50 



28. 00 
31.00 
31.00 



25.00 
27. .50 
27.00 



§19.00 
19.00 
20.00 
19.50 
19.50 
18.00 
19.00 
21.00 



B and 
better. 



'C 



No. 1 
common. 



1 by 4, random lengths 

1 by 6 and 8 inches, random lengths . . . 

1 by 10, random lengths 

1 by 12, random lengths 

1 by 4 to 12, raiKiom lengths 

IJ by 4 to S inches, random lengths 

li by 10 and 12 inches, random lengths 

1 J by 4 to 8 inches, random lengths 

li by 10 and 12 inches, random lengths 

2 by 4 to 8 inches, random lengths 

2 by 10 and 12 inches, random lengths . 



S31.50 
33.00 
34.00 
35.00 
33. 00 
38. 00 
40.00 
38.00 
40.00 
33. 00 
40.00 



S28. 00 
.30.00 
31.50 
32.00 
30.00 



831.00 
33.00 
31.00 
3:3.00 



The above prices are for S2S finish ; for S4S add 50 cents per thousand feet ; fo 
specined lengths" add $1 per thousand feet ; for rough deduct 50 cents per thousani 
feet. 



Boards. 


Iby2. 


1 by 3. 


lby4. 


IbyO. 


IbyS. 


1 by 10. 


Iby 12. 


1 by 4 to 
12. 


No. 1 SI or2S 


$24.00 
19.00 


$25. 00 
20.00 


$23.00 
18.00 
15.00 


$24.00 
19.00 
15.50 


$24.00 
20.00 
16.00 


$24.00 
20.00 
16.00 


$27.00 
22.00 
16.50 




No. 2 SI or 23 

No. 3 SI or2S 


$20. 00 
15.50 











For 1 inch No. 1 and No. 2 in specified lengths add 50 cents, except 16 feet and $1 ; 
rough 50 cents less than S2S ; S4S, D. & M. or shiplap add 50 cents to S2S prices. For 
resawing add $1 per thousand feet. 



Dimension. 



2 by 2 No. 1 common, SISIE . 
2 by 3 No. 1 common, SlSlE . 
2 by 4 No. 1 common, SlSlE . 
2 by 6 No. 1 common, SlSlE . 
2 by 8 No. 1 common, SlSlE . 
2 by 10 No. 1 common, SlSlE 
2 by 12 No. 1 common, SlSlE 
2 by 2 No. 2 common, SlSlE . 
2 by 3 No. 2 common, SlSlE . 
2 by 4 No. 2 common, SlSlE . 
2 by 6 No. 2 common, SlSlE . 
2 by 8 No. 2 common, SlSlE . 
2 by 10 No. 2 common, SlSlE 
2 by 12 No. 2 common, SlSlE 



10, 18, 
and 20 
• feet. 



$22. 50 
20.00 
21. .50 
19.00 
21.00 
21.50 
23.00 
21.00 
18.50 
20.00 
17.50 
19.50 
20.00 
21.50 



12, 14, 

and 16 

feet. 



S20. 50 
19.00 
19.50 
18.00 
19.00 
19.50 
21.50 
19.00 
17.50 
18.00 
16.50 
17.50 
18.00 
20.00 



22 and 
24 leet. 



$24. 00 
21.50 
23.00 
20.50 
22.50 
23.00 
24.50 
22.50 
20.00 
21.50 
19.00 
21.00 
21.50 
23.00 



Random. • 



$20.50 
19.00 
19.50 
18.00 
19.00 
19.50 
21.50 
19.00 
17.50 
18.00 
16.50 
17.50 
18.00 
20.00 



No. 3 common, SlSlE, 8 to 20 feet : 2 by 4 and 8 inches, $13 ; 2 by 6, $12.50; 2 by 10, 
$13.50; 2 by 12, $14. 

For D. & M. or shiplap add $1 per thousand to SISIB prices ; rough 50 cents less than 
SlSlE prices; for S4S dimension add 50 cents per thousand to SlSlE prices; for No. 1 
dimension over 24 feet add $1 for each 2 feet up to 32 feet. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 



783 



10 to 20 
20 feet. 



22 and 

24 feet. 



26 feet. 



28 feet. 



30 feet. 



32 feet. 



3 by 4 and 4 by 4 

3 by 6 to 8 by 8 

3 by 10 to 4 by 10 

5 by 10 to 10 by 10 

The above prices on short and on long 
leaf rough No.'l. 

3 by 12 to 5 by 12 

6 by 12 to 12 by 12 

2 by 14 to 5 by 14 

6 by 14 to 8 by 14 

10 by 14 to 14by 14 



S20. 00 
19.00 
23.00 
22.00 



25.00 
24.00 
30.00 
29.50 
29.00 



S21. 00 
20.00 
24.00 
23.00 



26.00 
25.00 
31.00 
30.50 
30.00 



S22. 00 
21.00 
25.00 
24.00 



27.00 
26.00 
32.00 
31.50 
31.00 



S23. 00 
22.00 
26.00 
25.00 



28.00 
27.00 
33.00 
32.50 
32.00 



S24. 00 
23.00 
27.00 
26.00 



29.00 
28.00 
34.00 
33.50 
33.00 



S25. 00 
24.00 
28.00 
27.00 



30.00 
29.00 
35.00 
34.50 
34.00 



The above prices are for short-leaf No. 1 common ; for long-leaf timbers No. 1 common 
i2-inch and 14-inch face add $2 per thousand to prices shown above. 

For merchantable add $3 per thousand for 10 inches and under. 

For merchantable add $2 per thousand for 12 inches and over. 

All prices on the above are based on furnishing rough. 

For dressing .3-inch plank 4 inches and wider and small timbers up to and including 
G by 6 add 50 cents per thousand. 

For dressing 6 by 8 and larger add $1 per thousand. 

For timbers over 14 inches, add .^3 for each 2 inches above 14 inches ; for timbers over 
3^ feet, add $1 for each foot ; for tongue and grooved or shiplapping timbers, add $2 per 
Thousand for 3 inches and over ; for grooving timbers 5 inches thick or thicker for splines, 
add .$5 per thousand to above dressed prices ; for grooving timbers 3 and 4 inches thick 
for splines, add $3 to above dressed prices ; for beveling and outgaging, add $2 per 
thousand feet. 

EXPORT PRICES. 

[Grading as per Gulf coast specifications of 1910.] 

PRIME. 

1-inch random widths and lengths $43. 00 

IJ-inch random widths and lengths 48. 00 

li-inch random widths and lengths 48. 00 

2-inch random widths and lengths 48. 00 

GENOA OR RIO PRIME DEALS. 

3 to 5 inches thick, 4 to 8 inches wide, 16 feet and up to average 24 feet 27. 00 

3 to 5 inches thick, 9 and 10 inches wide, 16 feet and up to average 24' feet 31. 00 

3 to 5 inches thick, 11 and 12 inches wide, 16 feet and up to average 24 feet 35. 00 

MEEeHANTABLE SAWN TIMBERS. 

Regular cubic average : 

30 cubic $31. 00 

32J cubic 32. 50 

35 cubic 34. 00 

37J cubic 35.00 

40 cubic 37. 50 



M. C. B. CAR SIDING PATTERN. 

1 by 4 and 6 inches, B. and better : 

5 feet _. $30. 00 

8 or 16 feet 32.00 

9 or 18 feet 36. 00 

10 or 20 feet 35.00 

M. C. B. CAR LINING AND ROOFING PATTERN. 

1 by 4 and 6 inche.^^, B. and better, 5 feet or multiples , $33. 00 

1 by 4, random lengths, No. 1 27. 00 

1 by 6, random lengths. No. 1 27. 50 

STANDARD CAR DECKING. 

2 by 6 and 8 inches, 9, 10, 18, and 20 feet, dressed to 1| $25. 00 

21 by 6 and 8 Inches, 9, 10, 18, and 20 feet, dressed to 2i 26. 00 

NO. 1 COMMON DIMENSION WORKED TO CAR DECKING. 

2 by 6, 9, 10, 18, and 20 feet, dressed to Ig $21.00 

2 by 8, 9, 10, 18, and 20 feet, dressed to li 23. 00 

For heart-face decking, add $3 per thousand. 

CAR FRAMING. 

Long leaf merchantable grade S4S to J-inch scant and cut to length — 

Up to 8 inches, 20 feet and under $26. 00 

10 inches, 20 feet and under 28. 00 

12 inches, 20 feet and under 33. 00 

14 inches, 20 feet and under 36. 00 



784 HISTORY OF PRICES DURING THE WAE. 



For price on car sills, use timber list ; for price of construction timbers and caps, use 
timber list ; for 85 to 90 per cent cubical contents heart, add $4 per thousand feet. No. 1 
common long-leaf price ; for standard heart with special sap location, add $5 per thousand 
feet to No. 1 common long-leaf price ; for prices for States of Georgia aiul that part Of 
Florida lying east of Alabama e&at line if continued to the Gulf, add $1 per thousand to 
all prices shon'n above. 

(June 14, 1918.) 

After considering the information submitted by the Federal Trade Commis- 
sion as to the cost of manufacturing southern or yellow pine lumber and the 
information submitted by the representatives of the manufacturers thereof at 
the hearings held on the 12th, 13th, and 14th of June, 1918, at which their 
request for a readjustment of prices on their products was heard, the priee- 
lixing committee appointed by the President has determined, by agreement 
with the said representatives of the manufacturers of southern or yellow pine 
lumber, upon the following maximum prices for such lumber. These maximum 
prices shall not be exceeded on any sales and contracts for sale (for mill ship- 
ment) made during a period of three months beginning midnight June 14, 
1918, either to the public, to the Government, to governments of the nations 
associated with us in the present war, or the railroads, whether by rail or by 
water shipment. 

The prices of all southern or yellow pine lumber in the States of Missouri, 
Arkansas, Oklahoma, Texas, Louisiana, Mississippi, Tennessee, Alabama, 
Georgia, and Florida shall not exceed the item prices named in attached li.st, 
except that in the first three States named above an additional price of $3 per 
thousand will be allowed on all items of short leaf soft pine C and better finish, 
casing, base, and jambs. 

Prices on items not covered by above list shall be priced on basis of nearest 
comparable item. 

The usual trade practices shall continue, including cash discounts to be 
applied to the United States Government purchases as well as all others, except 
that in commercial transactions where purchasers do not avail themselves of 
the cash discounts the accounts may be converted into trade acceptances which 
do not bear interest before maturity. 

The custom of delivered prices of lumber to purchasers' destination points 
shall remain unchanged, including the equalization of freight rates. 

Contracts for the sale of lumber entered into in good faith prior to midnight 
June 14, 1918, and enforcible at law, will be performed in accordance with their 
terms, subject, of course, to orders received from the Government which may 
require priority. 

It is imperative that, with the least possible disruption of the industry, the 
vast war needs of the Government, both direct and indirect, for southern or 
yellow pine lumber be supplied on a fair basis; that an adequate supply and 
equitable distribution thereof be assured for essential commercial needs; that 
the movement thereof be facilitated, and that injurious speculation therein be 
prevented. Therefore the procedure outlined below, by agreement with the 
representatives of the manufacturers of southern or yellow pine lumber, has 
been adopted for a period of three months beginning midnight June 14, 1918. 

The procedure is that each manufacturer of southern or yellow pine lumber 
shall— 

(1) Make contracts and accept orders for his product at prices not in excess 
of the applicable maximum prices, always subject to an option at the appli- 
cable maximum prices in favor of the United States or the nominee of the 
War Industries Board. Under this option, which will cover all southern or 
yellow pine lumber down to time of actual delivery to the purchaser, the War 
Industries Board, to any extent required, will allocate either to the Govern- 



GOVEKNMEKT KEGULATIONS RELATING TO PRICES.- 



785 



nlent or to other essential users. Any balance not so allocated will be released 
for sale to commercial buyers, but at prices no greater tban tbose determined 
upon as above set forth. 

(2) Comply with the directions of the War Industries Board as issued from 
time to time with reference to filling commercial requirements in the order of 
their public importance and to furnishing such information and making such 
reports as may be required. 

(3) Keep up to the best of his ability the production of southern or yellow 
pine lumber, so as to insure an adequate supply so long as the war lasts. 

(4) Neither reduce the scale of wages now being paid nor change funda- 
mental labor conditions now in force. 

The Government will apportion the car supply available for lumber and 
arrange for its transportation, subject to allocation by the War Industries 
Board as aforesaid, to the end that injury to the industry due to abnormal 
war-time conditions be neutralized so far as may be. 

Foreign trade, except to the governments ot nations associated with us In 
the present war, is not to be affected by this ruling. 

GOVERNMENT MAXIMUM PRICE LIST. 

Government yellow pine or southern pine maximum prices, effective midnight June 14 
to and including September 14, 1918, covering States of Missouri, Arkansas, Texas, Okla- 
homa, Louisiana, Mississippi, Tennessee, Georgia, Florida, and Alabama : 



B and 

better 

heart 

rift. 



B and 
better 
rift. 



Band 
l^etter. 



No.l 

common. 



No. 2 
common. 



1 by 3 flooring 

1 J by 3 flooring 

1 by 4 flooring 

1 J by 4 flooring 

1 by 6 flooring 

1 by 3 to 6inch flooring 

1 by 4 and6 inch flooring 

i by 4 jelling 

I by 4ceiling 

J by 4 oeiling 

I by 4 partition 

I by 6 partition 

1 by 6 drop' siding 

Bevelsiding from l-inch stock . . 
Bevel siding from li-inch stock. 



S54.00 
66.00 
52.00 
63.00 



$48.00 
60.00 
46.00 
67.00 



$36.00 
48.00 
34.00 
45.00 
36.50 



i$34.00 



$24. 50 



132.00 

I'ss.'oo' 



24.50 



30. 50 
32.00 
35.00 
37.00 
39.50 
35.(50 
25.00 
27.50 



29.00 
30.50 
33.00 
34.00 
36. 50 
32.^0 
23.00 
25.50 



25.50 
25.00 
25.00 
22.50 
23.50 
24.50 



26.50 
19.00 
21.50 



1 Denotes grade as per rule on flooring. Add $1 per thousand feet for specified lengths. 



Finish S2S. 



Band 

better. 



C. 



No. 1 
common. 



1 hjA random .". . . . 

1 by 6 and 8 inch, random 

1 by 10 random 

1 by 12 random 

1 by 4 to 12 inch random 

IJ by 4 to8-inchrandom 

liby 10 and 12 inch random 

1.J by 4 to 8 inch random 

1-J by 10 and 12 inch random 

2 by 4 to 8 inch random 

2 by 10 and 12 inch random 

Molded casing and tese from 1 by 4, 6 and 8 inch stock 
Molded casing and base from 1 by 5 and 10 inch stock . 

Jambs from 4/4 stock 

Jambs from 5/4 and 6/4 stock and 8/4 



$35. 50 
37.00 
38.00 
39.00 
37.00 
42.00 
44.00 
42.00 
44.00 
42.00 
44.00 
43.00 
45.00 
43.00 
48.00 



S32. 00 
34.00 
35.50 
36.00 
34.00 



36.50 
38.50 
36.50 
38.50 



The above prices are for S2S finish; for 848 add 50 cents per thousand feet: for specified lengths, addSl 
per thousand feet; for rough, deduct 50 cents per thousand feet. 

Note.— C and better shortleaf finish, base, casing, and jambs manufactured in the States of Missouri, 
Oklahoma, and Arkansas may be sold at $3 per thousand higher than above prices. 

Moldings : If inch width and smaller, 55 per cent discount ; 1| inches and wider — 50 
per cent discount. 

125547°— 20 50 



786 



HISTORY OF PKICES DURHSTG THE WAE. 



Boards. 


1 by 2. 


lby3. 


1 l;>y i. 


1 liy 6. 


1 by 8. 


1 by 10. 


1 by 12. 


lbv4 
to 12 


No. 1, Si or2S 


329.50 
24.50 


S.30.50 

25. 50 


828. 50 
23. 50 
20.50 


S29.50 
24.50 
21.00 


S29. 50 
25.50 
21.50 


$29. 50 
25.50 
21.50 


S32. 50 
27.50 
22.00 




No. 2, Slor2S 

No. 3, Slor2S 


S25. 50 
21.00 


No. 4, SI or 2S 






15.00 










! 


1 





For 1 inch No. 1 and No. 2 in specified lengths, add 50 cents, except 16 feet add $1 ; 
rough, 50 cents less than S2S : S4S, D. and M. or shiplap, add 50 cents to S2S prices, 
or resawing, add .$1 per thousand. 

Boards when ordered kiln dried, add $1 per thousand feet. 



Dimensions 



2 by 2, No. 
2 by 3, No. 
2 by 4, No. 
2 by 6, No. 
2 by 8, No. 
2 by 10, No- 
2 by 12, No, 
2 by 2, No. 
2 by 3, No. 
2 by 4, No. 
2 by 6, No. 
2 by 8, No. 
2 by 10, No, 
2 by 12, No 
2 by 4 bv 2 
2 by 6, No. 
2 by 10, No 
2 by 12, No 



1 common, SISIE 

1 common, SlSlE 

1 common, SlSlE 

1 common, SlSlE 

1 common, SlSlE 

, 1 common, SlSlE 

. 1 common, SlSlE 

2 common, SlSlE 

2 common, SlSlE 

2 common, SlSlE 

2common, SlSlE 

2 common, SlSlE 

. 2 common, Si SI E 

. 2 common, SlSlE :... 

by 8, No. 3 common, SlSlE (8 to 20 feet) . 

3 common, SlSlE (8 to 20 feet) 

. 3 common, SlSlE (8 to 20 feet) 

. 3 common, SlSlE (8 to 20 feet) 



10, 18, 

and 20 

feet. 



S26. 50 
24.00 
25.50 
23.00 
25.00 
25.50 
27.00 
25.00 
22. 50 
24.00 
21.50 
23.50 
24.00 
25.50 



12,14, 
and 16 
feet. 



S24. 50 
23. 00 
23. 50 
22.00 
23.00 
23.50 
25. 50 
23.00 
21.50 
22.00 
20.50 
21.50 
22.00 
24.00 



22 and 
24 feet. 



S28. 00 
25. 50 
27.00 
24. .50 
26.50 
27.00 
28.50 
26.50 
24.00 
25. 50 
23.00 
25. 00 
25. 50 
27.00 



Random. 



S24. 50 
23. 00 
23.50 
22.00 
23.00 
23. 50 
25. 50 
23.00 
21.50 
22.00 
20.50 
21.50 
22.00 
21.00 
17.00 
13.50 
17.50 
IS. 00 



Dimension when ordered sized 1-ineh scant in thickness and/or/width, add $2 per 
thousand feet. 

Dimension when ordered kiln-dried, add $2 per thousand feet. 

Dimension D. and M. or shiplap, add $1 per thousand to SI SIB prices; rougb, 50 
cents loss than SlSlE prices ; S4S, add 50 cents per thousand to SlSlE prices. 

For No. 1 common, dimension over 24 feet, add $1 for each 2 feet up to 32 feet. 

Note. — All lumber not over 2 inches thick, when ordered odd or fractional lengths, will 
invoice as of next longer length in multiple of 2 feet. 



Timbers. 



10 to 20 

feet. 



22 and 24 
feet. 



26 feet. 



28 feet. 



30 feet. 



32 feet. 



3 by 4 and 4 by 4... 

3by GtoSby 8 

3 by 10 to 4 by 10... 
5by 10 to 10 by 10., 
3by 12to5byl2... 
6 by 12 to 12 by 12.. 
3by 14 to 5 by 14... 
6 by 14 to 8 by 14... 
lOby 14tol4by 14 



S25. 00 
24.00 
28.00 
27.00 
30.00 
29.00 
35.00 
34.50 
34.00 



S2C. 00 
25.00 
29.00- 
28.00 
31.00 
30.00 
36.00 
35.50 
35.00 



S27. 00 
26.00 
30.00 
29.00 
32.00 
31.00 
37.00 
36.50 
30.00 



S28. 00 
27.00 
31.00 
30.00 
33.00 
32.00 
38.00 
37.50 
37.00 



S29. 00 
28. 00 
32.00 
31.00 
34.00 
33.00 
39.00 
38.50 
3S.00 



S30. 00 
20.09 
33.00 
32.00 
35. 00 
34.00 
40.00 
39.50 
39.00 



Add for plank 2 inches thick, cut full size, $1 per thousand to list of 3 inches of same 
width or over. 

Add for timbers 14 inches $3 for each 2 inches over 14 inches. 

All for timbers over 32 feet $1 for each foot over 32 feet. 

Prices above are for short-leaf No. 1 common rough ; for better qualities and various 
working apply the following differentials : 

For long leaf No. 1 common add $2 per thousand feet. 

For merchantable 10 inches and smaller add $3 per thousand to No. 1 long-leaf price. 

For merchantable 12 inches and larger add .$2 per thousand to No. 1 long-leaf price. 

For prime rule of 1905 add $5 to No. 1 long-leaf price. 

For 85 to 00 per cent cubical contents heart, 12 inches and under, add to No. 1 common 
long leaf ii;3 per thousand. 

For 85 to 90 per cent cubical contents heart, 14 inches and under, add to No. 1 common 
long leaf $3.50 per thousand. 

For 85 to 90 per cent cubical contents Heart, 16 inches and under, add to No. 1 com- 
mon long leaf $4.50 per thousand. 

For 85 to 90 per cent facial area heart, 12 inches and under, add to No. 1 common 
long leaf $5 per thousand. 



GOVERNMENT EEGULATIONS RELATING TO PRICES. 787 

For 85 to 90 per cent facial area heart, 14 inches and under, add to No. 1 common 
long leaf $5.50 per thousand. 

For 85 to 90 per cent facial area heart, . 16 inches and under, add to No. 1 commou 
long leaf $6.50 per thousand. 

For all heart timbers 12 inches and under add to No. 1 common long leaf $7 per 
thousand. 

For all heart timbers 14 inches and under add to No. 1 commooi long leaf $8 per 
thousand. 

For all heart timbers 16 inches and under add to No. 1 common long leaf $10 per 
thousand. 

For standard heart timbers 12 inches and under add to No. 1 common long leaf $4 per 
thousand. 

For standard heart timbers 14 inches and under add to No. 1 common long leaf $5.50 
per thousand. 

For standard heart timber.'? 16 inches and under add to No. 1 common long leaf $6.50. 

For heart face, one face only, 12 inches and under, add to No. 1 common long leaf 
$4.50 per thousand. 

For heart face, one face only, 14 inches and under, add to No. 1 common long leaf 
$5 per thousand. 

For heart face, one face only, 16 inches and under, add to No. 1 common long leaf 
$6 per thousand. 

Add for dressing $1 per thousand feet. 

Add for tongue and groove or shiplap $2 per thousand feet. 

Add for grooving $3 per thousand to dressed price stock 3 inches and 4 inches thick. 

Add for grooving ,|5 per thousand to dressed price stock 5 inches and thicker. 

Add for beveling and outgauging $2 per thousand feet to dressed prices. 

Note. — All timber when ordered in odd or fractional lengths, will invoice as of next 
longer length a multiple of 2 feet. 

Add $1 to list when ordered cut on fractional sizes. Prices on fractional sizes will 
be determined as follows : Sizes containing fractions under one-half inch shall take 
price of nest smaller size listed. Sizes containing fractious half inch or greater shall 
take price of next larger size listed. For examples : 

5i by 8J inches will take price of 6 by 8 plus $1. 
5i by 81 inches will take price of 6 by 10 plus $1. 

Ship decking, United States Navy specifications No. 39 P. I. B. : 

4i by 4i and smaller when not more than 1 inch off square $100. 00 

S| by 5i and smaller when difference between thickness and width is 

over 1 inch 116. 00 

EXPORT PRICES. 

[Grading as per Gulf coast specifications of 1910.] 



1-inch random v/idths and lengths $47. 00 

IJ-inch random widths and lengths 52. 00 

IJ-inch random widths and lengths 52. 00 

2-inch random widths and lengths 52. 00 

CEXOA OK RIO PRIME' DEALS. 

3 to 5 inches thick, 4 to 8 inches wide, 16 feet and up, to average 24 feet $32. 00 

?. to 5 inches thick, 9 to 10 inches wide, 16 feet and. up, to average 24 feet 36. 00 

3 to 5 inches thick, 11 and 12 inches wide, 16 feet and up, to average 24 feet 40. 00 

MERCHANTABLE SAWX TIMBERS. 

Regular cubic average : 

80 cubic 1 $33. 50 

32J cubic •_ 35. 00 

35 cubic 86. 50 

37J cubic 38. 00 

40 cubic 40. 00 

Note. — The southern .yellow pine maximum Government price list for the period from 
midnight September 23 to and including December 23, 1918, was the same as the 
preceding price list except in the following particulars : 

Under No. 2 common : 1 by 3 flooring is changed to $26 ; 1 by 4 flooring, $25 ; 1 by 6 
flooring, $26 ; .| by 4 partition, $26 ; and 1 by 6 partition, $27. For air-dried flooring 
$1 per thousand feet is deducted. 

The following prices for No. 2 common are added: IJ by 4 to 8 inches, random, $31; 
IJ by 10 and 12 inches, random, $33 ; 15 by 4 to 8 inches, random, $31 ; li by 10 and 
12 inches, random, $33. 

Under " Boards " a price for No. 2, SI or 2S, is omitted. 

Under " Dimension " the price for 2 by 2, No. 2 common, SISIE is increased to $26. 
For merchantable long leaf 10 inches and under wide $3 per thousand feet is added, 
and $2 per thousand feet is added for merchantable long leaf 12 inches and over wide. 

The note under " Timbers " in the preceding list reading "Add for plank 2 inches 
thick, cut full size, $1 per thousand, to list at 3 Inches of same width or over," is 
omitted from this later list. 

A price is added of $3.65 for No. 1 standard yellow pine lath, and $2.65 for No. 2 
standard yellow pine lath. 



788 



HISTORY OF PRICES DURING THE WAR. 



RAILROAD AND CAR MATERIAL. 

Oovernment yellow pine or southern yellow pine maximmn prices are effective mid- 
night June 14 to and including September 14, 1918, covering States of Missouri, Arkansas, 
Texas, Oklahoma, Louisiana, Slississippi, Tennessee, Georgia, Florida, and Alabama : 

FLOORING, CEILING, AND DROP SIDING, WORKED STANDARD PATTERNS. 

Length 8 to 20 feet.' 



B and 

better, 
heart rift 



Band 

better, 

rift. 



B and 

better. 



No. 1. 



No. 2. 



1 by 3 flooring 

IJ by 4 flooring 

1 by 4 flooring 

1} by 4 flooring 

1 by" ti flooring 

1 by 3 to inch flooring. 
1 by 4 to fi inch flooring. 

g by 4 ceiling 

f by 4 ceiling 

H by 4 ceiling 

1 J by 4 ceiling 

3 hy 4 partition 

5 by partition 

1 by 6 drop siding 



$54.00 
66. 00 
52. 00 
63.00 



SiS. 00 
60. 00 
46.00 
57.00 



$36.00 
48.00 
34.00 
45. 00 
36. 50 



$34.00 



$24.50 



32.00 



24.60 



33.00 



32.00 
35.00 
40.00 
47.00 
37.00 
39.50 
35.00 



30.50 
33.00 
37.00 
43.00 
34.00 
36.50 
32.50 



25.50 
25.00 
25.00 
23.50 
24.50 
27.50 
30.50 



26.50 



1 Add $1 per thousand feet for specified lengths. 
ROUGH BOARDS AND FINISH RANDOM LENGTHS.i 



lby2 

Iby3 

Iby4 

Iby6 

IhyS 

IbylO. 

Ibyl2 

1 J by 4 to 8 inches 

IV by 10 and 12 inches 

U by 4 to 8 inches 

l| by 10 and 12 inches 

l| by 4 to 8 inches 

IJ by 10 and 12 inches 

2 by 4 to 8 inches 

2 by 10 and 12 inches. 



B and 
better.2 



$36. 00 
37.50 
35.00 
36.50 
36.50 
37.50 
38.50 
41.50 
43. 50 
41.50 
43. 50 

. 41.50 
43.50 
41.50 
43.50 



'C."3 



$32. 50 
34.50 
31.50 
33.50 
33.50 
35.00 
35.50 






No. 1 
common. 



No. 2 
common.' 



$24. 00 
25. 00 
23. 00 
24.00 
25.00 
25.00 
27.00 



(0 



No. 3 
common. 



$20. 50 
20.50 
21.00 
21.00 
21.50 



(5) 



No. 4 
common. 



$14. 50 
14.50 
14.50 
14.50 
14.50 






1 In all grades for widths exceeding 12 inches, including 16 inches, add $3 for each 2 inches or fraction 
thereof. 

2 In grades B and better and "C" for specified lengths up to 20 feet add $1. 

s In grades B and better, "C," Nos. 1 and 2 common for 22 and.24 feet add $2. 

< In grades No. 1 and No. 2 common for specified lengths up to 20 feet, except 16 feet, add 50 cents a thou- 
sand; for 16 feet add $1. , 
6 For 1-inch common stock ordered kiln dried add $1. 

ROUGH PLANK AND DIMENSION.i 



12, 14, and 10, 18, and 
16 feet. 1 20 feet. 



22 and 242 
feet. 



Random. 



2 by 2, No. 1 common . 
2 by 3, No. 1 common. 
2 by 4, No. 1 common . 
2 by 6, No. 1 common. 
2 by 8, No. 1 common. 
2 by 10, No. 1 common 
2 by 12, No. 1 common 
2 by 2, No. 2 common . 
2 by 3, No. 2 common. 
2 by 4, No. 2 common. 
2 by 6, No. 2 common . 
2 by 8 , No 2 common . 
2 by 10, No. 2 common 
2 by 12, No. 2 common 



.$24.00 
22.50 
23.00 
21.50 
22.50 
23. 00 
25.00 
22.50 
21.00 
21.50 
20.00 
21.00 
21.50 
23.60 



$26. 00 
23.60 
25.00 
22.50 
24.50 
25.00 
26.50 
24.50 
22.00 
23.50 
21.00 
23.00 
23.60 
25.00 



$27. 60 
25.00 
26.00 
24.00 
26.00 
26.50 
28.00 
26.00 
23. 50 
26.00 
22.50 
24.50 
26.00 
26.50 



324.00 
22.50 
23.00 
21.50 
22.60 
23.00 
25.00 
22.60 
21.00 
21.50 
20.00 
21.00 
21.50 
23.50 



1 For 2-inch stock ordered kiln dried add $2. 

2 For lengths over 24 feet add $1 for each 2 feet up to and including 32 feet. 



GOVEENMBNT EEGULATIOjSTS EELATIIsTG TO PRICES. 789 

CAR SIDING, LINING AND ROOFING WORKED TO M. C, B. PATTERN.i 



1 by 4 B and better . . 
1 by 6 B and better . . 
1 by 4, No. 1 common 
1 by 6, No. 1 common 
1 by 4, No. 2 common 
1 by 6, No. 2 common 



5 feet. 8 feet. 



$36.00 
36.00 
31.00 
31.00 
27.50 
27.50 



S35.00 
35.00 
30.00 
30.00 
27.50 
27.50 



9 feet. 



$39.00 
39.00 
34.00 
34.00 
27. .50 
27.50 



10 feet. 



S38.00 
38.00 
33.00 
33.00 
27.50 
27.50 



12 feet. 



S37.00 
37.00 
32.00 
32.00 
27.50 
27.50 



Random 
lengths 
lining. 



834.00 
36.50 
32.50 
33.00 
24.50 
25.50 



I In car lining for specified lengths add SI per M feet. 
STANDARD GRADE CAR DECKING. 

2 by 6 and 8 inches, 9, 10, 18, and 20 feet, dressed to If inches S29.00 

2h by 6 and 8 inches, 9, 10, 18, and 20 feet, dressed to2J inches 30.00 

3 by 6 and 8 inches, 9, 10, 19, and 20 feet, dressed to25 inches 30.00 

NO. 1 COMMON CAR DECKING,i DRESSED AND MATCHED OR SHIPLAPPED TO 

M. C. B. PATTERN. 



9 feet. 



9 feet 
6 inches. 



10 feet. 



2 by 6 and 8 inches I S26. 00 



2 by 10 inches. 
2| by 6 and 8 inches . 
2|by 10 inches , 

3 by 6 and 8 inches . . 
3 by 10 inches 



28.50 
27.00 
31.00 
26.00 
30.00 



S27. 50 
30.00 
28.50 
32.50 
27.50 
31.50 



S26.00 
28.50 
27.00 
31.00 
26.00 
30.00 



1 For heart faced decking, 6 and 8 inches, add S3; for 10 inches add S4. 

CAR FRAMING, LONGLEAF SQUAHE AND SOUND GRADES S4S TO i-INCH SCANT AND 

CUT TO LENGTH. 

LTp to 8 inches , 20 feet and imder §29. 00 

10 inches , 20 feet and imder 32. 00 

12 inches , 20 feet and under [ 34. oo 

14 inches, 20 feet and under [ 39. 00 

CAR SILLS. 
For price on car sills use timber list. 

ROUGH PLANK AND TIMBERS, NO, 1 COMMON, CUT TO FULL SIZE.i 



10 to 20 

feet. 



22 and 24 
feet. 



26 feet. 



28 fe«t. 



30 feet. 



32 feet. 



2by2 

2 by 3 

2by4 

2by6 

2by8 

2byl0 

2byl2 

3by 4to4bv4 

3by 6to8by8 

3 by 10 to 4 bv 10.... 
5by 10 to 10 by 10... 
3 by 12 to 5 by 12.... 
6 by 12 to 12 by 12... 
3 by 12 to 5 by 14 2 . . 
6by 14 to 8 by 142.. 
10 by 14 to 14 by 14 2 



S27.00 
26.00 
26.00 
25.00 
25.00 
29.00 
31.00 
25.00 
24.00 
28.00 
27.00 
30.00 
29.00 
35. 00 
34.50 
34.00 



$28. 00 
27.00 
27.00 
26.00 
26.00 
30.00 
32.00 
26.00 
25.00 
29.00 
28.00 
31.00 
30.00 
36.00 
35.50 
35.00 



S29.00 
28.00 
28.00 
27.00 
27.00 
31.00 
33.00 
27.00 
26.00 
30.00 
29.00 
32.00 
31.00 
37.00 
36.50 
36.00 



830.00 
29.00 
29.00 
28.00 
28.00 
32.00 
34.00 
28.00 
27.00 
31.00 
30.00 
33.00 
32.00 
38.00 
37.50 
37.00 



831.00 
30.00 
30.00 
29.00 
29.00 
33.00 
35.00 
29.00 
28.00 
32.00 
31.00 
34.00 
33.00 
39.00 
38.50 
38.00 



$32.00 
31.00 
31.00 
30.00 
30.00 
34.00 
36.00 
30.00 
29.00 

as. 00 

32.00 
35.00 
34.00 
40.00 
39.50 
39.00 



i For timbers over 32 feet add $1 for each additional foot in length over 32 feet. 
» For timbers over 14 iaches in width, add S3 for each 2 inches or fraction thereof. 



790 



HISTORY OF PRICES DURING THE WAE. 



GENERAL EXCEPTIONS. 

[Add to foregoing prices per 1.000 feet b. m.] 

Amount 

to be added. 

In No. 1 common plank and timbers for long leaf ^2. 00 

Add to No. 1 common long leaf for following grades : 

For sound and square edge j.OO 

For standard interstate rules, 1905, same as No. 1 long leaf. 

For merchantable, 1905, 10 inches and under 3. 00 

For merchantable, 1905. 12 inches and under 2.00 

For prime interstate rules, 1905 5. 00 

For 85 to 90 per cent cubical contents 12 inches and under 3. 00 

For 85 to 90 per cent cubical contents 14 inches and under 3. 50 

For 85 to 90 per cent cubical contents 16 inches and under 4. 50 

For heart face, 1 face only. 12 inches and under 4.50 

For heart face, 1 face only, 14 inches and under 5. 00 

For heart face, 1 face only, 16 inches and under 6. 00 

For 75 per cent heart-girth measurement 12 inches and under 3. 50 

For 75 per cent heart-girth measurement 14 Inches and under 4. 50 

For 75 per cent heart-girth measurement 16 inches and under 5. 50 

For standard heart grade 12 inches and under 4. 00 

For standard heart grade 14 inches and under 5. 50 

For standard heart grade 16 inches and under 6. 50 

For 85 to 90 per cent facial-area heart 12 inches and under 5. 00 

For 85 to 90 per cent facial-area heart 14 inches and under 5. 50 

For 85 to 90 per cent facial-area heart 16 inches and under 6. 50 

For all heart 12 inches and under ; 7. 00 

For all heart 14 inches and under 8. 00 

For all heart 16 inches and under 10. 00 



For surfacing add- 



SlSor2S. 



SISIE. 



S4S. 



S2S and 
T. and G. 



Grooved 

for 
splines. 



For linch or less 

For 2 inches or less . . . 
For 3 inches or less. . . 
For 4 inches or less . . . 
For 5 inches or less . . . 
For 6 inches or larger. 



SO. 50 



1.00 
1.00 
1.00 
1.00 



SO. 50 
.50 
1.00 
1.00 
1.00 
1.00 



$1.00 
1.00 
1.00 
1.00 
1.00 
1.00 



SI. 00 
1.50 
2.00 
2.00 
2.00 



S4.00 
4.00 
4.00 
6.00 
6.00 



Invoices shall be based on actual board-foot contents of the rough size and length 
ordered, except that thickness under 1 inch shall be based on 1 inch. 

When stock ordered cut to odd length sufficient amount should be added to price of 
next longer even length to cover waste in cutting into odd lengths. 

Pieces ordered larger at one end than at the other, or wider on one side than the other. 
«hall be computed as of the larger end or wider side. 

All sizes which include fractions under one-half inch shall take the same price as the 
next lower inch listed. Sizes which include fractions one-half inch or over shall "take 
the same price as the next higher inch listed. Example : 5i by 8.? would take the price 
of 5 by 10 inches. Add $1 to list vfhen ordered to cut on fractional size. 

Lengths which include odd inches shall take the same base price as .the next longer 
length listed, with allowance for odd lengths added (see general exceptions). Example: 
41 by S^j. 28 feet 6 inches, would take the base price of 4 by 10, 30 feet, to which woiild 
he added the allowance for odd lengths. 

WESTERN SPRUCE. 



At a conference of spruce manufacturers of Washington and Oregon and 
representatives of the Signal Corps of the United States Army, Aircraft Pro- 
duction Board, the British, French, and Italian commissions, and the lumber 
committee of the Council of National Defense, held in July, 1917, the spruce 
manufacturers agreed to furnish aircraft spruce of specified quality and size 
during the remainder of the year at $105 per thousand board feet. 

On April 10, 1918, the spruce production division of the Signal Corps, United 
States Army, issued a new schedule of prices for western spruce and Port 
Orford cedar airplane material. The prices for "A" wing beam stock of 
western spruce and Port Orford cedar was set at $175 per thousand board feet 
f. o. b. mill ; " B " long clears at $80 per thousand board feet f. o. b. mill ; and 
" C " short and thin clears at $45 per thousand board feet f. o. b. mill. The 
price for western spruce cants for aircraft material, grade 1, was set at $90 
per thousand board feet f. o. b. mill; grade 2, $50 per thousand feet f. o. b. 
mill. These prices remained in effect throughout the remainder of the year. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 



791 



TREENAILS. 



The first control of the price of treenails was exercised by the Emergency 
Fleet Corporation in the adoption of the schedule of prices of April 1, 1918. This 
schedule was revised on July 11, 1918, and on July 31, 1918. The first revision 
allowed an increase in prices of 30 per cent and the second one of 20 per cent, 
to be retroactive through July 12, 1918. On November 22, 1918, again, the 
schedule of July 31, 1918, was indefinitely extended without change.^ 

[Prices per thousand pieces f. o. b. sMpping points fixed for black or yellow locust square treenails, pur- 
chased in li-incii squares cut fj to J inch full for use in Government hulls, inspections at cars.] 



APRIL 1, 1918. 



nspections at cars. 
EFFECTIVE .JULY 12, 1918.2 



Lengths. 


Prices. 


Lengths. 


Prices. 


Indies. 




Inches. 




10 


S17. 50 


32 


$67. 75 


12 


2L25 


34 


74.50 


14 


25.00 


36 


81.25 


16 


29.00 


38 


88.50 


18 


33.00 


40 


96.00 


20 


37.00 


42 


105. 75 


22 


41.50 


44 


116. 25 


24 


46.25 


46 


127.00 


26 


51.25 


48 


138. 25 


28 


56.25 


50 


150. 00 


30 


61. 50 









Prices l-J- 




Prices 1 J 


Lengths. 


inch 


Lengths. 


inch 


, 


squares. 




squares. 


I-nches. 




Inches. 




10 


$20. 70 


32 


S105. 60 


12 


25.20 


34 


116. 40 


14 


29.70 


36 


■ 127. 20 


16 


34.20 


38 


138. 00 


18 


38.70 


40 


150. 00 


20 


43.20 


42 


164.40 


22 


48.60 


44 


181.20 


24 


72.00 


46 


1-98.00 


26 


80.40 


48 


216. 00 


28 


87.60 


50 


234. 00 


30 


96.00 







1 Memorandum from the supply and sales division of the Emergency Fleet Corporation. 

2 This schedule was adopted on July 31, 1918, but was made retroactive to July 12, 191S. 

Note.— Allowance for turning is $10 per 1,000 pieces if single drift or $15 if double drift. Price for 1| 
inch squares is S6 per thousand pieces less than those shewn above. Intermediate lengths at average of 
next highest and next lowest. 



8. BUILDING MATERIALS. 



Price control was exercised over the following building materials, other than 
hiniber : Brick, gypsum wall board, gj'psum plaster board, hollow building tile, 
millwork, Portland cement, sand, gravel and crushed stone. The prices here 
scheduled applied only to Government purchases.' 

BRICK. 

The following schedule showing the prices of brick fixed by the price-fixing 
committee was issued on February 26, 1919 : 



No. 



Districts. 



Hard- 
burned 
brick. 



Light- 
burned or 
salmon 
brick. 



Period covered. 



Metropolitan, New York 

Do 

Pliiladelphia, Pa 

Do 

Washington, D. C.a 

Do 

Baltimore, Md 

Do 

New England States 

New York east of Meehanicsville. 

New Jersey north of Trenton 

Long Island, N. Y 

Virginia ^ 



Part of North Carolina s. 

Southern States * 

Western Pennsj'^lvania ^. 

Ohio 6 

Illinois 

Mansfield , Ark 

Cofiey ville, Kans 

Tucson , Ariz 

St. Louis, Mo 

Chicago, 111 



Per M. 
$11.50 
12.50 
16.50 
17.50 
14.00 
15.00 
15.00 
16.00 
17.50 
12. 50 
16. 50 
13.50 



Per M. 
$9.50 
10.50 
14.50 
15.50 
12.00 
13.00 
13.00 
14.00 
15.50 
10.50 
14.50 
11.50 



July 1, 
Nov.l 
Julyl, 
Nov. 1 
Julyl, 
Nov.l 
Julyl, 
Nov. 1 



1918,toOct. 31, 191S. 
, 1918, to Nov. 30, 1918. 

1918, to Oct. 31,1918. 

1918,toJan. 31, 1919. 

1918,to Oct. 31,1918. 
,1918, to Jan. 31, 1919. 
,1918, to Oct. 31, 1918. 
, 1918, to Jan. 31, 1919. 



Covering all allocations at tenta- 
tive prices between ixiiy 1, 1918, 
and Feb. 27, 1919. 



16.00 





16.00 


14.00 


15.50 


13.50 


15.00 


13.03 


12.00 


10.0 J 


14.00 


12.00 


16.50 


14.59 


11.00 


9.00 


'14.50 


'14.50 



1 See report of Mr. Richard L. Humphrey, director of the building materials division of the War In- 

*^" Mclflxldlin face common brick, $16, July 1, 1918, to Oct. 31, 1918. Price fixed on face common brick 
817 Nov. 1, 1918, to Jan. 31, 1919. ^ ^ . • j- -j i i * 

3 'Brick costs m group No. 5 varied so greatly that it was necessary to fix prices on mdividual plants 
Prices on hard brick range from $11 to $16; prices on light-burned or salmon brick range from $9 to $14. 

4 Brick costs in group No. 6 varied so greatly that it was necessary to fix prices on mamdual plants, 
Prices on hard brick raSge from $10.50 to $18; prices on light-burned or salmon brick range from $8.50 to$13, 

6 Except one plant, Johnsonbiu-g, Pa., $18.42 for hard brick. ,,.,,, , i i, -^i 

ExceSt one nlant Spruig Wells, Mich., $14.50 for hard brick and $12.50 for light-burned or salmon brick 
The S are KeVTbrick, . 0. b. car's, trucks, or barges at plants; an addit oual of $2 per M was al 
lowed 4ere brick had to be trucked outside of the plant to the marest railroad sidmg or where deli^^ 
over rail at dock. They are based on not less than 75 per cent hard-burned brick nor more than 25 per 
cent light-burned or salmon brick. 

' Sand lime brick. 

792 



GOVERNMENT REGULATIONS RELATING TO PRICES. 793 

GYPSUM WALL BOARD AND PLASTER BOARD. 

Pending the establishment of fixed prices, all orders were allocated at tenta- 
tive prices. 

On February 27, 1919, the price-fixing committee established the following 
maximum prices, applicable to purchases at tentative prices made by Govern- 
ment agencies during the year 1918. 

IGYPSULI WALL BOARD. 

Prices on f-inch thick, 32 and 48 inches wide, and of varying lengths, for four 
firms, among whom the orders w^ere allocated at $22 and $23.^ 

GYPSUM PLASTER BOAKD. 

Prices on |-inch thick, 32 and 36 inches wide, and varying lengths, allocated 
among 10 firms at prices ranging from $18 to $28.' 

The price for f^-inch plaster board was $1 per thousand square feet less than 
for the f-inch. 

HOLLOW BUILDING TILE. 

Prices of hollow building tile were first fixed for the period ending July 1, 
1918, and were advanced slightly for the period from July 1, 1918, to January 1, 
1919. 

JULY 25, 1918. 

At a meeting of the price-fixing committee of the War Industries Board, 

Thursday, July 25, 1918, the following prices for hollow building tile were 

fixed for Government purchases made on the tentative basis prior to July 1, 

1918: 

Per ton. 

Perth Amboy, N. J $9-00 

St. Marys, Pa 7.20 

Canton, Ohio 6. 75 

Terre Haute, Ind 6.75 

Louisville, Ky 8. 10 

Birmingham, Ala 8. 55 

Mason City, Iowa — 7. 20 

CofEeyville, Kans — 7. 20 

The following tentative prices for Government purchases, made prior to July 
1, 1918, are to be subject to final action by the price-fixing committee upon 
presentation of additional data by the Federal Trade Commission : 

Per ton. 

Elmendorf, Tex $10. 00 

Athens, Tex 10. 00 

Salt Lake City, Utah 10.00 

Los Angeles, Calif 10. 00 

Lincoln, Califs 10. 00 

Seattle, Wash 10.00 

1 Prices were per thousand square feet f. o. b. ears at the plants of the companies 
named. 



794 



HISTORY OF PEICES DURING THE WAR. 
I>ECEMBEE 7, It) IS. 



At a meeting of the price-fixing committee of the War Industries Board, 
Saturday, December 7, 391S, the following prices on liollow building tile w^re 
fixed for Government purchases made during the period from July 1, 1918, 
to January 1, 1919 : 

Per ton. 

Perth Amboy, N. J $9. 7^^ 

St. Marys, Pa 7.95 

Canton, Ohio 7. 50 

Terre Haute, Ind 8.00 

Lotiisville, Ky 8. 10 

Birmingham, Ala 8. .55 

Mason City, Iowa 7.20 

Coffevville, Kans 7. 20 

Elmendorf, Tex 11. 00 

Athens, Tex 1 11. 00 

Salt Lake City, Utah 10. -00 

Los Angeles, Calif L lO./OO 

Lincoln, Calif 10. 00 

Seattle, Wash 10. 00 

The above prices are based upon standard, scored commercial kihi run tile, 
meeting the requirements of the attached specification. If smooth or face tile 
is required, there will be an additional allowance of $1 per ton. If salt-glazed 
tile is required, there will be an allowance of $1.50 per ton. If jamb tile is 
required, there will be an additional, allowance of $2 per ton on the same 
weight basis as the same full size ordinary tile. Fractional portions of ordinary 
tile shall carry the same ratio of price of such tile as that of the fraction 
represented. 

On the above basis, at the points named f. o. b. cars plant with present 
rates of freight added, destination prices will be figured subject to increases in 
accordance with any increase which may be made in freight rates. Freight 
charges are to be paid by th« purchaser and shipments must be consigned to a 
Government officer, or if consigned to other than a Government officer, must be 
accompanied by a certificate (Form 750) signed by a Government officer stating 
that the tile is for Government use and that any saving Avili accrue to the 
benefit of the Government, otherwise the purchaser must also pay the war tax 
on the freight charges. Shipments are to be made freight collect, and for 
convenience in billing invoices will be rendered on the basis of the above- 
named prices plus the current freight rate. In payment of the account, the 
freight charges paid by the Government departments or their contractors wiU 
be deducted from the total amount of the invoices. When shipments are re- 
quired freight prepaid. Form 750, furnished by the Commissioner of lutemal 
Ptevenue, must be signed by the officer in charge of the work in question, and 
forwarded to the shipping company witli the order, who will file this certificate 
with the railroad company at the time the first shipment is made on the order. 

PARTITION TILE. 



Basing weight (potmds). 


Cells. 


Standard 
weight. 


Mininram 

weigbt. 


16 (4 by 12 by 12) 


3 
3 


16 
22 


15 


22 (6 by 12 by 12) ". 


21 






BACK OF TILE. 


14(5by8byl2) 




16 
9 


15 


8 (4 by 5 by 12) 




8 








HEAVY-DUTY TILE. 


28 (6 by 12 by 12) 


3 
6 
6 


28 
36 
48 


26 


36 (8 by 12 by 12) 


34 


54 (12 by 12 by 12) 


46 









GOVERNMENT REGULATIONS REDATING TO PRICES. 795 

The number of cells and weight shown represent the average commercial 
practice and there shall he no objection to a manufacturer furnishing a larger 
number of cells or heavier tile to meet his local conditions. The standard 
weights, as shown, represent the average weight of the tile to be furnished but 
tile of minimum weight, as shown, shall be accepted, it being understood that 
this variation is necessary due to wear and renewal of dies. 

The basing weights, as shown, are for use in reaching prices per thousand 
pieces on each size, as shown, in connection with the tentative building prices ; 
also final prices when fixed. Some variations have been made from actual and 
average weight to allow differences in cost of manufacturing the various sizes 
as determined by the custom and experience of the trade. 

All tile to be furnished under these specifications shall pass the following test 
requirements for absorption : 

Not less than three test specimens shall be dried at a temperature of approxi- 
mately 212° Fahrenheit until by weighing and reweighing the weight remains 
constant. 

They shall then be continuously immersed in clear water for a period of 48 
hours with only the upper surface of the tile exposed to the air. 

Upon being removed from the water they shall be allowed to drain for a 
period of not more than one minute and the superficial water removed by a 
towel or similar means, and the test specimen shall then be weighed. The ab- 
sorption thus obtained shall not exceed an average of 10 per cent of the weight 
of the tile when dried. 

The tile to be furnished is to be commercial tile ; that is, it includes tile which 
are somewhat cracked, v/arped, and broken, not affecting the usefulness of the 
tile. Inspection is to be made at the factory. 

MILLWORK. 

On December 2, 1918, the price-fixing committee approved prices recom- 
mended by the director of the building-materials division toy all orders placedE 
during the month of December and expiring December, 31, 1918.* 
The schedules follow : 

MILLWORK. 
December 1, 1918, to January 1, 1919. 

GLAZED WINDOWS AND SASH. 

Wood : White pine, oil primed, or yellow pine. 

Glass: S. S. B. 

Layout : Regular western openings. 

Windows : 

9 by 12 by li inches, 8 light, Ck. rail _ $1. 67 

10 by 12 by 11 inches, 8 light, Ck. rail 1. 69 

9 by 12 bv If inches, 12 light, Ck. rail 2.10 

9 by 13 bv H inches, 12 light, Ck. rail 2. 34 

10 by 12 by li inches, 12 light, Ck. rail — 2. 19 

10 by 14 by li inches, 12 light. Ck. rail 2.46 

10 by 15 by 1§ inches, 12 light; Ck. rail 2. 73 

10 by 16 by li inches, 12 light, Ck. rail 2. 88 

10 by 18 by li inches, 12 light, Ck. rail 3. 28 

Sash : 

10 by 12 by Ig inches, 4 light ; : •— - 9f> 

10 by 12 by li inches, 6 light , 1. 22 

10 by 14 by Ig inches, 4 light . 1.05 

10 by 14 by H inches, 6 light 1.34 

10 by 15 by Ig inches, 4 light 1. 19 

10 by 15 by 11 inches, 6 light 1.40 

10 by 16 by li inches, 6 light ^ 1.50 

10 by 12 by li inches, 12 light, heavy center bar 2. o9 

10 by 14 by 11 inches, 12 light, heavy center bar 2. 64 

10 by 15 by li inches, 12 light, heavy center bar 2.87 

10 by 16 by 11 inches, 12 light, heavy center bar 3. 03 

Cellar sash : 

8 by 10 by Ig inches, 2 light, 1/9 by 1/3 .56 

9 by 12 by li inches, 2 light, 1/11 by 1/5 -62 

10 by 12 by If inches, 2 light, 2/1 by 1/5 -65 

8 by 10 by H inches, 3 lights, 2/4 by 1/3 .67 

9 by 12 by 1| inches, 3 lights, 2/7 by 1/5 • 75 

10 by 12 by IS inches, 3 lights, 2/10 by 1/5 .80 

1 Price-Fixing Committee, Minute Book XI, Dec. 2, 1918. 



796 



HISTOKY OF PRICES DURING THE WAR. 



Transoms : 

2/6 by 1/2 by 11 inches, 1 light $0.07 

2/8 by 1/2 by Ig inches, 1 light .72 

2/10 by 1/2 by Ig inches, 1 light - 73 

3/0 by 1/2 by 13 inches, 1 light - ! 76 

3/4 by 1/2 by Ig inches, 3 lights wide 1.49 

2/4 by 1/10 by Ig inches, 2 lights wide .94 

2/6 by 1/10 by Ig inches, 2 lights wide 1. 05 

2/8 by 1/10 by Ig inches, 3 lights wide ^ 1. 10 

3/0 by 1/10 by Ig inches, 3 lights wide 1. 16 

3/4 by 1/10 by Ig inches, 3 lights wide 1.49 

4/8 by 1/10 by Ig inches, 5 lights wide 1. 88 

5/0 by 1/10 by Ig inches, 5 lights wide 2. 08 

5/4 bv 1/10 by Ig inches, 5 lights wide 2. 19 

6/0 bv 1/10 bv Ig inches, 6 lights wide 2. 32 

6/8 by 1/10 by Ig inches, 6 lights wide 2. 99 

2/8 by 2/0 bv Ig inches, 3 lights wide 1.16 

2/10 bv 2/0 bv Ig inches, 3 lights wide 1. 30 

3/0 by 2/0 by Ig inches, 3 lights wide 1.38 

3/4 bv 2/0 bv Ig inches, 3 lights wide 1. 74 

4/8 bv 2/0 by Ig inches, 5 lights wide 2.04 

5/0 by 2/0 by Ig inches, 5 lights wide 2. 27 

5/4 bv 2/0 by Ig inches, 5 lights wide 2. 28 

0/0 bv 2/0 by Ig inches, 6 lights wide 2.75 

6/8 by 2/0 by Ig inches, 6 lights wide 3. 51 

Note. — Other sizes of glazed sash not specified, will take same basis as above, which 
Is 632 per cent discount from the universal list. 

Extras. 

The above prices apply to goods in full-stock quantities for shipment in. carload lots. 

For less than carload shipments add 10 per cent to cover extra handling. 

When goods are packed for protection in local shipments packing charges as follows 
will apply : 

Net per bundle. 

rnder 60 united inches, add $0. 25 

Over 60 and up to 100, inclusive, add . 50 

Over 100 united inches, add 1. 00 

Sk.vlight sash, 6/71 by 5/.4i, 3J inches thi^k, 4 lights, 18 by 60, opeiT (in full car- 
loads), $6.32. 

PANEL DOORS. 

Wood : Pine. 

Layout : May be 4 panel, 5 regular panel, or 5 cross panel. 

Sticking : May be O. G., B. and C, or C. and B. 

Panels : Flat or beveled raised. 

Grade : May be No. 1 and No. 2 mixed, about 80 per cent No. 1. 



White 


Yellow 


pme. 


piae. 


S2.09 


SI. 88 


2.09 


1.88 


2.15 


1.94 


2.17 


1.96 


2.20 


1.98 


2.50 


2.26 


2.66 


2.40 


3.63 


3.27 


5.31 


4.79 


2.49 


2.24 


2.51 


2.27 


2.56 


2.31 


2.75 


2.48 



2/0 by 6/8 by 1-| inches. 
2/2 by 6/8 by If inches. 
2/4 by 6/8 by If inches., 
2/6 by 6/8 by l| inches.. 
2/8 by 6/8 by 1-1 inches., 
2/10 by 6/8 by If inches, 
3/0 by 6/S by li- inches., 

3/4by6/S , 

8/4 by 6/8 by 1| inches.. 
2/Oby 7/0 by If inches.. 
2/6by 7/0 by l| inches.. 
2/8 by 7/0 by 1 1 inches.. 
3/0 by 7/0 by li inches.. 



Note. — Doors of other sizes will take the same discount it standardized and ordered in quantities. The 
base discount is: White pine doors, 68f per cent from universal list; yellow pine doors, 10 per cent less. 

Wide lock rail and cut for Dutch door, add 75 cents net. 
If 3 foot 4-inch doors are ordered in lots of less than 10, add 20 per cent. 
If ordered in less than carload orders, 10 per cent advance on all items. 
Doors with six panels, basis 67i per cent from 5X panel O. G. No. 1 list. 
Doors made with slat panels, add 50 cents net per panel. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 

SASH DOORS. 

Layout : 3X panel and 2 lights or 2 upright panels and 4 lights. 

Glazing : S. S. B. 

Sticking : O. G., B. and C, or C. and B. 

Panels : Flat or beveled raised. ^ ^ „^ ^ ,vt -, 

Grade : No. 1 and No. 2 mixed, about 80 per c-ent No. 1. 

Wood : Pine. 



797 



2/4 by 6/8 by If inches.. 
2/6by6/8by If inches., 
2/S by 6/8 by li inches., 
2/10 by 6/8 by 1| inches 
3/0 by 6/8 by IJ inches. , 
3/4 by 6/8 bv If inches. 
3/4 by 6/8 by 13 inches. 
2/6 by 7/0 by If inches. 
2/8 by 7/0 by 1| inches. 
3/0 by 7/0 by if inches. 



White 


Yellow 


pme. 


pme. 


S3. 22 


$3.01 


3.22 


3.01 


3.30 


3.08 


3.63 


3.39 


3.85 


3.59 


4.79 


4.42 


6.47 


6.94 


3.63 


3.39 


3.83 


3.58 


4.24 


3.96 



Sash doors other than above : 

2/8 by Q/-6 by 1-3/8 inches, 2X panel or 2 upright panels and 6 lights, SSB 

stops ^ 

2/8 by 6/6 by 1-3/8 inches, 2X panel or 2 upright panels and 9 lights, SSB 

''tops - 

2/8 by 6/6 by 1-3/8 inches, 2X panel or 2 upright panels and 12 lights, SSB 

stops ' 

2/8 by 6/6 by 1-3/8 inch French doors, 18 lights, SSB stops 5. 85 

2/8 by 6/6 by 1-3/8 inch French doors, 10 lights, SSB stops 4. 65 

The above prices are obtained by using the panel-door basis plus cost of glass and 
reasonable profit. „ „„^.r.^ 

BATTEN DOORS. 

Sizes : 8/0 by 8/0 to 10/0 by 12/0. 
Construction : Standard detail. 

Grade : Sound paint quality, mixed woods permitted. 

Price : Doors with no glass, per square foot, $0.28 ; glazing, add per light 
10 by 15 or less, 20 cents; larger sizes, extra price. 

W. C. DOORS. 

\ 
One and one-eighth inches thick, 4X panel, Nos. 1 and 2 ; no lugs : 




Note. — All foregoing prices apply to goods ordered in full-stock quantities for shipment 
in carload lots. For less than carload shipments, add 10 per cent to cover extra handling. 

Packing goods for protection on local shipments : ,, i ..i, o /n t, r -7 /a 

Panel doors, 3/0 by 7/0 and smaller, add $0.35 net per bundle ; larger than 3/0 hy 7/0, 
add $0.02 net per square foot S. M. , -,, , 4.1, o /n v, r, /a 

Sash doors, 3/0 by 7/0 and smallei", add $0.60 net per bundle ; larger than 3/0 by 7/0, 
add $0.03 net per square foot S. M. 

HARDWOOD DOORS. 

Birch cross panel, li inches, 641 per cent discount from the cross panel B. & C. uni- 
versal list, making a 2/8 by 6/8 door, $2.57. 
For two-panel doors, add $0.20 net. 

DOOR FRAMES. 

All door frames up to and including 2/10 by 6/10 : ■ eo 00 

Frame, detail "A," preliminary standard drawings ^^- fJ 

Frame, detail " B," preliminary standard drawings f *^ 

Frame, detail " C," preliminary standard drawings f:- io 

Frame, detail " E," preliminary standard drawings J-. ^o 



798 HISTOKY OF PRICES DI/RING THE WAR. 

SILLS AND SLIDES. 

Cantonment sills, 26 cents net per piece. 
Cantonment slides, 17i cents net per piece. 

Note. — The above prices applv to goods in full stock quantities for shipment in car- 
load lots. For less than carload" shipments, add 10 per cent to cover extra handling. 

Trices all apply f. o. b. mills in South or INIiddle West. Prices f. o. b. Pacific coast 
mills should be lower than this basis, except possibly on glazed windows, but proper 
differentials have not been worked out for shipments from points east of Chicago or west 
of Mississippi River. Differentials above mill prices will have to be worked out based on 

freight costs. ,,„,, 

" FRAMES. 

Box window frame.-; for brick. K. D. : 9 by 12, 12 lights, 2/71 by 4/G— Basis ; 

$86 per 1,000 feet b. m. exposed parts and $75 for unexposed $2. 55 

Add for pulleys, $0.24. . . .^. . , .. r. 

Extra : 15 cents net for putting boxes together, balance K. D. 

Casement frames, brick wall: 2/0.1 by 3/5i .88 

D. C. window frames, t.ype "A" : 2/7J by 4/0 2. 09 

Add for pulleys, $0.24. 

D. C. window frames, type " B '' : 2/71 by 4/6 1. 9G 

Add for pulleys, $0.24. 

Cellar fiumes "A": 8 by 10. 6 lig-hts, opening 2/4| by 2/1?; .01 

Casement frani'-s, open in "B " : 8 by 10, 6 lights, opening 2/41 by 2/li 1. 44 

Casement frames, open out '• C " : 10 by 12. 6 lights, opening 2/04 by 3/51 1- 71 

X-^rr: ^ ^ ,. .^.^,„, „„+ <« r» " • nnonirxT. 9/fn u-tr 3/Si 1.37 

1.18 

square 1/S 3. 07 

No wire screens or hinges. ^ ,^ , ^ , , ., „^ 

Rectansiular louvre frames: 1/2 by 2/4 i. ()0 

Louvre frames, peaks : 3/0 by 1/6 ■ ^^ -i-i 



Casement frames, open out "D": Opening 2/01 by 3/51 

Casement frames, for brick, "E": Opening 2/Oi by 3/51__. 
Louvre frames : Half circle, 2/6 by 1/3 opening, circle 0/S, 



K. D. WINDOW FRAMES. 

Special prices for cantonment construction : 

Quality : Sound mixed woods for paint. 

Construction : Pulley stiles, fi by 4 ; blind stops, i§ hy 11 ; casing, if by 3i ; 
sill IJ by 3g ; plain di-ip cap, IS by 11 : mullion, 51. No pockets or pulleys. 

10 by 12 to 10 by 15 and 10 by 16, 12 lights, single ^J- ?9 

10 by 12 to 10 by 15 and 10 by 16, 12 lights, double 3. 10 

10 by 12 to 10 bv 15 and 10 by 16, 12 lights, triple 4. 70 

10 by 12 to 10 b'v 15 and 10 by 16, 12 lights, quadruple 6. oO 

For 1| O. S. casing, add to base price per frame . 15 

For pockets and pressed steel pulleys, per frame . .30 

For IS sill, per frame • 10 

For 5g stud wall, per frame -• • f 

For 51 jambs for plastered wall, per frame . 10 

K. D. OUTSIDE DOOR FRAMES. 

Jambs, li by 41, not rabbeted ; stops, 1 by 11 S4S ; casing, U by 3| ; no sill. 

Sizes 2/4 by 6/S to 3/0 by 7/0 K. D $1. 50 

For larger sizes, for every 4 inches in width or height, add . 10 

For soft-wood sill, add to base price , . 50 

For 61 stud wall • ;j'' 

For transom head 2/0 high or less, add to base price _ . 75 

ATI fob. factories in the Middle West. Taking rates to eastern and southern points 
not in excess of the rates from Oshkosh, Wis., Minneapolis, and Dubuque, Clinton, and 
Muscatine, Iowa. 

EXTEAS. 

The above prices apply to snoods in full stock quantities for shipment in carload lots. 
For less than carload 'shipments, add 10 per cent to cover extra handling. 

STAIRS. 

Plain box stairs, 3/0 wide, K. D. : 

Strings stuck to match room base. 

Strings house ^ inch thick. 

Treads H inches thick, risers If inch thick. 

No rough horser-i, newels, rails, or balusters, $1.10 per riser. 

If winders are shown, ligurc same as an extra riser. 
Open stairs, 3/6 wide, K.D. : 

Wall string housed I inch thick. 

Face string cut and mitered, 2 inch thick. 

Treads IJ inches thick, mitered and arranged for balusters. 

Nosings fitted, coves loose. 

Risers (? inch thick) mitered, $1.35 per riser. 
If winders are shown, figure same as an extra riser. 

Stflir rail "A" with fillet $0. 125 

Stair rail "B" with flUet •- -j—r— • i} 

Wall rail, Ig inches round (no brackets) per linear foot— .06 

Balu«ters as shown detail "C" up* — • Oj 

Balusters as shown detail "D" do-_ .00 

Starting newels, type "F" each_- 1. oO 

Starting newels, type "G" ao— i- oo 



GOVEEISTMENT REGULATIONS RELATING TO PRICES. 799 

Plain curb string same as for open stairs. 

Paneled string as shown, $1.65 per riser. 

Well-hole skirting, figure on molding basis. 

(Type numbers taken from prelimixiary details.) 

Prices. above will cover yellow pine or white pine for paint. 

MOLDINGS. 

Per 1,000 

lellow pine or soft wood for exterior based on finished product : b. m. 

All moldings worked from 1-inch stock $79. 20 

All moldings worked from 1| or li inch stock S.5. SO 

All moldings worked from 2-inch stock 92. 40 

I fardwood moldings: 

Gum worked from 1-inch stock 93. 50 

Calico ash, worked from 1-inch stock 112. 20 

Plain oak, worked from 1-inch stock 126. 50 

Brown ash, worked from 1-inch stock 126. 50 

All moldings using thicker stock will be based at higher prices, according to market 
prices. 

Special prices for cantonment constriLction, on lattice i by If inches, 44 cents per 
100 linear feet. 

Porch rails : On molding basis. 

Porch brackets : Sawn to shape, $100 per 1,000 b. m. 

Porch panels, 20 cents per square foot, depending upon design. f 

Interior frames : Inside jambs, based on molding prices plus 21 cents net each for 
gaining side jambs to receive head. 

Exterior blinds : IJ inches thick, stationary slats, 28 cents net per linear foot in 
height with a minimum price of $1 per pair. 

Exterior paneled shutters: H inches thick, stock construction, 35 cents net per linear 
foot in height, not exceeding 2/lOJ in width. 

Exterior porch columns or newells : Built up, square, $120 per 1,000 feet b. m. pluti 
cap and base on molding basis. 

Exterior porch newels or columns: Solid S4S, $80 per 1,000 feet b. m. 

Note. — Above prices apply to goods in full stock quantities for shipment in carload 
lots. For less than carload shipments, add 10 per cent for extra handling. 

INTERIOR TRIM. 

Special prices for cantonment construction : 
Wood : Yellow pine and white pine. 
Manufactured : Machine run out of rough lengths. 
Casing : 13/16 by 3|, S4S. 
Stool : I by 12. 
Apron : 13/16 by 33. 
Stops : i by i- 

Window trim : 

10 by 12 to 10 by 15, 12 lights per side SO. 55 

10 by 16 to 10 by 18, 12 lights per side . 66 

Sash trim : 

10 by 12 to 10 by 16, 4 and 6 lights per side . 39 

Door trim : 

2/0 by 6/8 to 3/0 by 7/0 per side , . 40 

3/4 by 6/8 to 5/0 by 7/0 per side . 55 

For transom head 2/0 or less, add . is 

Inside jambs : Manufactured, run to exact widths and lengths and dadoed ; shipped 

K. D. ; stops cut to rough lengths ; no transom Lieads : 
Wood : Yellow pine. 
Parts : Jambs 13/16 by 4i ; stops i by li. 

2/8 by 6/8 to 3/0 by 7/0 $0. 77 

3/4 by 6/8 to 6/0 by 7/0 . 88 

For transom head 2/0 or less, add . 53 

EXTRAS. 

Above prices apply to goods in full stock quantities for shipment in carload lots. 
For less than carload shipments, add 10 per cent for extra handling. 

All f. o. b. factories in the Middle West, taking rate to eastern and southern points 
not in excess of the rates from Oshkosh, Wis., Minneapolis, Dubuque, Clinton, and 
Muscatine, Iowa. 

Medicine cabinets : 

Stock design, arranged to fit in recess or hang on Vv'all, plain (window glass) 

mirror 14 -by 18, set up, no hardware $3. 50 

As per standard detail, plain plate mirror 5. 50 

Kitchen dressers : No. 1, sheet 58, 3/6 by 6/9 bottom case 18 inches deep, top case 

14 inches deep, K. D. ; no hardware 13. 70 

(June, 1918.) 

Prices on pine lath, f. 0. b. shipping point : No. 1, $3.65 ; No. 2, $2.65. 
Special millworh. — Prices of roofers : Beaded, $2 per thousand feet, overdressed two 
sides ; grooved, $1 per thousand feet, overdressed two sides. 



800 



HISTORY OF PEICES DURING THE WAR. 



PORTLAND CEMENT. 

The cement committee of the Council of National Defense was organized 
in April, 1917. In July, 1917, an informal price agreement was made for the 
last six months of 1917, applying principally to purchases by the Army and the 
Navy. 

By the recommendation of the War Industries Board, these prices were con- 
tinued for Government purchases through the first four months of 1918. 

On May 4, 1918, the price-fixing committee issued new schedules allowing 
increases in prices.^ These prices Avere left substantially the same at the 
revision of August 23, 1918, until December 31, 1918, when price control ended. 

NET PRICES ESTABLISHED BY PRICE-FIXING COMMITTEE FOR PORTLAND CEMENT 
PER BARREL F. O. B. CARS LOCATION NAMED, FOR 4-MONTH PERIODS ENDING AS 
INDICATED. 



Location. 



4 months ending- 



Dec. 31, 
1917- 

Apr. 30, 
1918.1 



Aug. 31, 
1918.1 



Dec. 31, 
1918.2 



Hudson, N. Y 

Lehigh Valley, Pa. (Northampton). 

Pittsburgh, Pa,. (Universal) 

Fordwick, Va 

Kingsport J Tenn., 

Richard City, Terin 

Bellevue, Mich 

Mitchell, Ind 

BufRngton, Ind 

Hannibal, Mo 

LaSalle,Ill 

Steelton, Mian 

Mason City, Iowa 

lola, Kans 

Harrys, Tex 

Houston, Tex 

El Paso, Tex 

San Antonio, Tox 

New Orleans, La 

Trident, Mont ; 

Portland, Colo 

Devils Slide, Utah 

Brigham, Utah 

Salt Lake City, Utah 

Ir\\Tn , Wash , 

Concrete, Wash 

Seattle, Wash 

Tacoma, Wash 

Portland, Oreg 

Oswego, Greg.- 

Stockton, Calif 

Oakland, Calif 

San Francisco, Calif 

Santa Cruz, Calif 

Santa Barbara, Calif 

Los Angeles, Calif 

Cement, Cahf 

Davenport, Calif 

Crestmore, Calif. 



$1.40 
1.30 
L50 
1.40 
L40 
L40 
1.50 
L50 
L50 
1.50 



1.55 
L55 
1.50 
130 
1.40 
L90 



?1.85 
1.75 
L75 
1.70 
L65 
L65 
L80 
L70 
L60 
1.70 
L70 
1.70 
L70 
1.75 
1.70 
1.80 
1.95 
1.95 



$1.82 
1.72 
L72 
1.67 
1.62 
1.62 
1.77 
L67 
L57 
L67 
L67 
L67 
1.67 
1.72 
L67 
L77 
L92 
1.92 



L78 
1.70 
1.70 



1.70 



1.90 
1.75 
1.90 
L90 
1.90 
1.95 
1.95 



1.87 
1.72 
1.87 
1.87 
1.87 
1.92 
1.92 



1.90 

1.70 
1.70 



2.00 



L97 



L70 
1.70 
L70 
1.70 
1.70 
1.70 



L95 
1.95 
1.95 



1.92 
1.92 
1.92 



1 Includes 3 cents per barrel for bin-inspection. 

2 Does not include charge for bin inspection. 

On the above basis, with freight added, prices were to be named f. o. b. cars at desti- 
nation, based upon ciirrent rates of freight, subject to increase in destination prices in 
accordance with any increase which might be made in freight rates. The freight charges 
were to be paid by the purchaser and shipments to be consigned to a Government oflBcer, 
or, if consigned to other than a Government officer, to be accompanied by a certificate 
(Form 750) signed by a Government officer, stating that the cement was for Government 
use, and that any saving would accrue to the benefit of the Government, otherwise the 
purchaser must also pay the war tax on the freight charges. Shipments were to be made 



Price-fixing committee, Minute Book III, May 4, 1918. 



GOVER]S^MEI^^T REGULATIONS RELATING TO PRICES. 801 

freight collect, and, for convenience In billing, invoices were to be rendered on the basis 
of the above-named prices, plus the current freight rate. In payment of the account the 
freight charges paid by the Government departments or their contractors was to be 
deducted from the total amount of the invoices. When shipments were required freight 
prepaid. Form 750, furnished by the Commissioner of Internal Revenue, were to be signed 
by the officer in charge of the work in question and forwarded to the shipping company 
with the order, who would lile this certificate with the railroad company at the time the 
first shipment was made on this order. 

The prices in the above table did not include any charge for cotton cloth and paper 
bags, paper-lined cloth bags, or wooden barrels. The charges were as follows : 

For the last six months of 1917 and the first four months of 1918, no charge was made 
for cloth bags at the time of shipment, but any bags not returned to the mill in good 
condition, freight prepaid, were charged for at the rate of 15 cents each ; for the four 
months beginning May 1, 1918, a charge of 10 cents for each cloth bag was made at the 
time of shipment, which amount was credited upon return of these bags in good condi- 
tion to the point of shipment, freight prepaid, within 60 days from date of shipment ; 
for the four-month period beginning September 1, 1918, a charge of 25 cents for each 
cloth bag was made at the time of shipment which amount was credited for each bag 
returned to the point of shipment in good condition, freight prepaid, within 60 days from 
the date of shipment. This increase in the charge for cloth bags was due to the increas- 
ing shortage resulting from inability to obtain new bags or to secure the return of bags 
at the lower charges of 10 and 15 cents when the replacement value was upwards of 25 
cents per bag. 

The charge for paper pags was as follows : 

The last six months of 1917 and the first eight months of 1918, 2i cents per bag ; the 
last four months of 1918, 7i cents per bag. 

The additional charge for paper-lined cloth bags for the last six months of 1917 and 
the first four months of 1918 was 15 cents per bag for the lining and 15 cents for each 
cloth bag, which latter amount was credited upon the return of each cloth bag in good 
condition to the point of shipment, freight prepaid, within 60 days from the date of 
shipment. 

The charge for wooden barrels for the last six months of 1917 was 45 cents, and for 
the first four months of 1918 was 60 cents per barrel for eastern mills, and for both 
periods 75 cents per barrel for western mills. 

The prices fixed for the last four months of 1918 contained the provision that the 
charge for paper-lined cloth bags or wooden barrels (based on the cost) would be deter- 
mined at the time the order was placed. 

Previous to September 1, 1918, the cost of bin inspection was included in the price 
of cement. Inasmuch as all departments did not require bin tests, this charge was de- 
ducted from the prices fixed for the second four months of 1918, making the net prices 
established for the last four months 3 cents per barrel less than those for the previous 
period. A charge, however, of 3 cents per barrel was made where bin inspection was 
required, which requirement was usual with nearly all Government purchases. 

Prices for the four-months' period beginning May 1, 1918, were 15 cents per barrel 
less, and for the four-months' period beginning September 1, 1918, 5 cents per barrel 
less, where the cement was shipped in hulk. 

The terms were net cash 30 days ; for the four-month period beginning May 1, 1918, a 
discount of 5 cents per barrel was allowed for cash payments in 10 days. This provision 
did not prove practicable and was not included in prices for subsequent periods. 

SAND, GRAVEL, AND CRUSHED STONE. 

The first prices were fixed for the New York district by the price-fixing com- 
mittee July 10, 1918, effective to November 1, 1918. Prices for other districts 
followed later, and all expired on November 1, 1918. 

(July 10, 1918.) 

NEW YOKK DISTRICT. 

After considering data submitted by the Federal Trade Commission and in 
agreement with the representatives of the industry, the price-fixing committee 
has fixed the following prices on sand, gravel, and crushed stone : 

Per 
cubic j'ard. 

Sand $0. 75 

Gravel 1- 6» 

Crushed stone !• 85 

12.5547°— 20 51 



802 HISTORY OF PEICES DURING THE WAR. 

These prices are for full scow- load lots delivered f. o. b. scow, witbin the free 
lighterage limits of the port of New York, with 24-hmir unloading privilege, 
and are effective for the period ending October 31, 1918. For deliveries made 
outside the free lighterage limits of New York may be added to the above 
prices the extra cost of towage. 

(Aug. 28, 1918.) 

METROPOLITAN PHrLADELPHIA DISTRICT. 

At a meeting of the price-fixing committee, held on Tuesdaj% August 28, the 
following maximum prices were fixed upon all Government sales effective for 
the period ending December 31, 1918, for the Metropolitan Philadelphia dis- 
trict; that is, for the States of New Jersey, Delaware, and Pennsylvania east of 
and including Harrisburg : 

For deliveries in full scow-load lots, f. o. b. scow alongside, within tin- 

second towing zone : I*"^"!' ton. 

Sand .$0. 60 

Gravel 1.00 

Crushed gravel f. o. b. cars wharf 1. 2.5 

Unloading sand and gravel from scow to cars . 25 

For deliveries f. o. b. cars plant : 

Sand . 55 

Gravel . 95 

For deliveries in full scow-load lots between ]Marcus Hoi^k and Port 
Penn on the Delaware River f. o. b. alongside: 

Sand 1. 00 

Gravel 1.15 

The above carried a 24-hour free unloading privilege, with a flat charge of 
.$15 per scow for each 24 hours thereafter. 

(Oct. 31, 1918.) 

NOEFOLK DISTKTCT. 

At a meeting of the price fixing committee held on Thursday, October 31, the 
following maximum prices were fixed to cover purchases, whether by the Gov- 
ernment or otherwise, and to be effective for the period ending February 28, 
1919, for the Norfolk district, i. e., the State of Virginia south of and including 
Petersburg, and the States of North Carolina and South Carolina : 

For deliveries in full barge lots, f. o. b. point of origin, or f. o. b. cars plant, 
per ton of 2,000 pounds net : 

Sand ^0.50 

Gravel j . 95 

Crushed stone 1. 30 

Crushed granite 1. 75 

Not including railroad ballast or screenings. 

(Nov. 7, 1918.) 

METROPOLITAN PHILADELPHIA DISTRICT. 

At a meeting of the price fixing committee held on Thursday, November 7, 
a maximum price of $1.50 per ton (2,000 pounds) f. o. b. cars plant was fixed 
for all Government purchases of crushed stone (other than railroad ballast or 
screenings) for the period ending December 31, 1918, within the Metropolitan 
Philadelphia district, i. e.. for the State of New Jersey, south of and including 
Trenton ; the State of Delaware and the State of Pennsylvania, east of and 
including Harrisburg. 



9. CHEMICALS. 



The following table summarizes the essential facts concerning the public 
regulation of the prices of chemicals during the war. The more detailed regu- 
lations pertaining to the great groups of chemicals are shown after the summary 
table. 



Commodities. 


Agency. 


Date when effec- 
tive. 


Date of expira- 
tion. 


Price. 


Acids ... . 


P. F.C 


'junebs/ms .'!.'! 


"jan.'ij'igig"."!!! 




Sulphuric acid 




60° Baume 




S18 per short ton. 
$28 per short ton. 
832 per short ton. 
$16 per short ton. 
$25 per short ton. 
$28 per short ton. 

8J cents per pound. 

$6.90 per hundred- 
weight. 

$13.10 per hundred- 
weight, 

$0.0235 per pound. 

Sn. 15 per pound. 
$0.17 per pound. 

$0,145 per pound. 

$0,165 per pound. 

$3.50 per hundred- 
weight f. 0. b. cars at 
sellers' plants. 

$0,075 per pound. 

$1.57 per hundred- 
weight f. 0. b. sellers' 
plants. 


66° Baum6 








20 per cent oleum. 








60° Baum^ 




Sept. 30, 1918 . . 




66° Baum^ 




do 




20 per cent oleum. 




do 




Nitric acid— 

42°Baum6 




June 28, 1918.... 


Jan. 1, 1919 

do 


Mixed acids— 

No.l 




No. 2 .-. 








Alkalis: 

Bleaching powder 

Carbon tetrachloride. 

Dry 


Board of ap- 
praisers. 

W. 1. B., infor- 
mal. 


April, 1918 

do 


Nov. 25, 1918.... 


Fire extinguisher . 








Carbon tetrachloride . 
Dry 


Board of ap- 
praisers. 


August, 1918 


December, 1918 . 


Fire extinguisher . 








Caustic soda, 76 per 
cent, 

ChlorlDe, liquid 


W. I. B., infor- 
mal. 

do 


Spring, 1918 

May, 1918 

do 


December, 1918 . 

Nov, 25, 1918.... 
do 


Soda ash, 58 per cent- 


do 


Ammonia 


Food adminis- 
istrator. 


Nov. 19, 1917.. 




Anhydrous 






$0.30per pound, carload 
lots. 

$0.0825 per pound, car- 
load lots. 

$0,045 per pound f . o. b. 
point of production. 

$0.09 per pound, carload 
lots f.o.b. plants. 

$3.50 per bushel of 46 
pounds. 

$4.50 per bushel of 46 
pounds. 

$3.50 per bushel of 46 
pounds from near-by 
countries; $4.50 from 
other countries. 

$4.50 from all sources. 


Aqua 








Ammonium sulphate .... 
Arsenic 


War Depart- 
ment. 

Food adminis- 
trator. 


December, 1917.. 
Feb. 28,1918... 


Dec. 14, 1918 


Castor beans 


Fall, 1917 

October, 1918. 


December, 1918. 








W. T. B 


February, 1918.. 






October, 1918.... 




Castor oil 


Bureau Aircraft 
Production. 


Fall, 1918 


December, 1918.. 


Conforming to Speci- 


$0,244 per poimd. 
$0,224 ner Dound. 


flcation No. 3500-A 
of Signal Corps. 
Other oil 









803 



804 



HISTORY OF PEICES DURING THE WAR. 



( Ommodities. 



Agency. 



Date when effec- 
tive. 



Date of expira- 
tion. 



Glycerin. 



Food admiois- 
istrator. 



Nitrate of sod;i. 



Nitrate commis- 
sion. 



Quebracho '. . 

Smokeless cannon powder 
Sulphur 



Toluol 



Wood chemicals . 



Acetate of lime 

Acetic acid, commer- 
cial, 100 per ent. 
Acetic acid, glacial . . 
Acetic anhydride. 85 
per cent. 

Acetone 

Alcohol, methyl, pure 
Alcohol, wood — 

Crude 

Denaturing grade 
Refined, 95 per 

cent. 
Refined, 97 per 
cent. 
Ethyl methyl ketone . 

Formaldehyde 

Methyl acetate 

Methyl acetone 

AVool grease 



W. T. B 

Congress 

W. I. B., infor- 
mal. 

Ordnance De- 
partment. 

W. I. B., infor- 
mal. 

W. I. B. with 
War Depart- 
ment. 



P. F. C . 



July 30, 1918 

August-Septem- 
ber. 

October-Novem- 
ber. 

December 



January-June, 
1918. 

June, 1918 

July, 1918 

August, 1918... 

September, 1918 

October-Novem- 
ber, 1918. 

December, 1918. 

May 6, 1918 

Feb. 13, 1913... 

June?, 1918 



Feb. 1, 1918. 



July 10, 1918. 



Dec. 31, 1918... 



Jvme. 1918. 



Dec. 14, 1918.. 



Dec. 24, 1917. 
Feb. 13, 1918. 



....do 

Dec. 24, 1917. 



-do. 
.do. 

-do. 
-do. 
.do. 

.do. 



....do 

Feb. 12, 1918... 
Feb. 20, 1918... 
Dec. 24, 1917... 
Sept. 17, 1918... 



Dec. 17, 1918. 



F. 0. b. point.s of pro- 
duction. 
$0.60 per pound. 

$0.58 per pound. 

$0.56 per pound. 
95 per cent 96 per cent 
nitrate. nitrate. 



Per cwt. 
$4. 225 

4.05 
4.10 
4. 32.i 
4.32i 
4.40 



Per cwt. 
U- 25 

4.10 
4.20 
4.45 
4.50 
4.52i 



4..").=i 



n. b. 



4.42.i 
$0,065 per pound. 
$0.53 per pound. 
$22 per long ton f. 

mines. 
$1.50 per gallon. 

Do. 



F. 0. b. shipping point. 



D.04 per pound. 
3. 14 J per pound. 

3. 19 per pound. 
3.85 per pound. 



%Q.25% per pound. 
$0.86 per gallon. 

$0.50 per gallon. 
$0.79 per gallon. 
Do. 

$0.82 per gallon. 

$0.25J per pound. 
S0.15.|perpoimd. 
$0.21 naked at plant. . 
$0.86 per gallon. 
$0.16 per pound f. o. b. 
shipping point. 



ACIDS. 

On June 28, 1918, the price fixing ct>muiittee.aniiouuced the following maxi- 
mum prices of sulphuric and nitric acids, whicli were revised on September 30, 
1938. Control was lifted on January 1, 1919. 

June 2S, 1918. 
Sulphuric acid: Per ton of 2,000 pounds. 

60° B S18 

66° B 28 

20 per cent oleum 32 

F. o. b. at manufacturer.s' works in sellers' tank cars. 

In carboys in carload lots ohe-half cent per pound extra. 

In carboys in less than carloads three-fourths cent por pound extra. 

In drums, any quantity ,one-fourth cent per pound extra. 

Nitric acid, 42° B., 8J cents per pound f. o. b. manufacturers' works in carboys. 

A schedule of maximum prices on mixed acids was prepared and published 
later.^ 



1 Letter to Mr. Brookings from Mr. Brunkor, of the acids and heavy chemicals section, 
dated July 19, 1918 : " After a somewhat lengthy discu.'ssion it was decided that the price 
for mixed acids shall l>e determined as lixed governmental prices for the acidity contents 
of the component acids, with no additional charge for mixing." 



GOVERNMEIN'T REGULATIONS RELATING TO PRICES. 805 

The above maximum prices" were agreed upon for che public as well as the 
Government. It was understood and agreed that any deliveries made after 
September 30 would be subject to any revision in price which the Government 
might make for deliveries after that date. 

ALKALIS. 

The alkali section of the War Industries Board was organized April 15, 1918. 
Previous to this time efforts to control the prices of alkalis had been made 
by the alkali section of the chemical committee of the Council of National De- 
fense in cooperation with the Chemical Alliance (Inc.). 

Bleaching powder. — In April, 1918, a tentative Government price of $0.0235 
per pound was agreed upon. On later compulsory orders * the alkali section 
and the procurement division of the Ordnance Department recommended a price 
of $0.0235 per pound for prime bleach, basis 35 per cent chlorine f. o. b. makers' 
plants. This was reduced to $0.02 by the board of appraisers, but compulsory 
orders for November deliveries still carried the price of $0.0235. Fixed prices 
were canceled on November 25, 1918. 

Carbon tetrachloride. — In April, 1918, the alkali section recommended a price 
of 15 cents per pound on dry carbon tetrachloride and 17 cents per pound on 
tire extinguisher of the carbon tetrachloride type. These prices were reduced 
to 14^ cents and 161 cents by the board of appraisers and the latter prices 
became effective from August, 1918, until the orders were canceled at the end of 
the year. During this time the entire output of all producers was commandeered 
by the Government. 

Caustic soda. — A price of $3.50 per hundredweight for the 76 per cent caustic 
soda, in bags f. o. b. cars at sellers' plants, was set in the spring of 1918 to apply 
to the Government purchases of caustic soda. Prices for other grades were in 
proportion to the base prices. These prices continued until the close of 1918, 
when all restrictions were removed. 

Li(iuid chlorine. — Beginning May, 1918, the total output of liquid chlorine was 
commandeered by the Government at a price of 71 cents per pound, in Govern- 
ment containers f. o. b. makers' plants. This price prevailed throughout the 
remainder of the war period. Restrictions were removed November 25, 1918. 

Soda ash. — ^The Government fixed the price of soda asli early in 1918 at $1.57 
per hundredweight for the 58 per cent soda ash in bags f. o. b. sellers' plant. 
These prices continued in effect until November 25, 1918. 

AMMONIA. 

The first agreement affecting the price of ammonia was made on November 19, 
1917, between the producers of ammonia and the Food Administration. The 
terms of the agreement are given below. 

On January 3, 1918, the President issued a proclamation licensing the output 
of " ammonia, ammonical liquors, and ammonium sulphate from whatever source 
produced." Licenses were to be secured on or before January 21, 1918, and the 
Secretary of Agriculture was to direct the carrying out of the provisions of the 
proclamation. The prime products of ammonia as produced in by-product coke- 
oven plants, coal gas plants, and nitrogen fixation plants were those affected by 
the proclamation. 

The prices fixed in the earlier agreement continued in force through 1918, but 
they probably were inoperative in 1919, although the formal agreement was to 
continue in operation until the proclamation of peace. 

^The information in regard to the alkalis was obtained from the report of the alkali 
section of the War Industries Board to Mr. Baruch, in December^ 1918 ; from the second 
annual report of the Chemical Alliance, January, 1919 ; and from the 1918 Yearbook of 
the Oil, Paint and Drug Reporter. 



806 HISTORY OF PRICES DURING THE WAR. 

AGREEMENT OF NOVEMBER 19, 1017. 

At a meeting on November 19, 1917, the manufacturers of aqua and anhydrous 
ammonia agreed to place the allocation of their output in the hands of the 
Pood Administration. 

They also agreed not to sell in excess of the following basic prices f. o. b. 
plants : 

Anhydrous ammonia, 30 cents per pound carload lots. 

Aqua ammonia, 8J cents per pound carload lots. 

Agreement entered into between Mr. Hoover and manufacturers of ammonia 
November, 1917: 

(1) The manufacturer agrees that he will sell his output of anhydrous am- 
monia to such persons and in such amounts as may be directed by the United 
States Food Administration ; that he will direct and require all of Ms agents to 
sell his product to such persons and in such amounts as may be directed by the 
United States Food Administrator. It is understood that until further notice 
from the United States Food Adminisrator the manufacturer may sell or use 
his product or accept orders for delivery thereof within 60 days from the date 
of such orders, without direction, limiting as far as possible the use and sale 
of such product for nonessential purposes. Contracts for deliveries extending 
over a longer period may be made only with special permission from the United 
States Food Administrator or his representative. 

(2) The Fpod Administrator agrees that he will direct the distribution of the 
manufacturer's output in as economical and equitable a manner as possible, 
adhering as far as practicable to the expressed wishes of the manufacturer. 

(3) The manufacturer agrees that he will sell all anhydrous ammonia at 
prices not to exceed those included in the schedule attached hereto marked "A," 
which is hereby incorporated in and made a part of this agreement. In case the 
cost of materials or manufacture or transportation increases or decreases such 
maximum prices shall be revised by the United States Food Administrator, on 
his own motion or on application of the manufacturer, in such manner that the 
profit of the manufacturer shall remain substantially the same as at the prices 
in said schedule. 

(4) The aforesaid prices shall include all commissions paid to agents, but 
shall be exclusive of the prices of containers for which payment shall be x-equired 
at time of payment for the contents, the actual amount so paid for containers 
to be refunded if returned in good order and in a reasonable time. In case of 
dispute said reasonable time shall be determined by the United States Food 
Administrator or his representative. 

(5) In the event that the supply of sulphate of ammonia and ammonia liquor 
is insufficient to meet the needs of the manufacturers entering into this and 
similar agreements, it is agreed that the Food Administrator may allocate the 
supply of such materials among the manufacturers entering into this and similar 
agreements with the said Food Administrator on such fair and equitable basis 
as may be determined by said administrator, 

(6) The manufacturer agrees that in order to carry out the purposes of this 
agreement he will furnish such reports as may be I'equired by the United States 
Food Administrator or his representative upon request and upon such blanks as 
the United States Food Administrator may designate, giving complete informa- 
tion regarding transactions in anliydrous ammonia imported, manufactured, 
refined, packed, purchased, contracted for, received, sold, stored, shipped, or 
otherwise handled, distributed, or dealt with by the manufacturer, or on hand, 
in the possession or under the control of the manufacturer, and any other infor- 
mation pertinent thereto, concerning the business of the manufacturer that such 
representatives may require from time to time. It is understood and agreed 
that information thus furnished by the manufacturer shall not be divulged or 
made known in any manner by the United States Food Administrator or his 
representative, except in so far as necessary to carry out the purposes of this 
agreement or in so far as directed by a court of competent jurisdiction. 

(7) This agreement shall remain in full force and. effect from its date until 
peace shall have been proclaimed between the United States and Germany. 



GOVEE]!TMENT REGULATIONS RELATING TO PRICES. 807 

ANHYDROUS AMMONIA CONTAINING NOT LESS THAN 99.9 PER CENT NH3. 



State. 


Cents 

per 

pound. 


Remarks. 


Alabama 


33 
40 
34 
35 

38 
31 
31 
31 
34 

33 
40 
31 
31 

32 
33 
31 

34 

31 
31 
31 
32 
33 

33 
31 

40 
34 
42 
31 
31 

38 
31 

33 
35 
31 

35 
35 
31 

31 
33 
35 
33 

35 

40 
31 
32 

35 
32 
32 

40 


If from Birmingham stock, 33 cents f. 0. b. that point. 






Arkansas 






If from San Francisco, Los Angeles, San Diego, Sacramento stocks, 


Colorado 


35 cents f. 0. h. these respective points. 


Connecticut 




Delaware .• 




District of Columbia 

Florida 


Jacksonville, 35 cents. If from Jacksonville stock, 33 cents f. 0. b. 


Georgia 


that point. 
If from Atlanta and Savannah stocks, 33 cents £. 0. b. that point. 


Idaho 




Illinois 


Chicago, Cook County, East St. Louis, 30 cents. 


Indiana 


Aetna, Calumet, East Chicago, Gary, Hammond, Indiana Harbor, 


Iowa 


and Whiting, 30 cents f. o."b'. Chicago if shipped from that point! 
If from Indianapolis stock, 31 cents f. 0. b. that point. 
Davenport and Dubuque, 31 cents. 


Kansas 


East of 96° longitude; 34 cents west of 96° longitude. 




Covington and Newport, 30 cents. If from Louis\alle stock, 31 cents 


Louisiana 


f. 0. b. that point. 
New Orleans, 33 cents. If from New Orleans stock, 33 cents f. 0. b. 


Maine 


that point. 


Maryland 


If from Baltimore stock, 31 cents f. 0. b. that point. 


Massachusetts 




Michigan 


Detroit, 31 cents. If from Detroit stock, 31 cents f. 6. b. that point. 


Minnesota 


St. Paul and Minneapolis, 32 cents. If from St. Paul stock, 32 cents 


Mississippi 


f. 0. b. that point. 


Missouri 


East of 93° longitude; 33 cents west of 93° longitude; St. Louis, 30 


Montana 


cents; Kansas City, 32 cents. If from Kansas City stock, 32 cents 
f. 0. b. that point. 


Nebraska 


Omaha, 33 cents. If from Omaha stock, 33 cents f. 0. b. that point. 


Nevada 




New Hampshire 

New Jersey 


Camden, Newark, Paterson, and within 15 miles of New York City 
Hall, 30 cents. 




New York 


Points within 15 miles of New York City Hall, 30 cents. If from 


North Carolina 


Bullalo or Rochester stocks, 31 cents f. 0. b. these respective points. 


North Dakota 




Ohio 


Cincinnati 30 cents. If from Cleveland or Toledo stocks, 31 cents 


Oklahoma 


f. 0. b. these respective points. 
If from Oklahoma City stock, 35 cents f . 0: b. that point. 
If from Portland stock, 35 cents f. 0. b. that point. 


Oregon 


Pennsylvania. .. 


Philadelphia, 30 cents. If from Pittsburgh stock, 31 cents f. 0. b. 

that point. 
If from Providence stock, 31 cents f. 0. b. that point. 


Rhode Island 


South Carolina 




South Dakota 






Bristol and Memphis, 32 cents. If from Memphis stock, 32 cents 

f. 0. b. that point. 
East of 101° longitude; 37 cents west of 101° longitude. If from 


Texas 


Utah 


Houston, Fort Worth, Dallas, or San Antonio stocks, 35 cents per 
pound f. 0. b. these respective points. If from El Paso stock, 37 
cents f. 0. b. that point. 
If from Salt Lake City stock, 40 cents f. 0. b. that point. 


Vermont 




Virginia 


Hampton, Newport News, Norfolk, Ocean View, Old Point Comfort, 
Phoebus, Portsmouth, Richmond, and Alexandria County, 31 
cents. If from Norfolk or Richmond stocks, 31 cents f. 0. b. these 
respective points. 

If from Spokane stock, 35 cents f. 0. b. that point. 


Washington 


West, Virginia 


Wisconsin 


Milwaukee, 31 cents. If from Milwaukee stock, 31 cents f. 0. b. that 


Wyoming 


point. 







Terms, 30 days net for both cylinders and contents. 

Prices named above are freights free at common-carrier points unless otherwise stated ; 
freight on empty cylinders returned for credit incumbent on seller in all cases. 

Above prices apply to contents of 100 and 150 pound capacity cylinders. Charge ,3 
cents per pound higher for " small " or 50-pound capacity cylinders. Charge 6 cents per 
pound higher for " midget " or 25-pound capacity cylinders. 



808 HISTORY OF PRICES DURING THE WAR. 

AQITA AMMONIA TECHNICAL, 26" B., 29.4 per cent— NHg. 

District No. 1. — Connecticut, Illinois, Indiana, Iowa, Kentucky, Maryland. Massachusetts, 
Michigan, Minnesota, Missoui'i. New Jersey, New York, Ohio, Pennsylvania, Rhode Island, 
and Wisconsin ; C. 1. in drums, 8J cents per pound, 26° B. ; 1. c. 1. in drums, SJ. cents 
per pound, 26° B. Freight paid by shipper. 

Dis-tfiot No. la. — New Hampshire and Vermont : C. 1. in drums, 8j cents per pound, 
26° B. ; 1. c. 1. in drums, 8^ cents per pound, 26° B. Freight paid by shipper. 

District No. lb. — Maine. Virginia, and West Virginia, including District of Columl)ia : 
C. 1. in drums, 83 cents per pound, 26° B. ; 1. c. 1. in drums, 9 cents per pound, 26° B. 
Freight paid by shipper. 

District No. 2. — Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Caro- 
lina. South Carolina, and Tennessee : C. 1. in drums, 95 cents per pound, 26° B. ; 1. c. 1. 
in drums, 9* cents per pound. 26° B. Freight paid by shipper. 

District No. 3. — Arizona, California, Colorado, Idaho, Indisin Territory, Kansas, Montana, 
Nebraska. Nevada, New Mexico, North Dakota, Oklahoma, Oregon. South' Dakota, Texas, 
Utah, Washington, and Wyoming : C. 1. in drums, 8J cents per pound, 26° B. ; 1. c. 1. in 
drums, 8^ cents per pound, 26° B. Freight to Mississippi River points allowed by shipper. 

Deduction of one-eighth cent per pound from above carload drum prices to be made when 
shipped in tank cars. 

Aqua ammonia of all degrees, in carboys 1. c. 1., 2 cents per pound advance, and in 
carbovs c. 1., li cents per pound advance. Freight incumbent upon buyer. 

Deductions from any of above prices shall be made on the following degrees : 
Ij cents per pound, 20° B. 
2"cents per pound, 18° B. 
2j cents per pound, 16° B. 
2| cents per pound, 14° B. 

AMMONIUM SULPHATE. 

In the latter part of 1917 the War Department issued an order commandeer- 
ing the output of ammonium .sulphate. A price of 4i cents bulk f. o. b. point of 
production was established for Government purchases, but very little of the 
output was actually commandeered. The order was canceled December 14, 
1918. 

The distribution, manufacture, and importation of ammonium sulphate were 
controlled through the license system, originating in the President's proclama- 
tion of January 3, 1918. 

ARSENIC. 

A presidential proclamation of November 15, 1917, provided for the licensing 
of dealers iu white arsenic on or before November 20, 1917, and for the licensing 
of dealers in insecticides containing white arsenic on or before December 10, 
1917. The administration of this control was placed with the Food Admin- 
istration. 

On February 28, 1918, the Food Administration announced a price to pro- 
ducers at 9 cents per pound in car lots f. o. b. plants, with an additional 
quarter cent for small quantities, the price to apply to deliveries anywhere in 
the United States. It was applicable to new , contracts and did not affect 
existing contracts. 

With the establishment of an increased margin to dealers on April 4, 191S, 
the market price rose to 9J cents. The margins allowed varied from one-fourth 
cent per pound to 3 cents per pound, depending upon size of sales. 

CASTOR BEANS AND CASTOR OIL. 

In the summer of 1917 the Council of National Defense took the first steps 
in the control of the castor-oil industry. 

"All available supplies have been purchased and will be turned over to the 
Government at the price paid for the oil and without compensation to the 
purchaser." ^ 

About this time arrangements were made to increase the acreage of castor 
bean;; in this country. The growing centers were organized as districts 

1 Oil, Paint, and Drug Reporter, Nov. 12, 1917. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 809 

and contracts were made with growers under a guarantee of $3 per bushel of 
46 pounds on contracts directly with the Government, and $3.50 per bushel for 
beans grown by subcontractors. Beans were to be delivered hulled and sacked, 
in carload lots f. o. b. the nearest railroad station. The Government guaran- 
teed to take the crop. * 

When the crop was harvested this price was raised to $4.50 per bushel to 
the actual growers, while the contractors received a margin over and above this 
price. 

The control over the price of imported castor beans and castor oil. — After 
the President's proclamation of February 14, 1918, giving power to the War 
Trade Board to restrict imports, effective February 16, 1918, all importers of 
castor beans and castor oil were required to give the United States Government 
a 10-day option to purchase all imported beans from Venezuela, Colombia, 
Central America, Mexico, and the West Indies, the price to be paid for such 
purchases being $3.50 per bushel of 46 pounds, or $0,076 per pound, duty paid, 
duty being $0,003 per pound. The option on beans from all other countries 
was $0,098 per pound, duty paid. These prices were to apply to all purchases 
at home and abroad after February 22, 1918, and for all shipments after June 
10, 1918. This action was carried out by the Bureau of Imports of the War 
Trade Board at the request of and in conjunction with the Aircraft Production 
Board. 

On June 16 the War Trade Board announced that outstanding licenses for 
the importation of castor beans and castor oil from the West Indies, Mexico, 
Central America, Colombia, and Venezuela were revoked as to ocean shipments 
after June 10, 1918. Thereafter no licenses from those countries would be 
issued, except when the United States Government was the consignee or where 
the importation was approved by the Bureau of Aircraft Production. 

On June 23, 1918, the price of $0,098 per pound, stipulated in the Govern- 
ment option, was lowered to $0,076 per pound for all near-by countries. How- 
ever, prices on beans from South America and the Orient remained at $0,098 
because of the high freight rates from those countries. 

In October, 1918, the War Department announced an increase in the contract 
price of castor beans, making the price to growers $0,098, duty paid, at all 
ports of entry, on beans originating in the West Indies, South America. Central 
America, and Mexico. This makes the price the same for all beans, domestic 
and imported. 

Castor oil is being purchased at $0,244 per pound for oil conforming to speci- 
fication No. 3.500-A of the Signal Corps, other oil at $0,224 per pound. 

When the armistice was signed the Government had on hand large quan- 
tities of castor oil. The Bureau of Aircraft Production negotiated with Ameri- 
can crushers for the purchase of the Government stocks of domestic beans 
and oil. Somewhat earlier the War Industries Board had practically com- 
pleted negotiations for the sale of these stocks on the basis of 25 cents per 
pound for the oil. The aircraft bureau officials, however, raised this price 
above 30 cents a pound. 

All Government activities in castor beans and oil ceased in December, 1918. 

1 1918 Year Book, Oil, Paint, and Drug- Reporter. 

2 Official Bulletin, Oct. 22, 1918. 



810 HISTORY OF PRICES DURING THE WAR. 

GLYCERIN. 

On July 30, 1918, the Food Administration made the following announcement : 

Prices at which dynamite glycerin is to be furnished to the allied Government 
and domestic consumers during the remainder of 1918 have been settled by joint 
agreement between the Food Administration and makers of soap and candles. 

Allied requirements, estimated at 7,000 long tons, will be furnished at 60 
cents a pound in August and September ; 58 cents in October and November ; 
and 56 cents in December, f. o. b. production points in drums — drums included 
in price — deliveries to be divided into quotas of approximately one-third for 
each of the three pei'iods. 

The same price was to be maintained as a minimum price for chemically pure 
glycerin, except that chemically pure glycerin could be sold on the usual terms 
of 1 per cent discount for cash in 10 days, or net 30 days, freight prepaid, drums 
extra and returnable at sellers' expense. 

The agreement with the Allies for the last five months was carried out. 
About 1,000 tons were left undelivered at the time of the armistice, but satis- 
factory arrangements between the Allies and the American producers were 
made.^ 

NITRATE OF SODA. 

The purchase and importation of nitrate to the United States was controlled 
by the United States Government through the War Industries Board in coop- 
eration with the importers formerly handling this material. The Government 
received their nitrate through the importers at cost, and the profit charged by 
the importers to private users was controlled by the Government so that uniform 
cost to all users was secured, this cost being based on the average monthly cost 
in Chile, plus the freight charge, exchange, and other elements of cost. 

A committee known as the nitrate committee of the United States was estab- 
lished with offices in New York, and a New York representative of the War 
Industries Board represented that board in the ofiices of this committee.^ 

Uniform monthly prices were established, based upon the average cost in Chile 
during the particular month. To this average price was added a fixed charge 
of 2.5 per cent of landed costs in this country as a brokerage charge. Determina- 
tion of the uniform price, as well as the control of the distribution of nitrate of 
soda, was in the hands of the nitrate committee. This arrangement was in force 
from the beginning of 1918. According to the best advices the quotations in this 
country up to the month of June were $4,225 per hundredweight of 95 per cent 
nitrate and $4.25 for the 96 per cent. 

At the time of the armistice the Government had on hand surplus stocks of 
nitrate of soda. The War Department announced on March 10, 1919, that these 
stocks would be disposed of at the prevailing market prices.' 

QUEBRACHO. 

An agreement between importers of solid quebracho extract and the War Trade 
Board granting an option to the United States Government on all shipments 
during 1918 became effective May 6, 1918. 

The maximum price agreed upon in the event of the exercise of such option 
was 62 cents per pound, ex dock Atlantic seaports north of Cape Hatteras. basis 
65 per cent tannin, net landed reweight, net cash basis $20 ocean freight per ton 
of 2,240 pounds. 

' Information from fats and oils section of the United States Food Administration. 
2 Statement of Mr. C. H. McDowell, director of the chemicals divisioa of the War 
Industries Board, from Federal Trade Information Service, Dec. 24, 1918. 
* Federal Trade Information Service, Mar. 10, 1919. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 811 

On June 30, 1918, the War Trade Board announced a new ruling, placing tan- 
ning materials on the list of restricted imports. ' 

Shipments of a limited quantity only of solid quebracho extract were allowed 
after July 10, 1918, and the fixed price became inactive after that date. 

The "War Trade Board lifted its ruling of June 30 on December 5, 1918.^ 

SMOKELESS CANNON POWDER. 

Beginning with February 13, 1913, all Army and Navy appropriation bills 
specify that " no part of any money appropriated in this act shall be expended 
for the purchase of powder, other than small arms, at a price in excess of 53 
cents." 

In other words, Congress controlled the price of cannon powder, but not of 
rifle powder. 

SULPHUR. 

Sulphur was one of the fertilizer materials included in the President's license 
proclamation of February 25, 1918. 

On July 2, 1918. the President gave liis approval to a resolution passed by the 
War Industries Board on June 27, 1918, in which the board assumed control of 
sulphur materials, controlling production and distribution. Commandeering 
orders were to be issued where necessary.^ 

Early in the fall of 1917 the fertilizer committee of the chemical alliance, act- 
ing with the consent of the Council of National Defense, arranged for a price 
of sulphur at $22 per long ton f. o. b. mines. This policy was continued until 
June 7, 1918, when the War Industries Board took more direct control of the 
sulphur situation.^ The same price, however, continued elfecti^■e thr<.)ugh the life 
©f the sulphur and pyrites section of the War Industries Board.* 

TOLUOL. 

The following resolution was passed by the committee on explosives and ap- 
proved by the War Industries Board on January 29, 1918 : 

It is requested that the Ordnance Department of the Army, with the consent 
of the Navyv commandeer the entire toluol production of the country, and that 
a committee on toluol be appointed composed of representatives of the Army, 
the Navy, and the War Industries Board, said committee to be charged with 
the duty of recommending the development of further facilities for toluol and 
a distribution of all toluol produced.^ 

The price paid for the toluol which was so commandeered was $1.50 per 
gallon. In June, 1918, this price was extended to cover all toluol released 
for nonmilitary purposes, at the following rates : ^ 

Per gallon. 

Car lots in tank cars $1. 50 

Any quantity in drums 1.55 

1 War Trade Board Ruling 378. 

2 Minutes of War Industries Board, .June 27, 1918. 

^ Second Annual Report of the Chemical Alliance, .Januarj', 1919. 

" Letter of Apr. 8, 1919, from Mr. W. G. Woolfolk, head of the sulphur, pyrites, and 
alcohol section of the War Industries Board. 

^ Minutes of the War Industries Board. .Tau. 30, 1918. 

" The toluol section of the chemical division of th« War Industries Board sent the fol- 
lowing memorandum to the chief of the chemical section on Aug. 30, 1918 : " We are 
advised by the board of appraisers, War Department, that an award of $l.oO per gallon 
has been made on toluol taken under existing compulsory order. The award to run for 
duration of the order." i 



812 HISTORY OF PRICES DURING THE WAR. 

No release for shipment was granted where a price in excess of above is asked, 
and all releases other than for military purposes were stamped: 

Released onlj' upon condition that price does not exceed $1.50 per gallon in 
tank cars; I'l.SS in drums.* 

WOOD CHEMICALS. 

Under a commandeering order issued December 24, 1917, by the director of 
purchases, storage and traffic, through the wood chemicals section of the War 
Industries Board all wood chemicals were commandeered for a period of six 
months. The prices of acetate of lime, acetic anhydride, acetone, wood alcohol, 
ethyl methyl ketone, and methyl acetone were fixed at the same time ; pi-ices 
for acetic acid, formaldehyde and methyl acetate were announced in February, 
1918. 

On July 1, 1918, this commandeering order was reissued to continue until 
January 1, 1919. The same prices were awarded by the board of appraisers. 

The order was canceled December 14, 1918. 

WOOL GREASE. 

The price-fixing committee has approved an agreement made by the producers 
of wool grease fixing a maximum price of 16 cents per pound packed in barrels 
f. o. b. shipping point this price to take effect September 17, 1918, expiring 
December 17. 1918, both dates inclusive, and covering all sales made both to the 
Government and to the public. This price applied to wool grease containing a 
moisture content not exceeding 3 per cent and any excess of moisture above 3 
per cent called for a proportionately lower price. The guarantee of ash w'as 
limited to 2 per cent. 

It was further agreed by the producers that all sales should be made subject 
to allocation by the " Tanning material and natural dye section " of the War 
Industries Board. 

The prices were discontinued on the date of expiration. 

1 Metallurgical and Engineering Chemistry, June 1, 1918. 



10. RUBBER. 



The appended circular issued by the "War Trade Board on April 30, 1918, indi- 
cates the origin and nature of the control over the prices of rubber and rubber 
substitutes. 

On December 14 and 23, 1918, the War Trade Board discontinued the Govern- 
ment option price and removed the resti-ictions on imports.^ 

CIRCULAR ISSUED BY WAR TRADE BOARD APRIL 30, 1918. 

The importance of securing every possible ship for trans- Atlantic uses in con- 
nection with carrying on the war has now become paramount. With this in 
view, the quantity of various articles of commerce heretofore freely imported 
will he substantially limited until further notice. Among these commodities is 
crude rubber. 

To the end that such limitation of imports shall not invite hoarding, specula- 
tive dealing, and profiteering, the War Trade Board has arranged that those 
dealing in this raw material and the manufacturers thereof will be governed by 
rules and regulations about to be promulgated by the War Trade Board to the 
entire rubber Industry through the Rubber Association of America. 

You are, therefore, hereby instructed on and after May 1. 1918, not to indorse 
any bills of lading for crude rubber or to accept any transfers or to i*elease any 
crude rubber without securing from the transferees or the applicant for a 
release an option and a guarantee in substantially the following form : 

OPTION AND GUABANTT CLAUSE TO BE INSEETED IN PRESENT BTJBBEE GUAEANTT. 

That the United States Government shaU have, and it is hereby granted, an 
option to purchase at the prices and on the terms hereafter set forth all or any 
part of the crude rubber covered by this guaranty and also all other crude 
rubber now or hereafter owned or controlled by the undersigned until sold and 
delivered to a manufacturer. 

In the event of the exercise of such option price to be paid for crude rubber 
and gums is fixed in accordance with the appended schedules. 

That the imdersigned will not sell, transfer, or dehver the rubber covered by 
the foregoing option, or any part thereof, to or for the benefit of any person at 
a price greater than the prices set forth in the foregoing option, except such 
rubber as he may be under contractual obligation to deliver under a contract 
executed and in force prior to May 1, 1918. 

Copies of such contracts, sworn to as being correct, must be filed viT.th the 
War Trade Board within five days from this date. Any delivenes made under 
such contracts to manufacturers subsequent to the date on which import restric- 
tions and a plan for the allocation of crude rubber shall be made effective shall 
constitute a portion of the amoimt allocated to such manufacturers under such 
plan. 

PRICES EFFECTIVE MAT 1, 1918. 

Per pound. 

Para, upriver fine $0. 68 

Plantation : 

First latex crepe . 63 

Smoked sheets, standard quality . 62 

PRICES EFFECTIVE MAT 14. 1918. 

Plantation qualities : -^ 

OfiE standard latex crepe .62 

Off color latex . 61 

No. 1 amber crepe [ 60 

No. 2 amber crepe . 60 

1 War Trade Board Rulings 414, 456. 

813 



814 HISTORY OF PEICES DURING THE WAR. 

Plantation qualities— Continued. P®r pound. 

No. 3 amber crepe (medium color) SO. 58 

No. 4 amber crgpe (darkish color) .57 

Prime, clean, light-brown crepe, thick and/or thiu .00 

Medium color brown, clean crepe, thick and/or thiu .58 

Good dark-brown crepe, thick and/or thin .54 

Specky brown crepe, thick and/or thin .50 

Massed or rolled crepe : .44 

Colombo scrap No. 1 quality .40 

Colombo scrap No. 2 quality . 44 

Standard quality smooth smoked sheets * . 60 

Standard quality unsmoked sheets ^.61 

Mexican guayule : 

Guayule crude, with. 20 per cent guaranty of shrinkage . 35 

Clean, dry. and treated guayule, such as Duro, Triangle, Box, Torreon, and 

Alto brands . 48 

Para grades : 

Upriver medium . 6."! 

Manaos weak fine .5(5 

Upriver coarse . 40 

Upper Caucho ball . 40 

Xingu ball . 38 

Lower Caucho ball . 36 

Islands fine . 50 

Islands coarse . 27 

Cameta . 28 

Central American grades : 
Central scrap — 

Esmeralda . 30 

Corinto . 30 

Mexican . 30 

Bluefield . 30 

Central slab — 

Guatemala . 32 

Colombian , 32 

Mexican, and others of similar nature . 32 

African grades : 

Red Congo ball .48 

Black Congo — 

Kassai . 50 

Lopori . 50 

Bquateur . 50 

Sangha and similar grades . 50 

Benguellas, 32^ per cent shrinkage . 20 

Benguellas, 28 per cent shrinkage . 33 

Niger paste and flake . 28 

Red Kassai nuggets, cords, and similar grades . 42 

Massais . 55 

Rio Nunez . 55 

Miscellaneous : 

Mattogrosso fine . 53 

Mattogrosso coarse . 3S 

Penang (this includes Java) . 37 

Caucho tails . 35 

Gutta Joolatong (Pontianac) : 

Palambang . . 16 

Banjermassin . 13 

Sarawak . 14 

Pressed Gutta Joolatong; having approximately 40 per cent of shrinkage loss . 2."> 

Gutta Siak _ ^ , 28 

Balata : 

" Prime suriname amber sheet . 97 

Fair average sheet . .05 

Venezuela block . 71 

Colombian block . 61 

Panama block . 59 

Other grades of Balata at their relative value. 
Gutta-percha : 

Red Macassan 3. 00 

Other grades at their relative value. 

PRICES EFFECTIVE MAY 29, 1918. 

Manicoba (on the basis of 30 per cent loss in washing and drying) . 365 

(Lower qualities to be priced in accordance, so that they shall not cost the 
manufacturer over 52 cents per pound dry weight.) 

Mollendo fine . 60 

Tapajos . 61 

Xingu fine . 63 

Peruvian weak flue . 55 

Lower Amazon weak flne . 45 

PRICES EFFECTIVE JUNE 13, 191.?. 

Knapsack Madeira flne Para . 7-" 

Madeira fine Para . 60 

^ Revised May 20 to 01 cents. ^ Revised May 29 to 60 cents. ' In bond. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 815 

rrtlCES EFFECTIVE JULY 2. 1914. 

Africans : Per pound. 

Accra (Gold Coast) lumps SO. 28 

Lagos lumps r • 28 

Lump flake . 28 

Conakry niggers . 55 

Prime Mozambique ball . 52 

Sierra Leone niggers . 50 

Hausa ball . 35 

Hausa cake . -iS 

Cameroon ball and similar grades . 35 

Gambia niggers • 45 

Prime Madagascar qualities (on the basis of 35 per cent shrinkage) . 35 

Madagascar niggers (on the basis of 45 per cent shrinkage* . 29 

Assam and Rambong : 

Prime crepes • 60 

Good quality crSpes • 58 

Assam onions • 54 

PRICES EFFECTIVE JTIA' G, IDIS. 

Para, fine : 

Peruvian . 67 

Cut Angostura • 64 

Para, medium : 

Peruvian . 62 

Cut Angostura . 58 

Coarse, medium ■ 45 

Para, coarse : 

Peruvian . 37 

Mollendo ■ 37 

Rio Negro coarse • 38 

Rio Negro strings • 35 

Nugget coarse . 46 

Angostura coarse . 37 

Tapajos coarse . 38 

Xingu coarse . 38 

Ceara coarse (Negroheads) . 38 

Miscellaneous : 

Ceara scrap 1 : . 37 

Pernambuco sheet . 35 

Mangabeira sheet . 35 

Upper Caucho slab . 33 

All of the above prices are on the basis of c. i. f. New York. 



11. NEWS-PRINT PAPER. 



Pursuant to a resolution of the United States Senate, dated April 24, 1916, 
the Federal Trade Commission undertook an investigation of the news-print 
paper industry of the United States. In Februai-y, 1917, certain manufacturers 
requested the Federal Trade Commission to fix " a fair and reasonable price 
for the sale of such paper for use in the United States " in the period from 
March 1, 1917, to September 1, 1917. Such a price was fixed by the commis- 
sion on March 3, 1917. After this agreement was adopted a Federal grand 
jury for the southern district of New York found indictments against four 
of the signatories to the agreement for violations of the Sherman antitrust law. 
The agreement soon collapsed. On November 26, 1917, a new agreement was 
made between Thomas W. Gregory, Attorney General of the United States, as 
trustee, and certain persons and corporations engaged in the manufacture and 
sale of news-print paper. 

The substance of this agreement and the subsequent action of the Federal 
Trade Commission are given in the statement below issued by the commission 
on June 18, 1918. 

The prices announced upon the different dates of agreement are here arranged 
in tabular form. 



Commodity. 


Agency fixing price. 


Date or period. 


Price 
fixed 
(f.o.b. 
mill). 


Paper, news-print. 
Roll news in ear lots 


[Federal Trade Commis- 
1 sion. 

Arbitration decision on 
1 Sept. 25, 1918, by United 
( States circuit court, sec- 
ond circuit. 

Federal Trade ComTnis- 
\ sion; prices revised Oct. 
18, 1918. 

I . .do 


(Apr. 1, 1918; set originally 
i. for duration of the war 
{ and 3 months thereafter. 

JApr. 1, 1918; for duration 
\ ofthewar and 3 months 
thereafter. 

[Revised prices allowing 
J for wage increase be- 
1 came efiective May 1, 
I 1918. 

[Revised prices allowing 
1 for freight increase be- 
1 came eflective July 1, 
I 1918. 


Per cwt. 
( $3. 10 


Roll news in less than car lots 

Sheet news in car lots 


1 3.22i 
1 3.50 


Sh£et news in less than car lots 


3.62i 
f 3.50 


Roll news in less than car lots 

Sheet news in car lots 


3.62J 
1 3.90 


Sheet news in less than car lots 

Roll news in car lots ... 


4. 02i 
f 3.63i 


Roll news in less than car lots 


I 3. 75J 

] 4.03i 

4. 15f 

f 3.751 


Sheet news ia less thaa car lots 

R oil news in car lot's 


Roll news in less than car lots 


1 2. 87i 






4.27J 


Sheet news in less than car lots 



FINDINGS OF THE FEDERAL TIIADE COMMISSION OF" PEICES AND TEEMS OF CONTKACT 
AND SALES OF NEWS-PRINT PAPER UNDER AGREEMENT DATED NOVEMBER 26, 1017. 

The Federal Trade Commission has had before it as a reference the agree- 
ment made on November 26, 1917, between Thomas W. Gregory, the Attorney 
General of the United States, as trustee, and certain persons and corporations 
engaged in the manufacture and sale of news-print paper. 

The manufacturers, parties to this agreement, comprise three United States 
companies and seven Canadian companies, as follows : United States com- 
panies — International Paper Co., Minnesota & Ontario Power Co., Gould Paper 
Co. Canadian companie.s — Spanish River Pulp & Paper Mills (Ltd.), Abitibl 
Power & Paper Co. (Ltd.), Laurentide Co. (Ltd.), Belgo-Canadian Pulp & 
Paper Co. (Ltd.), Price Bros. & Co. (Ltd.), Donnacona Paper Co. (Ltd.), Bromp- 
ton Pulp & Paper Co. (Ltd.). 

Those 10 companies produced in 1917 about 950,000 tons of news-print paper, 
or nearly 50 per cent of the total output of all mills on the North American 
Continent. The bulk of this tonnage was consumed by newspaper publishers 
in the United States. 

816 



GOVERNMENT REGULATIONS RELATING TO PRICES. 817 

The agreement provides, briefly, that the Federal Trade Commission shall 
fix the maximum prices and terms of sale of the output of the news-print 
paper of these 10 companies sold to purchasers in the United States for the 
duration of the war and three months thereafter. In the case of the Minne- 
sota & Ontario Power Co. and its subsidiary, the Fort Frances Pulp & Paper 
Co. ( Ltd. ) , the agreement provides that the prices shall be fixed as of January 
1, 1918. The commission is also directed to determine the just and reasonable 
maximum prices and terms of resale of all paper merchants, sales agents, or 
other middlemen selling the product of these 10 companies to customers in the 
United States. 

All parties at interest were invited to lay before the commission any perti- 
nent data, and counsel were diligent and helpful to the commission in securing 
a complete knowledge of the circumstances surrounding production and distri- 
bution. Extensive hearings were held and a mass of evidence taken. 

Cost figures were drawn from books of original entry and the vouchers and 
accounts of the several manufacturers were scrutinized by expert accountants. 
Complete appraisals of various plants were also presented. 

Neimprint prices. — The commission has heard the evidence and examined 
the data presented to it and finds the following maximum prices as of April 
1, 1918, to be fair and reasonable for each of the 10 signatory companies for 
sales of standard newsprint paper to customers in the United States : 

Roll news in car lots, $3.10 per 100 pounds f. o. b. mill. 

Roll news in less than car lots, $3.22^ per 100 pounds f. o. b. mill. 

Sheet news in car lots, $3.50 per 100 pounds f. o. b. mill. 

Sheet news in less than car lots, $3.62^ per 100 pounds f. o. b. mill. 

The cost of the Brompton Pulp & Paper Co. (Ltd.), which is an incomplete 
mill of small newsprint tonnage and which buys its sulphite, was not allowed 
to control in the determination of the above prices. 

The Minnesota & Ontario Power Co. is directed to adjust its settlements for 
the months of January, February, and March, 1918, on a basis of 10 cents per 
100 pounds above these maximum prices, thereafter the said maximum prices 
shall apply. 

Terms of sale. — The commission directs that the so-called standard form of 
contract be used at this time, with changes in terms that shall provide: (a) A 
definite tonnage specification and passage of full and unrestricted title to the 
customer upon delivery, and (&) that the signatory manufacturers shall credit 
customers for overweight above the 32-pound basis, computed by taking the 
annual average of the total tonnage delivered on contract, provided that the 
customer gives such prompt notice as to overweights from time to time as will 
enable the manufacturer, if he desires, to verify the claims currently and to 
make correction in weights of subsequent deliveries. 

Certain other changes in the terms of contract urged by the publishers con- 
tain merit, but this does not appear to be a proper time for introducing 
avoidable changes. 

Jobbers' prices and terms of resale. — The maximum commissions for jobbers 
or other middlemen selling newsprint obtained from any of the signatory 
manufacturers to customers in the United States shall be 15 cents per 100 
pounds on carload lots, 40 cents per 100 pounds on less than car lots, and 60 
cents per 100 pounds on less than ton lots. 

The commissions shall be added to the actual cost of paper at the mill or at 
the warehouse. The cost at the warehouse will be the net mill price plus 
freight, cartage, and other reasonable necessary expenses incurred in getting 
the paper to the warehouse. In billing customers these items and the commis- 
sion shall be stated separately. 

SEPTEMBER 25, 1918. 

The findings and award of the Federal Trade Commission concerning prices 
and terms of contract and sale of news-print paper, as announced June 18, 1918, 
were appealed for review to the United States circuit court. 

The decision of this court, as issued on September 25, 1918, is given in the 
following statement. 

125547°— 20- — 52 



818 HISTORY OF PEICES DURING THE WAR. 

Findings and Conclusions of the Judges of the Cikcuit Coueti in thej 

News-Pkint Case- 
findings. 

1. Our jurisdiction rpsts solely on the consent of the signatory parties; we 
act as arhiti'ntors only. 

2. The principles applied by courts of authority in regulating rates for public 
utilities should be followed in this proceeding as nearly as possible. 

3. In valuing the capital investment used in producing news print, prices 
before the present European War should be adopted. 

4. We are not informed as to the investment or value of the plant of the 
Gould Paper Co. The Brompton Co. produces little news print, and that under 
abnormal conditions. Therefore, these manufacturers must conform to the 
fair maximum price fixed for the other eight parties and based upon the 
evidence concerning said eight businesses. 

5. In ascertaining capital investment, i. e., the present value of property 
actually used in paper production, we exclude timber lands Avliether owned or 
leased, also undeveloped or potential water power, i. e., water rights ; but in- 
clude mill and town sites, terminal facilities, and improvements on or develop- 
ment of natural water povs^ers, together with any investment by way of actual 
payment for power rights. The foregoing allowed elements of capital value are 
the " tangibles." 

6. Going concern value and working capital are proper additions to 
" tangibles." 

7. In ascertaining manufacturing cost, no allowance for stumpage in respect 
of wood obtained from leased Canadian Crown lands'! is made, such stumpage 
not representing any actual disbursement, nor tlie partial exhaustion of prop- 
erty for which payment (on stumpage basis) was ever made. 

In respect, however, of wood cut in o^\^Ied lands, such stumpage charge is 
proper, and $2 per cord is less than tlie market rate. 

8. Owing to more costly wood and higher expenses for labor, taxes, and 
freight charges, tlie typical mill in tbe United States can not, with equal skill 
in management, produce paper as cheaply as a similar mill in Canada ; such 
disadvantage means an additional cost per ton of paper' of slightly more 
than $5. 

9. The Spanish River Co. is an exception to the Canadian manufacturers 
solely because of a high and wholly unexplained wood cost. 

10. The maximum selling price fixed for all the signatories should be based 
on an average of the reasonable capital investments, and fair manufacturing 
costs of the signatory parties, other than the Gould & Brompton Cos. 

11. It is not advisable to make anj' special rate by way of favor for manu- 
facturers meeting with special but temporary misfortune. The high manu- 
facturing cost of The Minnesota & Ontario Co., due to drought, and the serious 
loss of the Abitibi Co., ascribed to sabotage, are business accidents which would 
not relieve them from the competition of more fortunate rivals in ordinary 
times, and under a fixed maximum rate they must still meet competition. 

12. We consider ourselves bound by agreement of parties that the annual 
production of each manufacturer is to be taken as the proven daily capacity 
of plant multiplied by 300 yearly working days. Therefore, we disregard the 
fact also proven that the output of the signatory parties for 1917 was 5.6 
per cent over the assumed production. 

13. The fair present value, as depreciated and at prewar prices of an 
integrated paper-mill plant, per ton of daily capacity, is: 

Tangibles $25, 000 

Going concern value, 10 per cent 2, 500 

AVorking capital 12, 000 

Total 39, 500 

14. A fair maximum return on said capital in a business of the hazards 
proven is 15 per cent per annum. 

15. The actual cost of making 1 ton of news-print paper in an average' 
Canadian mill, out of recently gathered wood and without any allowance for 
stumpage not actually paid, was not less than $48, on or about April 1, 1918. 
There is no evidence or suggestion that any element of cost has since then 



GOVEKNMENT REGULATIONS EELATIFG TO PRICES. 819 

diminished. The same tou of paper would have cost, if made in tlie United 
States, about $5 more ; and the average cost for the eight manufacturers 
considered is more than $50 per ton. 

., CONCLUSION. 

Applying the foregoing findings to a plant having daily capacity of 100 tons : 

The capital invested is $39.500X100 $3,950,000 

The fair annual return. 15 per cent .. 592. .500 

To be oljtained by selling all of an annual production of 30,000 tons, 

or a profit per ton of 19. T5 

Add to this average cost of manufacture, say -50. 25 

And 70.00 

should be the maximum selling price of 1 ton of news print in rolls f. o. b. mill. 
It is therefore ordered that the finding or award of the Federal Trade Com- 
mission be varied so as to read as follows : 

Tlie fair and reasonable maximum prices for each of the 10 signatory com- 
panies for sales of standard news-print paper to customers in the United States 
are: 

Per cwt. 

Roll news in car lots • $3. 50 

Roll news in less than car lots o.62h 

Sheet news in car lots 3. 90 

Sheet news in less than car lots 4. 02j 

All prices are f. o. b. mill. 

The Minnesota & Ontario Co. is directed to adjust its outstanding settlements 
for the months of .January, February, and March, 1918, at not over the maxi- 
mum hereby fixed. 

In no other respect does this vary from the award of the Federal Trade Cora- 
mission. 

OCTOBEB IS, 1918. 

Following the announcement of the decision of the United States Circuit 
Court, on September 25, 1918, in regard to the award of the Federal Trade 
Commission concerning prices for sales of standard news-print paper in the 
United States, the commission issued supplemental findings on October 18, 1918. 

Those findings and the subsequent action based upon them are given below. 

Supplemental Findings of the Federal Trade Commission. 

Subsequent to the finding and award of the members of the Federal Trade 
Commission acting as arbitrators in the above proceedings, which finding and 
award was made June 18, 1918, the said award was appealed for review to Hon. 
H. G. "Ward, Hon. Henry W. Rogers, Hon. Charles M. Hough, and Hon. Martin 
T. Mauton, judges of the United States Circuit Court for the Second Circuit, 
acting as reviewing arbitrators. 

On September 25, 1918, the reviewing arbitrators ordered that the finding or 
award of the Federal Trade Commission be varied so as to read as foUows : 

The fair and reasonable maximum prices for each of the 10 signatory com- 
panies for sales of standard news-print paper to customers in the United States 
are: 

Per cwt. 

Roll news in car lots $3. .50 

Roll news in less than car lots 3. 62A 

Sheet news in car lots 3. 90 

Sheet news in less than car lots ^ 4. 021- 

All prices are f. o. b. mill. 

Accordingly the Federal Trade Commission hereby directs that its findings bo 
varied as above set forth, to be effective as of April 1, 1918, for all the signatory 
companies, and in the case of the Minnesota & Ontario Power Co. to be effective 
as of January 1, 1918. 



820 HISTORY or PEICBS DURING THE WAR. 

FINDINGS AS TO COST INCREASES. 

Subsequent to the finding and award of the members of the Federal Trade 
Commission as arbitrators, dated June 18, 1918, there were submitted to the 
commissioners by one of the parties hereto certain claims as to the effect of 
changes in rates of wages, freight rates, and wood costs since April 1, 1918. 
These changes cover the period from April 1 up to and Including the date of 
the supplemental hearing, which was July 29 and 30, 1918. 

The figiires presented have been analyzed and checked by tlie commission's 
accountants, and the accountants' report has been put in evidence by stipula- 
tion of parties. 

It appears from this stipulation that there have been increases in the cost 
of production of r.ews print chargeable to these three factors, as follows : 

Per hun- 
dredweight. 




(1) Wood cost increase (since Apr. 1, 1918) $3. 75 $0. 187 

(2) Wage increase (since May 1,1918) 2.65 . 13J 

(3) rreightincrease(smce July 1,1918) 2.41 .12 



WOOD COST INCKEASES. 

As noted above, the accountants' report shows an increase in wood cost for 
the International Paper Co., amounting to $3.75 per ton of paper. In arriving 
at the base price of $3.10 per hundred pounds, effective April 1, 1918, the com- 
mission took into account an increase in cost of $2.50 per ton of paper since 
the International Paper Co. and the Minnesota & Ontario Power Co. were 
practically on a new wood basis after April 1. 

In calculating the base price of $3.50 per hundred pounds, the reviewing 
arbitrators also apparently took into consideration the factor of increased 
wood cost. They say in paragraph 15 : 

" The actual cost of making 1 ton of news-print paper in an average Canadian 
mill, out of recently gathered tvood and without any allowance for stumpage 
not actually paid, was not less than $48 on or about April 1, 1918." 

No wood has been gathered since that date, wherefore the increased wood 
cost is taken to be included in the reviewing arbitrators' calculations. 

The commission, therefore, finds that no increase in price is to be made as a 
result of claimed increases in wood costs. 

INCKEASE IN WAGES. 

The commission finds that, since May 1, 1918, there has been an increased 
labor cost of $2.65 per ton, or 131 cents per hundred pounds, and it appears to 
be bound to add this amount to the selling prices as varied by order of the re- 
viewing arbitrators. 

The commission, therefore, finds and orders that adjustments since May 1, 
1918, between parties hereto, shall be made on the following basis : 

Per cwt. 

Roll news in car lots $3. 63| 

Roll news in less than car lots 3. 75f 

Sheet news in car lots 4. 03J 

Sheet news in less than car lots , 4. 15f 

All prices are f. o. b. mill. 

INCREASE IN FREIGHT. 

The commission finds that an increase in freight rates went into effect June 
25, 1918, that said increase adds $2.41 per ton, or 12 cents per hundred pounds, 
and that such increase became operative as to the signatory companies on 
July 1, 1918 ; and it appears to be also bound to add this amount to the selling 
prices as varied by order of the reviewing arbitrators. 



GOVERNMENT EEGULATIONS RELATING TO PRICES. 



821 



The commission, therefore, .finds and orders that adjustments since July 1, 
1918, between parties hereto, shall be made on the following basis : 

Per hundredweight. 

Roll news in car lots : $3. 75J 

Roll news in less than car lots . 3. 87| 

Sheet news in car lots : 4. 15^ 

Sheet news in less than car lots 4. 27f 

All prices are f. o. b. mill. 



PROFIT BASIS FOR NEWSPRINT PAPER. 

In making their award the reviewing arbitrators calculated a net average 
profit of $19.75 per ton as a fair and reasonable profit. 

It has been shown (Federal Trade Commission Report on the News- 
print Paper Industry, June 13, 1917, p. 105, and included in the evidence in 
this case) that the prewar average profit per ton for the manufacture and sale 
of newsprint paper for United States and Canadian mills was as follows 
(figures for signatory manufacturers are added for comparison) : 



Year. 


United 
States 
mills. 


Inter- 
national 

Paper Co. 

and Minne- 
sota and 

Ontario Co. 


Canadian 
mills. 


Six 

Canadian 

signatories. 


United 

States 

and 

Canadian 

combined. 


Eight 
signatory- 
companies 
combined.i 


1913 


$5.53 
4.94 
5.59 
6.75 


$5.13 
5.55 
6.37 
6.99 


$6.45 
6,62 
8.13 
9.54 


$4.98 
5.71 
6.82 
8.15 


$5.70 
5.35 
6.34 
7.55 


$5.09 
6.61 
6.55 
7.46 


1914 


1915 


1916 (first half) 





1 Brompton and Gould not included. 

It Is fair to presume that, on the average, capital has been invested in the 
manufacture of newsprint paper on an expectation of a net average profit of 
not more than $10 per ton. 

The increases in cost of wood, freight, and labor shown above are found to 
be the result of war conditions and to be unavoidable by either party. 

It has been established by governmental price-fixing authorities that during 
the war in case of unusual cost increase caused by war conditions and working 
a hardship, such increase should be equitably distributed and not passed on 
in toto to the purchaser. 

Were the commission free to express its judgment in a finding at this time it 
would hold that the net average profit of $19.75 was ample to absorb all in- 
creases in wood costs, labor costs, and freight charges up to the present time, in 
which case the result might be stated thus : 





Per ton. 


Per 
hundred- 
weight. 


Under the price fixed by the reviewing arbitrators there Is a net average profit 
per ton, including increased wood costs, of 


$19. 75 
5.06 


$0 987 


Increased labor cost from May 1, 1918 $2 65 




Increased freight cost fx-om July 1, 1918 ' ' 2 41 






.25 




Average net profit after absorbing increased cost 


14.69 
7.46 


.73 


Highest average, 8 signatory companies (first half 1916).. 


37 






Increased net profit under award 


7.23 


36 







Feeling itself bound, however, by the order of the reviewing arbitrators, the 
commission finds selling prices for the three periods, April 1, 1918, May 1, 1918 
and July 1, 1918, as above set forth and orders that adjustments between parties 
be made, as of such dates, accordingly. 

In all other particulars the findings of the commission of June 18, 1918. are 
affirmed. 



BIBLIOGRAPHY. 

There follows a brief bibliography of selected periodical refer- 
ences to Government price control in the United States during the 
war. The Official Bulletin, published by the Government, and the 
Commercial and Financial Chronicle give especially comprehensive 
statements of the formal controls as they were adopted. The New 
York Public Library and the Congressional Library at Washington, 
at the request of those interested in this inquiry, have each prepared 
for distribution a much fuller bibliography on this subject than can 
here be printed. 

AMERICAN ECONOMIC REVIEW. 

^ Jones, Eliot. Report on anthracite and bitumiaous coal. Dec, 1917, v, 7: 
919-923. 

Duffres, W. M. Government control of the wheat trade in the United States. 
1918, V. 8: 62-87. 

Value and price theory in relation to price fixing and war finance. Mar., 
1918, V. 8, sup.: 239-256. 

Report — Government marketing of Australian wheat. Dec, 1918, v. 8 : 
853-858. 

AMERICAN REVIEW OF REVIEWS. 

Dillon, John .T. High cost of food, causes and remedies. Feb., 1917, v. 55 : 
163-161. 

Seligman, E. R. A. Government price regulation. Sept., 1917, v, 56 : 28^292. 

ATLANTIC MONTHLY. 

Lubin^, D. Food control and democracy. 1917, v. 120: 260-269. 

CENTURY. 

Creel, George. Can a democratic government control prices? Interview with 
Joseph E. Davies. Feb., 1917, v. 93: 605-611. 

THE COMMERCIAL AND FINANCIAL CHRONICLE. 

General. 

War and socialism. Feb. 17, 1917, v. 104 : 597. 

Rushing into dictatorships. Mar. 3, 1917, v. 104:796-7. 

The food situation — Statutes no panacea. Mar. 10, 1917, v, 104 : 897. 

Fears of Government regulation. Editorial. Apr. 14, 1917, v. 104 : 1420. ^ 

One way of rendering service to the country — The food question. Apr. 14, 
1917, V. 104:1432. 

Secretary of the Navy reduces prices of torpedoes from K. W. Bliss Co. 
Apr. 21, 1917, V. 104 : 1554. 

Herbert C. Hoover to handle Nation's food problems. Apr. 21, 1917, v. 104: 
1555. 

Danger of Government control. Editorial. May 5, 1917, v. 104 : 1730 

Patriotism to and by Government. May 26, 1917, v. 104 : 2051-2053. 
822 



GOVEEHMENT REGULATIONS EELATIZsTG TO PRICES. 823 

E. H. Gary on principles for wliicli we are figliting. May 26, 1917, v. 104: 
2067. 

Regulating prices — The low supply and demand. June 16, 1917, v. 104 : 
2382-2385. 

Food control— The latest dictatorship bill. June 16, 1917, v. 104 : 2385. 

The food control bill. June 30, 1917, v. 104 : 2592. 

President's warning against high prices, July 14, 1917, v. 105 : 135. 

The resort to commissions and what it means. July 21, 1917, v. 105 : 218. 

The food control bill enacted. Aug. 11, 1917, v. 105 : 540. 

The Food Administration — Its purposes and plans. Aug. 18, 1917, v. 105 : 664. 

Federal control of wheat and flour. Aug. 18, 1917, v. 105 : 065. 

What the New War Industries Board may accomplish. Aug. 18, 1917, v. 
105 : 667. 

Has Congress power to create a dictator? Aug. 25, 1917, v. 105:749-51. 

Fixing prices of food and fuel. Sept. 1, 1917, v. 105 : 850-52. 

Labor strikes, price fixing, and the war. Sept. 22, 1917, v. 105 : 1140-42. 

The retailer and Government price control. Nov. 8, 1917, v. 105 : 1745. 

Business as usual — What does it mean? Nov. 10, 1917, v. 105:1834-36. 

L. E. Pierson on obligations of Government and business in the war. Nov. 
17, 1917, V. 105:1941. 

United States Chamber of Commerce on progress of Government price con- 
trol. Dec. 1, 1917, V. 105 : 2144. 

Foreign trade council urges coordination of price fixing and taxation. Dec. 
1, 1917, V. 105:2147. 

Our experiments in " Government control." Jan. 19, 1918, v. 106 : 218. 

Proposed Government control of security issues. Jan. 19, 1918, v. 106 : 235. 

Congress, the President, and the " War Council." Jan. 26, 1918, v. 106 : 325. 

Impending price-fixing bill. Editorial. Feb. 2, 1918, v. 106 : 418. 

Executive order regulating control of foreign exchange by Federal Reserve 
Board. Feb. 2, 1918, v. 106:438. 

Discussion of Government control. Editorial. Feb. 9, 1918, v. 106 : 524. 

No general price fixing on agricultural products. Mar. 2, 1918, v. 106 : 876. 

Senator Lodge in criticism of Fuel Administration and price fixing of Gov- 
ernment. Mar. 2, 1918, v. 106 : 880. 

Committee to pass on prices for basic raw materials for Government. Mar. 
23, 1918, V. 106:1187. 

Retrospect of 1917. Mar. 30, 1918, v. 106 : 1280-86. 

Is there a legal limit to price control? April 6, 1918, v. 106:1394. 

Requirements division of War Industries Board to carry out policies of 
B. M. Baruch. Apr. 13, 1918, v. 106 : 1524. 

Charles H. Sabin on Government price regulation. May 25, 1918, v. 106 : 2169. 

What is profiteering and who ai-e the profiteers? June 8, 1918, v. 106:2376. 

Retrospect of 1917. June 29, 1918, v. 106 : 2698. 

How business runs the Government. Aug. 17, 1918, v.. 107: 635. 

Our apathetic acceptance of control and operation. Aug. 31, 1918, v. 107 : 837. 

Proposed Government control of retail dry goods." Oct. 12, 1918, v. 107: 1439. 

Judge Gary's view as to readjustment period. Nov. 16, 1918, v. 107: 1884. 

Reconstruction and resumption. Release from Government control. Nov. 23, 
1918, V. 107 : 1951. 

Fixed prices discontinued. Dec. 7, 1918, v. 107 : 2148. 

A proposal for the governmental fixing of retail prices. Dec. 14, 1918, v. 
107 : 2221. 

Chas. E. Hughes sees greater efficiency in private than Government control. 
Dec. 14, 1918, V. 107 : 2236. 



824 ' HISTORY OY PEICES DURING THE WAR. 

Acids. 

Sulphuric and nitric acid prices. June 29, 1918, v. 106 : 2712. 

Alcohol. 

Wood alcohol output taken by Governmcut. Dec. 22, 1917, v. 105 : 2411. 

Alumin*um. 

Rejection of aluminum price recommended by Council of Defense. July 7, 
1917, V. 105 : 22. 

Aluminum prices approved by the President. Mar. 9, 1918, v. 106 : 983. 
New aluminum prices approved. June 1, 1918, v. 106: 2294. 
Aluminum prices continued. Aug. 24, 1918, v. 107 : 759. 

Arsenic. 

Fixing of arsenic prices by United States Government. June 1, 1918, v. 

Binder Twine. 

Control of binder twine output by Government. Jan. 12, 1918, v. 106 : 142. 
Scale of prices announced by Food Administration. Mar. 2, 1918, v. 106: 879. 

Castor-Oil Beans. 

Price of $4.50 per bushel fixed. Nov. 2, 1918, v. 107 : 1714. 

Cement. 

Cement price fixing by the Government. May 25, 1918, v. 106 : 2183. 

Copper. 

Copper producers' offer to the Government. Mar. 24, 1917, v. 104 : 1108. 

Government order for copper at a fixed price. June 80, 1917, v. 104 : 2603. 

Government lowers price of copper. July 14, 1917, v. 105 : 133. 

Government fixed price. Sept. 22, 1917, v. 105 : 1165. 

Attitude of copper trade toward Government's price. Sept. 29, 1917, v. 
105 : 1264. 

Conference of copper interests with Government officials. May 4, 1918, v. 
106 : 18.56. 

Government's price continuing. Wall Street comment. May 25, 1918, v. 
106 : 2182. 

Increase in copper price by War Industries Board. .July 6, 1918, v. 107 : 35. 

Copper to remain at 26 cents. Comment. Aug. 10, 1918, v. 107 : 562. 

Copper price continued. Comment. Nov. 2, 1918, v. 107 : 1715. 

Copper price continued. Nov. 23, 1918, v. 107 : 1967. 

Cotton. 

A suggestion that tho Government contract ahead for the growing cotton 
crop. June 30, 1917, v. 104 : 2593. 

Denial of cotton price-fixing movement. Feb. 9, 1918, v. 106 : 553. 

War Trade Board's announcement concerning cotton shipments to Spain. Apr. 
13, 1918, V. 106:1524. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 825 

Conference looking to stabilization of cotton industry. Apr. 13, 1918, v. 
106:1528. 

Bill fixing price of raw cotton at 20 cents. Apr. 20, 1918, v. 106 : 1627. 

Cotton manufacturers' resolutions on price fixing, coal priority, etc. May 11, 
1918, V. 106 : 1961. 

Tentative plan for price fixing of cotton goods. June 15, 1918, v. 106 : 2506, 

Government plans concerning cotton price fixing. June 29, 1918, v. 106 : 2708. 

Beverly D. Harris on stabilization of cotton prices. July 13, 1918, v. 107 : 130. 

Proposed fixing of cotton price. Sept. 7, 1918, v. 107 : 949. 

Developments growing out of reports of cotton price fixing. Sept. 21, 1918, 
V. 107 : 1150 ; Sept. 28, 1918, v. 107 : 1250 ; Oct. 12, 1918, v. 107 : 1438. 

Cotton price fixing unnecessary. Nov. 9, 1918, v. 107. 1788. 

Cotton goods prices continued. Nov. 23, 1918, v. 107 : 1964. 

Cotton price fixing to cease Jan. 1. Dec. 14, 1918, v. 107 : 2238. 

Cotton Linters. 

Questionnaire on cotton linters issued by War Industries Board. June 1, 
1918, V. 106 : 2289. 

Cottonseed. 

Regulations to prevent hoarding and speculation in cottonseed. Nov. lOj 1917, 
v. 105 : 1853. 

Rules for cottonseed buyers and sellers. Aug. 10, 1918, v. 107 : 562-3. 

Prevailing price of cottonseed held to be too low by Texas commissioner. 
Aug. 24, 1918, V. 107 : 755. 

Price stabilization of cottonseed. Sept. 21, 1918, v. 107 : 1151. 

Speculation in cottonseed. Nov. 10, 1917, v. 105 : 1853. 

Feetilizees. 
Proclamation licensing fertilizer industry. Mar. 2, 1918, v. 106 : 880. 

Food. ' 

general. 

The food riots and measures of relief. Feb. 24, 1917, v. 104 : 699. 

The food shortage — the seat of the disease. Mar. 3, 1917, v. 104 : 796-7. 

J. Ogden Armour urges Government control of food. Apr. 14, 1917, v. 
104 : 1447-8. 

The food problem and the farmer — normal methods best. Apr. 21, 1917, v. 
104:1536-7. 

Secretary Houston would fix food prices. Apr. 21, 1917, v. 104: 1556. 

Herbert C. Hoover appointed Food Administrator. May 26, 1917, v. 104 : 2072. 

The administration's food-control bills. June 9, 1917, v. 104 : 2298-9. 

Herbert C. Hoover outlines Food Administration program. June 9, 1917, v. 
104 : 2301-2. 

The Administration's food-control bills. June 30, 1917, v. 104 : 2608-9 ; July 
14, 1917, v. 105 : 138 ; July 28, 1917, v. 105 : 340-1 ; Aug. 11, 1917, v. 105 : 555-6. 

New York Legislature in session to consider food bill. Aug. 4, 1917, v. 
105 : 452-8. 

Text of food-control bill. Aug. 11, 1917, v. 105 : 556-7-8. 

Text of food-survey bill. Aug. 11, 1917, v. 105 : 559. 

Food control launched. Aug. 18, 1917, v. 105 : 646-7. 



826 HISTORY OF PRICES DURING THE WAR. 

Federal control of food to begin Nov. 1, Oct. 13, 1917, v. 105 : 1472. 
The President defines fair profit for foodstuffs as normal average obtained 
prior to July, 1014. Dec. 8, 1917, v. 105 : 2231. 

Review of course of food prices by Mr. Hoover. Nov. 16, 1918, v. 107 : 1878-9. 

BAKING INDUSTBY. > 

Government regulation of baking industry. Nov. 17, 1917, v. 105 : 1944-46. 
Food Administration's announcement regarding baking rules under new license 
regulations. Feb. 9, 1918, v. 106 : 549. 

CANNEKS. 

Maximum margins allowed canners. Apr. 27, 1918, v. 106 : 1747. 

COFFEE. 

Licensing of green-coffee dealers to prevent outside speculation. Fell. 9, 1918, 
V. 106:549. 

Speculation in green coffee prohibited. Feb. 9, 1918, v. 106:550. 

New York Coffee and Sugar Exchange's resolution banning circulars encour- 
aging speculation. Feb. 23, 1918, v. 106 : 771. 

New division in Food Administration to pass on coffee. Mar. 2, 1918, v. 
106 : 878. 

Regulations for green-coffee dealers. May 4, 1918, v. 106 : 1852. 

Coffee import ruling. June 1, 1918, v. 106: 2288. 

Coffee-trade committee to cooperate with United States Food Administration. 
June 15, 1918, v. 106:2505. 

]\Iodification of coffee rvdes urged. June 22, 1918, v. 106: 2611, 

Coffee price stabilization. Oct. 19, 1918, v. 107 : 1535. 

Coffee futures ordered liquidated at fixed maximum prices. Nov. 9, 1918, v. 
107 : 1787. 

Coffee Exchange resumes trading in futures. Dec. 28, 1918, v. 107 : 2427. 

Coffee regulations. Dec. 28, 1918, v. 107:2428. 

EGGS AND DAIRY PRODUCTS. 

Exchanges agree to abolish speculation in butter and eggs. Nov. 17, 1917, v. 
105 : 1948. 

Wholesale prices for butter for New York and Chicago fixed by Food Admin- 
istration. Feb. 2, 1918, v. 106 : 446. 

Regulations to prevent speculation in butter. June 22, 1918, v. 106 : 2610. 

Margin of profit established on cheese. June 22, 1918, v. 106 : 2611. 

Regulations governing butter. Aug. 3, 1918, v. 107. 460. 

Cheese put under regulation. Aug. 10. 1918, v.s 107 : 559. 

GRAINS. 

Exchanges fix maximum prices for wheat futures. May 19, 1917, v. 104 : 1972. 
Corn maximum fixel by Chicago Board of Trade. June 9, 1917, v. 104 : 2302. 
Government control of wheat trade planned. June 30, 1917, v. 104 : 2604. 
Chicago Board of Trade stops trading in July corn. July 7, 1917, v. 105 : 25. 
Chicago Board of Trade takes further steps to control grain speculation. 
July 14, 1917, V. 105 : 131. 
Wheat prices of various countries. July 14, 1917, v. 105:132. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 827 

Chicago Board of Trade empowered to stop trading in grain futures and to 
fix prices. July 21, 1917, v. 105:236. 

Chicago Board of Trade stops trading in September corn. Aug. 4, 1917, v. 
105 : 456. 

Chicago Board of Trade to suspend future trading in wheat, Aug. 18, 1917, 
V. 105 : 669. 

Price for 1917 wheat fixed. Sept. 1, 1917, v. 105 : 864-66. 

Future trading in wheat ends in Chicago. Sept. 1, 1917, v. 105 : 867. 

Government agency assumes control of wheat markets. Sept. 8, 1917, v. 
105 : 959. 

Chicago Board of Trade and Government officials agree to limit speculation 
in grain. Nov. 24, 1917, v. 105 : 2048. 

Chicago Board of Trade decides to retain maximum of $1.28 on corn futures. 
Jan. 12, 1918, v. 106 : 136. 

Discontinuance of January trading in corn by Chicago Board of Trade. 
Feb. 2, 1918, v. 106 : 446. 

The price of wheat— What shall it be? Feb. 23, 1918, v. 106 : 746. 

Bill increasing minimum price of wheat to $2.50 a bushel favorably re- 
ported. Feb. 23, 1918, v. 106 : 770. 

Maximum price for oats fixed at 93 cents by Chicago Boai'd of Trade. Mar. 
2, 1918, V. 106 : 875. 

Gore proposal to increase minimum price of wheat. Mar. 23, 1918, v. 
106 : 1189. 

Food Administration's new wheat restrictions. IMar. 30, 1918, v. 106 : 1296. 

Disagreement of congressional conferees on wheat price, xlug. 13, 1918, v. 
106 : 1523. 

Trading in corn and oats on Chicago Board of Trade. Apr. 13, 1918, v, 
106:1523. 

House rejects higher wheat price. Apr. 20, 1918, v. 106 : 1626. 

Move toward commandeering wheat. May 11, 1918, v. 100 : 1959. 

Government price regulation. Charles H. Sabin. May 25, 1918, v. 106:2169. 

United States Grain Corporation seeks modification of grain regulations. 
June 15, 1918, v. 106 : 2705. 

President Wilson grants United States Grain Corporation authority to pay 
higher prices for wheat. June 29, 1918, v. 106 : 2705. 

Proposed regulation of wheat flour milling industry, July 6, 1918, v. 107 : 33. 

Higher wheat prices announced by the Food Administration. July 6, 1918, v. 
107 : 33. 

The farmer and the price of wheat. July 13, 1918, v. 107 : 11.3. 

Senate and House agree on $2.40 for wheat crop. July 13, 1918, v. 107 : 130. 

Excess profits of millers to be returned to Government in form of flour. 
July 13, 1918, V. 107 : 136. 

Plans of Food Administration for handling 1918 rice crop. Aug. 3, 191S, v. 
107 : 458. 

New flour milling control. Aug. 10, 1918, v. 107 : 558-9. 

Price for 1919 wheat fixed by the President. Sept. 7, 1918, v. 107 : 945. 

Maximum grain prices abolished by Chicago Board of Trade. Oct. 12, 1918, v. 
107 : 1436. 

Movement for stabilization of corn prices. Oct. 26, 1918, v. 107 : 1620. 

Wheat price guaranteed to American farmers as compared with that paid 
by England. Dec. 7, 1918, v. 107 : 2145-6. 

ICE. 

Food Administratiri to prevent profiteering in ice. May 4, 1918, v. 106 : 1854. 



828 HISTORY OF PRICES DURING THE WAR. 



United States Food Administration fixes minimum price for liogs. Nov. 10, 
1917, V. 105 : 1850. 

Investigating commission reconiniends minimum price for liogs. Nov. 17, 
1917, V. 105 : 1946. 

Meat packers' profits fixed by Government. Dec. 15, 1917, v. 105 : 2325. 

No increase in meat prices because of temporary scarcity. Feb. 2, 1918, v. 
106 : 447. 

Meat restrictions relaxed. Mar. 9, 1918, v. 106 : 979. 

Hoover's recommendations for control of meat industry. Apr. 6, 1918, v. 
106 : 1418. 

Packers protest against Federal Trade Commission's report on profiteering. 
July 6, 1918, V. 107 : 31. 

Minimum hog prices recommended by advisory committee. Oct. 19, 1918, v. 
107 : 1583. 

MILK. 

The milk situation in New York State — Government not to intervene. Sept. 
29, 1917, V. 105 : 1270. 

Federal milk commission allows increase in price for January. Jan. 5, 1918, 
V. 106 : 24. 

Federal milk commission reduces February prices for milk. Feb. 2, 1918, v. 
106 : 446. 

June milk prices fixed by Federal milk commission. June 8, 1918, v. 
106 : 2395. 

July prices fixed. July 6, 1918, v. 107 : 33. 

August and September milk prices. Aug. 3, 1918, v. 107:460. 

October milk prices — Reduction proposed. Oct 12, 1918, v. 107 : 1436. 

November prices — Dairymen's demands criticized by Mr. Hoover. Nov. 2, 
3918, V. 107:1714. 

Further increase in November milk prices — Protest by Mayor Hylan. Nov. 
16, 1918, V. 107 : 1880. 

Federal control of milk discontinued. Dec. 28, 1918, v. 107 : 2428. 

OEANGES. 

Margin of profit on oranges fixed. Nov. 19, 1918, v. 107 : 1788. 

PRUNES AND RAISINS. 

Prices announced by Food Administration. June 22, 1918, v. 106 : 2611. 

SARDINES. 

Food Administration fixes price. June 15, 1918, v. 106 : 2505. 

SUGAR. 

New York Coffee and Sugar Exchange stops trading in sugar futures. 
Aug. 18, 1917, V. 105 : 669. 

Conference of representatives of New York Coffee and Sugar Exchange in 
Washington. Aug. 25, 1917, v. 105 : 765. 

Reduction agreed to by sugar producers. Sept. 1, 1917, v. 105 : 866. 

Sugar refiners agree to import sugar through Food Administration. Sept. 
8, 1917, V. 105 : 960. 

President's proclamation calling for licensing of sugar industry. Sept. 22, 
1917, V. 105 : 1163-64. 

The sugar situation. Nov. 24, 1917, v. 105 : 2049. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 829 

Basic price for Cuban sugar fixed. Dec. 8, 1917, v. 105 : 2230. 

Senate committee's investigation of the sugar shortage. Dec. 22, 1917, v. 105 : 
2418-20. 

Mr. Hoover's explanation of sugar shortage. Dec. 29, 1917, v. 105 : 2500-2. 

Amount to be charged on $100,000,000 Cuban sugar credit. Mar. 23, 1918, 
V. 106: 1177. 

Further sale of sugar acceptances. June 8, 1918, v. 106 : 2383. 

Oscar S. Straus to determine sugar cost. June 22, 1918, v. 106: 2611. 

New sugar restrictions. June 29, 1918, v. 106 : 2706-7. 

Increase in basic prices of sugar. June 29, 1918, v. 106 : 2707. 

New sugar restrictions effective August. Aug. 3, 1918, v. 107: 458. 

Increase sought in price for Cuban sugar crop. Aug. 3, 1918, v. 107 : 459. 

One-hundred-million-dollar sugar syndicate disbanded. Aug. 10, 1918, v. 
107: 553. 

Food Administration to equalize prices of old and new sugar crops. Sept. 7, 
1918, V. ia7: 948. 

Cane-sugar price fixed by Equalization Board. Sept. 14, 1918, v. 107 : 1056. 

Cuban-sugar contract. Oct. 26, 1918, v. 107: 1620, 

FtGELS. 

Reduction in bituminous price agreed upon. June 30, 1917, v. 104 : 2603^. 

Secretary Baker repudiates bituminous prices agreement. July 7, 1917, v. 
105: 20. 

Oil for Navy Department — To fix prices later. July 7, 1917, v. 105: 21. 

Bituminous-coal prices fixed. Aug. 25, 1917, v. 105 : 766. /,--/' 

Anthracite-coal prices fixed. Aug. 25, 1917, v. 105 : 767. 

Coal committee appeals to operators and miners. Aug. 25, 1917, v. 105 : 768, 

The endeavor to regulate the coal industry. Oct. 13, 1917, v. 105: 1455.^ 

Maximum prices for by-product coke. Nov. 24, 1917, v. 105 : 2053. 

Garfield's preference order. Editorial. Jan. 19, 1918, v. 106 : 214. 

Benumbing effects of Fuel Administrator's order. Jan. 19, 1918, v. 106 : 221.- 

The Fuel Administrator's powers. Jan, 26, 1918, v. 106 : 327. 

The compensation. Discussion of fuel order. Jan. 26, 1918, v. 106 : 328. 

Bill authorizing President to fix oil prices. Mar. 30, 1918, v. 106 : 1300. 

Gasoline and fuel prices announced, June 1, 1918, v. 106 ; 2295. 

M. L. Requa warns hoarding oil producers that Government will not advance 
price. June 1, 1918, v. 106 : 2295. 

National petroleum war service committee asked to cooperate in stabilizing 
crude oil prices. June 29, 1918, v. 106 : 2710. 

Criticism of Fuel Administration. Editorial. July 13, 1918, v. 107: 104. 

Recommendations for stabilizing prices of crude oil. July 20, 1918, v. 
107: 241. 

A. C. Bedford on what has been accomplished by the oil industry without 
Government regulation — Stabilizing of prices. July 27, 1918, v. 107: 356-7. 

National petroleum committee plans to stabilize price and maintain output. 
Aug. 17, 1918, v. 107 : 655. 

Fuel Administration's announcement concerning stabilization of oil prices. 
Aug. 31, 1918, V. 107 : 855-6. 

Glycerin. 

Dynamite glycerin prices. Aug. 24, 1918, v. 107 : 761. 

Hides, Skins, and Leather. 
Tanners' council approves leather-import restrictions and fixing of prices. 
Apr. 27, 1918, v. 106 : 1747. 
Maximum prices on hides. May 4, 1918, v. 106 : 1853. 



830 HISTORY OF PRICES DURING THE WAR. 

Tanners agree to leave price fixing to Government. May 4, 1918, v. 106 : 1853. 
War Industries Board announces prices on pickled sheep pelts. June 15, 
1918, V. 106: 2.506. 

Prices announced for black harness leather. June 29, 1918, v. 106: 2708. 
New hide prices announced. July 27, 1918, v. 107 : 354. 
Sole and belting leather prices. Aug. 24, 1918, v. 107 : 757. 

Iron and Steel. 
\J SteeSjuen confirm reduced prices to United States Government. Apr. 28^ 

1917, V. 104: 1654. 

The Government and steel prices. June 23, 1917, v. 104: 250.5, 

Steel interests agree to Government price. July 14, 1917, v. 105 : 133. 

Steel prices approved by President Wilson. Sept. 29, 1917, v. 105: 1263-64. 

Steel manufacturers asked to give pledges that Government work receive 
priority. May 4, 1918, v. 106 : 1854. 

Changes in steel differentials. Aug. 10, 1918, v. 107 : 564. 

Iron and steel prices in effect until Dec. 31. Sept. 28, 1918, v. 107 : 1252. 

New prices and extras in iron bars. Oct. 19, 1918, v. 107 : 1539. 

Steel committee advises continuance of Government supervision of ' indus- 
try. Nov. 16, 1918, v. 107 : 1885. 

Steel control and price fixing to end Jan. 1. Judge Gary's vieAvs. Dec. 7, 

1918, V. 107 : 2240. 

Lead. 
Government gets supply of lead. Aug. 11, 1917, v. 105 : 566. 
Lead price fixing unnecessary. Dec. 22, 1917, v. 105 : 2412. 
Price at which Government's lead products requirements ' are to be met. 
Apr. 13, 1918, V. 106 : 1525. 

Lime. 

Lime and acetone taken by Government. Dec. 22, 1917, v. 105 : 2412. 

LUMBEE. 

Spruce lumber prices to be paid by the Government. Apr. 27, 1918, v. 
106 : 1747. 

Lumber prices agreed upon. June 15, 1918, v. 106 : 2507 ; June 22, 1918, 
V. 106 : 2615. 

Prices for northwestern fir and southern pine. June 29, 1918, v. 106 : 2708-9. 

Prices for long and short leaf Virginia and Carolina pine lumber. July 13, 
1918, V. 107 : 137. 

Maximum prices for southern pine lumber. .July 13, 1918, v. 107 : 138. 

New England spruce lumber prices. Aug. 3, 1918, v. 107 : 461. 

Increase in basic price for hemlock. Sept. 7, 1918, v. 107 : 949. 

Lumber prices continued. Oct. 26, 1918, v. 107 : 1621-2. 

Manganese. 
Manganese ore prices annoimced by War Industries Board. June 1, 1918, 
V. 106 : 2294. 

Freight rates on manganese ore. Aug. 24, 1918, v. 107 : 759. 

Nickel. 
Nickel prices agreed upon. Apr. 6, 1918, v. 106 : 1419. 

Niteate. 
Nitrate soda purchased in Chile by United States for farmers. Jan. 12, 
1918, V. 106 : 1.36. 
Plans of nitrate sales to farmers. Jan. 26, 1918, v. 106: 352. 
Formation of nitrate board by Allies. Jan. 26, 1918, v. 106 : 352. 



GOVEENMENT EEGULATIOl^S RELATING TO PRICES. 831 

Papee. 

A principle at issue in regulation of the price of newsprint paper. Feb. 24, 
1917, Y. 104:701. 

Proposal to Federal Trade Commission to fix paper prices. Feb. 24, 1917, 

V. 104 : 714. 

Government price fixing— The newsprint paper case. Mar. 10, 1917, v. 104 : 

898. 

The Canadian newsprint paper manufacturers. Mar. 10, 1917, v. 104 : 903. 

Newsprint paper manufacturers indicted under Sherman anti-trust law. 
Apr. 28, 1917, v. 104 : 1667. 

Federal Trade Commission and newsprint paper price. Apr. 28, 1917, v. 
104 : 1668-70. 

Senate asks Trade Commission to adopt strictures against newsprint manu- 
facturers. July 7, 1917, V. 105 : 23-4. 

The Government's attempt to fix the price of newsprint paper. -July 14, 
1917, V. 105 : 114. 

Price of paper to Government fixed at 21 cents per pound. Sept. 8, 1917, 
V. 105 : 959-60. 

Trade Commission opens to publishers newsprint paper records. Sept. 29, 

1917, V. 105 : 1268. 

Trade Commission on paper prices — Renews recommendation for pooling of 
product. Sept. 29, 1917, v. 105 : 1268. 

The newsprint paper problem again. Oct. 20, 1917, v. 105 : 1563. 

Canadian Government not satisfied with experiment of fixing prices on pa- 
per. Nov. 3, 1917, V. 105 : 1746. 

Seeking Government control of the output of newsprint paper. Jan. 19, 

1918, V. 106 : 222. 

Newsprint paper prices fixed by Federal Trade Commission. June 22, 1918, 
V. 106 : 2613. 

Platinum. 

Platinum commandeered by the Government. Mar. 2, 1918, v. 106 : 880. • 
The commandeering of platinum by the Government. Mar. 9, 1918, y. 

106 : 982. 

Platinum metals commandeered by the Government. May 18, 1918, v. 

106 : 2074. 

■^ Rubber. 

Crude rubber prices fixed by War Trade Board. May 4, 1918, v. 106 : 1853. 
New rubber prices announced. May 18, 1918, v. 106 : 2073. 

Shoes. 

Maximum prices on shoes. Oct. 12, 1918, v. 107 : 1437. 
Abandonment of schedule. Dec. 28, 1918, v. 107 : 2433. 

SlLVEE. 

Control of silver by Government. Nov. 17, 1917, v. 105 : 1938. 

Bill providing for melting of silver dollars and fixing price at $1 an 
ounce. ^ Apr. 13, 1918, v. 106 : 1513. 

Treasury Department's announcement concerning price fixed for silver. Aug. 
24, 1918, V. 107 : 744. 

Sulphur. 

Sulphur control taken over by War Industries Board, .Tuly 13, 1918, v. 
107 : 140. 



882 HISTORY OF PRICES DURING THE WAR. 

Wool. 

Boston wool siipply to be held for the United States. Apr. 7, 1917, v. 
104: 1341. 

New regulations governing wool imports. Jan. 12, 1918, v. 106 : 138. 

Woolen mills called upon to hold looms for Government — Trading in Bos- 
ton stops. Apr. 13, 1918, v. 106:1528. 

Control of Canadian wool exports. May 18, 1918, v. 106 : 2073. 

Other developments in control of wool by Government. May 25, 1918, v. 
506:2180. 

Likelihood of wool shortage refuted by secretary of National Wool Growers' 
Association. May 26, 1918, v. 106:2181. 

Regulation for liandling wool clip. June 8, 1918, v. 106 : 2396, 

Government wool auctions. Dec. 28, 1918, v. 107 : 2431. 

Wool Grease. 

Prices on wool grease. Nov. 9, 1918, v. 107 : 1788. 

Zinc. 

Zinc prices approved by the President. Feb. 16, 1918, v. 106 : 663. 
Zinc prices continued. May 25, 1918, v. 106 : 2182 ; June 1, 1918, v. 106 : 2295 ; 
Aug. 31, 1918, V. 107 : 858. 

ECONOMIC WORLD. 

National Government and regulation. ]Mar. 10, 1917, N. S. v. 13: 327-328. 

Economic difficulties in the way of successful government price fixing, 
July 21, 1917, N. S. v. 14 : 78-79. 

Government's problem of fixing prices. Aug. 11, 1917, N. S. v. 14 : 183-184. 

Concatenation of problems produced by governmental price fixing. Sept. 22, 
1917, N. S. v. 14 : 399-400. 

National Fuel Administrator Garfield on the price-fixing policy of the 
Government. Sept. 29, 1917, N. S. v. 14 : 436-438. 

Putnam, G. E. Government control of food prices as the economist views it. 
1917, N. S. V. 14 : 508-511. 

Gary, E. H. American steel industry, the Government^ and the war. 1917, 
N. S. V. 14 : 616-618. 

Gay, Edwin F. War prices and the problems involved in their control. Dec. 
28, 1917, N. S. V. 14 : 906. 

Anderson, B. M., Prospect of success of Government price fixing in the 
United States. Jan. 5, 1918, N. S. v. 15 : 11. 

Creation of the price-fixing committee under the War Industries Board. 
Mar. 23, 1918, N. S. v. 15 : 409. 

Administration plans for an extension of price fixing. Apr. 20, 1918, N. S. 
v. 15 : 507-508 ; 589-590. 

Both governmental and cooperative price fixing to cease on Jan. 1. Jan. 4, 
1919, N. S. V. 17 : 13. 

FORUM. 

Wheat farmers' dilemma. Sept., 1918, v. GO : 257-266. 

JOURNAL OF POLITICAL ECONOMY. 

Hitchcock, Curtice M. The War Industries Board, its development, organi- 
zation, and functions. June, 1918, v. 26 : 545-567. 

Notz, Wm. World's coal situation during the war, June, 1918, v. 26 : 567- 
612 ; July, 1918, v. 26 : 673-705. 

Hamilton, Walton H. The requisites of a national food policy. June, 1918, 
V. 26 : 612-638. 



GOVERNMENT REGULATIONS RELATING TO PRICES. 833 

POLITICAL SCIENCE QUARTERLY. 

Haney. L. H. Price fixing in the United States during tlie war. Mar., 191S, 
V. 34 : 104-126. 

PUBLIC. 

Jones, F. R. Precedence of copper in price fixing. Aug. 10, 1918, v. 21: 
1013-1016. 

Indictment of price fixing. 1918, v. 21 : 846-848. 

QUARTERLY JOURNAL OF ECONOMICS. 

Blakey, F. G. Sugar prices and distribution under food control. Aug., 1918, 
V. 32 : 567-596. 

Berglund, A. Price fixing in the iron and steel industry. Aug., 1918, v. 32 : 
597-620. 

Eldred, W. Wheat and flour trade under Food Administration control. Nov., 
1918, V. 33:1-70. 

Morse, L. K. Price fixing of copper. Nov., 1918, v. 33 : 71-106. 

Taussig, F. W. Price fixing as seen by a price fixer. Feb., 1919, v. 

33 : 205-241. 

SCRIBNER'S. 

Harger, C. M. Farmer and $3 wheat. 1918, v. 64 : 80-86. 

Payne, John L. Regulation of food prices. Nov.. 1918, v. 64 : 581-580. 

UNPOPULAR REVIEW. 

Means, D. M. Price fixing by Government. Apr., 1918, v. 9 : 312-327 

WORLD'S WORK. 

Price fixing and production. Nov., 1917, v. 35 : 12-13. 

PUBLICATIONS OF A GENERAL NATURE CONTAINING CONTRIBUTIONS TO 
THE BIBLIOGRAPHY OF GOVERNMENT PRICE REGULATION. 

Annalist. 

Congressional Record. 

Journal of Commerce. 

Literary Digest. 

Monthly Review, Department of Labor. 

New York Times. 

Official Bulletin. 

War Trade Board Journal. 

TRADE JOURNALS WHOSE COLUMNS THROUGH 1917 AND 1918 PROVIDE 
PERTINENT REFERENCES TO GOVERNMENT PRICE CONTROL. 

American Fertilizer. 

American Sheep Breeder. 

American Wool and Cotton Reporter. 

Chemical and Metallurgical Engineering. 

Coal Age. 

Engineering and Mining Journal. 

India Rubber World. 

Iron Age. 

Iron Trade Review. 

National Wool Grower. 

Oil, Paint, and Drug Reporter. 

Textile World Journal. 

125547°— 20 58 



PRICE BULLETINS ISSUED BY THE WAR INDUSTRIES BOARD. 



1. Summary. 

2. International price coiuparisons. 

3. Government control over prices. 

4. Pi-ices of foods. 

5. Prices of clothing. 

6. Prices of building materials. 

7. Prices of chemicals. 



8. Piices of feed and forage. 
..M. Prices of wheat and wheat products. 

10. Prices of corn and corn products. 

11. pj-ices of oats, rice, buckwheat, and 

their products. 

12. Prices of barley, hops, rye, and their 

products. 

13. Pi-ices of sn^a rand related products. 

14. Prices of vegetables and truck. 
1.5. Prices of edible vegetable oils. 

16. I'rices of fi-uits, nuts, and wine. 

17. Prices of spices and condiments. 

18. Prices of tea, coffee, and cocoa. 

19. Prices of tobacco and tobacco prod- 

ucts. 

20. F'rices of live stock, meats, and fats. 

21. Prices of poultry and dairy pi'od- 

uets. 

22. Prices of fish and oysters. 

CLOTBTNG. 

23. Prices of cotton and cotton prod- 

ucts. 

24. Prices of wool and wool products. 

25. Prices of silk and silk products. 

26. Prices of hides and skins and their 

products. 

27. Prices of hatters' fur and fur felt 

hats. 

28. Prices of hair, bristles^nid feathers. 

29. Prices of buttons. '^ 

RTTBEER. PAPER, FIBERS. 

30. Prices of rubber ;md rubber prod- 

ucts. 

31. Prices of paper. 

32. Prices of fibers and fiber products. 



33. Prices of iron, steel, and their prod- 

ucts. 

34. Prices of ferroalloys, nont'erroiis 

and rare metals. 

FUELS. 

35. Prices of coal and coke. 

36. Prices of petroleum and its prod- 

ucts. 

37. Prices of mntches. 

BUILDING MATERIALS. 

38. Prices of clay products. 

39. Prices of sand and gravel. 

40. Prices of quarry products. 

41. Prices of cement. 

42. Prices of glass. 

43. Prices of lumber. 

44. Prices of paints ruid varnishes. 

CHEMICALS. 

45. Prices of mineral acids. 

46. Prices of heavy chemicals. 

47. Prices of miscellaneous inorganic 

chemicals. 

48. Prices of fertilizers. 

49. Prices of soaps and glycerin. 

.50. Prices of es.sential oils, flavoring 
and perfumery materials. 

51. Prices of wood-distillation prod- 

ucts, and naval stores. 

52. Prices of natural dyestulfs and 

tanning chemicals. 

.53. Prices of coal-tar crudes, intermedi- 
ates, and dyes. 

54. Prices of drugs and pharniiiceu- 
ticals. 

.55. Prices of proprietary. preparations. 

56. Prices of explosives. 

.57. Prices of miscellaneous organic 
chemicals. 



Copi vs of the above bulletins may be obtained at a nominal price from the 
Superintendent of Documents, Government Printing OflSce, Washington, D. C. 
834 

o 



o 



